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This week’s partnership deal between Caesars Entertainment and DraftKings Sportsbook fuels speculation about DraftKings’ plans for Nevada sports betting.
The deal gives DraftKings Sportsbook access to operate in most states where Caesars Entertainment operates casinos. In return, Caesars receives an equity stake in DraftKings and potential new marketing streams.
Caesars operates more than 40 casinos in 13 states across the U.S. Sports betting is currently legal in just four of the states, meaning DraftKings Sportsbook is working with a limited field for now. (It appears as though they’ll also be shut out in Pennsylvania.)
So where in Las Vegas might DraftKings Sportsbook set up shop? Let’s take a look at the potential contenders …
Caesars operates nine casinos in Las Vegas that could become a home for a newly branded DraftKings Sportsbook:
The question here is two-fold:
It’s getting crowded at the Palace, as Caesars Entertainment signed a deal with Turner that will place a new Bleacher Report broadcast studio at the sportsbook.
Considering Caesars does not want to relinquish its brand in Pennsylvania, it likely doesn’t want to hand over one of the most iconic sportsbooks in Las Vegas either.
Let’s take Rio off the table based on off-Strip location and uncertainty around its future.
Bally’s, Harrah’s, and Paris cater to a slightly older crowd that might not fit the DraftKings Sportsbook brand. While they enjoy great real estate near the center of the Strip, that base makes them less than ideal partners.
A casino that caters to a younger customer probably makes sense to match with the DraftKings brand. That narrows the options in Las Vegas significantly.
Last year, Caesars Entertainment announced that they were beginning to license the Caesars Palace, Flamingo, The Cromwell, and The Linq brands. Within that group, we think we’ve found a match for a potential DraftKings Sportsbook home.
While Flamingo’s renovation tries to move it younger, its less-recognizable brand might not appeal to DraftKings either.
The Cromwell is a small boutique property with less than 200 hotel rooms, a small 40-seat sportsbook, and limited facilities. While DraftKings parties at Drai’s Beach Club sound like fun, this probably isn’t the best sportsbook.
Planet Hollywood also has a small sportsbook, but offers a massive property with plenty of room to host branded DraftKings Sportsbook events. However, Planet Hollywood isn’t a brand that Caesars Entertainment is looking to market.
Which brings us to …
This renovated and rebranded property makes too much sense. Caesars Entertainment could use a partnership with DraftKings Sportsbook as a way to market the casino and sportsbook concept to gamblers anecdotally younger than their core customer.
The Linq has been billed as the Caesars Entertainment casino for younger, millennial guests. The Linq also has a new and unique sportsbook concept called The Book.
Living-room style Fan Caves are geared toward younger customers. Each of these areas has couches, multiple TV’s, tablets, virtual reality goggles and an XBox available for every group.
The Book is so popular that Caesars Entertainment is currently building one in New Jersey. That happens to be where DraftKings Sportsbook has been most successful so far.
In addition to the forward-thinking sportsbook concept, The Linq has a massive casino and a retail promenade that offers a wide variety of entertainment options.