DraftKings CEO Johnson Robins discussed the potential of mobile betting, the Robinhood saga and pent-up demand for sports with the host of CNBC's Power Launch.
Robins says trading and gambling are different products
Last week, the CEO DraftKings, Johnson Robins, talked to Power Lunch in CNBC and discussed whether the recent trade saga with GameStop has led more people to equate trading with gambling . In fact, the host asked if Robins sees Robinhood as a competitor.
"I don't consider them competitors," - replied Robins immediately. Robins acknowledged that a similar dynamic exists, but only to the extent that personal use outweighs purpose.
If one treats trading as a form of gambling, that is not inherent evidence that trading is gambling. "We don't see it as competition." - reiterated the president, arguing that trading and gambling are two completely separate products.
Robins also questioned whether the pandemic produced better than usual results and whether the fact that people had disposable income and few entertainment options contributed to DraftKings' recent financial prosperity.
The Chief Executive explained that this had been taken into account and that during the last earning call everyone had been somewhat conservative in terms of guidance and forecasts for the next financial year.
Determining the growth dynamics of sports gambling
"There may be a weakening of the tailwind -" said Robins and went on to explain that it was difficult to determine what was driving the momentum. He said the company, and the industry in general, had learned to optimize and market what he called a "hard-to-market product."
And so, Robins said his company and admitted that "a good portion of that came from that subdued demand without sports in the second quarter" and, of course, acknowledging that quiet expenses like meals and travel have gone down the drain.
The host asked another interesting question about the nature of mobile sports and citing Illinois' recent expansion of remote mobile registration as a point of emphasis. She specifically asked Robins what his advice would be to states that are only now considering legalizing sports betting - about 20, according to the host - on the potential of mobile betting.
"The vast majority of betting service is generated on mobile devices." Robins said even before the pandemic. States are now recognizing this, and every state now considering sports betting recognizes the importance of bringing mobile products online, Robins added.