Casino operator Caesars Entertainment has agreed to a multi-year, multi-state partnership with DraftKings. The agreement allows DraftKings to offer its online and mobile betting products in certain states where Caesars owns a casino and sports betting is legalized.
Caesars will receive equity in DraftKings as part of the deal while DraftKings will advertise Caesars as its official casino resort partner in states where the companies collaborate. Caesars currently operates 42 casinos across 13 U.S. states. DraftKings and Caesars released a joint press release on Monday announcing the partnership, but the release did not detail which specific states DraftKings will be expanding into.
“Partnering with such a world class gaming organization 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,” said Jason Robins, CEO and Co-Founder of DraftKings, in the press release. “We look forward to collaborating with Caesars Entertainment on creating the most innovative and engaging sports and entertainment products and events for our customers.”
Since DraftKings debuted its online sportsbook in New Jersey in August, the company has led the state in mobile sports betting revenue every month. This past December, DraftKings launched its online sportsbook in West Virginia. DraftKings’ new agreement with Caesars does not restrict Caesars from continuing to offer its own branded sports betting and online casino apps in states where DraftKings may also have a presence, according to the press release.
“This is definitely a deal that DraftKings needed to do as there were serious questions about how they were going to gain access in states like Illinois and Indiana,” said Chris Grove, managing director at gaming research firm Eilers & Krejcik, according to The Las Vegas Review-Journal.
SportTechie Takeaway
In exchange for an undisclosed amount of equity, this deal allows DraftKings to leverage Caesars’ existing presence in states DraftKings wishes to expand into. DraftKings should now be able to launch its product faster than competing online sportsbooks in states that eventually legalize sports betting. Caesars has been aggressively expanding its reach in the nascent sports betting space this year, becoming the NFL’s first-ever casino partner and signing a sponsorship deal with Turner Sports to produce betting-related content.