Caesar’s entertainment and draft Kings go into partnership

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Maximilian Deininger February 28, 2019

The fantasy sports provider Draft Kings and the casino and hotel operator Caesars Entertainment have announced a strategic partnership. For Draft Kings, new ways of gaining easier access to gambling rights are opening up. As part of the legalization of sports betting in the USA, this is a big step for Draft Kings to one of the upcoming top providers of online sports betting.

Caesar’s entertainment runs numerous world -famous casinos such as the Caesars Palace in LV.

The deal between Caesars Entertainment and Draftkings

Caesar’s entertainment is one of the largest owners of casinos in the USA and has now secured a probably very lucrative source of income. Caesars receives a participation in Draft Kings at a non -mentioned height. Parts of Draft Kings gambling in the USA also go to Caesars.

The deal is also an advantage for Draft Kings. The area of the Fantasy sports can be combined with a sports betting offer in the future. At the same time offers The new design of the sports betting in the USA Of course also a separate offer of bets through Draft Kings. The network that Caesars has built up in its years makes draft kings easier Access to future mobile and online licenses. The deal offers a win-win situation.

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Although the case law varies depending on the state, many jurisdiction allow inpatient casinos to award licenses under the guise of the main license. Draft Kings has already completed such deals with the Atlantic City Resorts Casino Hotel and the DEL LAGO Resort & Casino in New York.

Legal sports betting in eight states so far

The partnership simplifies the process of fantasy sports providers not only on sports betting, but also in other games of chance such as online poker, slots or roulette. Of course, online gambling can only be offered in the states that allow it. In the next few years, many will certainly be added to the existing states.

So far are Legal in eight states of sports betting. However, more than a dozen check the legislation this year. Gradually, a huge market is not only free for Draft Kings. The research company specializing in gambling Eilers & Krejcik Gaming estimates that The industry by 2023 a turnover of $ 6.5 billion could achieve. Of course, this also depends on the legislation.

Deal despite competition on the sports betting market?

Shortly after the Supreme Court 2018 decision, the fantasy sports provider has already established itself on a “small” market. In addition to Fan Duel Inc., also started with fantasy sport, is Draftkings The currently largest online provider for sports betting in New Jersey. With its 37 properties in 14 states, Caesar’s entertainment is primarily focused on the inpatient market. However, the company reserves the right to offer online sports betting under its own brand and offer sports betting apps. This also applies to the states in which Caesars provides his help with market access for Draft Kings.

In addition, the company’s efforts show that the area of sports betting for Caesars is not completely uninteresting. The chain recently became First casino partner of the NFL And the sponsoring contract costs around $ 30 million a year. Nevertheless, due to the shares that Caesars holds in Draft Kings, it is probably not to be expected to have a greater potential for conflict. It makes sense to be represented with several brands anyway to achieve a wider clientele.

Due to the expertise in the area of online betting and software solutions as well as the s of Draft Kings, other advantages for Caesars can come into play. It is therefore not surprising that the casino company is said to have been the initiator of the deal. For Draft Kings there is still the possibility, for example the Fantasy sports area at live events in the casino locations of Caesars to promote.

With Fantasy Sport, Draft King’s estimates makes around $ 30 million sales a year. The start fees that the participants pay for the leagues or competitions are largely distributed as prize money. About ten percent go to the provider. Compared to the estimated $ 6.5 billion industry sales The income from sports betting will probably clearly put the fantasy sports revenue in the shade.

The only question is how quickly this will happen. This in turn depends on the decisions about the legalization of sports betting of the individual states. Draft Kings has also been represented in USA with his fantasy sports concept for two years. Until the provider can also offer sports betting in this country, however, due to the complex gambling laws, a few more years will pass.