Caesars and DraftKings seal extensive market access deal
DraftKings has agreed a multi-year partnership with Caesars Entertainment that will give the operator access to a number of state gambling markets as and when regulation is passed.
This will allow DraftKings to enter markets in which Caesars operates land-based casino properties, on an exclusive basis in certain territories. Caesars may continue to offer its own branded sports betting and online casino apps in each of these states, as well as maintain its own primary access in all of these jurisdictions.
Caesars will receive an equity stake in DraftKings in return for the route into new state markets, with the operator to also promote Caesars as its official casino resort partner in markets where the companies collaborate.
“Caesars’ agreement with DraftKings, their first multi-state partnership, brings together the established leaders in gaming, daily fantasy sports and sports betting to provide customers more options,” Caesars president and chief executive Mark Frissora said.“This alliance is the latest initiative by Caesars to capitalise on our database, generate a new revenue stream in a growth market and raise our profile in sports, in part by creating new sports-themed guest experiences at our resorts across the country.”
DraftKings CEO and co-foudner Jason Robins added: “Partnering with such a world class gaming organisation will expedite our national roll-out process and give us the opportunity to work alongside one the largest and most established industry leaders in the world.
“We look forward to collaborating with Caesars on creating the most innovative and engaging sports and entertainment products and events for our customers.”
Having originally established itself as a daily fantasy sports operator, DraftKings has experienced huge success since expanding out of this sector, following the repeal of PASPA in the US.
The operator launched its DraftKings Sportsbook in New Jersey last August and has led the state in mobile betting revenue every month since. DraftKings also ranked first in terms of fantasy sports revenue generated in Pennsylvania last month, despite overall revenue falling in the state’s market.
DraftKings has also been seeking to expand its service offering further, having last month entered into a live casino partnership with Evolution Gaming.
Caesars has also been busy since last year’s Supreme Court decision on PASPA, entering into partnerships across the US as it seeks to capitalise on the growing market.
Last month, Caesars launched a sportsbook at Harrah's Philadelphia Casino and Racetrack in Pennsylvania via a partnership with Scientific Games. The company also recently secured a partnership with the Oneida Indian Nation in New York, in anticipation of the state legalising sports betting.