DraftKings CEO: Still “a lot left to do” on product ahead of busy fall period

DraftKings CEO Jason Robins has highlighted a prolonged program of product-focused improvements to the DraftKings sportsbook as the operator looks to build on its Q2 2023 growth into the second half of 2023.

Robins was speaking as part of the Boston-headquartered operator’s Q2 2023 financial earnings call, in which the firm revealed an 88% year-on-year revenue uptick and a positive EBITDA.

But far from resting on his laurels, the DraftKings CEO admitted the focus was on continual improvement, particularly in respect of product gains and improving the user experience.

“This is an area [where] there’s still a lot left to do,” Robins said.

“It’s true of any product in the digital space that there’s always going to be room to optimize your funnels and improve the experience, but particularly in regulated gaming where there’s a lot of requirements that you have to follow and there’s a lot of states that launch very quickly.

“So, the focus for us has been on how we get live and make sure that we’re complying with all relevant laws and regulations,” he added.

Robins suggested DraftKings would look at areas of its product which had created “bad experiences” for customers, areas that it had missed in its drive to launch, and areas which may have been unresolved for customers.

“I think there’s so much there,” he said.

“For us, it’s really about the customer experience. We look at the product and we say, ‘if you’re a customer, what elements of it would be frustrating [or] would make you feel like I’m just going to go try somewhere else.’

“I think, particularly now given how many states launched quickly, there’s just a lot of low-hanging fruit still there along that front,” he added.

In addition to product improvements, the DraftKings CEO heralded the role of DFS in propelling the operator’s quarterly growth, suggesting 2023 had been a “great year” for the vertical, something it was looking to continue in H2.

“We have some really good stuff planned for the back half of the year on that product and it is continually adding new customers,” Robins said.

“We have seen really strong crossover continue from DFS when we launch new states. Everything seems to be working on that front and continues to be a big source of engagement for customers and states that don’t have sports betting as well as a great funnel for new states that launch.”

Addressing the possible cannibalization of DraftKings’ DFS customer base for more lucrative sports betting revenue, Robins suggested that although this did occur, the cannibalization between the two was “fairly minimal” and did not affect DFS customer numbers that much.

“A lot of it happens in the initial launch stages,” Robins remarked.

“People are very excited about sports betting. They maybe forget about DFS for a little bit, but we’re seeing in some of our older states as time goes on, they come back and some of the cannibalization, even though it wasn’t that significant to begin with, even the small bits of cannibalization eventually reverses in some of our older states,” he added.