Analysis

DraftKings seals the deal with Foxwoods Connecticut

DraftKings signs up with the operator of the Foxwoods Resort Casino in Connecticut for a multi-channel deal starting with fantasy sports.

The deal with the Mashantucket Pequot Tribal Nation will see DraftKings position itself for regulated sports betting in Connecticut as and when it is regulated.

The Mashantucket Pequot own and operate the Foxwoods Resort Casino.

Initially, DraftKings will become the casino’s daily fantasy sports partner but that would soon expend into sports-betting when allowed.

Tri-state play

The deal with the Mashantucket Pequot means DraftKings now has agreements in place covering all the tri-state area. 

In New York, DraftKings has partnered with the Del Lago Casino and runs retail operations there. 

In New Jersey, the company is the second largest operator in the market behind FanDuel.

Connecticut is currently T19th in the Wedge Index of gaming friendliness.

Matt Kalish, co-founder and President of DraftKings North America, said the deal was a “landmark.” He added that the expansion of regulated sports-betting was among the company’s “strategic priorities.”

Foxwoods has been vocal in its support for sports-betting in Connecticut. In the summer, Mashantucket Pequot chairman Rodney Butler told a National Indian Gaming Association webinar that online was “where the market has to move.”

He added that he felt that sports-betting and igaming would “work really well for us.” He added that with advent of Covid-19 it was “more important than ever.”

There are as yet not moves to regulate sports-betting or igaming in Connecticut.

Routes to regulation

Jason Robins, chief executive at DraftKings, spoke on another webinar put together by analyst at UBS yesterday.

He said that there was likely to be three approaches taken by states looking at regulation.

“There will be some states that do it all,” he said.

“Then there will be states that do sports betting and igaming follows some way down the line,” he added.

“Then there will be those that will regulate sports betting and then fast follow with igaming.”

He added that the pandemic likely changed the equation on regulation. “The overarching impact of the virus is that all of it accelerates.”

But of course the theory will never be tested.

“We will never know whether (the virus has change the thinking).”

“We can’t A/B test this but logic suggests states will be more open to both sports betting and online gaming.”

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Scott Longley

Scott Longley has been a journalist since the early noughties covering personal finance, sport and the gambling industry. He has worked for a number of publications including Investor's Week, Bloomberg Money, Football First, EGR and GamblingCompliance.com. He now writes for online and print titles across a wide range of sectors.

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