FanDuel, DraftKings eyeing expansion into Nevada
Online market leaders have gaming licenses pending in Silver State
FanDuel and DraftKings have dominated the legalized online betting space since the fall of PASPA in 2018, but neither has been able to take a bet in the mecca of gambling, Las Vegas. The fantasy and betting giants are trying to change that, as they both currently have gaming licenses pending with the Nevada Gaming Control Board (NGCB).
Following a public records request initiated by PlayUSA, it was revealed that DraftKings formally applied for a sports betting license back in March 2020, while FanDuel submitted a license application in March 2021. The status of the applications is unknown.
Far more clear is FanDuel and DraftKings’ desire to expand to Nevada, evidenced not only by the longstanding applications, but by their respective ties to the state.
FanDuel entered into a strategic partnership with Las Vegas-based Boyd Gaming in 2018 that includes a 5% equity stake in FanDuel for Boyd, which owns and operates 10 properties in and around Las Vegas. In return, Boyd leverages FanDuel’s online betting technology and related services for operations across its US portfolio.
DraftKings has been even more active in establishing a presence in Nevada. In October 2020, it signed a multi-year agreement to sponsor the Center for Gaming Innovation at UNLV’s International Gaming Institute.
DraftKings has also been active on the M&A front, acquiring the Vegas Stats & Information Network (VSIN) and Golden Nugget Online Gaming this year before announcing in October that it will be rolling out a 90,000-square-foot technology hub that will house more than 1,000 employees beginning in early 2022.
Despite legalized sports betting spreading coast to coast over the past few years, Nevada has maintained its status as a hub of betting activity, ranking second behind New Jersey in total handle since June 2018. With FanDuel and DraftKings accounting for approximately 60% of online market share combined, it only makes sense that they have their sights set on expansion into the Silver State.