Daily fantasy sports provider DraftKings has signed a new partnership deal with the del Lago Casino & Resort of New York to operate a Las Vegas-style sportsbook if the state decides how to proceed with sports betting legalization.

Casino operators in New York are wasting no time getting ready for sports betting operations. The del Lago Casino & Resort recently partnered with DraftKings, a top provider of daily fantasy sports, to set up a sportsbook in their gaming venue. This deal comes just a short time after another New York venue, Tioga Downs, announced a partnership with Paddy Power Betfair to launch a FanDuel sportsbook, working with the fantasy arm of the British company.

Setting the framework

The new partnership between DraftKings and del Lago will create the framework for a physical lounge for sports betting to be placed inside the casino. Online betting will also be offered if the state decides to approve the style of sports wagering in the future. DraftKings will be using their expertise in daily fantasy sports to help develop the casino’s sportsbook as well as an online gaming application.

Of the new partnership, DraftKings co-founder and CEO Jason Robins said: “New York is one of the largest revenue opportunities for future sports wagering operators and we are thrilled to partner with del Lago Resort & Casino to offer sports fans a unique and novel sports betting experience, both at a physical sportsbook and on mobile when permitted.”

The gaming deal is the second for DraftKings, which recently partnered with Resorts Casino of Atlantic City and already offers sports betting options in that venue. The brand expects to launch mobile and online sports wagering in New Jersey by the time the new NFL season begins.

The del Lago is now reviewing its options for the physical sportsbook. Among the options are adding to the lounge in the casino or creating an addition on-site. In any case, the lounge should be in an area that will be in view of the existing gaming floor.

Legal complications

While casino operators are preparing for sports betting by forging new partnerships, legal issues have complicated the option in the state. On May 14, the United States Supreme Court struck down PASPA, thus allowing individual states to legalize sports betting within their borders. Delaware was the first to do so, followed shortly by New Jersey.

In New York, legalities seem to be standing in the way. In 2013, a law was passed that allowed the creation of four new casinos that were non-Indian nation facilities. The law says that the casinos could offer sports betting if the federal ban was struck down, which it was. The casinos that have this ability are Tioga Downs, del Lago, the Rivers Casino and Resorts World Catskills.

The law limits sportsbooks to a physical location in the casinos. There is no provision for online wagering or sportsbooks located at sites other than the brick-and-mortar casinos. Betting on college teams in the state and other sporting events that take place in New York is also prohibited by the 2013 legislation.

As the legislative session ended last month, state lawmakers were unable to update the law from 2013, so the old law is still in effect. Advocates of sports betting are requesting that changes be made soon so that the state can stay in competition with Delaware and New Jersey.

At the same time, the Gaming Commission is working to create rules and licensing procedures based on the 2013 law, yet no time has been set for the procedures to be ready. A license must be granted by the commission for the casinos to be able to operate sportsbooks in the state.