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IGT and FanDuel Expand Sports Betting and iGaming Agreement to Entire U.S.

By Rich Duprey – Aug 3, 2020 at 9:28AM

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The new agreement replaces the state-by-state deals the two were forging.

International Game Technology (IGT 1.61%) and FanDuel announced today that they have greatly expanded their sports betting and iGaming agreement to now cover the entire U.S.

The deal means IGT's PlaySports platform will now power all of FanDuel's sportsbooks in the country while FanDuel, which is owned by Flutter Entertainment (PDYP.Y -0.24%), will offer IGT's PlayDigital's PlayCasino games in states where it operates online casinos. The agreement runs through 2024.

Sports betting apps on mobile phones

Image source: FanDuel.

A good bet on growth

The iGaming and sports betting leaders had been expanding their relationship on a state-by-state basis, with Colorado joining New Jersey, Pennsylvania, West Virginia, and five other states in May to deliver collaborative sports betting entertainment. 

IGT and FanDuel first partnered in 2018 following the legalization of sports betting in the U.S. when the Supreme Court struck down as unconstitutional the Professional and Amateur Sports Protection Act of 1992, which barred states from authorizing sports gambling. The two began offering sports betting at The Meadowlands Racetrack in East Rutherford, New Jersey, which today continues to be the largest-volume retail sportsbook in the U.S. 

In June The Meadowlands reported $49.5 million in year-to-date internet sports betting gross revenue, well ahead of second-place Resorts Casino with $33.2 million. No other venue cracked double-digit gross revenue.

FanDuel CEO Matt King said IGT's technology was integral in its U.S. sportsbook expansion and that "its PlayCasino content enables FanDuel to deliver premium mobile casino entertainment in new and existing markets."

FanDuel currently offers IGT PlayCasino games such as Wheel of Fortune Triple Extreme Spin, Triple Red Hot 7s Free Games, and Red Hot Tamales! within its mobile wagering apps and websites in New Jersey and Pennsylvania.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool recommends Flutter Entertainment PLC. The Motley Fool has a disclosure policy.

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Stocks Mentioned

International Game Technology Stock Quote
International Game Technology
IGT
$15.80 (1.61%) $0.25
Flutter Entertainment PLC Stock Quote
Flutter Entertainment PLC
PDYP.Y
$54.80 (-0.24%) $0.13

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