DraftKings & Caesars deal means access to new markets

DraftKings and Caesars Entertainment have penned a deal that will see them go into partnership in a number of jurisdictions within the US as and when regulation is passed.

The deal gives DraftKings access to all territories where Caesars have a land based property, some of which will be on an exclusive basis.

Caesars have the option to continue their own separate apps in these states where they already have a presence without giving any % to DraftKings.

As part of the deal, DraftKings will promote Caesars as its official resort partner in markets where they have a collaboration and Caesars will also receive an equity stake in DraftKings.

“Caesars’ agreement with DraftKings, their first multi-state partnership, brings together the established leaders in gaming, daily fantasy sports and sports betting to provide customers more options,” said president and chief executive of Caesars Entertainment Mark Frissora. “This alliance is the latest initiative by Caesars to capitalise on our database, generate a new revenue stream in a growth market and raise our profile in sports, in part by creating new sports-themed guest experiences at our resorts across the country.”

DraftKings CEO and co-founder Jason Robbins agreed it was a good deal for both parties. “Partnering with such a world class gaming organisation 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 on creating the most innovative and engaging sports and entertainment products and events for our customers.”

DraftKings has found significant success since branching out from its initial beginnings as a simple DFS site.

They launched a Sportsbook last August in New Jersey that has recorded the largest mobile revenues of any operator licenced there each month since as well as leading the way in Daily Fantasy Sports in Pennsylvania last month despite overall takings for the industry decreasing.

They also entered into a live dealer partnership with Evolution Gaming back in January which they will expect the see the profits from soon.

Caesars have also been busy in terms of partnerships, launching a Sportsbook in partnership with Scientific Games in Pennsylvania last month on top of securing a partnership with the Oneida Indian Nation in New York ahead of the possible legalisation of sports betting.