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DraftKings Partners With Foxwoods Resort for Future Connecticut Sports Betting Play

By Rich Duprey - Dec 7, 2020 at 2:51PM

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It's not legal to wager on sports in Connecticut, but it might soon be.

DraftKings ( DKNG 8.14% ) continues to expand its footprint in the northeast sports betting market after signing a partnership agreement with the Mashantucket Pequot Tribal Nation to provide sports betting and a fantasy sports platform at its Foxwoods Resort Casino in Connecticut.

Although it's not currently legal to place wagers on sporting events in the state, DraftKings and the Mashantucket Pequots are preparing for the day when it is. In the interim, it will launch a daily sports fantasy experience beginning next week.

Fans reacting to a soccer game

Image source: Getty Images.

A rich opportunity

The northeast has become the sports betting capital of the country, especially New Jersey, which was one of the first states to implement wagering regulations when the U.S. Supreme Court struck down bans on sports betting as unconstitutional.

Situated between the New York and Philadelphia markets, the state is on track to soon be taking in $1 billion a month in bets. While Connecticut might not see the same sort of response because it's not nearly as densely populated as New Jersey, the state could do quite well because it is located between the New York and New England markets.

It's why casino operators like MGM Resorts and the tribal nations have battled over the right to site casinos in the region.

Under the new agreement, DraftKings will offer online promotions, contests, and other integrated digital experiences for its daily fantasy sports program beginning Dec. 13. Foxwoods, along with the Mohegan Tribe's Mohegan Sun casino, are the only authorized casinos to operate in Connecticut, so it gives Flutter Entertainment's FanDuel an incentive to sign an agreement with the Mohegan Tribe.

DraftKings and the Mashantucket Pequots estimate online gaming and sports betting would generate $175 million in new revenue for the state over five years.

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DraftKings Inc. Stock Quote
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