The CEO of DraftKings said that New Jersey has become “a huge part” of their business as the company is looking to cement its presence in the regulated US sports betting market.
Jason Robins, who leads the daily fantasy sports turned sports betting operator, also revealed during an interview with Cheddar, that the company hopes to be able to enter multiple new states before the end of the upcoming NFL season.
As the new football season is about to get underway in a few weeks’ time, Mr. Robins said that they are having the busiest time of the year and that it is even busier this year as they are gearing up preparations for entering new markets.
DraftKings debuted its mobile sportsbook in New Jersey in August 2018. A little over a year after the launch of the wagering app, Mr. Robins said that it has become a huge part of their business, generating a third of the company’s revenue, despite the fact that less than 3% of the entire US population live in New Jersey.
Daily fantasy sports is still DraftKings’ primary productSports Betting Will Become DraftKings’ Primary Product in 2-3 Years, CEO Says, comprising about two-thirds of the operator’s entire revenue. However, sports betting has grown at a much quicker rate this past year.
Mr. Robins revealed that while its DFS product has showed a 15%-20% growth over the past 12 months, its New Jersey mobile sportsbook has seen a 50%-60% growth.
Aside from its mobile sportsbook in New Jersey, which it operates under a partnership with Atlantic City’s Resorts Casino Hotel, DraftKings also launched a retail facility at the property last fall. The company also went live with a brick-and-mortar sportsbook in Mississippi late last year.
Expanding into New States
While it might still primarily be a daily fantasy sports operator, DraftKings intends to become a force in the US regulated sports betting field. Mr. Robins said that they are looking to expand into multiple new states and that they hope they will be able to do that before the end of the upcoming NFL season.
DraftKings is eyeing entry into New Jersey’s neighbor – Pennsylvania. A number of retail sportsbooks have opened doors in the Keystone State since last November when the first of them was launched. The state also recently went live with digital betting.
A couple of states legalized sports betting this year, with Iowa, Indiana, and New York being the most notable new entries in the US sports betting frenzy. First sportsbooks opened doors in New York last month, while Iowa went live with athletic wagering just a couple of days ago. Indiana is expected to join the party later this year.
Last year, DraftKings partnered with del Lago Resort & Casino in Upstate New York to jointly operate sports betting at the property. Construction work on a retail betting facility commenced this past May and property officials said that the sportsbook would be ready by late July or early August. It is yet to be announced when exactly the new facility will become operational.
DraftKings’ CEO said that his company is also eyeing the West Virginia sports betting market and hopes to be able to enter it during the NFL season.
Of his expectations about the US sports betting market, Mr. Robins said 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.” According to many, that is going to happen even earlier.
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