Will DraftKings find a new owner?
In late October, Diamond Eagle Acquisition was believed to be in serious talks to purchase the popular sportsbook. When contacted by Gambling Insider, DraftKings did not deny the story.
PlayNJ.com said Flutter Entertainment’s mega-merger with The Stars Group last month lent the acquisition story credence. That left DraftKings in a tougher position within the U.S. market, as rival FanDuel is owned by Flutter and now has the likes of PokerStars and Fox Bet to align with. With FanDuel already leading the New Jersey sports betting market, the strategic advantages it stands to gain working with Stars brands threaten to extend any existing gaps.
But DraftKings gaming and fantasy sports success, as well as its technological achievements, make it an appealing prospect for potential suitors.
Gambling Insider has speculated about a potential DraftKings acquisition of UK-facing brand Football Index. The business failed in past efforts to merge with FanDuel, before sports betting became legal. Other reports link DraftKings with purchasing supplier SBTech.
What if DraftKings acquired, or merged with, another gaming firm. William Hill would be one of the last remaining big-name candidates on the market.
In related news, last week the DraftKings Sportsbook app went live in Pennsylvania, and on November 20, the company will mark its one-year anniversary of the sportsbook at Resorts Atlantic City.
During the last 12 months, DraftKings has attracted standing-room-only crowds on several occasions, including Super Bowl betting and March Madness.
Frank Kunovic, head of retail operations for DraftKings, used the word “incredible” to describe the partnership with Resorts.
“As the first casino in Atlantic City, Resorts has proven to be tech-savvy market leaders. We share the same vision and have been able to drive fan engagement. Working with Resorts on the design of the space was seamless, and one year in it has become a destination for loyal sports fans in New Jersey and neighboring New York and Pennsylvania,” he told Play NJ.
A year ago, besides DraftKings, only the William Hill sportsbook at Ocean Casino and Golden Nugget had full-fledged, permanent spaces. At 5,000 square feet, DraftKings is still one of the larger retail spaces, although nothing close to Bally’s, which takes up 15,228 square feet.
But the DraftKings sportsbook at Resorts comes with some of the best amenities in the city.
“For example, we have 18 kiosks, a significant number in comparison. It has the look and feel of a sports bar and is a great place to soak up the action on several big-screen TVs in comfortable leather chairs,” Kunovic said.
While the majority of the NJ sports betting handle and revenue continues to come via apps, DraftKings does not ignore the importance of retail. It also has weekly promotions and a Ladies Night at the Sportsbook on Fridays.
Since opening at Resorts, the company has added retail at del Lago Resort & Casino in New York and Wild Rose Casino in Iowa.
Year to date (not including October), Resorts Digital reported more than $50.5 million in revenue. Besides DraftKings, the number includes the Resorts online sportsbook and Fox Bet apps. Retail revenue, on the other hand, is just over $2.1 million.
Statewide, the online handle has exceeded $2.4 billion year to date versus $531.6 million at the retail locations. Kunovic described the retail experience as an extension of the digital product.
“Many of the same offers available on our sportsbook app are also available through the kiosks located throughout the retail space at Resorts,” he said.
