DraftKings CEO plays down global expansion with focus firmly on the US market
Jason Robins says Boston-based operator has no immediate plans to enter other markets outside of Canada as he says rivals’ international exposure is a benefit to DraftKings
DraftKings CEO Jason Robins has provided an update on the operator’s expansion plans in international markets by reiterating its focus, for the time being, remains on the US.
Though expansion into other markets is always an option for operators, Robins said DraftKings’ immediate attention is on the US, with the CEO stating it could be the “largest market in the world” – if it isn’t already.
Robins added that while the operator’s rivals may be entering other markets , DraftKings sees it as a distraction and feels it would put the company at a disadvantage.
DraftKings is currently live in 24 US states, with a launch in North Carolina on the docket for this month. The firm is locked in a battle with Flutter-owned FanDuel for US sports betting supremacy.
This week, boutique analyst firm Eilers & Krejcik Gaming revealed FanDuel had pipped DraftKings to the post in terms of GGR market share in Q4, with DraftKings having previously wrested the crown from FanDuel in Q3.
Speaking at Morgan Stanley’s Technology, Media and Telecoms conference in a fireside chat yesterday, 7 March, Robins poured cold water on any sudden international expansion, with the firm concentrating on the US opportunity.
Robins said: “It’s a very high bar because we do think that it’s a big benefit for us to be very focused right now on what will be the largest market in the world.
“[The US] is an emerging market so it’s not a mature market. It’s still very early days and I think the competitive positioning and growth potential is still very much a big wildcard in terms of how well we can do long term.
“That really is a huge advantage we have. If you look at us versus virtually all of our competition, they either have some international presence or some other major line of business that are taking a lot of their focus.
“Whereas for us, this is it. This is what we’re doing. So [it’s a] very high bar and we understand the value of that. That said, we do also understand that it’s a big world out there and there are other markets around the world that we ought to be getting educated on and thinking about what our future plans are,” he added.
While several operators are preparing for the online sports betting regulation in Brazil, with MGM Resorts CEO Bill Hornbuckle having recently told analysts he was planning on travelling to South America to explore JV opportunities, Robins was not drawn on spreading outside of the US, bar the group’s operations in the regulated province of Ontario, Canada.
He added: “I wouldn’t be surprised if you don’t see us do anything in the international space outside of Canada. In the longer term, it’s definitely something that we think is important for us. We think we have a right to play.
“We have great products and technology that we’ve built and we feel like those are very repurposable to other markets around the world.
“It’s definitely something on our mind. But as I said, the focus right now is certainly on the US and we think that has yielded us a lot of the competitive advantage and share gains that we’ve gotten over the last year or two. To in any way distract from that, we need to think it was a pretty exciting opportunity,” he concluded.