In a recent profile, Forbes SportsMoney sat down with DraftKings CEO Jason Robins, who gave several insights about the DFS industry while addressing the future of the company.
Forbes highlighted DraftKings’ explosive growth, calling the company “aggressive, brash and flashy,” when comparing it to chief rival, FanDuel. The two companies have been going toe-to-toe in a race to forge the strongest partnerships with sports organizations and professional players. While FanDuel has inked deals with various major league teams, DraftKings has secured several blockbuster partnerships with entire leagues, including the MLB, NHL, UFC and WWE.
Accompanying the interview were several visuals, one of which broke down the demographics of the industry.
- 80% of DFS players are men, with Caucasians making up 89.8% of the entire pool
- Players average 34 years of age and just under half are married
- DFS users are educated, with 78.1% holding a college degree or more
- Users have an average of 9.5 years of experience with fantasy sports and spend an average of 8.7 hours consuming fantasy content
Playing the long game
Robins describes the company as being in a “hypergrowth” phase and calls the site’s big marketing push a “long-term play” which won’t reap profits “for another couple of years.” He assures that the company’s business model is a healthy one and says that DraftKings is already taking in enough revenue to cover operating costs.
Robins also speaks on his plan for continued growth and believes that the market for DFS outside of the US is potentially massive. He makes note that there are already several million DFS users in the UK who prefer soccer over American football.
He makes mention of several Major League Soccer products which the company has recently launched which he hopes will help DraftKings capture some of the untapped DFS world market which he estimates at upwards of 90%.
The MLB deal
Calling the DraftKings’ deal with MLB “game changing,” Robins is confident that the “unprecedented partnership” will create a richer, more impactful experience for fans. “I can’t think of another deal when [the MLB] has been able to have one provider and integrate it across the different teams so seamlessly,” he said.
What’s in store
Robins revealed that the company plans to pay out a healthy $1 billion in prize money this year, and says that the sky is the limit as long as DraftKings can execute properly. He believes that in the next five years, the company could be awarding as much as $20 billion.