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DraftKings Sportsbook Awarded New Hampshire Lottery Contract

The New Hampshire State Executive Council voted on Nov. 25 to contract with DraftKings as the state’s sole retail and mobile sports betting operator. The exclusive six-year contract provides for the Boston-based company to operate at least four and no more than 10 retail sportsbooks.

Selected from 13 proposals, which included bids from Kambi, FanDuel and William Hill, DraftKings offered the best financial package, the highest-rated mobile sports betting app and the fastest implementation timeline, according to a lottery press release.

DraftKings agrees to pay New Hampshire Lottery 50% of its gross retail sports betting revenue and 51% of its gross revenue from mobile operations as long as it maintains a digital monopoly in the state. Should New Hampshire decide to go with the state’s legal quota of up to five mobile sports wagering operators, the lottery’s share of DraftKings mobile profits would drop to 21%.

Governor Chris Sununu said that the state’s goal is for DraftKings mobile sportsbook to be up and running in time for the NFL 2020 Super Bowl. Retail locations for sports betting are expected to launch by late winter or early spring.

In a press release, Gov. Sununu said, “We moved fast to get this done, and the deal is a win for New Hampshire. We are partnering with a world-class company to provide a first-rate customer service experience. With [Monday’s] vote, everyone will now be able to bet on Tom Brady and the New England Patriots in time for this year’s Super Bowl.”

The contract includes the possibility of two additional two-year extensions. DraftKings plans to open an office in the state in order to work more closely with lottery staff.

The lottery’s current contract with its technology provider, Intralot, was also amended to include providing sports betting products through the New Hampshire Lottery system already in place. Intralot agrees to pay the lottery 19.25% of its gross gaming revenue.

New Hampshire Legal Sports Betting Background

Gov. Sununu signed legislation authorizing retail and mobile sports wagering products in July 2019. The Granite State is the second New England state to legalize sports wagering. Rhode Island launched retail sports betting last year and mobile operations in September.

Voters in individual New Hampshire communities will ultimately decide the locations of retail DraftKings sportsbooks. The cities of Berlin, Claremont, Franklin, Laconia, Manchester and Somersworth have already voted in favor of sportsbooks in local elections held earlier this fall.

Additional New Hampshire towns will be able to decide whether or not to put the issue to a vote in their communities this spring.

Sports betting legislation named the newly created Division of Sports Wagering within the New Hampshire Lottery as overseer. Wagers on New Hampshire college teams, or any college sporting events that take place in the Granite State are prohibited. Players must be 18 or older to wager.

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