DraftKings has signed up a new sports betting partnership with Caesars Entertainment in a bid to claw an even bigger share of the US betting market.
DraftKings Launches Itself into Sports Betting Deal with Caesars
Caesars Entertainment is one of the best-established brands in the United States. From championing online poker in places like New Jersey, to raking in solid year-over-year casino results, Caesars has been an exemplary business.
Relying on that reputation, Caesars has inked a multi-year, multi-state agreement with DraftKings, looking to expand across state borders in the face of the gathering storms occasioned by DoJ’s newly-reversed Opinion.
The pair will seek to consolidate their land-based and online presence, drawing synergies from their respective offers. In the official press release, DraftKings CEO Jason Robins highlighted the potential:
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. We look forward to collaborating with Caesars Entertainment on creating the most innovative and engaging sports and entertainment products and events for our customers.
Opportunity for Multi-State Partnerships
DraftKings and Caesars have a strong standing across the United States. Caesars currently runs sports betting operations in some of the main hubs in the US, including New Jersey, Nevada, and Pennsylvania. Despite some recent internal turbulences, Caesars is committed to expanding the company’s footprint.
Meanwhile, DraftKings is the highest-earning sportsbook in New Jersey where it has been leading the way in terms of total handle and revenue.
New Jersey’s 9 million people have proven to have a distinct flair for sports bets, but DraftKings is now expanding into Nevada, which is admittedly only 1/9 the size of New Jersey in terms of total punters.
The pair will focus on breaking multiple high-end products, including:
- iGaming products
- Daily fantasy sports
- Traditional sports betting
Mississippi’s burgeoning sports betting industry is also another place where Caesars has strong ties. If DraftKings manages to replicate its success model in other states, it will certainly see immediate benefits from its partnership with Caesars.
A Return in a Time of DOJ’s High Fever
One particular state of interest would be Pennsylvania where DraftKings can enter and start fresh as soon as casinos begin offering odds on sports contests. This should happen ahead of the summer.
Caesars and DraftKings are yet to make an official statement detailing which states will be included in their partnership. The most logical course of action would be to seek synergies between individual states as well, although this might be hindered by a new threat.
DoJ’s Office of Legal Counsel overturned a previous reading of the Wire Act in January, 2019, with Deputy Attorney General Rod Rosenstein signing the new Opinion into law.
What can it mean for DraftKings and Caesars?
That solely depends on the terms the two companies would seek to establish between themselves. For the most part, DraftKings should be in the clear unless it looks into ways to create a shared-liquidity pool with other states where it operates, which will be a growingly tempting idea as it expands across the U.S.