DraftKings CEO issues igaming legalization rallying cry
Jason Robins calls on elected officials and regulators to dismiss “stigma and fear” associated with online gambling
DraftKings CEO Jason Robins has called on US regulators and elected officials to move forward with greater igaming legalization in the states following the success of sports betting.
In a speech at the National Council of Legislators from Gaming States (NCLGS) conference, Robins called on policymakers to move on from past thinking associated with the illegal igaming market, highlighting the greater potential arising from regulating the vertical.
“Igaming is as safe as brick-and-mortar casino gaming and taps into a potential revenue stream that is currently being funneled into unregulated offshore operators,” Robins told attendees.
“The stigma and fear associated with online gaming seem to rely on inaccurate and outdated ideas of how technology works.
“Sophisticated regulated online gaming operators employ all of the same technology and safeguards as mobile sports.
“It is time for your states to adopt igaming, not in the future, but now,” Robins added.
More than 30 US states have legalized regulated sportsbook markets, but igaming legalization has consistently lagged behind its more appealing counterpart, with just six states operating regulated igaming markets.
Addressing this disparity, Robins suggested that igaming could help states to plug revenue gaps arising from the global economic downturn and the aftereffects of the Covid-19 pandemic on state finances.
“By legalizing and regulating both igaming and mobile sports betting, more states can generate a new revenue source for their most crucial constituent services in the face of rapid inflation and protect consumers through regulated, licensed operators like DraftKings,” Robins said.
“This isn’t something we should brush off for the future,” he added.
DraftKings has come under increasing fire in recent weeks for its role in a multi-operator political initiative aimed at widening California’s sports betting market to out-of-state operators.
Indeed, rival tribal campaigns have utilized potentially controversial comments made by Robins surrounding taxation in politically barbed videos attacking the DraftKings CEO and vicariously the operator’s initiative.
The multi-operator-backed initiative is set to be put to a vote in California in November, and if successful, could see a statewide sportsbook market launched as early as the second half of 2023.
Speaking about the vote and potential passage of the California Solutions to Homelessness and Mental Health Support Act, Robins chose not to attack opponents, instead concentrating on the potential for the Golden State.
“We are incredibly excited by the prospect of responsibly bringing online sports betting, while protecting minors and other vulnerable populations, and providing much-needed funding for critical issues like homelessness and mental health,” Robins said.