1 00:00:00,240 --> 00:00:04,320 Speaker 1: It's the big Super Bowl weekend and fifteen billion dollars 2 00:00:04,360 --> 00:00:07,120 Speaker 1: in sports betting is about to get even bigger. For 3 00:00:07,240 --> 00:00:09,479 Speaker 1: more on the sports betting business and how the Super 4 00:00:09,480 --> 00:00:14,280 Speaker 1: Bowl plays a role, we're joined by Jason Robbins from DraftKings. Jason, 5 00:00:14,560 --> 00:00:16,840 Speaker 1: you're the chief executive of one of the largest sports 6 00:00:16,880 --> 00:00:19,640 Speaker 1: books out there, but you're also facing some tough competition, 7 00:00:19,960 --> 00:00:23,680 Speaker 1: especially from those that are actually using contracts linked to 8 00:00:24,320 --> 00:00:28,040 Speaker 1: sports games but aren't the traditional sports books. I'm talking 9 00:00:28,120 --> 00:00:31,880 Speaker 1: crypto dot com call sheet. What kind of competition are 10 00:00:31,920 --> 00:00:35,440 Speaker 1: you seeing. 11 00:00:34,000 --> 00:00:36,880 Speaker 2: Well, I think a lot of different forms of gaming 12 00:00:37,000 --> 00:00:40,239 Speaker 2: right now, and those aren't exactly gaming. They're classified as 13 00:00:40,479 --> 00:00:42,920 Speaker 2: I think financial contracts. But a lot of different forms 14 00:00:42,960 --> 00:00:45,960 Speaker 2: of gaming are appearing. Those are in the regulated market. 15 00:00:46,000 --> 00:00:49,800 Speaker 2: There's actually a much larger illegal market. It's competitive with us, 16 00:00:49,800 --> 00:00:52,400 Speaker 2: and they're much more difficult to compete with because they 17 00:00:52,400 --> 00:00:55,440 Speaker 2: don't have to follow any rules or regulations. So definitely 18 00:00:55,440 --> 00:00:57,520 Speaker 2: a lot of competition out there right now, but we 19 00:00:57,560 --> 00:00:59,360 Speaker 2: feel like we have the best product in the best 20 00:00:59,400 --> 00:01:01,760 Speaker 2: customers experience, and in the end, we think that'll win the. 21 00:01:01,760 --> 00:01:06,840 Speaker 3: Day and regulator after regulator, you convince, Jason, what are 22 00:01:06,840 --> 00:01:09,040 Speaker 3: the winnings for you this weekend. Do you think how 23 00:01:09,080 --> 00:01:12,000 Speaker 3: many bets will be placed? What are your takeaways? 24 00:01:13,360 --> 00:01:15,600 Speaker 2: Oh, I can't really say what I think the numbers 25 00:01:15,640 --> 00:01:18,119 Speaker 2: will be. But each year the Super Bowl gets bigger 26 00:01:18,120 --> 00:01:20,120 Speaker 2: and bigger, so I expect this to be our biggest 27 00:01:20,160 --> 00:01:22,440 Speaker 2: day ever the Sunday, I should say, to be our 28 00:01:22,480 --> 00:01:25,840 Speaker 2: biggest day ever. Hard to know exactly what the numbers 29 00:01:25,840 --> 00:01:28,639 Speaker 2: will be, and right now it's a pretty balanced line, 30 00:01:28,800 --> 00:01:31,080 Speaker 2: so you know, in some ways that's good because that 31 00:01:31,200 --> 00:01:33,760 Speaker 2: means it won't be as volid ale. Although right now, 32 00:01:33,800 --> 00:01:36,080 Speaker 2: because we have so much money on player props, it's 33 00:01:36,200 --> 00:01:39,720 Speaker 2: much bigger deal. Whether you see Saquon Barkley, Jalen Hurts 34 00:01:39,760 --> 00:01:42,160 Speaker 2: and Travis Kelsey get in the end zone and who 35 00:01:42,200 --> 00:01:43,080 Speaker 2: actually wins the game. 36 00:01:44,400 --> 00:01:46,800 Speaker 3: Don't get our producers started on parlaying as well. But 37 00:01:46,840 --> 00:01:49,280 Speaker 3: I'm really interested, Jason more broadly on what this means 38 00:01:49,320 --> 00:01:51,800 Speaker 3: for your marketing efforts. Ultimately, this must be a massive 39 00:01:51,840 --> 00:01:53,920 Speaker 3: draw for people to then come back time and time again. 