DraftKings has ‘ambitions’ to be like Amazon, CEO says
Jason Robins discusses expansion plans
Jason Robins, CEO and board chairman of DraftKings, tells 'Varney & Co.' he wants to expand his company 'well beyond online gaming.'
DraftKings CEO Jason Robins told "Varney & Co." on Tuesday that he wants his company to be like Amazon in the long-term as it pertains to expanding its products and services.
"Ultimately we want to have a whole series of products," Robins told FOX Business host Stuart Varney.
"We certainly have ambitions to one day be like an Amazon, who started selling books and now look at them."
Robins made the comments one day after the sports betting website announced it is buying the online gambling subsidiary of Golden Nugget Inc. in a stock deal valued at $1.56 billion.
The acquisition gives Boston-based DraftKings a well-known brand in the casino and gambling world and adds more than 5 million customers to DraftKings iGaming accounts, according to a statement from the companies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DKNG | DRAFTKINGS INC. | 39.84 | -1.30 | -3.16% |
| GNOG | NO DATA AVAILABLE | - | - | - |
Golden Nugget Online shares traded up nearly 51% on news of the acquisition, closing at $18.50 on Monday, and DraftKings shares rose 1.49% to close at $52.36.
"We have ambitions to be a very multi-product base company well beyond online gaming," Robins told Varney, adding that his company looks for products "that we think overlap well with our existing customer demographics."
He added that the company also looks "for things that can expand us into new audiences and bring new players and new customers to the platform."
Robins offered the insight shortly after the company announced the launch of "DraftKings Marketplace," which is a digital collectibles ecosystem where customers can buy, sell and trade digital collectibles across sports, entertainment and culture, according to its website.
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Robins explained on Monday that DraftKings Marketplace will distribute exclusive content from NFT (non-fungible tokens) platform Autograph through an exchange. He called Autograph "a great addition to our relationships."
DraftKings CEO Jason Robins says the company has 'ambitions to be a very multi-product based company well beyond online gaming' and explains that he looks for products that 'overlap well with our existing customer demographics.'
"We are starting a marketplace," Robins explained, noting that the company is starting the exchange by selling inaugural Tom Brady NFTs this week.
He also noted that Autograph has exclusive rights to a number of athletes, which not only include Brady, but also Tony Hawk and Tiger Woods.
"We’re an exchange and eventually we are going to allow for other forms of functionality, such as auction-based selling, secondary markets and other things," Robins said.
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Varney asked Robins what makes him "so convinced that there really is a vigorous marketplace for NFTs?"
Robins responded by noting that the market for NFTs soared to new highs in the second quarter, with $2.5 billion in sales, an increase from $13.7 million in the first half of 2020, Reuters reported, citing marketplace data.
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"I think we’re early and it’s a huge number for a market this early. Who knows where the ceiling is," Robins told Varney.
"I also think it will be great for us from a customer acquisition standpoint to have all these different athletes that are out there with their names and hopefully supporting and engaging their fans."
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The Associated Press contributed to this report.