New York-listed gaming operator Caesars Entertainment is gaining an equity stake in DraftKings through a US market access deal announced late Monday.
The multi-year agreement will see Caesars offer market access to DraftKings for its online gaming products in the United States, subject to applicable legislation and license approvals, with DraftKings working exclusively with Caesars in certain states where Caesars operates casino properties.
The agreement also allows Caesars to continue offering its own branded sports betting and online casino apps in each of these jurisdictions, maintaining its own primary access in all states.
"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," said Mark Frissora, president and CEO of Caesars Entertainment.
"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."
The financial details of the agreement and the level of equity granted to Caesars have not been disclosed.
Commenting on the agreement, DraftKings chief executive Jason Robins said: "Partnering with such a world class gaming organization will expedite our national roll-out process and give us the opportunity to work alongside one the largest and most established industry leaders in the world.
"We look forward to collaborating with Caesars Entertainment on creating the most innovative and engaging sports and entertainment products and events for our customers."
Shares in Caesars Entertainment Corp. (NSQ:CZR) closed down 0.99 per cent at $8.96 per share in New York Monday