DraftKings, Caesars Entertainment Reach Multistate Mobile Sports Betting and Online Gaming Partnership
Posted on: February 26, 2019, 09:55h.
Last updated on: February 26, 2019, 09:55h.
DraftKings is giving Caesars Entertainment an equity position in the interactive gaming tech company in exchange for the right to be the casino operator’s mobile sports betting and online gaming provider in certain states.
The two companies announced the multiyear, multistate partnership on Monday. Financial terms were not disclosed, but Caesars says DraftKings will become its online gaming products supplier where permitted.
Caesars becomes the third casino operator to gain equity in a mobile sportsbook company since the US Supreme Court overturned the federal sports betting ban last May.
DraftKings will promote Caesars as its official casino resort partner. Christian Stuart, Caesars’ executive vice president for gaming and interactive entertainment, revealed to the Las Vegas Review-Journal that DraftKings will hold at least five events at Caesars properties each year.
Global Market Advisors’ Brendan Bussmann said the goal is to bring sports fans and bettors to Caesars’ casinos, and not only wager on the game, but also spend money on drinks and food, and ideally – gamble.
Market Access Race
Nine states have passed laws since the May SCOTUS repeal to authorize full-scale sports betting.
Along with Nevada, Caesars operates casinos in three of the new sports wagering states: New Jersey, Pennsylvania, and Mississippi. But DraftKings already operates land-based sportsbooks in Mississippi and New Jersey, and mobile betting as well in the latter.
However, Caesars has additional casinos in several states considering sports betting including Illinois, Indiana, and Maryland.
Since regulating sports betting became a state issue, DraftKings and daily fantasy sports (DFS) rival FanDuel both transitioned into sports betting-focused entities. With a large customer database and strong brand recognition among sports fans due to the barrage of DFS commercials in 2016 and 2017, casino operators are betting on partnering with the two online networks for mobile sports wagering.
Caesars CEO Mark Frissora said aligning with DraftKings will “raise our profile in sports” and create “new sports-themed guest experiences at our resorts across the country.”
Caesars is working hard to better familiarize its brand with the sports world. The company is the “official gaming partner” of the NFL, though it won’t be permitted to advertise its sports betting products during league games. Caesars will have a strong presence at the forthcoming Raiders stadium in Las Vegas and offer its most loyal customers access to its branded “Owners Suite” on the 50-yard line.
DraftKings King in New Jersey
Mobile betting takes far more sports wagers in New Jersey than in-person. The state’s Division of Gaming Enforcement (DGE) reports that of the $1.247 billion in bets placed in 2018, 62.5 percent – or $780.6 million – were made remotely from within the jurisdiction’s borders.
DraftKings runs Resorts’ Atlantic City land-based sportsbook, and additionally operates online. The internet site was the first in New Jersey to accept mobile sports wagers.
No internet sportsbook generated higher handle than DraftKings last year. The provider reported that sports wagering revenue totaled more than $30.4 million in 2018. The company won another $657,500 at Resorts.