Market Overview

Caesars Entertainment Locks In NFL's First Casino Sponsorship

Share:
Caesars Entertainment Locks In NFL's First Casino Sponsorship

The NFL has signed its first exclusive sponsorship deal with a casino.

What Happened

Caesars Entertainment Corporation (NASDAQ: CZR) has been selected as the first-ever casino sponsor of the NFL.

Both parties agreed to a three-year deal worth approximately $30 million annually that gives Caesars the exclusive right to use NFL trademarks and enables the company to promote its casino properties at the NFL draft and Super Bowl.

"We couldn't be more excited to work with one of the world's largest gaming and entertainment companies," Renie Anderson, the NFL's senior vice president of partnerships, sponsorships and consumer products, said in a Jan. 3 statement.

"Combining the NFL with Caesars' expertise in world-class entertainment will provide our fans unique experiences both here in the United States and abroad."

Seven NFL teams already have a relationship with Caesars Entertainment.

Why It Matters

The sponsorship deal gives Caesars more exposure starting immediately with the 2019 NFL playoffs. It's important to note the deal does not include sports betting.

By partnering with Caesars, a company that operates 50 hotels in the US and has 55 million "Total Rewards" loyalty members, the deal immediately brings a massive audience to exclusive year-around NFL opportunities at the company’s properties, Caesars CEO Mark Frissora said in a statement. 

The deal marks a notable shift in the NFL’s sentiment toward gambling, considering the NFL was one of the last professional sports leagues in the U.S. to take a public stance on sports betting as it became legal in 2018.

What’s Next

Although the NFL continues to take a measured stance on sports betting, a deal with Caesars positions the company as a first mover to capitalize on a deal if one comes to fruition.

The NBA, MLB, and NHL have all signed betting deals with competitor MGM Resorts International (NYSE: MGM).

The NFL is expected to be the most lucrative professional league in terms of legalized gambling if and when it approves it. 

“The NFL eventually stands to reap as much as $2.3 billion in annual revenue from the industry, more than any other league, according to the American Gaming Association," according to Bloomberg.

With the 2020 NFL draft being held in Las Vegas — the same year the Oakland Raiders are expected to move into town — expect to see a lot of Caesars visbility during the event. 

Caesars Entertainment shares closed up 4.3 percent at $7.04 Friday.

Related Links:

How Peer-To-Peer Betting Could Make Sports Gambling More Lucrative

Will Legal Sports Betting Force The NCAA To Pay Its Athletes?

Posted-In: gambling Las Vegas mark frissora MLB NBANews Sports General Best of Benzinga

 

Related Articles (MGM + CZR)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Barron's Picks And Pans: Apple, Exxon, Morgan Stanley And More

Cleveland Fed President: No Reason To Believe Recession In Sight