Delta and DraftKings Announce a Partnership at CES Las Vegas
The first agreement between a sportsbook and an airline has been announced at CES technology trade show in Las Vegas: DraftKings and Delta will team up on sports betting.
DraftKings and Delta Airlines have reached a sports betting agreement.
Key Facts:
- Announcement at CES tradeshow in Las Vegas reveals agreement between DraftKings and Delta on sports betting
- Current US law prohibits gambling in the air during commercial flights
- Details of deal between Delta Airlines and DraftKings not yet clear
Delta Air Lines is making an unexpected move into the sports betting industry, announcing a partnership with DraftKings during CES 2025 in Las Vegas. While details remain scarce, the collaboration signals Delta’s interest in diversifying its revenue streams through innovative avenues.
Speculation on Gambling Integration
Aviation industry observers, such as PaxEx Aero, have speculated that the partnership might lead to onboard gambling opportunities via Delta’s inflight entertainment system. However, implementing such a feature would face significant legal hurdles.
Under the Gambling Devices Act of 1962 (commonly known as the Johnson Act) and the Gorton Amendment of 1994, gambling on US-registered commercial aircraft remains illegal. These laws extend to foreign airlines operating flights to or from the US, making inflight gambling a complicated proposition.
Inflight Gambling Was Once Legal
The idea of inflight gambling isn’t new. In 1981, Singapore Airlines experimented with onboard slot machines on flights between Singapore and San Francisco.
Although the concept proved popular, operational challenges, such as passenger congestion and mechanical failures, quickly led to its discontinuation. Singapore Airlines revisited inflight gambling briefly in the late 1990s.
Other airlines, such as Swissair and Ryanair, have also tested or proposed inflight gambling systems. Swissair introduced seat-based gambling in the 1990s but ended the practice following the tragic crash of Swissair Flight 111 in 1998, which was partly attributed to wiring issues in the inflight entertainment system.
Ryanair’s ambitious plan to fund flights with onboard gambling revenue, announced in 2005, never materialized.
Legal Barriers in US Airspace
The United States-Flag Cruise Ship Competitiveness Act of 1991 allowed US-registered cruise ships to offer gambling, prompting airlines like TWA and Northwest Airlines to lobby for similar exemptions.
Instead, Congress enacted the Gorton Amendment, which explicitly banned gambling devices on all aircraft flying to or from the US.
The Federal Aviation Administration (FAA) does permit aircraft flying to the US to have gambling devices installed, as long as they are deactivated during the flight. While these restrictions remain in place, the legal landscape has not been tested under modern aviation treaties.
In the mid-1990s, the Department of Transportation (DOT) studied the feasibility of inflight gambling and largely found it to be viable. However, the Clinton Administration held off on legalization, citing broader national concerns over gambling’s societal impact.
What’s Next for Delta and DraftKings?
Delta’s partnership with DraftKings may focus on pre-flight or destination-specific betting opportunities, leveraging airport lounges or mobile platforms.
But who knows? Delta has yet to confirm its plans: the collaboration underscores the airline’s willingness to explore unconventional revenue models.
As the regulatory and technological environment evolves, Delta’s move could either pave the way for innovation in the aviation industry or highlight the persistent legal barriers to inflight gambling.
Their new partner, DraftKings, is one of the few heavyweights in the sports betting industry. In most jurisdictions, it’s in a push-and-pull battle for market dominance with rival FanDuel.
