DraftKings CEO: Igaming the “hidden gem” of the US market
Jason Robins suggests legalizing states like New York and Illinois could potentially open up other regions in 2024
DraftKings CEO Jason Robins has asserted his belief that igaming could replace sports betting as the key revenue generator for operators, branding the vertical the “hidden gem” of the US market.
Speaking at the third annual Craig-Hallum Online Gaming Conference, Robins discussed diverse subjects including the impact of ESPN Bet, sports betting, technology, the group’s wider ambitions, and potential areas of growth.
Addressing verticals specifically, Robins drew attention to the disparity between questions on sports betting from investors and those questions relating to igaming, suggesting the latter was potentially more interesting for US operators.
“Certainly, the sports product is a little bit more complicated of a product, so I think it just demands a bit more focus, but igaming is something that we have a very talented team working on as well,” Robins explained.
“It’s a very significant chunk of our revenues, and that’s only in five states, but it’s going to grow. So really for me, igaming is kind of the unlocked or the hidden, not yet unlocked, gem of DraftKings.”
The CEO continued: “I think a lot of people are sort of sleeping on it a little bit and maybe are just focused on how big the sports side can be, not realizing the igaming side can make the business even larger.
“I think it’s something that also maybe because there wasn’t a lot of momentum in the last year or so on the legislative side, people have kind of forgotten about it a little bit.”
In its Q3 financial results, DraftKings reported a 57% year-on-year revenue growth spike, spurred by customer acquisition, product innovation, and improved promotional reinvestment in both sports betting and igaming.
Elaborating on his stance surrounding igaming, Robins pointed to the need for states to generate additional revenue both as a result of the pandemic and now that the Covid-19 relief awarded by federal authorities are starting to dry up.
“We do have some pretty decent sized states, but I think if you see igaming launch in New York or in Illinois or somewhere like that, I think that’s going to unlock some other ones states? in the region as well,” he explained.
“I think that’s going to yield some benefit, and I really feel like igaming is an area that I’m continuing to feel better and better about the upside, and from a share perspective too.
“I’m really excited about getting more states onboard for igaming and I think the share is going to continue to grow, and it wouldn’t surprise me if igaming is bigger than sports betting at some point for our business.” Robins added.