Daily Fantasy Sports Giant Poised to Become Major Player in New Market
BOSTON, Mass., May 14, 2018 – DraftKings, Inc. announced that the company will enter the sports betting market following the United States Supreme Court’s decision today overturning the outdated Professional and Amateur Sports Protection Act.
“Our mission has always been to bring fans closer to the sports they love and now, thanks to the wisdom of the Supreme Court, DraftKings will be able to harness our proven technology to provide our customers with innovative online sports betting products,” said Jason Robins, CEO and co-founder of DraftKings. “This ruling gives us the ability to further diversify our product offerings and build on our unique capacity to drive fan engagement.”
DraftKings is well-positioned to capitalize on sports betting, given that it already runs the world’s largest daily fantasy sports mobile platform that includes stringent consumer protections and transparency for nearly 10 million customers. Even with today’s announcement, DraftKings remains fully committed to its popular daily fantasy sports business, which will continue to be a major focus for the company.
Nearly two-thirds of Americans support legalized sport betting and today’s move lifting this antiquated prohibition also opens the door for greater consumer protections and transparency through online wagering. The addition of online and mobile sports betting holds the potential to generate billions of dollars annually for cash-strapped state governments.
“Today’s Supreme Court ruling is welcome news to the millions of Americans who currently wager $150 billion illegally each year through off-shore, black market bookies,” said Robins. “States are now free to allow their residents to place mobile sports bets with licensed, trusted companies based in the U.S. and that pay taxes here.”
In anticipation of a favorable ruling by the Court, DraftKings has been preparing since 2017 to launch a sports betting platform for mobile, providing another advantage for the company. DraftKings is working with state regulatory officials to apply for operating licenses in those states that have already passed legislation authorizing sports betting.
DraftKings is an innovative sports-tech and media entertainment platform changing the way consumers engage with their favorite sports, teams and athletes by bringing fans closer to the game. DraftKings, headquartered in Boston, MA, offers daily and weekly fantasy sports contests across 10 professional sports in the U.S., Canada, United Kingdom, Malta, Germany, Ireland and Austria. Founded in 2012 by Matt Kalish, Paul Liberman and Jason Robins, DraftKings makes sports better and better sports fans by creating the ‘Game Inside the Game.’