DraftKings and the PGA Tour have announced the expansion of their existing commercial partnership to offer retail and mobile sports betting in Arizona. The development comes two days after Arizona Senate ironed out issues surrounding sports betting legislation after more than a month of bickering in the upper chamber. While the Arizona sports betting bill is still at Gov. Doug Ducey’s desk, DraftKings and the PGA Tour did not wait for the executive signature to expand their partnership.

Details of the Deal

As per the expanded deal, the Boston-based sportsbook will have market access in Arizona retail and online sports betting, pending necessary regulatory approvals. The expanded deal also makes DraftKings the exclusive sports betting partner for TPC Scottsdale’s annual event, the Waste Management Phoenix Open. Besides, DraftKings and PGA Tour will jointly create hospitality experiences and marketing initiatives for TPC Scottsdale.

DraftKings is also building a retail book at the TPC Scottsdale golf course. Both partners will use the complex as the home of a brand new 19th hole experience. Golf fans and sports betting enthusiasts will be able to gather in the sportsbook year-round to place legal bets, watch games, with food and beverage options. Currently, both entities are collaborating with Scottsdale officials and the Thunderbirds to build the project. The objective is to elevate the course to a global sports betting destination for golf fans. The venue will also provide benefits to charitable organizations in the community.

Strategic Timing

DraftKings and the PGA Tour expanded deal comes at a strategic time as Arizona, the country’s 14th largest state is set to launch its sports betting ahead of the NFL 2021 season. This will allow DraftKings to be one of the first sportsbooks live in the state and claim the first operator advantage.

Interestingly, in signing the new deal, the two entities outpaced the Arizona governor who is expected to sign the sports betting bill into law by the end of the week. If approved – which it will be as Ducey was among the prime movers of sports betting in Arizona – online and retail sports betting will be available to state residents through professional sports facilities and tribal casinos. Sports teams and tribes are eligible for up to ten licenses each. Arizona State and its gaming tribes have yet to renew the compact, after which tribes will be able to extend sports betting services under fresh legalization.

Expanding an Existing Partnership

DraftKings and the PGA Tour first developed cooperation in 2019 when the two organizations announced a multi-year content and marketing deal, making DraftKings the first-ever official daily fantasy game of the North American non-profit organization. Then, in July 2020, the PGA Tour expanded its cooperation with DraftKings by naming it the first official betting operator of the organization. The latest development further builds on this existing foundation.

“When DraftKings became the first official betting operator of the PGA Tour last summer, various possibilities opened up to innovate together,” said DraftKings’ chief business officer Ezra Kucharz. While underscoring the joint vision of both organizations, he said the momentous effort to pursue a unique sportsbook with the PGA Tour proves the vision of both entities, which will ultimately benefit Arizona sports lovers who want to bet legally.

PGA Tour’s Senior Vice President of Media and Gaming Norb Gambuzza commends the State of Arizona and the governor for their “forward-thinking approach to legal sports betting.” He also expressed excitement for extended collaboration with DraftKings in Arizona sports betting, along with the City of Scottsdale and the Thunderbirds, to explore a unique sportsbook experience at TPC Scottsdale.

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