Equipment provider Scientific Games is expected to announce a partnership agreement with FanDuel to supply both sports wagering and online gaming technology to the company’s operations in the U.S. and globally.
A source familiar with the agreement said the deal could be announced this week in conjunction with the ICE London 2020 gaming show.
Las Vegas-based Scientific Games will provide FanDuel with the company’s Openbet sports wagering technology platform, which is already being used by Flutter, FanDuel’s United Kingdom-based parent. Flutter operates sportsbooks under Paddy Power, Betfair, Sportsbet, FanDuel and Adjarabet.
The agreement will make Scientific Games the exclusive supplier for FanDuel in all of the company’s existing U.S. markets and any future markets.
Reports of the deal sent shares of Scientific Games up 8.17% or $2.03 in trading Monday on the Nasdaq, closeing at $26.87.
FanDuel currently offers online sports betting in Pennsylvania, New Jersey, Indiana, and West Virginia. The company operates retail sportsbooks in West Virginia, at the Meadowlands Racetrack Complex in New Jersey, and in properties operated by Boyd Gaming Corp. in Pennsylvania, Iowa and Indiana.
FanDuel announced an agreement last month with Twin River Holdings to provide online sports betting in conjunction with the company’s three casinos in Colorado.
#exclusive – Source: Sports wagering deal expected between Scientific Games and FanDuel. –@howardstutz, CDC Gaming Reports. https://t.co/DnqNtPFtvp @ScientificGames @FanDuel #CDCgaming
— CDC Gaming Reports (@CDCNewswire) February 3, 2020
Scientific Games would become the leading back-of-the-house sports betting supplier in the U.S. through the deal with FanDuel.
Last month, Scientific Games announced a deal with DraftKings to provide the company its Internet gaming platform and games content portfolio.
Scientific Games Chairman Ronald Perelman, a New York-based financier who controls nearly 40% of the company through his MacAndrews & Forbes investment arm, spent more than $40 million to boost his controlling stake in the past year.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
