Less than 24 hours after MGM Resorts International announced a historic sports betting agreement with the NHL, one of its competitors made a bit of history of its own on Tuesday.
Caesars Entertainment signed partnership agreements with the Philadelphia 76ers and New Jersey Devils becoming the first casino to secure partnerships with franchises from the NBA and NHL since the Supreme Court struck down a federal ban on sports betting in May. The teams, which represent two cornerstones of Harris Blitzer Sports & Entertainment's (HBSE) portfolio, rank in the top 5 in their respective leagues in several attendance and season ticket metrics.
The partnership will introduce Prudential Center patrons to a sports betting experience inside the Caesars Club, a 5,000 square foot premium restaurant and bar located on the arena's main concourse. Sports bettors will also be able to access Caesars Casino & Sports app, which launched earlier in September ahead of the pro football season.
Adam Davis, chief revenue officer with the New Jersey Devils and Prudential Center, highlighted the synergies between the gaming operator and entertainment events throughout the state that could engage fans during marquee concerts and sports contests.
"Prudential Center and Caesars Entertainment are industry leaders in sports and entertainment," Davis said. "Caesars Club is a natural way to recreate the world-class Caesars experience for New Jersey Devils Premium Seat members and one million event goers that attend concerts and live events at 'The Rock' annually."
In addition, Caesars will promote Harrah's Philadelphia and two of its other signature brands to the Philadelphia 76ers' regional and international fanbases. The announcement came several hours before the Pennsylvania Gaming Control Board was expected to make a decision on Harrah's Philadelphia's sports betting license application status at a board meeting in Harrisburg. Pending the decision, Caesars Entertainment Chief Experience Officer Michael Marino expressed optimism that the mobile sports betting app could become operational in Pennsylvania by the first quarter of 2019.
Marino, who also serves as senior vice president of Marketing at Caesars Entertainment, does not foresee any regulatory concerns ahead of the app's potential launch.
"It's just a matter of checking all the boxes to make sure that the app is secure, that location tracking works as it is supposed to and making sure that the gamer is safe," Marino said.
The proximity of both fanbases to a number of Caesars' properties appears to be a large driver of the transaction. The company operates four properties within 150 miles of the Prudential Center and the Wells Fargo Center, the home of the 76ers. Marino also emphasized the global reach of the 76ers as an appealing aspect of the deal. The 76ers, he said, have a large fanbase in China where the team competed in two preseason games earlier this month.
Prior to signing a lucrative sponsorship deal with Under Armour, Sixers forward Joel Embiid lauded Chinese fans for their passion for basketball at an appearance in Shenzen.
"The reach of these teams is pretty phenomenal," Marino said. "For us, there's a lot of opportunities for activations for fans of both of these teams."
The ability to expand their scope through innovative cross-sport deals served as one of Josh Harris and David Blitzer's primary areas of focus when they formed HBSE last September. Separately, HBSE, Creative Artists Agency (CAA) and the San Francisco 49ers teamed up to form Elevate Sports Ventures in January. The venture is focused on providing corporate hospitality, premium ticketing and selling stadium licenses.
While it could be months before legislators in California decide whether to legalize sports betting, several teams in the NFL have pursed sponsorship deals with gaming operators. The New York Jets recently signed an agreement with 888 Holdings, a company based in Israel that runs a sports betting and online casino operation, the New York Post reported Oct. 29.
Caesars' partnership with the Devils comes on the heels of an agreement the Prudential Center and the franchise signed last week with William Hill US. Under the deal, the company will open the William Hill Sports Lounge inside the arena, equipped with a full-service bar, multiple TVs and an area for fans to bet on sports through its mobile app.
As legalized sports betting expands throughout the Northeast, many gaming experts foresee a crowded marketplace among gaming operators in states such as New Jersey and Pennsylvania. Instead of pursuing exclusive partnerships with casinos, HBSE studied a model prevalent in the English Premier League where some teams partner have partnered with nearly a half-dozen sports betting companies.
"There is no specific number, the way we look at is can we drive value to our partners and can we drive value to our fans?" Davis said. "I think the answer is yes to both of those."
