Caesars Entertainment has initiated an online casino and sports betting partnership with DraftKings. This will include Caesars taking a stake in equity in DraftKings.
The company’s first “multi-state partnership” was announced on Monday and this will lead to Caesars offering DraftKings access to the market for its online gambling products. The deal will also lead to promotion of Caesars as the official casino report partner for DraftKings.
DraftKings’ access is exclusive to Caesars across some states in which Caesars is operational. Caesars will also retain the right to offer its own gambling and sports betting products in the areas where the casino does business.
It was reported by Bloomberg that Caesar’s will also receive a share of the DraftKings’ revenue in the states in which both parties operate.
Mark Frissora, the CEO for Caesars, said that this deal is a way to create “new sports-themed guest experiences” at its venues, as well as an option for capitalizing on the 55m-strong reward program of the company.
The CEO of DraftKings, Jason Robins said that partnering with Caesars would expedite their national roll-out process. His group looked forward to collaborating with Caesars on innovative sports products.
Caesars’ executive VP for gaming and entertainment said that Caesars’ had been picked by DraftKings due to their scale and number of markets they are in. Stuart further added that DraftKings would hold at least five events at properties owned by Caesars in the states where the two parties collaborate.
Currently, Caesars operates properties in 14 US states and this new deal will let it keep pace with sports betting and online casino rival GVC Holdings.
Recently, Caesars launched its financial report for 2018 which showed an 11.3% increase in revenue to $2.12 billion. Net income fell by 90% and full-year net income amounted to $303 million which was a $671 million improvement from the previous years loss.