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Online casino proclaimed the unlocked “hidden gem” of DraftKings
The online casino is the “hidden gem” of the DraftKings package, and it has the potential to overtake sports betting for growth in the future.
That is the forthright claim of DraftKings CEO Jason Robins, who was speaking at the third annual Craig-Hallum Online Gaming Conference earlier this week.
For now, sports betting dominates the igaming sphere in the USA, whereas there are only seven states permitting online casino gambling — Rhode Island, New Jersey, Michigan, Pennsylvania, Connecticut, West Virginia, and Delaware.
DraftKings functions in five of those states, but it has consolidated its position as the biggest operator for igaming, snaffling a 30% market share.
Although the future of igaming remains unclear for some states, digital casinos are taking shape. Yes, they have been deemed as a driver of growth for the industry, and that is something that Robins recognizes.
During a chat with an igaming analyst, Robins spoke positively about the online casino arm of the DraftKings product even if he feels it is relatively untapped.
He said: “It’s a very significant chunk of our revenues, and that’s only in five states.
“So really for me, iGaming is kind of the unlocked or the hidden, not yet unlocked, I should say, gem of DraftKings.”
Currently, DraftKings is a big player in the igaming industry, snaffling a 30% market share.
Moreover, analysts have tipped the online casino sector to continue in an upward trajectory, as it is valued as a higher margin business than sports betting.
As far as DraftKings is concerned, New Jersey can take claim for propelling the operator’s growth in the casino market.
Indeed, DraftKings made an immediate lift when it completed a $1.56billion all-stock purchase of Golden Nugget Online Gaming (GNOG) in August 2021.
Robins also conceded that he is surprised by the success that DraftKings has had to date in New Jersey.
He added: “We’re very bullish on iGaming. I think it’s something that is sort of like I said for many, at least a hidden gem and we’re investing a lot behind that product.
“Also, I’ve been surprised with how much share we’ve been able to gain there [NJ].”
There is a long runway of states waiting to get clearance for online casino gambling, but DraftKings is keen to stay ahead of the curve, and it will be fascinating to see how they adapt to meet igaming demands in 2024.
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