Casino operator Caesars Entertainment Corporation and sportsbook firm DraftKings have reached an agreement under which the former will offer the latter market access for its online gaming products, subject to passage of applicable laws and the parties securing applicable gaming licenses. DraftKings’ market access is exclusive to Caesars across certain states in which Caesars operates casino properties.
Under the terms of the deal, DraftKings will promote Caesars Entertainment as its official casino resort partner in the states where the companies collaborate, and Caesars Entertainment will receive DraftKings equity. Caesars can also continue to offer its own branded sports betting and online casino apps in each of these jurisdictions – and will maintain its own primary access in all states according to regulation as decreed by the agreement.
Mark Frissora, President and CEO of the casino firm, explained: “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. This alliance is the latest initiative by Caesars to capitalize 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.”
First to market in New Jersey with the launch of its sportsbook in August of 2018, DraftKings has led the state in mobile sports betting revenue every month. In January 2019 mobile sports betting accounted for nearly 80 percent of the total sports betting revenue in New Jersey.
“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. “We look forward to collaborating with Caesars Entertainment on creating the most innovative and engaging sports and entertainment products and events for our customers.”