DraftKings CEO Bullish on iGaming Growth in the US
DraftKings CEO Jason Robins is optimistic about the future growth of iGaming in the US, stating his belief that it has the potential to outpace online sports betting in the future. Despite currently being permitted in just six states, Robins sees significant growth prospects for iGaming in the coming years.
Robins made these remarks at the third annual Craig-Hallum Online Gaming Conference. He noted that while sports betting is currently allowed in 35 states and Washington, DC, iGaming is only legal in New Jersey, Michigan, Pennsylvania, Connecticut, West Virginia, and Delaware. As the largest internet casino operator by market share, DraftKings operates in five of these states.
“It’s a very significant chunk of our revenues, and that’s only in five states. I mean, it’s going to grow. So really for me, iGaming is kind of the unlocked or the hidden, not yet unlocked, I should say, gem of DraftKings,” said Robins.
Analysts and operators share Robins’ enthusiasm, as they see a long runway for state-level legalization of internet casinos. Additionally, iGaming is a higher-margin business than sports betting, and bettors tend to spend more money on iGaming.
Acknowledging that he thought it would be difficult for DraftKings to capture 30% market share in iGaming, Robins emphasized that the company hasn’t even begun to tap into the full potential of the online casino market. DraftKings solidified its position in the arena through its $1.56 billion all-stock purchase of Golden Nugget Online Gaming (GNOG) in August 2021, giving the company a significant boost in the important New Jersey market.
Furthermore, Robins mentioned that DraftKings is preparing to launch progressive parlays, a type of sports wager with multiple legs that provides some compensation to bettors even if one or two of the selections are wrong.
With the outlook for iGaming legalization in 2024 still uncertain, Robins highlighted New York and Illinois as two states that could drive future growth in the internet casino space. The potential passage of iGaming legislation in New York could significantly boost shares of operators like DraftKings.
Overall, Robins remains very bullish on iGaming, emphasizing that DraftKings intends to continue investing in the product and competing to gain market share in the online casino space.