DraftKings CEO Jason Robins shared a positive outlook on the future of online sports betting pointing out big chances to grow and expand even with recent money changes. In a talk with Jim Cramer, who hosts CNBC’s Mad Money, Robins spoke about how the company did in Q3 2024 and gave his thoughts on the wider sports betting world.
DraftKings Sees 55% Surge in Paying Customers
The company’s results matched what people expected showing a big 55% jump in paying customers compared to last year. This boost came from buying Jackpocket, a digital lottery app. More customers meant more people using the service, though each customer spent less on average because of higher payouts.
A key issue that is going to have an impact on Q4 2024 results was a run of “customer-friendly” outcomes in big football games during October where teams with high odds won. This caused bettors to win more, which is going to cut down revenues for the last three months of 2024.
Robins said that while this kind of result affects profits in the short term, it is not something to worry about in the long run. He showed faith in continued growth thinking strong results would come back and lead to a good start to 2025.
DraftKings on Track for 31% Growth, with New State Markets Poised for Explosive Development
Moving forward, DraftKings expects its growth to reach about 31% year-over-year at the midpoint. Robins pointed out that this rate stands out in sectors other than enterprise software. The company stays on course to exceed the “Rule of 40,” which combines profitability and growth measures.
Robins pointed out that online sports betting is still new in many places, as lots of states have just made it legal. The Supreme Court’s choice to end the nationwide ban on sports betting in 2018 was key, but each state handles sports betting legislation on its own terms. For example, North Carolina and Massachusetts just joined the market, while Missouri‘s recent decision to allow it shows how fast things are changing. States like California, Texas, and Florida—which do not have legal sports betting yet—make up almost 25% of people in the US showing there is still a lot of room to grow.
Even as the market grows, DraftKings still focuses on getting new customers. Robins said this stage matters a lot, as big ads and more people knowing about DraftKings help bring in users.
He noted that while the company wants to keep customers with the help of good products, it is still attracting new ones better than it thought it would.
Robins feels sure that even without California, Texas, and Florida on board yet, things look good in the long run. He thinks most states will allow legal sports betting as the industry grows and changes, which puts DraftKings in a good spot to make the most of new chances down the road.
