DraftKings had all hands on deck to prep for this
For nearly a year, DraftKings has been getting ready for a day the online sports fantasy giant was unsure would ever happen.
The Supreme Court’s decision to allow states to legalize sports betting and 10 months of behind-the-scenes preparations has turned a company that was nearly regulated out of business a couple of years ago into one determined to dominate a newly legal industry.
“For almost a year now it’s been a very key part of what we’ve been focused on,” said Jason Robins, CEO of DraftKings. “We’ve had a very large percentage of our team focused on this.”
Since June, when the Supreme Court said it would hear New Jersey’s challenge to the federal law banning sports betting, DraftKings has been taking quiet but significant steps to be able to enter the sports betting market as soon as possible. The company has opened an office in New Jersey and has had conversations about potential partnerships with New Jersey casinos. DraftKings has also hired a veteran of the U.K. sports betting industry to be the company’s head of sportsbook.
Ryan Moore, an early investor and member of the DraftKings board of directors, said legal sports betting gives the company a new avenue for growth.
“It’s an opportunity for the company that’s invested a lot in the technology,” Moore said. “It’s another opportunity for the company to create a new offering.”
Robins said he expects several states to push to legalize betting in time for the NFL season this fall.
Robins said though Massachusetts is trailing some other states, including New Jersey, there have been preliminary talks here.
“We’ve certainly had some discussions with lawmakers in Massachusetts. There’s an ongoing effort to look at the issue there,” Robins said. “Now that there’s a decision that’s been issued, we’ll expect to see a ramp up in that discussion.”
Whether sports betting should be legalized is a big question from state to state, but the biggest debate could end up focusing on how betting should be allowed. DraftKings is expected to push for wide legalization that includes internet and mobile betting, but the company could run into resistance from casinos, as well as anti-gambling advocates who want to limit betting to physical locations.
Hours after the decision came down, DraftKings sent an email to users, in part asking for their help in contacting local lawmakers to support sports betting. The company also plans to mobilize lobbyists.