DraftKings strikes New York state sports betting deal - 16th July 2018

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DraftKings has struck a deal with del Lago Resort & Casino that will lead to the daily fantasy sports operator launching a sportsbook via the New York state venue.

Under the agreement, following the introduction of a physical offering at the casino in the town of Waterloo, both parties will be able to collaborate on launching a mobile sports wagering app and online sports betting service, pending the authorisation of such services by state legislators.

However, iGamingBusiness.com understands that a target launch date for the online and mobile aspects of the sportsbook remains up in the air as the required legislation will not be considered until next year at the earliest after Andrew Cuomo faces an election in November to secure a third term as Governor.

A spokesperson for del Lago Resort & Casino told iGamingBusiness.com that several potential partners were considered before DraftKings was selected and that it expects a “significant” impact as a result of the agreement.

DraftKings CEO and co-founder Jason Robins marked the announcement by describing the state of New York as “one of the largest revenue opportunities for future sports wagering operators”.

DraftKings started working on its sportsbook product a year ago, immediately following the Supreme Court’s decision to take up New Jersey’s challenge to the Professional and Amateur Sports Protection Act (PASPA).

The Supreme Court ruled in favour of New Jersey against PASPA on May 15, sparking a flurry of activity across the sector.

This is the second sports wagering partnership DraftKings has secured, having announced a similar partnership last month with Resorts Casino Hotel in Atlantic City, New Jersey. DraftKings expects to offer mobile and online sports betting in New Jersey by the start of the NFL season in September.

DraftKings is reportedly seeking investments totalling more than $150m (€127m) to drive a major expansion into US sports betting and in June the DFS provider announced a multi-year partnership with Kambi under which the latter will provide the operator with sports betting technologies and services.