Gambling giant Caesars Entertainment recently announced that it has signed a deal with the daily fantasy sports giant DraftKings. The deal will result in Caesars getting an equity stake in the fantasy sports company and will result in a partnership concerning online gambling and sports betting.
The companies confirmed the partnership earlier this week and gave the public a sneak peek into the deal. Caesars will give DraftKings access to its online casino products, while DrafKings will promote Caesars as its official casino resort partner. Caesars will also have access to DraftKings’ customer pool in all states where Caesars is present. Caesars will also get an equity stake in DraftKings and a share of DraftKings revenue where they both operate.
The partnership is seen as a win-win for both sides. Caesars CEO Mark Frissora thought that it was a great way for Caesars to offer new sports betting experiences at its casino venues and also provide their 55 million large customer pool a new option of sports betting. DraftKings CEO Jason Robins was also very positive about partnering with a world-class organization like Caesars to help with the fantasy sports giant’s national rollout.
Beneficial to Both Sides
This is a strategic partnership that will allow both companies to further expand their operations. DraftKings, which is already a major player in the online sports betting market, needs physical locations if it wants to break into the sports betting nationwide. Caesars owns 37 properties across 14 states and access to that will make it more competitive.
This is important because GVC Holdings, DraftKings’ main rival, has signed a similar deal with MGM Resorts. Two other competitors William Hill and Stars Group have made a deal with Eldorado Resorts. With its Caesars partnership, DraftKings can now offer sports bets at any Caesars location.
Christian Stuart, executive VP of Caesars, said that Caesars was very impressed with how DraftKings performed in the sports betting market. Currently, there are plans for DraftKings to hold a minimum of five events at Caesars properties
Caesars is also planning to become more active in the newly legalized sports betting industry. The company recently signed with the NFL to become its first casino partner for an annual fee of $30 million a year. It also has a new branded lounge in the Prudential Center, which is the home of the New Jersey Devils hockey team.