40 00:01:55,360 --> 00:01:57,760 Speaker 2: Well, Super Bowl is not only the biggest betting day 41 00:01:57,760 --> 00:01:59,400 Speaker 2: of the year, it's our biggest day of the year 42 00:01:59,480 --> 00:02:02,640 Speaker 2: for customer acquisition activation. So it's a huge day for 43 00:02:02,720 --> 00:02:04,880 Speaker 2: us marketing wise. We have a ton of stuff going 44 00:02:04,920 --> 00:02:07,880 Speaker 2: on all week leading up to the game and obviously 45 00:02:07,920 --> 00:02:11,000 Speaker 2: throughout the game, so big time for our marketing team, 46 00:02:11,080 --> 00:02:13,200 Speaker 2: and they've done a great job each year. We've won 47 00:02:13,280 --> 00:02:15,600 Speaker 2: the customer acquisition battle the last two Super Bowl I 48 00:02:15,600 --> 00:02:18,239 Speaker 2: think the last three Super Bowls, so we're very confident 49 00:02:18,240 --> 00:02:19,679 Speaker 2: in them and feel like we're gonna have a great 50 00:02:19,720 --> 00:02:20,560 Speaker 2: showing this year too. 51 00:02:21,639 --> 00:02:25,079 Speaker 1: There's another thing that's taking more people to their televisions 52 00:02:25,120 --> 00:02:29,000 Speaker 1: to watch the NFL. That's Taylor Swift. She's driven major 53 00:02:29,200 --> 00:02:31,960 Speaker 1: viewership since she's dating one of the Chiefs players, and 54 00:02:32,000 --> 00:02:36,600 Speaker 1: I'm curious DraftKings is capitalizing on this increase viewership in 55 00:02:36,639 --> 00:02:37,040 Speaker 1: any way. 56 00:02:38,440 --> 00:02:41,240 Speaker 2: Well, more viewership always is better for us, and I 57 00:02:41,240 --> 00:02:44,800 Speaker 2: think it's sort of this positive cycle where people bet 58 00:02:44,840 --> 00:02:46,639 Speaker 2: more and they tend to watch the games more and 59 00:02:46,680 --> 00:02:49,520 Speaker 2: they watch longer, and then more people watching needs more 60 00:02:49,560 --> 00:02:52,520 Speaker 2: opportunities from them placed wagress with us. So that's a 61 00:02:52,520 --> 00:02:55,120 Speaker 2: really good thing for our business. Obviously for the ratings 62 00:02:55,120 --> 00:02:57,360 Speaker 2: of the NFL. And I don't know how much Tailor 63 00:02:57,400 --> 00:03:01,000 Speaker 2: is contributing to it, but if she is, and thank you, I'm. 64 00:03:00,800 --> 00:03:03,519 Speaker 1: Not much of a gambler, But what can you tell 65 00:03:03,600 --> 00:03:06,160 Speaker 1: us about your current user base. Have you seen any 66 00:03:06,600 --> 00:03:10,760 Speaker 1: major shifts in who is putting wagers online? 67 00:03:11,639 --> 00:03:14,240 Speaker 2: You know, it's definitely been growing in terms of female 68 00:03:14,360 --> 00:03:18,320 Speaker 2: audience obviously, you know, for us, that's an important vector 69 00:03:18,360 --> 00:03:21,160 Speaker 2: because right now our audience is largely male, so we 70 00:03:21,160 --> 00:03:23,160 Speaker 2: think there's a lot of room to grow on that front. 71 00:03:23,520 --> 00:03:26,679 Speaker 2: In general, though the demographics haven't changed a whole lot. 72 00:03:27,200 --> 00:03:30,160 Speaker 2: Typically tends to be you know, on average age in 73 00:03:30,200 --> 00:03:33,679 Speaker 2: the mid thirties to late thirties, lots of people we think, 74 00:03:33,760 --> 00:03:37,680 Speaker 2: you know, coming from technology and educated backgrounds, typically a 75 00:03:37,760 --> 00:03:40,560 Speaker 2: you know, higher income consumer. So those tend to be 76 00:03:40,600 --> 00:03:43,640 Speaker 2: the demographics we see and that really hasn't changed since 77 00:03:43,640 --> 00:03:46,360 Speaker 2: we launched, but definitely seeing more women betters coming in, 78 00:03:46,400 --> 00:03:47,200 Speaker 2: which is a great thing. 79 00:03:47,800 --> 00:03:50,600 Speaker 3: I'm interested in sort of the fundamentals of the business 80 00:03:50,920 --> 00:03:55,040 Speaker 3: in large part not dictated by you, But how what 81 00:03:55,080 --> 00:03:57,960 Speaker 3: the outcome of the games are, I mean, customer friendly 82 00:03:58,000 --> 00:04:00,480 Speaker 3: wins with something that hit the numbers and the last 83 00:04:00,480 --> 00:04:02,760 Speaker 3: time that you came on and discussed them, So how 84 00:04:02,760 --> 00:04:06,560 Speaker 3: do you managed to navigate that and control your own destiny? 