DraftKings CEO Jason Robins might be in charge of the US’s best-performing sportsbook in terms of market share, but the executive believes smaller betting firms have a chance in the market too.
Speaking at the Craig-Hallum Online Gaming Conference on Friday, Robins was answering questions on the consolidation of the market, of which DraftKings and FanDuel share 77%. He expressed his belief that smaller players in the sector have a chance to survive if they employ the right strategy.
as long as you’re profitable, you can continue to keep going.”
“You’re at a disadvantage for sure,” Robins explained. “But as long as you’re profitable, you can continue to keep going.”
He continued: “I think you’re going to see more consolidation to the top in shares, but I also think that a lot of companies as this market continues to evolve that are losing money now will figure out how to survive at smaller levels of scale.”
Despite his affirmation that there is a space for smaller operators to survive, Robins acknowledged that the top is probably out of reach. He said that despite seeing “waves of competitors,” none have been able to “make a dent” in the top two positions in the market. Saying that, “we also don’t take anything for granted,” the CEO added.
This year alone, Betway, Sports Illustrated, and Unibet all exited the US sportsbook market. PointsBet sold its US business to Fanatics, while SuperBook and WynnBet have both pulled out of multiple states. Many operators have complained of high marketing costs.