One of the biggest brands in gaming, Caesars Entertainment, has locked up a multistate deal with the leading name in daily fantasy sports (DFS), DraftKings.
Announced on February 25, the deal will see DraftKings piggyback off of Caesars presence in states across the US. In return for access to markets where it currently has live gaming interests, Caesars will receive an equity stake in DFS operator.
Caesars will also be listed as an official partner of DraftKings and enjoy promotional rights across its network.
Caesars to Take DraftKings into New Territories
By striking up a mutually beneficial relationship, DraftKings and Caesars will gain access to new playerpools and, in turn, new betting markets. Indeed, as part of the deal, the latter will not only get to offer sports betting in selected regions where Caesars is already active but any future licenses it obtains.
Given the gravitas of the Caesars Entertainment brand, this should significantly enhance DraftKings’ reputation and, more importantly, presence in states across the US.
To preserve its own sports betting interests, Caesars will retain the right to offer its own branded platforms where DraftKings is active. What’s more, it will continue to provide casino gaming and hold primary access in all regulated jurisdictions.
Aside from benefitting both companies, the link-up is necessary to stay competitive. As the US sports betting scene evolves, more companies are finding ways to share resources, credentials and experience.
Collaborations a Positive Sign of the Times
Earlier in February, Digital Sports Tech (DST) launched its NBA in-play prop bets software. Available as an add-on for sportsbooks, the software is an example of how suppliers and operators can work in unison to offer the latest betting options.
Similarly, Colossus Bets recently announced its intention to offer cash outs for US horse racing. Again, this technology will be available to race tracks and sports betting operators in states with active regulation.
With mergers, licensing deals and partnerships becoming the norm, Caesars and DraftKings have jumped on the bandwagon. For US sports betting as a whole, this wave of innovations should be seen as a positive.
Collaborations and crossovers are common in Europe where sports betting has been operating successfully for decades. Although the US sports betting has a number of wrinkles to iron-out before it runs as smoothly as its transatlantic counterpart, the latest innovations are certainly encouraging.