DraftKings and the Mashantucket Pequot Tribal Nation hopes their “multi-channel” deal announced Monday could lead to Connecticut legalizing sports betting.
In a statement, officials from Boston-based DraftKings didn’t divulge much about the agreement, other than plans to bring a mobile sports betting app and a daily fantasy product through a partnership with the tribe’s Foxwoods Casino Resort.
“The national expansion of regulated sports betting is among our top strategic priorities,” DraftKings President Matt Kalish said in a statement. “This is a landmark deal in collaboration with the Mashantucket Pequot Tribal Nation as well as a critical next step.”
Financial terms were not disclosed.
Foxwoods is one of two large tribal casinos in Connecticut, along with the Mohegan Indian Tribe’s Mohegan Sun Resort.
Connecticut lawmakers have debated sports betting legalization and the state’s governor has made clear that any proposal would need to include the two tribal casinos. The tribes, under a longstanding agreement with the state, pay 25% of their slot revenues in exchange for the exclusive casino operating rights.
If Connecticut legalizes sports betting, the state and the tribes would need to amend their agreement. DraftKings and the Tribe predicted online gaming and sports betting would generate $175 million in new revenue for the state over five years.
Currently, 19 U.S. states and Washington D.C. offer legal sports betting. Another six states have approved the activity and could launch next year.
DraftKings operates retail sportsbooks in 12 states with 10 of the state also having mobile sports betting operations.
Kalish said “teaming up with the tribe will allow us to extend our reach even further.” He said the agreement would allow the company to expand its footprint in New England and “the Connecticut, New Jersey, and New York Tri-State area.”
DraftKings and Foxwoods’ will launch a daily fantasy sports product Sunday, offering online promotions, contests, and other integrated digital experiences.
The was no mention of a retail sportsbook at Foxwoods.
Mashantucket Pequot Tribal Chairman Rodney Butler was hopeful the agreement with DraftKings would help bring sports betting to the state.
“We’ve proven our ability to shape the future of gaming time and time again, and now we’re ready to drive sports wagering and online gaming for the state of Connecticut,” Butler said. “Working through the tribal gaming compacts, we will help bolster our economy with much-needed revenue and virtual entertainment.”
Shares of DraftKings closed at $47.93 in trading on the Nasdaq Monday, down $1.32 or 2.68%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
