Big news from the world of regulated sports betting in the United States this week as DraftKings and Caesars Entertainment inked a deal on a multi-state agreement that will allow DraftKings to expand its burgeoning sports betting business and online casino games in up to 14 states.
The deal announced on Monday does not apply to its daily fantasy sports , which is already available to players in over 40 states.
DraftKings moves to regulated sports betting states
The first DraftKings sportsbooks launched in New Jersey in August of 2018. The DraftKings sportsbook also has plans to expand into other states, as markets open up.
Many other states have regulated sports betting over the last nine months after the U.S. Supreme Court’s decision on the constitutionality of the 1992 PAPSA law. Since the ruling, sports betting has launched in Delaware, Mississippi, New Jersey, Nevada, New Mexico, New Jersey, Rhode Island and West Virginia, with many other states currently considering legalizing sports betting. Many states that have legalized or have considered sports betting reforms have also included online sports betting in their plans.
The DraftKings sportsbook currently operates land-based sportsbooks in Mississippi and New Jersey, while the DraftKings online sportsbook is currently available in New Jersey with West Virginia next on the horizon.
Enter Caesars Entertainment
The deal with Caesars Entertainment will primarily cover DraftKings Sportsbook and online casino products. The deal will essentially allow DraftKings to expand in up to 14 states where Caesars Entertainment has a physical presence.
DraftKings is seen as an attractive partner in Caesars Entertainment’s pivot into mobile sports betting. In New Jersey where there are many mobile sportsbooks, not only was DraftKings first to market, but they are also responsible for around 80% of the revenue generated from mobile sports betting in the state.
Caesars has casinos in 14 states including Mississippi, New Jersey, Nevada and Pennsylvania. Although many speculated that the soon-to-launch Pennsylvania market will be included, Caesars soon revealed that it intends to launch its own branded product for the state.
The Caesars-owned Harrah’s Philadelphia went live in January. Online sports wagering in Pennsylvania is expected to launch sometime this summer.