FanDuel has secured a new route to the Caribbean and LatAm markets courtesy of a strategic business agreement announced this week with The CAGE Companies (An RLJ Companies Majority Owned Company) and its subsidiary, CAGE Sports BV.
Under the terms of the deal, FanDuel Group will be able to expand its sportsbook to certain jurisdictions where CAGE is licensed or is seeking sports betting licenses in the Caribbean and South America. The new relationship brings together CAGE’s experience in the region with the FanDuel brand and sports betting platform.
Robert L Johnson, Founder of The RLJ Companies and Majority Owner of the CAGE Companies, explained: “We are excited about implementing a sports betting business with FanDuel and believe that it will provide our customers with an engaging betting experience only our two companies can deliver. This agreement will also provide new jobs and significant recurring revenue for the governments we serve.”
As part of the agreement, the two parties will operate over the counter sportsbooks at retail locations and online in markets throughout the Caribbean and South America. Both companies expect the network to be activated in the first half of 2021 initially in Bermuda and Barbados with the long-term goal of growing to several dozen additional locations across the region.
“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,” said FanDuel Group CEO Matt King. “Bob and the team at CAGE were the perfect partner to expand our industry leading footprint internationally.”
“We see sports betting and mobile gaming as a key driver of growth for the CAGE Companies,” said Robert B Washington, Co-Founder, Chairman & CEO of 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.”
FanDuel Group currently operates retail sportsbooks in 11 states across the US (NY, NJ, PA, WV, MI, IL, IN, IA, CO, TN, MS) and online sports betting in eight states (NJ, PA, WV, IL, IN, IA, CO, TN). The firm is launching online in Michigan and Virginia in the coming months, expanding the addressable market to approximately 24% of the US population.