Daily fantasy sports (DFS) giant, DraftKings is looking to partner up with an Atlantic City casino in hopes of making a splash in the (potentially) forthcoming regulated US sports betting market. It’s a move that could open DFS to massive, new markets, but is also at odds with the DFS industry’s stance that their product is not a form of gambling.
News of DraftKings’ new efforts to make it big in the Garden State were revealed late last week in the form of a short announcement on the company’s website reading:
DraftKings, with the world’s most popular daily fantasy sports platform and nearly 10 million sports-mad customers, is perfectly positioned to succeed in a legal sports betting market. In preparation for the possibility of sports wagering in New Jersey, DraftKings has naturally had discussions with potential land-based casino partners, as required under the state’s online gaming regulations.
Company officials went on to say that they hadn’t made any formal agreements with any existing AC casinos.
The statement is very represents a major turnaround from an industry player that has been vigorously defending itself in statehouses across the country as a game of skill that’s well removed from the world of regulated gaming. It also represents a bet that the US Supreme Court will legalize sports betting sometime in the near future and that that’s where the company’s future lies. DraftKings is serious enough about getting into Atlantic City that they’ve opened an office in Hoboken, NJ. (That’s still 125 miles from Atlantic City, but it’s in New Jersey and that’s what’s important.)
So far there’s no word on how the move plays into the company’s long-term plans, but it seems safe to say that DraftKings is betting a whole lot on finding a place in the world of regulated casino gambling.