DraftKings New York Sports Betting Deal Ahead is of the Rush

New York sports betting has not been passed yet, but companies are already jockeying for position. The latest is daily fantasy sports giant DraftKings Inc. As part of its expansion into traditional sports wagering, the company says it has agreed to operate the sports book at Del Lago Resort & Casino in Waterloo, New York. The agreement also allows DraftKings to a launch state-wide online and mobile app once the laws allow.

Sports gambling is expected to be a second act of sorts for daily fantasy companies DraftKings and FanDuel Inc., which in their early years grew exponentially, raised hundreds of millions from venture capital firms, and inundated sports fans with ads promoting their million-dollar prizes. In the past few years, however, facing legal headwinds, a failed merger and slower growth, the prospect of offering traditional sports gambling has grown more alluring.

By the time the U.S. Supreme Court struck down the federal ban on sports gambling this May, DraftKings had already hired a “head of sportsbook,” and spent more than six months developing a sports gambling product.

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