DraftKings CEO says sports betting industry is at ‘important inflection point’

DraftKings CEO Jason Robins said the sports betting industry is at a turning point as more people across the country realize they can gamble legally.
"We're at a very, you know, important inflection point in the industry," Robins said. "Most people assume that it's legal in most states now if not all. And we're just seeing a lot of great growth."
It's been six years since the Supreme Court lifted the federal ban on sports betting, and the practice is now legal in 38 states and Washington, D.C.

In a Thursday interview with CNBC's Jim Cramer, DraftKings CEO Jason Robins said the online sports betting industry is at a turning point as more people across the country realize they can gamble legally.

"We're at a very, you know, important inflection point in the industry," Robins said. "Most people assume that it's legal in most states now if not all. And we're just seeing a lot of great growth."

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DraftKings cut its full-year guidance for 2024 when it reported Thursday after the close, sending shares down nearly 6% in extended trading. The company now expects lower revenue due to "customer-friendly sports outcomes early in the fourth quarter of 2024," which essentially means that gamblers on the platform won big.

Robins said the business remains "in a heavy acquisition period" that isn't slowing down. He stressed that there is still a lot of room for growth because the industry is fairly new — the Supreme Court lifted the federal ban on sports betting only six years ago. In September, the American Gambling Association said it expects $35 billion to be legally wagered during this year's National Football League season, a new record and 30% more than last year's total.

Currently, sports betting is legal in 38 states and Washington, D.C. Robins said he is optimistic that other states will come around, but explained that it can take a while for "these things to go through all the state legislative processes."

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"I think really California, Florida, Texas are, are big ones," Robins said. "I would expect most states over the long term will have some form of legal sports betting, and hopefully we'll get those three."