Caesars Puts Stake In Online Betting Co DraftKings

Caesars Entertainment announced that it has reached an agreement to offer DraftKings, the leading sports-tech entertainment brand in the country, providing market access for its online gaming products.

The access is exclusive to Caesars locations across select states where the company operates casino properties.

“Caesars’ agreement with DraftKings — [its] first multi-state partnership — brings together the established leaders in gaming, daily fantasy sports and sports betting to provide customers more options,” said Mark Frissora, president and CEO of Caesars Entertainment, in a press release. “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.”

Founded in 2012, Boston-based DraftKings offers daily fantasy sports contests across 11 professional sports and in eight countries, including the U.S., Canada, U.K and Australia. In New Jersey and Mississippi, DraftKings Sportsbook mobile and retail allows players to bet for major U.S. and international sports, pursuant to state rules and regulations.

“Partnering with such a world-class gaming organization will expedite our national rollout 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.”

As part of the deal, DraftKings will promote Caesars as its official casino resort partner in the states where the companies collaborate, while Caesars will receive DraftKings’ equity. In addition, Caesars can continue to offer its own sports-betting and online casino apps in each of these states, and will maintain its own primary access in those locations.

The deal is subject to passage of applicable laws, and both parties need to secure applicable gaming licenses.