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DraftKings is expanding its marketing efforts in Illinois to reach a wider audience.
The sports gaming giant announced on Wednesday that it had reached a deal with Accel Entertainment to advertise at over 2,300 video gaming terminal (VGT) locations throughout the state.
Accel, a gaming operator in Illinois, has entered into a partnership with DraftKings to promote their content through all marketing channels, including the VGT display screens.
The content will include advertisements for signing up for DraftKings mobile, as well as sports betting lines and promotions.
In a joint statement, DraftKings’ chief business officer, Ezra Kucharz, stated:
We believe that partnering with Accel, a trusted brand, is a perfect match for us. Their on-the-ground support will enhance our efforts in Illinois and beyond, allowing us to offer customers more opportunities to interact with our outstanding content on Accel’s digital display screens.
Even though the “penalty box” provision was meant to restrict DFS companies like DraftKings and FanDuel, they have managed to be among the first three online sportsbooks to debut in Illinois. DraftKings partnered with Casino Queen in East St. Louis to secure market access, leading to a rebranding as DraftKings at Casino Queen.
DK’s retail sportsbook has been operational since the beginning of August.
Illinois Governor JB Pritzker’s executive order has allowed DraftKings to accept online registrations and mobile bets since August 21st. Sports bettors in Illinois can sign up for DraftKings at Casino Queen Sportsbook at Accel locations online as long as the mobile registration requirement is still in effect.
Video gaming terminals a hit in Illinois
The popularity of DraftKings is clear, given the widespread presence of video gaming terminals in the Prairie State.
As of June 30, Accel operated 11,108 VGTs across over 2,300 video gaming locations, representing nearly 33% of video gaming hubs in Illinois.
Video gaming terminals (VGTs) can be found in bars, truck stops, and other busy locations. In Illinois, these VGTs were shut down from March 16 to June 30 because of the COVID-19 pandemic, but they were allowed to reopen on July 1.
Since then, they have remained popular. In July, customers played over $2 billion in games, resulting in a total revenue of $166 million for the terminals.
In a setting with theoretically reduced foot traffic, DraftKings is expected to attract a large audience through this deal.
Additionally, it is important to mention that these customers are willing to invest money in gaming.
Michael Marino, Accel’s chief commercial officer, stated that introducing the prominent DraftKings brand to our popular local businesses will assist these establishments in achieving success as sports betting is a social activity.
Our players have demonstrated their interest in sports betting by using our free-to-play sports app AE.bet. This partnership allows us to provide them with a top-notch, real-money sports betting experience.
No VGTs in Chicago, but does it matter?
VGTs are not allowed in Chicago due to a city ordinance.
Every gaming operator in the state will be closely monitoring the events leading up to Sept. 19 with different interests. DraftKings, located in East St. Louis, may be one of the businesses most invested in the potential extension of mobile registration.
It is expected that DraftKings will have a retail sportsbook at Wrigley Field in the future, but that may still be a few years down the line. In the meantime, Illinois is likely to implement statewide mobile registration by 2021.
If Illinois reverts back to in-person registration, television ad purchases in the Chicago market may not yield the desired results for now.
The specific details of the DraftKings-Accel deal are unknown, but it seems to be an innovative strategy for expanding the brand’s reach to new customer demographics beyond the Chicago market.
If Pritzker chooses to continue allowing remote registration, it may lead to an increase in DraftKings registrations and bets at Video Gaming Terminals (VGTs).