85 00:04:06,720 --> 00:04:08,880 Speaker 2: Well, there is always that, and you know this is 86 00:04:08,920 --> 00:04:11,360 Speaker 2: a business where we are taking a side of the action, 87 00:04:11,560 --> 00:04:14,800 Speaker 2: so there's going to be volatility in the results over time. 88 00:04:14,880 --> 00:04:17,880 Speaker 2: That normalizes. So the things that we can control or 89 00:04:17,880 --> 00:04:20,119 Speaker 2: what we focus on, which are making sure we provide 90 00:04:20,120 --> 00:04:22,719 Speaker 2: a great, great product for our customers and trying to 91 00:04:22,760 --> 00:04:24,839 Speaker 2: create more ways for them to bet and more ways 92 00:04:24,839 --> 00:04:27,280 Speaker 2: for them to engage, and you know, making sure we 93 00:04:27,320 --> 00:04:30,000 Speaker 2: have a really great back end operation to our trading. 94 00:04:30,120 --> 00:04:33,479 Speaker 2: Risk management is a plus, using our marketing to help 95 00:04:33,600 --> 00:04:35,880 Speaker 2: drive parlays and other forms of betting that we think 96 00:04:35,880 --> 00:04:39,120 Speaker 2: are good for margins and good customer So those are 97 00:04:39,160 --> 00:04:41,280 Speaker 2: the things we focus on and the outcomes will be 98 00:04:41,320 --> 00:04:43,799 Speaker 2: the outcomes. There's been some years that we've had good years. 99 00:04:43,800 --> 00:04:46,559 Speaker 2: In twenty twenty two, we had a good year. Last year, 100 00:04:46,680 --> 00:04:50,080 Speaker 2: you know, twenty twenty four wasn't. But it definitely can 101 00:04:50,160 --> 00:04:51,960 Speaker 2: vary year to year and that's part of the business. 102 00:04:52,000 --> 00:04:54,960 Speaker 2: But overall it doesn't really change fundamentals or the trajectory 103 00:04:54,960 --> 00:04:56,599 Speaker 2: of our business. 104 00:04:56,760 --> 00:05:00,760 Speaker 1: Well, growth drivers going forward for Generative AI, of course 105 00:05:00,960 --> 00:05:03,320 Speaker 1: is being kind of the key driver for a lot 106 00:05:03,320 --> 00:05:06,680 Speaker 1: of companies out there. How is Draftking starting to incorporate 107 00:05:06,720 --> 00:05:09,320 Speaker 1: this across the business? Any chance we could see any 108 00:05:09,400 --> 00:05:11,839 Speaker 1: tasks taken over by AI versus a human. 109 00:05:11,920 --> 00:05:15,480 Speaker 2: In the short term, we think generative AI is a 110 00:05:15,560 --> 00:05:19,200 Speaker 2: huge opportunity and it's really more about getting better outcomes 111 00:05:19,200 --> 00:05:22,960 Speaker 2: for our customers. Efficiency internally is simply a means to 112 00:05:23,000 --> 00:05:25,560 Speaker 2: an end for that. So everything from how do we 113 00:05:25,600 --> 00:05:28,880 Speaker 2: make sure we have great customer service and using chatbot 114 00:05:28,920 --> 00:05:32,080 Speaker 2: and AI do that, to making sure that our products 115 00:05:32,080 --> 00:05:35,120 Speaker 2: are as interactive as possible and easy to use as possible, 116 00:05:35,600 --> 00:05:38,240 Speaker 2: lots of areas for us to play AI really across 117 00:05:38,279 --> 00:05:40,160 Speaker 2: the entire business. A good chunk of our code. I 118 00:05:40,160 --> 00:05:44,200 Speaker 2: think I read a memo recently about fifteen percent something 119 00:05:44,240 --> 00:05:46,280 Speaker 2: like that of our code right now is being written 120 00:05:46,320 --> 00:05:49,040 Speaker 2: by generator of AI. So we really feel like we 121 00:05:49,120 --> 00:05:51,119 Speaker 2: have a long way to go, but also are seeing 122 00:05:51,120 --> 00:05:53,000 Speaker 2: some great traction with internal adoption. 123 00:05:54,320 --> 00:05:56,200 Speaker 3: Jason Robbins has been great having you on thirty one 124 00:05:56,200 --> 00:05:58,520 Speaker 3: buys on the stock zero Sells, and I'm sure you 125 00:05:58,600 --> 00:06:00,479 Speaker 3: might be having a great time this weekend. Jason Robin 126 00:06:00,560 --> 00:06:02,280 Speaker 3: draft King, CEO, thanks for stopping by.