Boston-based DraftKings on Friday took a major step into the online gambling business, announcing it has reached an agreement with a casino in New Jersey to host sports betting offerings.
One of the pioneers of paid daily fantasy sports, Draft Kings has moved quickly since the US Supreme Court ruled in May that the federal government cannot prevent states from offering sports betting. The ruling came in a challenge by the state of New Jersey, which already has a framework for companies to offer that type of gambling.
Although the state Legislature still has to give final approval to a sports betting measure, the state already requires that any company that wants to offer online betting has to work with a local casino. Moreover, bettors would have to be physically located in New Jersey to wager on those games.
In a statement, DraftKings chief executive Jason Robins said the company has a deal with Resorts Casino Hotel in Atlantic City. He said the facility “aligns perfectly with our customer-focused, innovation culture.”
Terms of the deal were not disclosed.
The company hopes to debut its first offering by the beginning of the National Football League season in September.
The company’s daily fantasy sport games, in which players can win money based on the real-life performance of athletes they select, is already legal in many states, including Massachusetts. But sports bets on live games are expected to take off in states beyond Nevada in the wake of Supreme Court decision; Delaware, for example, will begin sports betting in casinos next week.
Massachusetts lawmakers, meanwhile, are only in preliminary discussions on whether to legalize sports betting, and if so, whether to allow people to play online.
https://www.bostonglobe.com/business/2018/06/01/draftkings-signs-deal-with-casino-move-into-sports-betting/7WMKGx3CqvTWTrCtFZPPeJ/story.html