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Caesars Entertainment, DraftKings announce multiyear partnership

DraftKings will have increased opportunities to offer its online sports betting and casino gambling product in several new states -- potentially including Nevada -- as part of a multiyear deal with Caesars Entertainment announced Monday.

Caesars, which operates casinos in 13 states, receives an undisclosed equity stake in DraftKings in a partnership between a traditional gaming giant and an up-and-comer in the space.

In states that authorize online sports betting and/or casino, DraftKings would still need to secure appropriate licensing, but having access to a partner with brick-and-mortar establishments will be an advantage.

"Partnering with such a world class gaming organization will expedite our national roll-out process and give us the opportunity to work alongside one of the largest and most established industry leaders in the world," DraftKings CEO and co-founder Jason Robins said in a release announcing the deal.

DraftKings currently operates sportsbooks in Mississippi and New Jersey and is looking to expand into other states that authorize sports betting.

Nevada is among the states Caesars operates in and one that DraftKings has been absent from since the fall of 2015, when state gaming officials ruled that daily fantasy sports constituted sports betting and would require a license.

DraftKings has not applied for a gaming license in Nevada, but has established an office near Las Vegas. The company said it was not discussing specific details of state entry at this time.

"We are committed to supporting DraftKings' bid to offer their online sports betting platform in all jurisdictions where they desire a license and where the law allows it," a spokesperson for Caesars told ESPN in an email.

As part of the agreement, DraftKings will promote Caesars as its "official casino resort partner" in states where the companies collaborate. Caesars can continue to offer its own sports betting and online casino, according to the release.

"This alliance is the latest initiative by Caesars to capitalize on our database, generate a new revenue stream in a growth market and raise our profile in sports, in part by creating new sports-themed guest experiences at our resorts across the country," Caesars Entertainment president and CEO Mark Frissora said in the release.