Daily fantasy sports company DraftKings is looking for a partner in New Jersey to get into the sports betting game.
Sports betting is a hot topic of debate in the United States currently as a ban may soon be lifted on the gaming activity. New Jersey created a law a few years ago to be able to offer sports betting options for real money, despite the Professional & Amateur Sports Protection Act being in place and limiting who can offer such gaming options to just four states, including Nevada. Lawmakers in New Jersey took their efforts to court and have now made it all the way up to the highest court in the land, the United States Supreme Court. A ruling should be coming any time now and if the court rules in favor of New Jersey in the Christie vs. NCAA case, the PASPA will be considered unconstitutional and sports betting can be offered across the nation, once states put laws in place.
New Jersey already has a law in place and would quickly move to offer sports betting if SCOTUS rules in their favor. It seems that many expect New Jersey to win and daily fantasy sports companies are now leaning towards getting involved in the new industry. Reports have surfaced that DraftKings is interested in partnering with a gaming venue to get started in the state.
DFS to Sports Betting
DraftKings is known for offering quality daily fantasy sports betting options so it really is no surprise that they are now showing interest in sports betting as well. The customer bases are pretty similar, and the company should have no trouble moving players from DFS to sports betting. Speculation arose back in February that the company might be considering a sports betting move after a new individual was hired with the title Head of Sportsbook.
The individual was hired to run an office in Hoboken, New Jersey, which would provide a home based for sports betting operations, if that is what the company is planning to do. In order to take part, the company would have to have a land-based casino partner before sports betting could take shape.
According to a recent report by Eilers & Krejcik Gaming, the company is in the process of signing a deal with a partner giving DraftKings the opportunity to act as an omni-channel provider. We do not know the casino in question but a statement by DraftKings from late last month does state that they are preparing for the possibility of sports betting in New Jersey.
The casino that DraftKings is considering could be anyone’s guess. There are currently eight casinos that do not have partners for DFS or sports betting including the soon to open Ocean Resort Casino and the Hard Rock Atlantic City.
If DraftKings were to become involved in sports betting, it would seem that they would have the ability to succeed. The company already offers a very successful daily fantasy sports business with as many as 10 million players logging in to take part in their contests. This player base could then be pushed to sports betting via strong marketing campaigns.
If DraftKings were successful in being able to bring some of their existing player base to a sports betting offering, the revenues could be quite strong from the very beginning. However, all of this is just speculation and SCOTUS still has to rule in favor of New Jersey for any state to have the ability to offer sports betting options. We shall hopefully see soon how the court rules and if the gambling landscape of the US will be changing in a dramatic way.