DraftKings to focus resources on B2C growth as B2B takes back seat
CEO Jason Robins says acquired SBTech platform will power DraftKings first and foremost amid “cautious” approach to B2B expansion
DraftKings will focus the majority of its energy and investment on developing its B2C business, with its SBTech B2B arm set to take a back seat, according to CEO Jason Robins.
Speaking during the Nasdaq-listed company’s 2021 Investor Day on March 9, Robins said DraftKings had taken down its long-term revenue forecast for SBTech as it was instead directing investment to B2C for the foreseeable future.
“It doesn’t mean we don’t think we’ll have a nice B2B business, there is still growth [expected] over where we are right now, we just think from a relative investment standpoint it’s hard to say [what that growth will be],” Robins said.
“We didn’t want to count on being able to have hyper-growth on the B2C side and have really strong growth on the B2B side [as well], we thought it made sense to be a bit more cautious,” he added.
Robins blamed the lack of traditional sport in Q2 2020 for SBTech revenue falling year on year.
The business lost some B2B clients during the year, as both Golden Nugget Online Gaming (GNOG) and Churchill Downs moved off the SBTech betting platform. GNOG switched to SG Digital’s solution and Churchill Downs and its sports betting offering, rebranded from BetAmerica to TwinSpires, migrated to Kambi.
“There were some relationships it made sense to transition from as we normalize what that B2B business looks like,” Robins said.
He reiterated the acquisition of SBTech was primarily to power and innovate DraftKings’ B2C offering.
The B2B betting platform powers the Oregon Lottery’s Scoreboard online sportsbook, as well a number of mid-tier European operators including MansionBet, Virgin Bet and state-controlled Svenska Spel in Sweden.
During 2020, it renewed its long-term deal with MansionBet and also launched a new betting and igaming product for South African operator PalaceBet.