One of the biggest names in casinos is laying down odds that sports betting will be big business, with Caesars Entertainment Corporation (NASDAQ: CZR) saying Monday it will take an equity stake in DraftKings, an emerging leader in the new sports gambling arena.
What To Know
DraftKings, which emerged in 2012 as fantasy sports company but has quickly become a major player in the New Jersey sports betting industry, will promote Caesars resorts and casinos as part of the deal, the companies said.
DraftKings Sportsbook was the first legal online sportsbook outside of Nevada when it launched last August in New Jersey, offering online and mobile sports wagering.
DraftKings says it has led New jersey in mobile sports betting revenue every month since August.
Why It's Important
Last month, New Jersey officials reported mobile sports betting made up nearly 80 percent of sports wagering revenue in the state.
Caesars will still be able to offer its own branded sports betting and online casino apps and will maintain its own primary access in all states according to regulation under the agreement, the companies said.
"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," Mark Frissora, President and CEO of Caesars Entertainment said in a statement. "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."
Caesars traded around $8.94 per share Monday afternoon.
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