Latest DraftKings Movements Reaffirm Nevada Investment


DraftKings will open a major new office in Las Vegas, bringing more than 1,000 employees to Nevada by 2022, the company said on Monday. One of the country’s two most profitable sports betting operators, DraftKings has steadily grown its presence in Las Vegas despite not operating sports betting in Nevada.

Monday’s announcement does not in itself bring a DraftKings bookie closer to reality, but it does show that the daily fantasy sports operator turned sports betting giant remains committed to Las Vegas and Nevada as a whole.

Although its total market share in the United States continues to decline as more states legalize sports betting, Nevada nonetheless remains one of the most profitable sports betting states as well as a symbolic jurisdiction. important for regulated games.

“Our new office space and Las Vegas expansion further illustrate DraftKings’ investment in its people and the future of the business, as well as the local community,” said Matt Kalish, co-founder and president of DraftKings North America, in a statement Monday.

“Our goal is to create another world-class work environment that will foster DraftKings innovation, further strengthen our local presence and deepen community involvement. “

Photographer: Andrew Harrer / Bloomberg via Getty Images. In the photo: the “Welcome to Fabulous Las Vegas” sign

Las Vegas Details

DraftKings’ new 90,000 square foot Las Vegas office will be the company’s second largest after its Boston headquarters. It will occupy most of a building at UnCommons, a new 40-acre mixed-use workspace in southwest Las Vegas.

The company has grown its presence in Las Vegas by 400% since opening its first Nevada office in January 2020. Since then, DraftKings has become the primary sponsor of the Center for Gaming Innovation at UNLV and has also opened its Gaming Innovation Studio at the university.

Nevada is one of the few remaining states where DraftKings does not offer daily fantastic sports. DraftKings and FanDuel ceased offering daily fantasy contests in the state after Nevada officials asked daily fantasy operators to have a similar license to sports betting or other gaming entities. of DFS have long argued that daily fantasy sports competitions are not forms of play.

The first movements open the door to sports betting in Nevada

DraftKings announced earlier this year that it has acquired Golden Nugget Online Gaming, the digital gaming operator associated with the venerable casino brand. As part of a larger deal, the companies have announced sports betting partnerships for Golden Nugget casinos, although details remain vague.

The Golden Nugget along Fremont Street in downtown Las Vegas appears to be the most likely location for Nevada DraftKings’ very first sportsbook. Golden Nugget also operates a casino in Laughlin, Nevada, near the Arizona border.

The partnership could also be an avenue for a DraftKings sportsbook in Louisiana, where Golden Nugget operates a casino in Lake Charles. There are current or planned Golden Nugget casinos in Mississippi, New Jersey, and Illinois, although DraftKings already has a sports betting presence in every state.

Nevada Future Uncertain

Those moves aside, DraftKings has yet to announce any sports betting plans for Nevada.

The Golden Nugget deal has yet to obtain all final regulatory approvals. Those measures, along with the physical infrastructure for a new retail sportsbook and digital requirements for a mobile app, would take months to complete even if an opening was announced on Monday.

A potential DraftKings Nevada bookmaker would then have to compete with several domestic rivals as well as an already crowded sports betting market.

BetMGM signs are almost ubiquitous along the southern part of the Las Vegas Strip dominated by MGM casinos. Caesars, which also has a massive physical presence along the Strip, is investing hundreds of millions of dollars in the rebranding and promotion of its eponymous bookmaker, which has had the most physical locations in the state since he was under the name of William Hill.

There are also several local digital and retail operators such as Circa, South Point, Station (STN) and Treasure Island. This is in addition to other national sports betting operators already with a Las Vegas casino partner such as WynnBet which could also open a digital book.

Additionally, assuming DraftKings opens retail books only at Golden Nugget properties, that leaves only two options for meeting the state’s in-person registration requirements, far less than most other potential competitors. . DraftKings has generally been one of the most profitable operators in more than a dozen states where it offers sports betting, but it remains to be seen how Nevada’s in-person registration rules would reduce customer participation.

That same registration mandate is a key factor why many of DraftKings’ competitors in other states did not enter Nevada. FanDuel, the country’s largest operator in terms of market share, along with Barstool Sports, BetRivers, PointsBet and many other big national brands have not followed a similar acquisition or partnership path on a Nevada property like the Golden Nugget agreement.

Final result

DraftKings has already invested heavily in Las Vegas and will only increase that engagement with the massive new office. Another big investment via a DraftKings sportsbook in downtown Las Vegas and / or the accompanying statewide mobile app is probably much more valuable as a symbol of the company’s role. in the larger American gambling market than it would be from the money the book takes in itself.

Source link


Comments are closed.