DraftKings CEO on entry to prediction markets: We'll be able to compete just fine

? (Reporter) 00:00.110

thank you kelly and jason thank you for joining us today first off set the expectation for investors how meaningful will this be for draftkings bottom line

Jason Robins (CEO) 00:10.110

well i think at least initially we don't know it's a new product and i do think that it will eventually be meaningful for the bottom line but right now it just launched so first day and we're getting some data so hard to to say what exactly it will do all right

? (Reporter) 00:24.830

we'll come back to you at the end of the day no i'm just kidding when we look when we look at this thirty eight states that you're launching in you've specifically carved out some of those thirty eight even from the sports markets because you have sports books there i'm just

? (Reporter) 00:38.750

curious if cal she's out there boasting we're live in all fifty states why did you decide not to offer markets in some states altogether

Jason Robins (CEO) 00:47.670

well you know there's really two reasons one we think that the business opportunity is not very significant meaning we think our product that we have today serves sports fans very well and we don't really need to add additional products in order to do that and we think you know

Jason Robins (CEO) 01:04.310

the revenue opportunity probably won't be very significant in states that have legal sports betting and then secondly we obviously have very strong relationships with all of our regulators in the states that we operate in and you know we're very respectful of those relationships

Jason Robins (CEO) 01:18.070

and we want to make sure that we're doing things in the right way does that

? (Reporter) 01:21.190

put you at a disadvantage when you have kalshi and now at polymarket and robin hood and and coinbase coming in and making a big splash and just i mean calci makes it clear that they think that they are regulated by the CFTC and that state regulators don't matter when we when you

? (Reporter) 01:39.670

and i first talked about predictions you told me you didn't think that the cow she's of the world were a competitive threat have you changed your mind about that

Jason Robins (CEO) 01:49.230

no i don't think so and that's sort of why you know i don't think it's a disadvantage to not be in all fifty states like they are i think in the states that we offer our online sports betting product we have a vastly superior product to anything that the prediction markets

Jason Robins (CEO) 02:02.350

offers in the realm of sports and so i think we'll be able to compete just fine and we've seen no impact at least no discernible impact from the prediction markets in the states that we operate sports betting on our business so i think that really is you know it's a nice

Jason Robins (CEO) 02:16.430

situation where both the business opportunity and you know the places where we want to keep our relationship strong and all those sorts of factors all perfectly aligned on this plan jason

Kelly (Reporter) 02:27.590

it's kelly if i could jump in here the much more existential threat it seems to me this week comes from robin hood if i'm not mistaken getting into NFL parlays which is what we'd all think of draftkings and fanduel that's what they do they're definitely making a move onto your

Kelly (Reporter) 02:42.950

turf how do you respond

Jason Robins (CEO) 02:45.690

well first of all as you know in the states that we have sports betting again i still think you know it can introduce parlays i i think the product is not nearly as strong as the sports betting product when it comes to serving fans of sports that want to look for action or make

Jason Robins (CEO) 03:01.410

predictions about the game so i don't think that that's really a threat and then i think in states that we have you know both are offering predictions sports predictions we're going to have to develop product and compete it's just like in everything else we've done and we've

Jason Robins (CEO) 03:13.890

always been very consistent saying we think best product wins especially in these digital based markets where it's so easy for people to switch and there's so much network effect and so many things that people can read about online to see how good a product is that just truly

Jason Robins (CEO) 03:27.470

having the best experience will win out in the long term so that's what we're going to set out to do we're going to build the best predictions app out there