Daily fantasy turned sportsbook operator, DraftKings, has secured a landmark deal with casino giant Caesars, giving it access to a quarter of the US population.
In some of the 12 states that Caesars currently operates casinos, the deal gives DraftKings exclusive rights, but Caesars will still be able to offer its own-branded sports betting and online casino apps.
Caesars president and CEO Mark Frissora said the deal was “their first multi-state partnership” and “brings together the established leaders in gaming, daily fantasy sports and sports betting to provide customers more options.”
The deal is big step for DraftKings, whose sportsbook in New jersey is still the market leader in New Jersey, since it launched there last summer – affording it market access in the US (90 million citizens) commensurate to its traditional rival, FanDuel (115 million).
DraftKings CEO Jason Robins said the pact would “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.
The finer details of the partnership are unknown but, according to Chris Grove, managing director at Eilers & Krejcik Gaming, “based on previous deals and the rumoured $1.5bn valuation currently attached to DraftKings,” it will likely see Caesar’s take a “single-digit” equity stake. While a revenue share “in the 10 percent to 20 percent range seems about right,” he added.
Furthermore Grove suggested the deal will likely result in DraftKings launching a retail sportsbook in Nevada ahead of FanDuel, as FanDuel’s deal with Boyd excludes Nevada, “and Caesars has any number of properties where a marquee DraftKings sportsbook could live.”