DraftKings to Launch WA Sports Betting
Popular sportsbook operator DraftKings has revealed that it will be entering the state of Washington’s growing sports betting market through an exclusive market access deal thanks to a partnership with the state’s Tulalip Tribes. DraftKings will open two retail sportsbook locations at two Tulalip Tribes casinos in the state as part of the deal.
DraftKings will be entering the state of Washington’s sports betting market via an exclusive market access deal thanks to a partnership with the state’s Tulalip Tribes. ©Poyson/Pixabay
Washington Marks DraftKings’ 19th Active State in US
Renowned sportsbook provider DraftKings has announced that it has secured market access in the state of Washington after signing an exclusive retail sports betting partnership with the Tulalip Tribes of Washington.
The specifics of the deal stipulate that DraftKings will open two retail sportsbook locations at two Tulalip Tribes casinos in the state. The sportsbook at the Tulalip Resort Casino, which is still in the works, is expected to feature a 5,000 square foot space with a 50 foot video wall, more than 24 kiosks, and eight ticket windows.
The second sportsbook has plans to open at the Quil Ceda Creek Casino but is still very much in the early planning phase. Both locations will naturally be subject to licensing and regulatory approvals. Yet once DraftKings’ two sportsbook locations are finally operational, Washington will mark the 19th state in which DraftKings is active with its sportsbook products.
Tulalip Tribe One of Several to Sign New Compact with WA State
Director of retail sportsbook over at DraftKings, Michael Kibort Sr., said the operator looked forward to finally delivering its product to Washington’s passionate sports bettors with the help of the Tulalip Tribes:
“In collaboration with the Tulalip Tribes of Washington, we look forward to bringing the very best in real-money gaming experiences to a state with a passionate fanbase spanning major professional sports leagues.”– Michael Kibort Sr., Director of Retail Sportsbook, DraftKings
For its part, Tulalip Tribes chairwoman Teri Gobin sees the deal with DraftKings as allowing the tribe to take its gaming offerings up a notch, asserting the operator’s commitment to excellence:
“We’re ready to take our gaming experience to the next level. Like Tulalip, DraftKings is committed to excellence and, together, we’re going to give sports fans a one-of-a-kind experience. We can’t wait for our customers to share our journey as we build the newest addition to our entertainment destinations.”– Teri Gobin, Chairwoman, Tulalip Tribes
After the state of Washington officially legalized sports betting in September 2021 when the US Department of the Interior approved nine tribal sports betting compacts, sportsbook operators have been slowly but surely trickling into the Evergreen State. DraftKings is, of course, the latest to receive market access in the state.
The Tulalip Tribes was among the nine Washington tribes to strike a new betting compact with the state, after it initially secured a deal in April 2021.
DraftKings Experienced Both Growth and Losses in Q3 2021
In its Q3 2021 earnings report, DraftKings revealed how its revenue continued to grow year-on-year during the period, leading it to raise its revenue guidance again. However, its losses also grew due to ever-increasing expenses and less than ideal sporting results.
The operator’s overall revenue for the quarter increased by 60.2% to a total of $212.8 million. While these results were a notable year-on-year increase, they were actually down from the $297.6 million recorded in Q2 2021, something which the provider attributed to “atypical hold rates” which took place during the first month of NFL fixtures.
Nevertheless, at this stage the operator still decided to increase its full-year revenue guidance, from between $1.21 billion and $1.29 billion to between $1.24 billion and $1.28 billion.
DraftKings chief executive Jason Robins still described the year’s third quarter as a strong one for the operator, choosing to highlight its migration away from Kambi’s sportsbook technology to SBTech’s offering:
“DraftKings had a strong third quarter that highlights our team’s unique ability to drive engagement with our core customers while simultaneously launching new states and verticals and completing the complex migration to our own in-house technology ahead of schedule. Since migrating, we have rapidly added innovative features and functionality to our top-ranked mobile sports betting app.”
DraftKings and Entain Deal Fell Apart in November 2021
In what was major news for the sports betting industry last year, DraftKings announced that it was walking away from its £18.4 billion proposed takeover bid for UK gambling operator Entain in November 2021, in a decision which came a week after Entain granted an extension to the bid deadline.
After weeks of drawn out negotiations between the two, DraftKings confirmed that it was walking away from the deal. Deeper analysis of the deal and subsequent meetings with the operator’s board of directors are what caused it to come to the difficult decision, with CEO Jason Robins asserting the operator’s ability to stand on its own:
“Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
