DraftKings CEO Jason Robins said today that traditional sports betting giants are ready to compete head-on for a slice of the prediction market pie.
Its Predictions app already operates in 38 states under the oversight of the U.S. Commodity Futures Trading Commission, and it can also enter California, Texas, and Florida—three states where sports betting apps can’t operate. Robins cited an overlap of just about 3%: in states where sports betting is legal, only around 3% of DraftKings users also deposit money on another prediction market platform. He thinks competitors’ first-mover advantage will last less than a year, and that DraftKings can catch up with its marketing data and pricing models.
I think the key to this battle isn’t who launches first, but who can bring in new users who’ve never placed a bet: that 3% figure shows that the two sides aren’t even competing for the same people right now.
Which side are you on: will DraftKings use its presence in 38 states to turn prediction markets into a mainstream product, or will first-mover platforms hold on to their core base of crypto-native users?
Follow me, and when DraftKings announces its next batch of new states or product categories, I’ll be the first to check how its footprint across 38 states has expanded.
$DKNG
Its Predictions app already operates in 38 states under the oversight of the U.S. Commodity Futures Trading Commission, and it can also enter California, Texas, and Florida—three states where sports betting apps can’t operate. Robins cited an overlap of just about 3%: in states where sports betting is legal, only around 3% of DraftKings users also deposit money on another prediction market platform. He thinks competitors’ first-mover advantage will last less than a year, and that DraftKings can catch up with its marketing data and pricing models.
I think the key to this battle isn’t who launches first, but who can bring in new users who’ve never placed a bet: that 3% figure shows that the two sides aren’t even competing for the same people right now.
Which side are you on: will DraftKings use its presence in 38 states to turn prediction markets into a mainstream product, or will first-mover platforms hold on to their core base of crypto-native users?
Follow me, and when DraftKings announces its next batch of new states or product categories, I’ll be the first to check how its footprint across 38 states has expanded.
$DKNG
