DraftKings moved one step closer to rolling out its much-anticipated sports betting product today. Earlier today, DraftKings announced it has signed a multi-year agreement with B2B sports betting services provider Kambi. The deal will have Kambi provide technology and other services to assist DraftKings as the DFS company prepares its grand entrance into the regulated US sports betting market.
Terms of the agreement were not released, but a press release from Kambi states it will provide DraftKings with “technology and services” as it expands from strictly fantasy sports and into the realm of sports betting.
In its press release, Kambi describes itself as “a provider of premium sports betting services to licensed B2C gaming and gambling operators.” Kambi also explains that it is active in six continents and employs more than 600 people across half a dozen offices located around the world.
What exactly Kambi will provide to DraftKings is still unknown, but the company explains it can assist gaming operators in a broad range of aspects such as developing the user interface, compiling odds, risk management and more.
DraftKings Sports Betting Starting to Look Imminent
Today’s news is just the latest from DraftKings signaling its intention to enter the sports betting market. DraftKings has made numerous moves in recent months in preparation for launching a sports betting product.
DraftKings CEO Jason Robins officially confirmed back in February that the company would pursue sports betting if the Supreme Court rules in favor of New Jersey to end the national sports betting prohibition.
A month after that announcement, DraftKings went ahead and hired Sean Hurley for a newly-created position called Head of Sportsbook even though the Supreme Court ruling was still pending at the time.
Shortly after that, DraftKings began its search for a casino partner in Atlantic City in order to break into the New Jersey market. This too happened before the Supreme Court’s decision was known, but it would prove to be a smart move. The Supreme Court did indeed rule in favor of New Jersey in May
DraftKings ended up reaching an agreement with Resorts Atlantic City to open a sportsbook. DraftKings mentioned wanting to go live on day one in New Jersey and even began advertising its soon-to-come sportsbook in New Jersey, but has not yet gone live as of this writing.
Now that DraftKings has hired a Head of Sportsbook, found an Atlantic City casino partner and snagged a technology provider, it is beginning to look like a NJ sports betting launch is imminent. We still do not have any hard details regarding what a DraftKings Sportsbook would look like, but the company has most of the key pieces in place to get moving.
One major task that DraftKings hasn’t yet confirmed as completed is the acquisition of a license to begin taking sports wagers in New Jersey and/or elsewhere. However, that too appears to be in progress. DraftKings announced back on June 11th that it has applied for a NJ sports betting license.
When and how DraftKings enters online sports betting remains to be seen. Delaware and New Jersey have only opened the door to real-world betting, but New Jersey is expected to commence online sports betting in the near future. When it comes to online betting, some sort of partnership with Resorts Atlantic City in New Jersey seems like the likeliest starting point.
Online sports betting is obviously the best fit for DraftKings considering its experience in online gaming, but there’s no reason the company cannot also get involved in brick-and-mortar gambling if the circumstances are right.
In any case, DraftKings is in a nice position right now having already laid the groundwork for running a sports betting operation with key hires, a casino partner and a technology provider. That’s all in addition to the name recognition, infrastructure and customer database DraftKings already has as an established fantasy sports site.