However, DraftKings already maintains its presence in New Jersey. So, the company in black and green needs only to focus its attention on finding a partner in the Keystone State.
In return, Caesars Entertainment received a significant equity stake in DraftKings. Caesars will also benefit from its new designation as DraftKings’ official casino partner, and DraftKings will promote Caesars’ products across its suite of offerings. So, Caesars will have a continuing interest in seeing the upstart daily fantasy sports provider expand and grow.
Of course, expanding and growing is really all that DraftKings has done since sports betting became legal in May 2018. The company quickly seized the mantle as the online sports betting leader in New Jersey and has since expanded into the rest of online gambling with its virtual casino.
“Partnering with such a world-class-gaming organization will expedite our national rollout process and give us the opportunity to work alongside one the largest and most established industry leaders in the world,” said DraftKings CEO Jason Robins, in a statement. “We look forward to collaborating with Caesars Entertainment on creating the most innovative and engaging sports and entertainment products and events for our customers.”
The deal comes on the heels of quite a few significant Caesars’ partnerships.
DraftKings seeing FanDuel in the rear view, plus expansion plans
At one point in 2018, DraftKings enjoyed nearly three times as much sports betting revenue as its fellow daily fantasy sports company. But the gap has closed tremendously in the past few months, with DraftKings only standing tall by roughly $1 million in revenue each month.
Thankfully, almost every new state for DraftKings either has sports betting active already or is considering it at the legislative level. DraftKings will now be able to expand its operations into the following states (with their statuses):
- Arizona: Bill(s) under consideration
- California: No bills filed
- Illinois: Bill(s) under consideration
- Indiana: Bill(s) under consideration
- Iowa: Bill(s) under consideration
- Louisiana: Bill(s) in the pipeline but not introduced
- Maryland: Bill(s) under consideration
- Mississippi: Active sports betting
- Missouri: Bill(s) under consideration
- Nevada: Active sports betting
- New Jersey: Active sports betting
Obviously, New Jersey and Mississippi are redundant for DraftKings. The company is likely focusing on the positives of 11 new territories to pursue.