DraftKings gets a foot in the New York betting door

Daily fantasy sports operator DraftKings is preparing the ground for its move into the sports betting industry with some interesting partnership deals.

The latest of these deals is with New York State’s Del Lago Resort & Casino, which has signed an agreement that will see DraftKings operate its sportsbook once the necessary changes to New York laws are made.

That hasn’t happened so far, but there is growing optimism that state legislators will finally see the tax and consumer safety benefits of regulated and licensed activity and pass the relevant laws.

The agreement also allows DraftKings to a launch state-wide online and mobile app once the laws allow. Del Lago, located in New York’s Finger Lakes region, is one of just four commercial casinos in the state. It is jointly-owned by Peninsula Pacific Strategic Partners and Wilmorite Management Group.

DraftKings signalled its sports betting ambitions earlier this year with the appointment of an executive as head of sportsbook operations, and the company has revealed that it invested time and resources in a six month development program on a sports betting product.

With its large population New York is expected to be second only to California in the burgeoning and recently liberalised US sports betting market.

DraftKing’s arch rival FanDuel recently partnered with the US subsidiary of Paddy Power BetFair plc, and the partnership went on to secure a sports betting agreement with New York’s Tioga Downs Casino Resort.

DraftKings also has a partnership in New Jersey (where sports betting has been legalised) with Resorts Casino Hotel.