DraftKings Expands Operations in Las Vegas, Skipping Bet Acceptance in Nevada at Present
Sportsbook operator DraftKings (NASDAQ: DKNG) unveiled its brand new Las Vegas office earlier this week. This bustling hub, spread across an impressive 90,000 square feet, ranks second only to DraftKings' Boston headquarters in terms of size among domestic outposts.
Nestled within Matter Real Estate Group's UnCommons mixed-use development, the office is expected to house up to a thousand employees from the gaming company at full capacity. It's anticipated that DraftKings will essentially monopolize an entire building there.
The Vegas office includes more than 130 dedicated sports trading desks encircled by mega multimedia walls set up in a stadium-style seating arrangement, a sprawling, fully-stocked cafeteria and event space, a custom casino training area, an interactive 500-square-foot putting green, private and public outdoor spaces, and mothers' rooms, as per the official statement.
DraftKings confirmed plans for this southwest Vegas office back in October 2021.
Nevada Access Still Pending for DraftKings
The press release doesn't delve into the specific roles that will be filled at the Sin City office, or the timeline for reaching the 1,000-employee milestone. Situated just 15 minutes from the iconic Strip, it's clear that DraftKings is eager to make its mark in Vegas.
As things stand, DraftKings isn't legally authorized to accept bets in Nevada, just like its rival FanDuel. It's unclear when regulatory hurdles might be cleared. Yet, DraftKings has made no secret of its aspirations in Nevada and has executed a few strategic moves in that direction.
DraftKings struck a multi-year agreement as the primary sponsor of UNLV's Center for Gaming Innovation and inaugurated the DraftKings Gaming Innovation Studio at UNLV. This gives DraftKings access to local talent and technology.
The company's acquisition of Golden Nugget Online Gaming (NASDAQ: GNOG) may pave the way for DraftKings to venture into the Nevada gaming scene by leveraging the Golden Nugget brand on retail sportsbooks in downtown Las Vegas and Laughlin.
Las Vegas Office Opens Amid Workforce Reduction
The introduction of the Las Vegas office comes about seven weeks after DraftKings announced it would be shedding 140 jobs, or approximately 3.5% of its workforce, to cut costs. The company didn't explain in the press release whether some of these positions might be filled in the Las Vegas office, or if the affected employees would be offered positions in Nevada. However, the press release did reveal other interesting tidbits.
The Las Vegas office will offer various amenities for employees, including an on-site barber shop and salon, and a manicure/pedicure lounge, according to the press release.
These perks are the kind that some tech companies – known for recent staff reductions – are scrapping to prepare for tough economic times. In January, Google's parent company, Alphabet, announced the dismissal of 31 massage therapists as part of a broader set of staff cutbacks. Since Elon Musk took charge of Twitter, perks such as free meals and commuter benefits have been nixed as part of an effort to make the social media platform profitable.