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After a lengthy wait, DraftKings has finally landed a sports betting partner after the company signed a multi-year deal with Caesars Entertainment.
Why it matters: The deal gives DraftKings Sportsbook access to betting markets in the 14 different states where Caesars is already operating, including Pennsylvania where mobile betting is expected to go online this fall.
- DraftKings will promote Caesars while giving it a cut of revenues in the states they partner in. Caesars will also receive equity in DraftKings.
The backdrop: This move from DraftKings comes after the company announced it was searching for $200 million in funding on the back of its merger with FanDuel falling apart.
- The company told investors at the time it expects daily fantasy sports to generate most company revenue for years to come.
The big picture: DraftKings' was a major player in New Jersey where the betting handle reached $1 billion in December and 80% of bets were placed via a mobile device. That imprint gets even bigger through the Caesars partnership.