Caesars has a new sportsbook partner: DraftKings.
The new deal was announced on Monday, February 25 as a “multi-state deal.” Details were undisclosed, but the agreement will give DraftKings access to any market in which Caesars owns an active casino. As more states legalize mobile sports betting, the agreement will become more powerful for DraftKings.
Mark Frissora, President and CEO of Caesars, in their press release announcing the deal:
"Caesars' agreement with DraftKings, their first multi-state partnership, brings together the established leaders in gaming, daily fantasy sports and sports betting to provide customers more options. This 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."
DraftKings and Caesars aren’t quite the first to announce this kind of multi-state market-sharing deal, but it might well be the most high profile. DraftKings has taken a large lead in New Jersey sports betting as the most profitable sportsbook in the state.
Caesars wasn’t far behind DraftKings in launching their mobile sportsbook, but hasn’t been able to gain the same kind of traction that the daily fantasy giant has. Combined with 888Sport, Caesars’ digital sportsbook only earned $262,000 in revenue in January of 2019, whereas DraftKings was just under $7 million in revenue.
As mentioned before, this is probably the highest profile market-sharing deal so far, but it’s not the first. Back in September of 2018, William Hill partnered with Eldorado, granting William Hill access to any state where Eldorado owned property.
Even before that, MGM and Boyd gaming announced a massive deal in July of 2018 during MGM’s busy summer. MGM and Boyd agreed to allow each other market access wherever the other owns a casino, a deal that roughly doubled the market access for the respective companies.
When the MGM and Boyd deal was announced, it seemed that MGM was poised to take over the sports betting industry. MGM had just announced deals with GVC Holdings (owners of Ladbrokes Coral), then followed up by becoming the first exclusive gambling partner of the NBA.
However, as the calendar turned over, it was DraftKings that was on top of the pile. Leading the market by several million, DraftKings established themselves as the, erm, kings of early sports betting.
Behind DraftKings is their eternal rival FanDuel, the other daily fantasy giant in the US. While the January 2019 revenue reports don’t separate FanDuel and PointsBet, the two combined are a million dollars in revenue behind DraftKings.
From there, revenue drops down to two William Hill anchors: $1.285 million through Ocean Resort, and $1.171 through Monmouth Park (with Sugarhouse also adding to the revenue total). Caesars and 888 are well behind the rest of the pack with just over a quarter of a million in revenue.
So while DraftKings is the clear leader right now, FanDuel is still within striking distance. Beyond that, the daily fantasy giants stand alone on top of sports betting as 2019 gets underway.