DraftKings CEO Jason Robins seems to be embracing an, “If you can’t beat ’em, join ’em,” approach to the existential threat posed to regulated sportsbooks by predictions markets. During a recent Q2 earnings call, the CEO of one of America’s largest regulated sports betting operators suggested that DraftKings is very much open to the idea of opening its own predictions market operation.
The idea of DraftKings entering enemy territory in this manor has plenty of advantages, not least of which are the benefits that would come with being first-to-market ahead of its regulated rivals. “I do think that being an early mover in a space like this can be important. I also think that being a literal first mover may not be as important, and there are downsides to that as well,” he said.
At the same time, Robins made it clear that DraftKings wouldn’t be rushing into the situation adding, “We’re evaluating, obviously we have a lot of stakeholders, state regulators, relationships with tribes, others that we want to make sure we consider as we think about what our different options are. We need to see what will come from watching how things unfold with others that are currently offering prediction markets, and I think we’ll kind of have to see how that goes and evaluate it. It’s all happening in very fast real time.”
At the very least, Robins should earn some kudos for his honesty. Regulated sports betting operators are somewhat flummoxed by the emergence of predictions markets and the advantages they have by operating in a much less regulated environment. And with the nomination of Brian Quintenz, former Kalshi board member, to the top spot in the agency that regulates predictions markets, plenty of other operators may have to consider the same move.