FanDuel has secured entry into the Caribbean sports betting market with its latest deal.
The US sports betting giant FanDuel has entered into a strategic agreement with CAGE companies and its subsidiary, CAGE Sports BV, to expand its presence into certain jurisdictions in the Caribbean and South American sports betting markets.
What’s covered in the agreement?
According to a joint press release, both companies are planning to launch online and land-based sports betting in Bermuda and Barbados first, before expanding into other jurisdictions.
The pair hope to launch sports betting operations in both markets by the first half of 2021.
FanDuel Group CEO Matt King said: “We are proud to partner with a visionary business leader and entrepreneur in Bob Johnson and look forward to building a long-term collaboration together. Bob and the team at CAGE were the perfect partner to expand our industry-leading footprint internationally.”
Robert B. Washington, Co-Founder, Chairman & CEO of the CAGE Companies said: “We see sports betting and mobile gaming as a key driver of growth for the CAGE Companies. This dynamic agreement creates tremendous value, brand recognition and delivers world class products for the enjoyment of our customers and the financial benefit of the many small businesses that serve as our commission retailers.”
The deal also marks a unique development in the sense that a legal and regulated US sportsbook is moving into a market often regarded as a haven for offshore sportsbooks that illegally transact with US-based customers.
At this moment in time, FanDuel offers land-based sports betting in 11 US states and operates its online and mobile sportsbook in eight states, which will grow to at least 10 states in 2021 when Michigan and Virginia launch sports betting.
Who or what is CAGE?
According to the company’s website, CAGE was originally founded in 2004 to bring Video Lottery Terminals (VLTs) to Caribbean countries.
CAGE is registered as a US Virgin Islands company and is licensed to operate VLTs in six Caribbean countries including the Dominican Republic and Barbados.
The CAGE Companies are an RLJ Companies owned majority company that was founded by Robert Johnson, the former Black Entertainment Television (BET) co-founder. Johnson founded RLJ Companies in 2001 after selling BET to the Viacom Network for $3bn.