Two of the gambling industry’s biggest names, Caesars Entertainment and DraftKings, are entering into a multi-state partnership that means Caesars will offer DraftKings’ market access for its online gaming products. In short, the deal should pave the way for DraftKings to obtain online and mobile gaming rights in states where Caesars owns casino properties and the law permits. Including Pennsylvania.
Here’s DraftKings CEO and Co-Founder Jason Robins on the impact of the deal via a company press release:
“Partnering with such a world class gaming organization will expedite our national roll-out process and give us the opportunity to work alongside one of the largest and most established industry leaders in the world.”
While the deal should make it easier for DraftKings to offer its products to states that ultimately green-light online gaming, Caesers receives an undisclosed equity stake in the company and retains the right to offer its own branded sports betting apps.
The deal should be of particular interest to Pennsylvania resides waiting for the state to offer online gaming. DraftKings, which partnered in New Jersey with Resorts Casino and Hotel, has been the state’s most successful online sportsbook to date since its launch last August, but had previously been without a similar partnership in Pennsylvania– one that is required for a third-party to offer an online betting app in the state. While no official plans have yet been announced, it seems like a safe bet that DraftKings will partner with Harrah’s Philadelphia, a Caesars Entertainment company, to enter the state’s online sports gaming market sometime later this year.
We reached out to DraftKings for comment on this and haven’t heard back yet. Caesars may prefer to use the Harrah’s brand in PA, but that would seem counterintuitive given the strong brand recognition of DraftKings among sports fans. To date, casino-branded apps in New Jersey haven’t come close to DraftKings and FanDuel in terms of revenue.
So far, SugarHouse and Parx are expected to launch their own branded sportsbook in Pennsylvania in the coming months. FanDuel has entered into a partnership with Valley Forge Casino and Resort to do the same. But DraftKings had yet to have a partner. Now they have a big one, that will afford them entry into other markets as well. Big deal here.
For more on Pennsylvania sports betting, and when it will go live, visit our complete PA sports betting guide.
Confirmation here that DraftKings does not yet have a path into Pennsylvania. It has a deal with Penn National in WV, which could provide a path into PA… https://t.co/yrHwwUU6F0
— Dustin Gouker (@DustinGouker) February 26, 2019
A deal between @DraftKings & @CaesarsEnt will see the top online betting operator in New Jersey gain market access in Illinois, Indiana and other states. But the deal does not include access to Pennsylvania. @GamblingComp https://t.co/mHathS8Vy9
— Chris Sieroty (@sierotyfeatures) February 26, 2019