DraftKings' Robins recounts near misses on path to prediction markets

DraftKings co-founder and chief executive Jason Robins has given an account of the company's evolution from a daily fantasy sports start-up to a sports betting and prediction markets operator, in an interview with the SBC Leaders podcast.

Speaking to host Sue Schneider, Robins said that in its earliest days, DraftKings had no plans to enter sports betting and did not even view its fantasy product as a form of gaming.

"We didn't even think of what we were doing as gaming, we were thinking of it as fantasy sports," Robins said, adding that the debate over whether DFS amounted to a game of skill caught him somewhat off guard at the time.

He told Schneider that traditional sports betting "was not something we were even remotely contemplating doing" in that period.

According to SBC Americas, DraftKings went on to become one of the two largest online sports betting companies in the United States alongside fellow DFS operator FanDuel, after the Supreme Court's repeal of PASPA opened the door to state-regulated wagering.

Robins described his company as a kind of "unicorn" for choosing to compete directly against established casino groups and offshore sportsbooks rather than licensing its technology or player database to another operator.

He recalled that DraftKings was building out its sports betting proposition while the Murphy v. NCAA case was still before the Supreme Court, despite having, in his words, "no idea what we were doing" in that line of business.

"Really, for us, it was more that this was the only option other than selling out cheap," he said. "We said we'd rather take a shot, and if it fails, it fails."

Asked about the toughest periods in the company's history, Robins pointed to the early regulation of DFS in various states, taking DraftKings public during the Covid-19 pandemic while sports were suspended across North America, and launching a sports betting product without prior expertise in the vertical.

"There were a lot of moments that felt like they were one step away from death," he said. "Quite a few bullets dodged ... It's not for the faint of heart."

Robins told Schneider that DraftKings' move into prediction markets follows a familiar pattern for the company, built on trying to out-execute a crowded field of rivals.

"I think it's the same formula, and the same type of opportunity where we can really make a move," he said, adding that competitors in the company's core sports betting business are currently "distracted" by the prediction markets opportunity as well.

Offering advice for prospective entrepreneurs in gaming, Robins said newcomers need to be prepared for scrutiny and setbacks. "It's not easy in a regulated industry of any kind to break in, but gaming can be particularly vicious," he said.

The full interview is available on SBC Media's YouTube channel, according to SBC Americas.