DraftKings CEO Highlights Key Inflection Point in Sports Betting Industry

DraftKings CEO Jason Robins discussed the future of the online sports betting market in an interview with CNBC’s Jim Cramer, highlighting an “important inflection point” as sports betting gains legal ground nationwide. Robins noted that an increasing number of people across the U.S. now realize they can legally place bets on sports, fueling significant industry growth.

“We’re at a very important inflection point in the industry,” Robins explained. “Most people assume it’s legal in most states now, if not all, and we’re seeing a lot of great growth.”

Despite this growth, DraftKings adjusted its full-year revenue forecast for 2024 after reporting earnings on Thursday. The company attributed the lowered guidance to favorable early fourth-quarter outcomes for customers, which impacted revenues as bettors on the platform saw high returns. This announcement sent DraftKings’ stock down by nearly 6% in after-hours trading.

Robins emphasized that DraftKings remains in an “acquisition-heavy phase” as it continues to expand its customer base in the relatively young sports betting sector. Since the Supreme Court’s 2018 decision to lift the federal ban on sports betting, the industry has flourished. In September, the American Gambling Association predicted that $35 billion would be wagered legally during the current NFL season, a 30% increase over last year and a new record.

Currently, sports betting is legally permitted in 38 states and Washington, D.C. Robins remains hopeful about further state-level legalization but acknowledged the legislative challenges involved. “I think really California, Florida, and Texas are big ones,” he said. “I would expect most states over the long term will have some form of legal sports betting, and hopefully we’ll get those three.”