DraftKings has a deal in place, just in case.
DraftKings is prepared for the possibility that the legal regulations regarding gambling in Connecticut may currently limit the potential benefits of their new partnership with the daily fantasy sports power and growing sports betting operator. However, if the legal framework ever undergoes a change, DraftKings will be well-prepared to seize the full value of this partnership.
Foxwoods Resort Casino’s agreement encompasses the trifecta of casino games, daily fantasy sports contests, and sports betting in the online realm. This strategic move positions the company to potentially achieve a position of market dominance in the northeastern online gambling industry.
What this deal means for Connecticut gambling right now
DraftKings, the official DFS provider, has partnered with the Mashantucket Pequot Tribal Nation to operate their casino. In the future, if circumstances permit, DraftKings will also offer online casino games and sports betting.
Rodney Butler, chairman of the Mashantucket Pequot Tribe, stated that collaborating with DraftKings, a renowned figure in sports betting, solidifies the tribe’s role as a frontrunner in the gaming and entertainment sector.
“We have consistently demonstrated our capacity to shape the gaming industry’s future, and now we are poised to lead the way in sports wagering and online gaming for Connecticut. By collaborating with tribal gaming compacts, we aim to fortify our economy with essential revenue and virtual entertainment.”
Starting from December 13th, the collaboration of the two brands will introduce DFS contests in Connecticut. However, it remains uncertain when the agreement will extend to online casino and sports betting. This is due to the current gaming compact between the state and the tribe, which does not include provisions for either of these activities.
At any given moment, the two parties have the option to renegotiate the terms of the compact, enabling DraftKings to potentially provide either one or both of its products on tribal land.
However, for DraftKings to fulfill its ambition of offering online gambling across the entire state, the state legislature must take action.
“Our top strategic priorities include expanding regulated sports betting nationwide,” stated Matt Kalish, co-founder and president of DraftKings. He further added, “DraftKings currently offers mobile sports betting in 10 states, surpassing all other operators in the US. Collaborating with the tribe will enable us to extend our presence even more extensively.”
DraftKings’ path to market dominance is more clear
If DraftKings is the first to enter the Connecticut market, it has the potential to reinforce its position as the leading operator in the region. The company has already made impressive progress on the east coast.
If a revised compact includes mobile gaming, DraftKings could potentially hold a monopoly in Connecticut, as the current agreement between the state and the Mashantucket Pequot Tribe grants them exclusive rights to most forms of gambling. However, it is uncertain whether this exclusivity would extend to online gaming in the future.
DraftKings holds a comparable position in New Hampshire, serving as the sole provider for online sports betting, just like the state lottery. Moreover, DraftKings has established a significant market presence in New Jersey and Pennsylvania.
If opportunities arise, DraftKings is expected to expand its offerings in Massachusetts, Maine, New York, and Vermont, where it already offers DFS games.
Currently, DraftKings is focusing its attention on Connecticut gambling within the northeastern region. It is possible that in the near future, residents of the state will be able to legally place bets on sporting events at Foxwoods.
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