Delta Air Lines eyes DraftKings tie-up: Possible gambling SkyMiles on the horizon?

In addition to announcing new Bluetooth-enabled screens and new partnerships with Uber and YouTube, Delta Air Lines revealed a revolutionary partnership during a star-studded show at Las Vegas’ Sphere last week.

The airline will soon launch a new partnership with online sports betting giant DraftKings, Delta CEO Ed Bastian announced during his keynote address at CES, one of the world’s largest consumer trade shows.

“From fantasy sports to internet access, gaming has become a regular part of the daily lives of millions of our customers. And you shouldn’t pause just because you’re in the sky,” Bastian told the Sphere audience.

Does that mean you can soon bet, say, 20,000 miles on a team to win the Super Bowl?

Not really. Or, perhaps more accurately, not yet.

The DraftKings deal will “build upon” the carrier’s existing portfolio of inflight games, Bastian said.

Using the airline’s free “Delta Sync” Wi-Fi, customers today can play New York Times games like Wordle or try their hand at Delta’s Sky Hopper game, which allows loyal Delta SkyMiles members to compete in a gunfight. up to $400 in Delta gifts. cards.

It’s not yet clear what exactly this “collaboration” between DraftKings and the Atlanta-based carrier will entail from the start.

“Clear details of the deal and the nature of DraftKings’ contributions to Delta Sync [Wi-Fi] will be distributed when they are completed,” said a company spokesperson in a statement on Tuesday.

But the airline’s chief communications officer offered a clear glimpse into what Delta is thinking about in the long-term partnership. And it could — speculatively, the carrier said — one day involve gambling with Delta frequent flyer miles.

“The announcement that DraftKings made: If you played that forward — and I’m not saying that’s where we’re going — but if you played that forward, international airlines can gamble. International airlines can gamble with SkyMiles as a currency,” Delta chief communications officer Tim Mapes told TPG in an interview.

Legal barriers surround inflight gambling

There are many legal and regulatory considerations that may surround the Delta-DraftKings deep merger.

A long-standing US law has prohibited airlines from installing or allowing gambling devices on commercial flights.

Value check: Are airline credit cards still worth it?

As such, Delta tells TPG that it is not is currently exploring ways to allow passengers to gamble on board.

But Delta appears to be considering its long-term options for entering the lucrative industry — and, perhaps, finding a way to consolidate its vast pool of miles held by millions of frequent flyers.

“You have money in SkyMiles, and you have all these different ways to accumulate, redeem, find new ways to value that money or promote the use of that money in ways that people really enjoy,” Mapes said. “No matter where we will go, because it will be the choice of the customers that guides us.”

No SkyMiles redemptions have been scheduled yet

Certainly any serious relationship between an airline and DraftKings — including the casual gambling of airline miles — is likely to draw some attention from lawmakers and regulators alike.

After all, recent years have seen Congress, the US Department of Transportation and the Consumer Financial Protection Bureau deepen their scrutiny of the airlines’ lucrative loyalty programs and credit card portfolios.

How regulators ultimately view Delta-DraftKings’ depth remains to be seen.

At the same time, it is important to note that airlines are more likely to expect the Trump administration to take a stronger regulatory stance than the Biden administration.

Not to mention that sports betting has grown into a multi-billion dollar industry after the 2018 US Supreme Court ruling. Today, the discussion about betting statistics in the general analysis of all major sports events.

The newest is gambling at airports. It has long been legal in local areas where the practice is allowed. Look no further than the slot machines and other casino games located inside the terminals at Harry Reid International Airport (LAS) in Las Vegas.

Bottom line

For now, expect some kind of Delta-DraftKings games – minus the actual wagers – on the board.

And, if gambling with flyer miles does happen, we’ll certainly be there to urge you to consider the value of your hard-earned miles before placing them as part of a bet.

In the meantime, we’ll be watching how the early iterations of Delta’s DraftKings partnership pan out.

Related reading: