Caesars And DraftKings Agree To Multi-Year Sports Betting Deal

DraftKings and Caesars Entertainment agreed to a multi-state, multi-year partnership yesterday which would allow for DraftKings to tap into Caesars’ gambling market.

According to a press release from Caesars, the deal includes the ability for DraftKings to operate the online and mobile gambling platforms in states where Caesars has a casino.

Caesars will still be able to offer their own sports betting apps while being labeled the official casino resort partner of DraftKings. Caesars will also receive equity in DraftKings.

What It Means For Caesars

Caesars is continuing their steadfast approach to topping the sports betting market after recently announcing their agreement with the NFL to become the league’s official casino sponsor.

The entertainment company also has a lounge with their name on it in the Prudential Center, home of the New Jersey Devils.

Caesars’ equity amount in DraftKings has not been released but through similar deals, it is likely to be a worthwhile investment. Previous deals of this nature have seen August Boyd Gaming Corporation receive 4% equity in FanDuel while Eldorado Resorts received 20% equity in William Hill.

According to Mark Frissora, President and CEO of Caesars Entertainment, the overall the goal is to, “Bring together the established leaders in gaming, daily fantasy sports and sports betting to provide customers more options.”

From The DraftKings POV

This is not the first instance of DraftKings making a major move in the sports betting world, as their sportsbook in Resorts Casino Atlantic City has led the state in mobile betting revenue every month.

The movement towards online gaming is only growing as nearly 80% of wagers made in New Jersey this January were made through an online platform.

“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, Co-Founder of DraftKings.

Pairing with Caesars, who operate 37 properties throughout 14 states, will not affect their previous relationships but only foster growth in the near and distant future.

DraftKings is most looking forward to the expansion of online gambling in Pennsylvania, which is expected to launch around the end of summer.

Further down the line, DraftKings will tap into upcoming legal sports betting markets in Indiana, Illinois, and Maryland as well as states like Iowa and Louisiana.

Eight states have a regulated up-and-running industry, while ten have passed legislation in total. As more states move through the process, Eilers & Krejcik Gaming believe the sports betting market will reach $6.5 billion from a revenue standpoint alone by 2023.