UPDATE: Since the announcement yesterday, Caesars has clarified that this new deal does not include a partnership in Pennsylvania.
An agreement with Caesars Entertainment was announced on Monday. As part of the deal, DraftKings gains market access to states in which Caesars operates. That includes Pennsylvania, where Harrah’s Philadelphia is alive and well.
As such, DraftKings has an avenue to roll out its online gaming products in Pennsylvania, including introducing its successful sportsbook to the PA sports betting market.
Per the agreement, DraftKings’ entry into states in which Caesars has casino properties depends on the company securing the applicable gaming licenses. For Pennsylvania, that means applying for and receiving iGaming and sports wagering operator licenses. Additionally, the two groups would need an agreement that DraftKings is the primary brand in the state, as there are no skins in the state for sports betting.
It is possible Caesars may need to present its revised sports betting plans to the Pennsylvania Gaming Control Board (PGCB). At the time of this writing, however, the PGCB has yet to respond to Playin Pennsylvania’s inquiry.
DraftKings moving on to PA
DraftKings Sportsbook debuted in New Jersey last August. It was the first online sports betting product introduced to the state. Since that time, the state’s leading mobile sportsbook has generated $37,323,647 in revenue. Mark Frissora, president and CEO of Caesars Entertainment, elaborated in the release:
“Caesars’ agreement with DraftKings, their first multi-state partnership, brings together the established leaders in gaming, daily fantasy sports and sports betting to provide customers more options. This alliance is the latest initiative by Caesars to capitalize on our database, generate a new revenue stream in a growth market and raise our profile in sports, in part by creating new sports-themed guest experiences at our resorts across the country.”
Jason Robins, CEO and cofounder of DraftKings, added:
“Partnering with such a world class gaming organization will expedite our national roll-out process and give us the opportunity to work alongside one the largest and most established industry leaders in the world. We look forward to collaborating with Caesars Entertainment on creating the most innovative and engaging sports and entertainment products and events for our customers.”
More on Caesars + DraftKings deal
DraftKings will promote Caesars Entertainment as its official casino resort partner in states where the two companies collaborate. For its part, Caesars will also receive equity in DraftKings.
Caesars will continue to offer its own branded sports betting and online casino products, according to the release. The company will also “maintain their own primary access in all states according to regulation under the agreement.”
Additionally, DraftKings will reportedly have access to host events at Caesars casinos. In turn, Caesars gains access to DraftKings’ database of 10 million customers.
Assuming DraftKings indeed launches its online sportsbook in Pennsylvania, it would work with Harrah’s. The casino opened its Philadelphia sports betting operation in January. Though only operational for just over a week, the sportsbook still collected $615,704 in wagers with gross revenue of $103,569.
DraftKings and FanDuel again go head to head
Since summer 2018, DraftKings and FanDuel have battled for sports betting supremacy in New Jersey.
In due time, DraftKings and FanDuel might reprise their sports betting rivalry in Pennsylvania.
FanDuel Sportsbook expects to enter the retail PA sports betting industry in time for March Madness. The group has partnered with Valley Forge Casino Resort to offer regulated wagering. Certainly, FanDuel will roll out an online sports betting product after Pennsylvania gives the OK. To begin with, though, it will have a FanDuel-branded retail sportsbook on the casino floor.
DraftKings and FanDuel have combined for nearly 85 percent of online sports betting revenue in New Jersey since launch. Both are looking to continue their sports betting dominance as they prepare to enter Pennsylvania.
