Delta Air Lines is joining the sports betting market to add a new source of generating revenue. The company announced a partnership with DraftKings at CES in Las Vegas. However, the airline did not disclose details on the new gambling integration.
Delta Air Lines could offer SkyMiles earning opportunities for sports betting activities via DraftKings
Rumor has it that SkyMiles earning opportunities for sports betting activities through DraftKings could be part of the business model, in addition to integration of DraftKings content into Delta’s in-flight entertainment system.
“From fantasy sports to online adventures, gaming has become a regular part of the daily lives for millions of our customers, and you shouldn’t have to hit pause just because you’re in the skies,” said CEO Ed Bastian.
Bastian added that the new partnership with DraftKings will build on the game portfolio that Delta Air Lines already offers via Delta Sync and on seatback screens.
For 32 years, gambling was legal for foreign airlines flying to and from the U.S. to offer inflight gambling. In 1981, Singapore Airlines engaged in a two-month test offering slot machines on the flight from Singapore to San Francisco.
Although adding gaming machines to planes appeared like a revolutionary idea for the airline industry, all seven slot machines broke on Singapore Airlines’ inaugural run. The slots seemed perfect since they were light weight, but the machines weren’t built for excessive usage.
Gambling is illegal on U.S. commercial aircraft under the Gambling Devices Act of 1962
Under the Gambling Devices Act of 1962, also known as the Johnson Act, 15 USC 1171, gambling is illegal on U.S. commercial aircraft.
Gambling is legal in airports if it’s legal in the jurisdiction where the airport is located. For example, the Las Vegas airport has generated over $1 billion in gambling revenue.
In 1996, the Department of Transportation conducted a national study on the effects of gambling on airplanes. The study concluded that airlines could earn $1 million per aircraft each year by offering gambling.
This means an airline with an 800-plane fleet could generate $1.3 billion per year. For larger airlines, the economic impact would have been even more impactful. Delta Air Lines’ fleet is nearly 1,000 aircraft.