Caesars, DraftKings Forge Multiyear Sports Betting Partnership

Casino giant Caesars Entertainment Corp. and fantasy sports turned sportsbook operator DraftKings Inc. announced on Monday that they have forged a partnership that will smooth the latter’s way into a number of new jurisdictions

Under the terms of the deal, Caesars has obtained an undisclosed equity stake in DraftKings. The Las Vegas gaming and hospitality powerhouse will also receive a share of the revenue generated by DraftKings in the states where their partnership is in force. The largest US casino operator, Caesars currently manages nearly 40 properties in 13 states.

DraftKings, originally a daily fantasy sports operator, ventured quickly into the US sports betting space, following last year’s strikedown of a long-standing federal ban on wagering by the nation’s Supreme Court.

The company entered the New Jersey gambling market shortly after the state legalized sports betting. DraftKings quickly became the state’s largest online gambling operator, along with rival FanDuel.

DraftKings was able to enter New Jersey’s gambling market through a partnership with Atlantic City’s Resorts Casino Hotel. It also provides sports betting services in Mississippi.

The partnership with Caesars will certainly make it easier for DraftKings to expand its sports betting footprint across the US. The operator will still need to obtain a license from the regulators of states where wagering is legal, but having access to Caesars’ physical gaming establishments will certainly make the process smoother.

Official Casino Resort Partner

Under the terms of the deal, DraftKings will promote Caesars as its official casino resort partner in states where the two companies are present. Caesars will be able to continue running its own online casino and sports betting operations.

Despite being among the leaders in the provision of sports betting in the nascent regulated market of the United States, DraftKings does not operate physical sportsbooks. While regulations in different states vary, working in partnership with a land-based casino is a key requirement in some of the jurisdictions where sports betting is legal. Its partnership with Caesars will certainly facilitate DraftKings’ entry into states where the Las Vegas casino giant operates land-based properties.

Commenting on the newly-penned deal, Jason Robins, CEO and co-founder of DraftKings, said in a Monday press release that partnering with Caesars will “expedite [their] national roll-out process and give [them] the opportunity to work alongside one of the largest and most established industry leaders in the world.”

Since the federal sports betting ban was annulled last spring, Caesars has been working actively to form key partnerships and secure extended brand exposure within the nation’s growing regulated sports betting field. Earlier this year, the company became the first casino sponsor of the National Football League. And last fall, Caesars partnered with Prudential Center in Newark, New Jersey to open the Caesars Club at the multi-purpose arena, known to be the home venue of the New Jersey Devils hockey team.

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