Posted on: December 4, 2023, 01:21h.
Last updated on: December 4, 2023, 01:21h.
DraftKings (NASDAQ: DKNG) CEO Jason Robins believes in the significant potential of iGaming compared to online sports betting, especially as it continues to grow impressively in the US. Despite only being legal in six states currently, iGaming may surpass the popularity of online sports betting in the future.
Robins mentioned this earlier today at the Craig-Hallum Online Gaming Conference, highlighting that iGaming is legal in six states whereas online sports betting is allowed in 35 states and Washington, DC. He emphasized that iGaming is a largely untapped market for DraftKings, which already holds a strong position in five states and has room for further growth.
Robins told analyst Ryan Sigdahl at the conference, “For me, iGaming is the hidden gem of DraftKings.”
iGaming is seen as a potentially lucrative segment by industry insiders, given its higher profit margins and high customer engagement. Robins also mentioned that DraftKings’ $1.56 billion all-stock purchase of Golden Nugget Online Gaming (GNOG) in 2021 has bolstered its position in the iGaming space.
While the regulatory outlook for iGaming in 2024 is uncertain, operators like DraftKings remain optimistic, with New York and Illinois likely to be the next states to drive growth in the iGaming segment.
Additionally, DraftKings is set to introduce unique sports wagers known as “progressive parlays,” aiming to enhance the sports betting experience for its customers.