DraftKings CEO Discusses Sports Betting Market Dynamics

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00:00Robbins, I think, saying all the right things here, the last thing that he wants to do is

00:10make himself and his company look out to be a giant or a monster by not letting any of

00:15the other sports, you know, gambling operators come in, especially those of these that are

00:19not public, like DraftKings and FanDuel.

00:21So he opened the door, it seems like, you know, Sam, for other, you know, smaller levels

00:26of competition, not for his company, but maybe for some others.

00:30Yeah, it's a great takeaway from you there, Craig, that he wants to position DraftKings

00:34as FanDuel, even though they have this duopoly where they are about 77 percent of the market.

00:39He's saying, no, others can still survive and still compete, albeit just on a much smaller,

00:44smaller scale than us.

00:45And we're going to continue to grow our brand.

00:47It was pretty interesting to hear him kind of talk about the the long term future he

00:51sees for other sports betting operators.

00:54He said basically that there's a place for them to exist.

00:57They just have to kind of calm down and not try to take all of our market share and

01:02figure out how to do it more at a profitable rate.

01:05Essentially, companies like BetMGM, companies like Penn, which runs ESPN Bet, which a few

01:10years ago and even recently with ESPN Bet came out and said, you know, we want to grab

01:13all this market share and pump the promos.

01:15And Robbins was saying at this conference, we kind of have demonstrated that that's not

01:19how you do things. You can't just come out and grab a bunch of market share and hold

01:23on to it. We saw ESPN Bet try to do that last year.

01:25They had, I want to say, almost 12 percent of the market when they were pumping out all

01:29their promos. Now they're about three or four percent.

01:32So that stuff has played out.

01:33He talked about how these companies need to do it the way that DraftKings and FanDuel

01:37have done it, which is through product like we talked about previously.

01:40And we've seen these companies make huge investments.

01:43You know, DraftKings developed SB Tech.

01:45That was a long term thing, but that gave it the tool to sort of go back and have its

01:50own technology where it obviously has paid off a lot with the proliferation of

01:55parlays. We've seen Penn try to do that with the score.

01:57It was like a two billion dollar purchase.

01:59They're still integrating that technology.

02:01We've seen that MGM actually started to pay off a little bit with their purchase of

02:06Angstrom Sports, which they're now saying is giving them a better parlay product.

02:09And you're seeing them gain share in places as well.

02:11So, yeah, pretty interesting from Robbins to kind of say that these companies can't

02:14exist. It's just you got to figure out how to do it at a smaller scale that doesn't

02:18compete with us because he sees DraftKings and FanDuel just continuing to dominate the

02:22market and frankly have raised the bar at a level that's kind of out of reach for

02:25these other operators now.