DraftKings CEO Jason Robins appears unruffled by the recent launch of ESPN Bet, expressing optimism about the impact it could have on the market.
ESPN Bet, a product of a $1.5 billion deal between Penn Entertainment and Disney-owned ESPN, made its debut in 17 states on November 14th.
The mobile app garnered over a million downloads in its first six days, largely attributed to the Thanksgiving sports calendar.
Robins, while acknowledging ESPN Bet’s record-breaking downloads, maintains DraftKings’ strong position as one of the top two operators in North America, alongside FanDuel.
He stated, “It’s not the end of the world in the short term.
We watch this stuff very closely. We’ve seen nothing to suggest that our trajectory is changing, but it’s obviously something we’re keeping a close eye on.”
He went on to express his belief that ESPN Bet’s entry into the market could bring innovation and new industry talent, benefiting everyone by expanding the total addressable market (TAM).
Robins emphasized the importance of sticking to their playbook and offering a superior product to maintain their competitive edge.
Robins credited DraftKings’ continued success to the strength of their product, stating, “Typically, the best product always wins.”
He believes that having a product viewed as best in class leads to organic benefits in terms of customer lifetime value and customer acquisition cost.
Despite his confidence in DraftKings’ prospects, Robins admitted surprise at how quickly they became the leading sportsbook in North America.
He highlighted their ability to gain market share and their rapid progress in just a few years.
Robins also discussed the upcoming launch of progressive parlays, a differentiated offering that allows bettors to win consolation prizes even if they don’t hit all the legs of their parlay.
He expressed confidence in its success, citing its positive track record in other markets.
Regarding DraftKings’ growth, Robins highlighted their dominance in igaming, achieving 31% market share in the third quarter of 2023, and expressed bullishness about its potential as a significant revenue driver for the company.
While DraftKings posted impressive revenue and EBITDA growth in Q3 and reduced net loss, the company remains in the red for the year.
However, its improved operational efficiency suggests a stronger chance of achieving net profitability by H1 2024.
In conclusion, Jason Robins remains optimistic about DraftKings’ future, emphasizing their commitment to delivering the best product, adapting to competition, and capitalizing on opportunities in the ever-evolving sports betting and igaming landscape.