Fantasy sports platform DraftKings is betting on sports gambling, CEO Jason Robins told Cheddar at SXSW.
It’s a reversal for the company, which has long held it’s a game of skill, and not a game of chance.
But the move all hinges on a pending legal battle in DC.
“The Supreme Court is considering New Jersey’s case to allow for sports betting in their state, which, depending on how they rule, could effectively end up removing the federal ban on legalizing and regulating sports wagering,” Robins said.
States across the U.S., with the exception of Nevada, have banned sports gambling for 25 years.
But in 2012, former New Jersey’s Governor, Republican Chris Christie, signed a bill into law that effectively legalized sports betting. That set off a series of legal challenges from sports leagues, including the NCAA, the NFL, and the NBA. The case landed in front of the Supreme Court in December 2017, with a decision expected in a few months.
In anticipation, DraftKings has already started building out a product that would facilitate sports betting and is looking into partnerships with licensed brick-and-mortar casinos and content integration.
There is one thing that’s not on the company’s immediate horizon, though: an IPO.
“We eventually want to go public, but I don’t think right now is the right time for us. Probably in the next couple years,” Robins said. “There’s still a lot of work we need to do to be prepared to be a public company.”
Last week reports emerged that rival FanDuel, with whom the company unsuccessfully tried to merge in 2016, was looking to go public through a so-called reverse merger.
Sēkr, a mobile app that aims to improve and digitize the outdoor travel experience, announced this week that it raised a $2.25 million seed round. In the Sēkr app, users can get access to more than 50,000 campsites throughout the U.S. including the nation's largest database of free campsites. The company is saying it is on a mission to make every step of the planning experience for outdoor travel easier, safer, and more social. Breanne Acio, co-founder and CEO of Sēkr, and Jess Shisler, co-founder and COO, joined Cheddar News' Closing Bell to discuss.
Valentine's day is right around the corner and love is in the air....or right at your fingertips if you're on dating apps. Lox Club is the dating app that 'kind of hates dating apps.' If you're burnt out from awkward, cringe-worthy, and superficial dating app encounters, it might be time to join Lox Club. Austin Kevitch, CEO and co-founder of Lox Club, joins Cheddar News to discuss.
Elon Musk announced that he expects Starship to reach orbit in 2022. The SpaceX CEO delivered updates about the largest space vehicle to be constructed from its Texas facility. Jim Cantrell, CEO and co-founder at Phantom Space, joined Cheddar News to talk about the future of Starship. "I've always done wrong by betting against Elon," he said. "The one thing that I find very curious is it launches 100 metric tons into space, and last year, in the entire year, we launched 750. So, you know, with about seven launches, he could launch every satellite on Earth."
Sheri Bachstein, CEO of The Weather Company and GM of IBM Watson Advertising, joins ChedHER to discuss her successes in this role, and how she's helping women thrive in the c-suite.
Amid a string of recalls for their electric cars, Tesla is also facing a lawsuit over workplace discrimination. The electric automaker is being accused by California’s Department of Fair Employment and Housing of a pattern of racial discrimination against Black workers. Caleb Silver, Editor-in-Chief at Investopedia, joined Cheddar News to discuss the numerous technical and safety issues that led to the recalls and the allegations of systemic racist abuse at its Fremont plant. "Tesla disputes these claims, but still you can’t avoid the pattern," he said.
