Caesars Takes Equity Part in DraftKings

DraftKings, a daily fantasy sports provider from Boston, MA has entered into an official agreement with Caesars Entertainment, an American gaming corporation from Las Vegas that only recently launched a brand-new outlet in the state of Pennsylvania.

The sports betting arrangement actually represents Caesars’ first “multi-state partnership” as it acquires an equity stake in one of the best DFS companies across the United States. According to the report, the largest gambling company in the world will gain access to sportsbook’s online gambling products and become its “official casino resort partner,” of course, only in those states where local legislation allows collaboration between sports betting shops and casino operators.

In addition, the operator from Las Vegas, Nevada will retain the exclusive right to offer its branded sports betting products, as well as to receive a “share of DraftKings” proceeds.

Keeping Up The Pace With Rivals

Since the overturn of PASPA, back in May 2018, many sports betting companies entered the race to provide the best possible gaming solution to online casinos, including MGM Resorts, William Hill, The Stars Group and GVC Holdings.

Jason Robins, DraftKings CEO, said that forming a partnership with one of the largest gambling corporations in the US will “expedite the company’s national roll-out process” since collaborating with Caesars should bring the most innovative and engaging new products to the vertical.

Mark Frissora, president and CEO of Caesars Entertainment, added:

“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.”

Strategic Expansion to 14 Markets

According to Christian Stuart, executive VP for gaming and interactive entertainment at Caesars’, the main motive behind this collaboration is DraftKings’ preference towards expansion. Stuart reminded that the gambling conglomerate operates in 14 states, and that its recently published financial report for Q4 2018 revealed an income of $2.12 billion.

However, the numbers have been increased due to the contributions of two new properties in Indiana, and the additional boost from so-called “Trump’s tax breaks.”

Robins also concluded the partnership by issuing a statement:

“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.”

DraftKings holds daily fantasy contests in eight countries worldwide, including US, Canada and Australia.

Source:

“Caesars Entertainment Enters into Multi-State Agreement with DraftKings”, caesars.com, February 26, 2019.