DraftKings is on the verge of offering sports betting after the daily fantasy sports provider announced that it had signed a deal with Resorts Atlantic City to offer sports betting in New Jersey. The agreement will allow DraftKings to offer sports betting under the Resort’s New Jersey gaming license in the state.
The deal was signed Friday morning.
Strong Momentum for Sports Betting in the US
The announcement comes just two weeks after the Supreme Court announced the unconstitutionality of the Professional Professional and Amateur Sports Protection Act of 1992 and one week after FanDuel inked a deal to be purchased by Paddy Power Betfair.
Since the Supreme Court ruled that states had the right to regulate sports betting, states have been moving quickly to offer sports betting. Delaware announced yesterday that they would be the first state to offer sports betting since the ruling. Meanwhile, New Jersey state representatives meet on June 7th to finalize tax and regulation legislation, widely expected to pass. It is widely believed that New Jersey will begin offering sports betting some time by the middle of the month. Pennsylvania and other states may not be far behind.
DraftKings CEO Jason Robins indicated that businesses are scrambling to position themselves in the new market. “Everybody knows there’s a big opportunity out there. It’s a new thing, so people are trying to see how they want to go about it, who they want to partner with. Anytime you’ve got a big market about to be created, there’s so much opportunity out there that everyone should benefit, as long as you do it the right way.”
Sports betting by DFS Providers
Once going live, it is expected that DraftKings will offer in-game betting, standard sports betting as well as their traditional daily fantasy sports product. In anticipation for the expansion of sports betting in the country, DraftKings has been developing a sports betting platform. FanDuel on the other hand, choose to partner with an established brick and mortar and online sports book. Both DFS providers are expected to offer sports betting in some form before the start of the NFL season, the peak of the sports betting season in the United States.
DraftKings has not yet revealed about the software the company will use, whether it will be a proprietary platform or a partnership with an existing sports betting platform.
While companies jockey for position to offer sports betting, professional sports leagues continue to look for a piece of the buy as well, asking for “integrity fees,” which have been widely rejected by casinos as hypocritical in their stance against sports betting for so long.