DraftKings and Caesars Casinos Lock Arms Forming a Potentially Powerful Partnership in the US Sports Betting Industry
The whirlwind of activity around legalized sports betting has been America has been swirling. It whipped up a huge gust on Monday afternoon when casino-giant Caesars Entertainment Corporation inked a multi-state deal with daily fantasy sports leader DraftKings.
Both companies have been aggressively pursuing various partnerships to shore up their interests. DraftKings and Caesars are clearly focused on building a rock-solid foundation as a leader in the sports betting community, if not the undisputed top dog.
The original king of the DFS world is now a primary player in this newly developed age of sportsbooks. This news is more than just a partnership between two of the most visible entities on both sides of the US gambling discussion.
This is far more than just an agreement to have a working interest towards a common objective. Caesar's actually receives a stake in DraftKing's casino operations. With this partnership also comes an attachment to a widely-popular and well-known commodity in the sports gaming industry.
Caesar's stake in DraftKings, added to recent deals with Turner Broadcasting and Bleacher Report, plus another partnership with professional football, immediately stakes Caesars claim to possibly the most prominent player in the sports betting picture.
This combination of joint-ventures by Caesars are certainly in no small measure designed to counteract multiple partnerships by MGM Resorts and the other major sports leagues. These agreements include many less-publicized arrangements signed between both casino companies and individual teams.
Linking up with one of the most visible casino industries in the world will provide immediate gain for DraftKings. The Boston-based sports entertainment venture will be able to hold live events at Caesar locations within the states that this agreement is active.
This opportunity is of vital interest to DraftKings. By racing out ahead of the competition and using their huge fan base, DraftKings quickly took a lead role in New Jersey's mobile sports betting market.
The importance of this agreement cannot be ignored. There are literally billions to made in the sports betting industry, and DraftKings ability to stay out in front of the competitors is certainly going to prove lucrative.
The Bottom Line
The bottom line for this mutually beneficial collaboration is exactly that; the bottom line. Both of these entities are established in their industry. Caesars Entertainment controls over 40 individual locations across 13 prominent sports betting states. DraftKings has a base of an estimated 10 million fans.
Being affiliated with a company like Caesars, will open opportunities they may have otherwise found both difficult and costly to pursue. The bottom line on what this means for both these aspiring players in the burgeoning world of sports betting is simple, they're both looking at the bottom line.