DraftKings’ sports betting operation has become a massive success in New Jersey, and the company has grand plans for expansion as the sports betting industry continues to expand across the United States. In a recent interview with Cheddar, DraftKings CEO Jason Robins said that sports betting has become “a huge part” of the company’s business. The company plans to continue to grow its operation as more and more states work to legalize sports betting.
Robins revealed during the interview that DraftKings is hoping to expand into several new states before the end of the upcoming football season. Robins said that football season is the busiest time of the year for the daily fantasy/sports betting industry, and it is even busier this year as the company prepares to enter new markets.
DraftKings’ mobile sportsbook launched in New Jersey in August of 2018. Robins said that the sportsbook has become a massive part of the company in its first year of existence. The sportsbook has already generated about a third of the company’s annual revenue, despite the fact that only about 3% of the American population resides in New Jersey.
While daily fantasy sports is still DraftKings’ top priority, Robins says that sports betting will become DK’s primary product within two to three years. DraftKings expects sports betting to account for about two-thirds of the company’s revenue.
While the DK daily fantasy sports product has seen about 15% to 20% growth within the past year, the sports betting app in New Jersey has seen massive 50% to 60% growth. In addition to the mobile sportsbook, DraftKings also launched a land-based sportsbook at the Resorts Casino Hotel in Atlantic City last fall. DraftKings opened another sportsbook in Mississippi in late 2018.
DraftKings is reportedly looking to expand into Pennsylvania in the near future. Several land-based sportsbooks have opened in Pennsylvania since last November, when the first one opened. The state also opened its doors to live online betting. DraftKings’ primary competitor in the DFS and sports betting marketplace, FanDuel, launched an online sportsbook in Pennsylvania late last month.
New York, Iowa, and Indiana are among the states that have launched a sports betting operation so far in 2019. The first sportsbooks opened in New York in July, while Iowa launched online betting within the last few days. Indiana will officially get in on the act at some point later in the year.
DraftKings announced a partnership with del Lago Resort and Casino in upstate New York last year. The deal stipulates that the two will operate a sportsbook at the property. Construction on the sportsbook started in May, though property officials originally said that it would be open for business in July or August. As of now, there is still no official timetable for the facility to become operational.
Robins added that DraftKings is also keeping an eye on West Virginia’s burgeoning sports betting market.
He added that he thinks “somewhere in the five to seven-year time frame, you’ll see at least two-thirds of the country with live online sports betting.”
Some believe that may happen even sooner.
New Jersey’s gambling authority has said that the state has already generated nearly $26 million in tax revenue since launching sports betting. At least eight other states have legislation pending or have already passed a law that could legalize sports betting before 2019 comes to a close. DraftKings is hoping to launch sportsbooks in West Virginia, Pennsylvania, Indiana, and Iowa before the Super Bowl next February.
Regarding the way some states have been slow to embrace sports betting, Robins said,
“Everybody wants to see something get done. But that’s what the Democratic process is for.”
Denmark is somewhat of a pioneer in the European gambling industry. It was the first Scandinavian country to open its… Read More
Malaysia has never been considered a gambling-friendly country. In recent months, gambling regulations here have significantly increased. Reports are now… Read More
It appears that the world’s top mixed martial arts promotion is getting into the gambling business. A new UFC betting… Read More
Greece is making some significant changes to its land-based and online gambling industry. The government here is working on new… Read More