DraftKings CEO labels pick’em lobbying a “call for clarity” amid scrutiny
Jason Robins admits heritage DFS operators actively pushing for review of sector as FanDuel CEO Amy Howe calls for greater state intervention
DraftKings CEO Jason Robins has confirmed that the Boston-headquartered operator and FanDuel are actively lobbying for increased scrutiny of pick’em games by regulators, suggesting both firms are attempting to gain “clarity” on the legality of the vertical.
Robins was speaking as part of the G2E Vegas keynote address along with FanDuel CEO Amy Howe, with the pair challenged on recent allegations made by PrizePicks and Underdog Fantasy that the two operators are pushing regulators to review the regulations on such games as part of an anti-competitive action.
The DraftKings CEO refuted the claims but did not deny undertaking lobbying activity.
“We want to understand what the constraints of what we can offer are. There’s always going to be people and companies that are pushing the limits and having clarity helps,” Robins told delegates.
“It all goes back to competition. We want to be able to compete, we want to be able to offer the same things that anyone else out there offers, and once you do that its great for the consumer. Then its about whomever has the best experience, and the best operation comes out on top.”
He continued: “Having clarity in what we can and what we can’t do is important, and I think the same rule should be applied to everything.
“In a perfect world, we’d like to be able to offer the same thing that anybody else can if we can agree, that’s what maximizes competition and that’s what creates the best environment for consumers,” Robins remarked.
When asked about the legal scrutiny of pick’em style DFS contests and DraftKings’ own efforts to lobby for the regulation of DFS in 2016, Robins cited a clear parallel between the two verticals.
“Daily fantasy sports is a great example of a product that went through regulation. It is now regulated in a lot of states and there are rules that are clearly defined and need to be followed,” he said.
“That’s how we got to a place where it was clear for us and for consumers what was legal, what was allowed, and that’s a great outcome for everybody,” Robins added.
FanDuel CEO Amy Howe also spoke on the issue but was less specific in her response, arguing for states to intervene and settle any lingering concerns about the treatment of the vertical from a regulatory perspective.
“There’s a legal and regulatory framework and I think it’s up to the states to adjudicate this, they will decide whether those offerings are within the legal framework,” Howe explained.
“There’s a clear distinction between games of skill and games of luck, and it’s up to the states to regulate that distinction.”
Howe also questioned the lower age restrictions used by some operators, suggesting that it was irresponsible to offer these contests to underage individuals.
“That to me is one of the real issues here, the lines start to blur between games of skill and real-money wagering, and you don’t have the same KYC protections that we have. If you’re 21, you can bet legally,” she explained.
“But what happens when those lines start to blur and you’re inviting a younger audience into what many would consider to be real-money wagering?
“That’s a very clear distinction and it’s up to the states to adjudicate that, but we spend a lot of time focused on responsible gambling and making sure that we’re educating 21-25-year-olds who we know are more at risk,” she added.