Bloomberg Talks
00:03:16 · S0, Jason Robins
[00:03:16] S0: Do you think that sports contracts will go away? It looks like this is going to go to the Supreme Court. What chance do you think it has in surviving? [00:03:24] S1: Oh, I can't predict that. I mean, there's, you know, anybody who tells me they can't. [00:03:29] S0: But you're spending a lot of money on something that might not be a legal business, right?
00:03:34 · Jason Robins
[00:03:34] S1: Well, yes, but we also have cross-sell into other non-sports contracts as well as other products we have like Lottery and Pick Six. So our 26th cohort is going to pay back before what the projected Supreme Court decision date is. So that investment we definitely feel good about. The 27th cohort we think will not entirely pay back by then. Obviously the court date could get pushed out, but it will end up paying back just a couple years later. So we also feel like that's the right decision. But coming back to what you're saying about the uncertainty, here's how I would think about it. If you look at the landscape, whether it's the traditional prediction market operators like Polymarket and Kalshi of the world, or whether it's our traditional competitor set and the legal regulated gaming market, the FanDuel of the world, I think if you look at all of that competitive set, We are the only company that has positioned ourselves where we are in a great spot either way, regardless of what the court outcome is. They are really counting on it. If you're a traditional prediction market operator, you're counting on that going your way. Otherwise, the whole business is in shambles. And if you're one of our traditional competitors who hasn't been able to make the progress that we've made on the predictions front, you're really counting on it getting shut down. Otherwise, you are way behind in something that now is a real part of the industry. So I think that's strategically how we've tried to position ourselves. And I don't think investors quite get that yet. But I think we should get credit for that, that Sure, it costs money. I'm not saying it's free. We do think we're going to get a return on that money, but we've also strategically positioned ourselves so that we are not dependent on an outcome that we have no control over, whereas everyone else virtually in our competitive set is dependent on that outcome.
00:05:21 · S0, Jason Robins
[00:05:21] S0: Jason, we only have 30 seconds, 20 seconds left. Just on prediction markets, what role do you think they played in this year's elections? I mean, Kalshi and Polymarket are doing a victory lap right now, just very briefly. [00:05:31] S1: Well, I think obviously people looked at prediction markets to see how they were doing. We had a lot of traffic for that. There's not a lot of volume in terms of people actually going in there, though. So I'm not sure how accurate some of them are. The ones that have decent liquidity that really, you know, the bigger ones are probably pretty reflective of sentiment. But there's a lot of smaller ones where you can move the needle with very small volume. [00:05:55] S0: All right. Jason Robins, always good to catch up. CEO of DraftKings joining us from Boston.