DraftKings CEO Jason Robins said the company is in no rush to pursue international expansion, citing strong US growth that’s keeping the betting giant on track.
Robins made the comments on the company’s Q3 2024 earnings call last Friday (8 November), despite the firm having to lower its 2024 revenue guidance due to the impact of customer-friendly sports results in early Q4.
While open to overseas markets if the right opportunity arises, Robins made it clear that international growth is “more of an opportunistic thing” rather than a pressing need.
“Even without a ton of new states launching next year, we’re well-positioned with over 30% growth and around a 15% EBITDA margin,” he said, underscoring the company’s confidence in its domestic strategy.
Prediction betting markets
However, Robins hinted at a potential new frontier for DraftKings: prediction betting markets, particularly for high-demand events like US presidential elections.
Election markets “are really where the interest is right now,” he said.
However, he acknowledged that regulatory complexities will need to be addressed.
“I do think there could be a place for it outside of elections,” Robins added.
“We’ll have to see where it fits in the priority list, but it is something we’ll plan on looking at ahead of next election, for sure,” he said.
Despite the lowered earnings guidance, the company remained bullish on its 2025 forecast, with revenues expected to reach up to $6.6bn and EBITDA possibly hitting $1bn.
Looking forward, DraftKings is keeping an eye on states including Texas, Georgia, and Minnesota for potential sports betting legislation, with additional opportunities in iGaming potentially emerging in New York and Illinois, and perhaps Maryland and North Carolina.
A word on Florida
Florida is also on DraftKings’ radar, with Hard Rock International chairman and Seminole Gaming CEO Jim Allen recently hinting at possible partnerships in the state.
“Florida is a big state, and we’d be very excited if there were a path to offer our product there,” Robins said, though he emphasised that discussions remain preliminary.
“We really have a ton of respect for Hard Rock and for the Seminoles and Jim Allen has done a fantastic job and I enjoyed spending time and getting to know him and his team.
“We’ll have to see what they want to do and how the discussions progress. And obviously, if there’s anything material, we’ll come talk about it.
“But at this point, I wouldn’t say that it’s very far along,” he concluded.