Jason Robins, CEO of DraftKings, has described igaming as the ‘hidden gem’ of the operator’s online offering, adding that they will be ‘bullish’ in the vertical as he wouldn’t be surprised if it overtakes sports betting.
Speaking at the Craig-Hallum Online Gaming Conference earlier this week, analyst Ryan Sigdahl asked Robins about DraftKings’ igaming offering and how they internally value it in comparison to online sports betting.
The CEO noted that the operator is in a great position to perform in both verticals as they have a large product and engineering team tackling each area, and despite its lack of expansion across the US, they value igaming as a ‘hidden gem’.
Robins said: “It’s a very significant chunk of our revenues, and that’s only in five states. It’s going to grow. For me, igaming is kind of the unlocked, or the hidden, not yet unlocked, gem of DraftKings.
“I think a lot of people are sort of sleeping on it a little bit, and maybe you’re just focused on how big the sports side can be and not realising the igaming can make the business even larger.”
The DraftKings CEO added that since there wasn’t much movement on the legislative side of igaming across the US in the past year, it has been forgotten about.
However, he believes it is only a ‘matter of time’ before igaming is considered more across the country, and large markets regulating, such as New York or Illinois, could set legislative wheels in motion in other states.
The operator will also continue to invest in igaming to build upon the market share it already has in the vertical.
“We’re very bullish on igaming. I think it’s something that is sort of, for many at least, a hidden gem, and we’re investing a lot behind that product. It’s something that we intend to continue to compete in and try and gain share.
“I’ve been surprised how much share we’ve been able to gain there. Initially, I thought for igaming, we were going to have a hard time getting close to 30 per cent, but that’s where we are.”
DraftKings plans to continue to expand the presence of its igaming platform in the US in the coming months, as well as continue to deliver content through partnerships, its creative team, and live dealer games to create a personalised experience.
Robins also believes that with further expansion and investment, igaming could become bigger than sports betting at some point for DraftKings.
“Igaming is an area that I’m continuing to feel better and better about, the upside from a share perspective too. I’m really just excited about getting more states. I think the share is going to continue to grow and igaming, I wouldn’t be surprised if it’s bigger than sports at some point for our business.”