• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Breaking Down The Caesars-DraftKings Partnership: Something For Both Companies

Robert Mann by Robert Mann
February 26, 2019
in Industry
caesars entertainment draftkings
Share on FacebookShare on Twitter

There’s little mystery and less surprise about Monday’s announcement that Caesars Entertainment, one of this nation’s largest casino operators, is taking an equity position in the leading Daily Fantasy Sports (DFS) company, DraftKings.

Here’s part of a forecast regarding Caesars Entertainment from a Sports Handle handicap of the prospective sports wagering marketplace published last March. That’s before PASPA was repealed in June:

While lacking an aggressive profile in Nevada in recent years, the company already has a major foothold in numerous states where sports betting legislation has crossed or is nearing the finish line. Because Caesars already has licensed brick-and-mortar casinos, theoretically they might be able to start taking sports wagers as quickly as anyone else. However, the company lacks the online sports profile many competitors have and the recent financial difficulties the company has experienced would certainly stop them from allowing any serious financial exposure when it comes to sports betting. The company, although very different than it was when it stood for luxury on the Las Vegas Strip, has name recognition, a brand name if you will, that is unmatched nationally.

Here’s an excerpt of the Sport Handle forecast for the fortune’s of DraftKings and DFS competitor FanDuel, also from last March:

The extensive database of customers and the recent appointment of a sportsbook director by DraftKings is a move toward becoming a major player. However, without any physical locations, it will be hard for online only companies to win this race. As individual states set up sports betting rules, many are looking to begin licensure through brick-and-mortar properties, allowing mobile components to flow through those establishments and their partners. The two major DFS companies would need a partner such as a casino company or a racetrack to gain traction.

Melding DraftKings and Caesars Entertainment

Monday’s announcement reveals the formula likely intended to be a first step blending Caesars and DraftKings gambling offerings into a single product.

As with most partnerships of this kind, each company has something crucial that the other partner covets. That’s the real motivation behind any business arrangement of this type.

DraftKings requires market access that Caesars can provide in the large number of states in which Caesars operates. For now, DraftKings is avoiding any true brick-and-mortar presence solely on its own and the myriad of expenses that go with that kind of operation. It does have a deal to operate a physical sports book in a lone Mississippi Gulf Coast casino — Scarlet Pearl on the Gulf Coast in D’Iberville, Mississippi Β There’s also a DraftKings-branded sportsbook in New Jersey, and online only markets in West Virginia as a component of a deal with Penn National.

But, the company’s focus seems to remain in cyberspace.

Caesars now gains access to DraftKings’ database that includes an estimated 10 million e-mail addresses, to which it can can now market directly in hopes the users has some gambling and entertainment interests beyond sports betting. The goal is seen as acquiring new customers for its other gambling activities and its casino/resorts.

Focus on new marketplaces and new customers

horseshoe casino caesars ravens nfl partnership
At Caesars’ Horseshoe Baltimore

Expect to see a joint effort in new states that pass legislation allowing mobile sports betting. Expect to see an all-in-one app and website offering online casino gambling to go along with sports betting. Expect to see a β€œone-wallet” configuration that allows players to use monies from a single wagering account to enjoy any casino experience of choice.

Both Caesars and DraftKings have been big spenders in past months forging deals with the major U.S. sports leagues to achieve branding prominence and increased market share.

No financial terms of the newly divulged arrangement were shared, except that Las Vegas-based Caesars, pending regulatory approval where necessary, becomes an equity stakeholder in Massachusetts-based DraftKings.

What is known is that Caesars will allow DraftKings exclusive market access for the company’s online gaming products in the 13 states where Caesars operates nearly 40 casino properties.

Motivation behind a deal

DraftKings’ impetus for such deal is readily apparent in these two examples.

The company briefly offered a Kentucky Derby future book wager in Mississippi. This is a fixed-odds wager similar to a sports bet. If a horse doesn’t make the race, the bettor still loses.

But Churchill Downs, owner of the race, stopped the bet quickly because no pari-mutuel betting on horse racing is being offered at DraftKings’ Mississippi location. That problem quickly may disappear when the new partnership becomes effective because Caesars operates pari-mutuel horse wagering in several states and additionally owns racetracks in various states including Pennsylvania, Indiana and Louisiana — now or soon forecast to be sports betting hotspots.

Another benefit for DraftKings could be Nevada access. If it’s not part of this deal, it’s likely to become a vital element, in the future.

The DFS kingpin cannot currently operate on any mobile platform in Nevada without a physical presence in the Silver State and a license to do it. Nevada, for now the nation’s capital for sports betting, may now become a DraftKings state where bettors can access DK’s betting markets. That would include fantasy sports betting. Β Although DraftKings would still have to be licensed in Nevada under state gaming regulations and its software tested, it would seem this could be easier as part of Caesars.

DraftKings left the state in 2015 when the Gaming Control Board demanded that fantasy operators apply for a sports pool license.

In New Jersey, DraftKings began offering online sports betting operation in partnership Resorts Atlantic City. It’s led the state in mobile sports revenue every month since, according to state figures.

A large majority — about 80 percent — of all sports betting in New Jersey was done remotely according to January figures, a proportion that increased every month since legal sports betting began in the Garden State in mid-June of 2018.

What the CEOs said

DraftKings CEO Jason Robins said in a statement the partnership with Caesars β€œwill expedite our national roll-out process.” Robins added that the long-term plan is to collaborate with Caesars, β€œon creating the most innovative and engaging sports and entertainment products and events for our customers.”

Caesars CEO Mark Frissora said in a statement, β€œThis 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.”

Frissora continued, β€œDraftKings will promote Caesars Entertainment as its official casino resort partner in the states where the companies collaborate.”

For additional nuts and bolts of the DraftKings/Caesars deal click here.

Share1TweetShare
Robert Mann

Robert Mann

Sports Handle contributor Robert Mann has a Northwestern journalism degree and is a former reporter for the Chicago Tribune and National Enquirer. He has worked in news management for CNN and several TV stations and is a 31-year resident of Las Vegas.

Related Posts

Arizona January 2023 revenue report
Analysis

Arizona Puts Bow On Record-Setting January For U.S. Sports Wagering

March 27, 2023
whats on tap
Industry

What’s On Tap: Elite Eight, WBC Finals, And Texas Sports Betting Hearing

March 20, 2023
Load More

Top Stories

taylor mathis

Taylor Mathis Got Sacrificed At The Altar Of Responsible Gambling

March 20, 2023
fanduel baseball wall

Premade Same Game Parlays Are Sucker Bets

March 13, 2023
maginfier-over-small-print

Read The Fine Print: A Proposed Federal Rule Could Change Everything For Indian Gaming

March 6, 2023
roman reigns wwe

Colorado Denies Report Stating That It’s Considering WWE Wagering

March 8, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
March 27, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 27, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 22, 2023

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

SportsHandle

  • Analysis
  • Casino
  • Features
  • Horse Racing
  • Industry
  • Legal
  • Legislation
  • Opinion
  • Podcasts
  • Poker
  • Politics
  • Promotions
  • Regulation
  • Sports
  • Uncategorized

Better Collective

This website is owned and operated by Better Collective USA. Trademarks and copyrights referenced on this website are and shall remain the exclusive property of their respective owners and/or licensors. Please be sure to visit the operator’s website(s) to review their terms & conditions. We advise you to read these carefully as they contain important information. Copyright Β© 2023 USBets.com | Better Collective USA
21 Play Responsibly
Gamble Aware West Virginia
Gambling Problem? Call 1-800-Gambler.
GameSense

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News

loading

Please wait while you are redirected to the right page...