Despite potentially being competitors in the sports betting sector, DraftKings and FanDuel are collaborating to enhance their casino operations in downstate Illinois.
At the Illinois Gaming Board meeting on Wednesday, the two businesses proposed merging DraftKings at Casino Queen and FanDuel Sportsbook & Horse Racing (formerly Fairmount Park).
Next, the panel will evaluate the application.
The two services are located less than 10 yards apart in the St. Louis region.
The agreement will allow FanDuel to introduce casino gaming at its horse track in Collinsville, and after careful consideration, it has been determined that collaborating with DraftKings at Casino Queen in East St. Louis is the most favorable approach to achieve this goal.
The clause in the 2019 gaming package was negotiated by key figures. This clause can be found in Sec. 7.7 of the Illinois Gambling Act.
If the organization gaming licensee does not have a parent company or affiliated company that is wholly owned by the parent business and licensed to conduct organization gambling, casino gaming, or equivalent activities in another state, the licensed owner of the license is entitled to partner with an associated owner in order to own, manage, conduct, and operate the facility.
What motivates FanDuel and DraftKings to collaborate?
In simple terms, DraftKings and FanDuel believe that the partnership could benefit both companies.
In March, Terry Downey, president and CEO of Casino Queen Holding, stated:
We are thrilled to welcome the Casino Queen family to Collinsville, and believe that our proximity to Fairmount and the casino will offer new and exciting opportunities for both guests and staff. This collaboration between two respected local brands has the potential to enhance the gaming and entertainment options in the Metro East region.
Soo Kim, CEO of Standard General and owner of Casino Queen Holding, expressed positivity about the future of horse racing in Illinois and eagerly anticipates the collaboration between the sport and Fairmount Park.
This is logical when you take into account the proximity of the two services.
Another Illinois case to consider is Churchill Downs’ reluctance to introduce casino gaming at Arlington Park after acquiring a majority stake in Rivers Casino.
Arlington and Rivers are roughly 20 minutes away from each other by car. It is widely believed that Churchill Downs declined to convert Arlington into a “racino” due to concerns that it would draw customers away from Rivers.
The same logic applies in this situation, as FanDuel Sportsbook & Horse Racing and DraftKings at Casino Queen are less than 15 minutes apart.
Moreover, it is worth noting that the population density of It & rsquo is not as high as that of Chicagoland. This means that DraftKings and FanDuel have the opportunity to engage in cross-promotion and mutually benefit from each other’s achievements, rather than directly competing for the same customer base.
DraftKings at Casino Queen is a popular and established game in the St. Louis area. FanDuel would have faced a tough challenge trying to attract customers away from it.
DraftKings is interested in joining the horse racing industry and is taking a unique approach to do so. They are able to achieve this through their innovative strategies.
DraftKings lost to FanDuel in April sports gambling.
As previously noted, DraftKings and FanDuel are fierce competitors in the sports betting sector.
This is especially true in Illinois, where the two companies are now the clear industry frontrunners in the Land of Lincoln.
In April, FanDuel surpassed DraftKings in sports betting handle in Illinois for the first time in six months.
FanDuel has consistently surpassed DraftKings Illinois Sportsbook in revenue, making it the leading sportsbook in Illinois.
Illinois’ sports gambling revenue reached $537.2 million in April, making it the second-highest in the US for the quarter.
