Sports betting ruling sets DraftKings and FanDuel up for cash windfall
It’s not just sports fans celebrating the Supreme Court decision to allow states to legalize sports gambling as fantasy brands DraftKings and FanDuel look to cash in on the ruling.
Matt Kalish, co-founder of DraftKings, the Boston-based fantasy sports company, told FOX Business earlier this month that it has been developing a sports-betting platform since 2017.
“We’ve been working on our readiness for something like this, and it’s certainly something that we will offer whenever it’s available in the U.S.,” Kalish said.
Kalish, who is now chief revenue officer at DraftKings, said the company already has a technology platform in place that can help it transform easily into a sportsbook.
“So, it's nice in the sense that we had a few years head start on anyone in terms of building out that platform and feel like we're really well positioned to compete in that market,” Kalish added.
DraftKings’ main competitor, New York-based FanDuel, said in a statement to after news of the Supreme Court’s ruling broke that it has been “exploring all avenues” when it comes to sport betting and plans to bring innovation to sports betting.
The company’s goal is to be ready to launch by the start of the NFL season, a spokesperson told Adweek.
In the Supreme Court case, New Jersey successfully challenged against the Professional and Amateur Sports Protection Act of 1992, which restricted sports wagering outside Nevada and three other states. Monday’s decision allows the states to decide whether to allow live sports betting.
Jason Robins, CEO and co-founder of DraftKings, reiterated the company’s plan to go big on sports betting, adding that it’s the next step in the company’s expansion.
"Our mission has always been to bring fans closer to the sports they love and now, thanks to the wisdom of the Supreme Court, DraftKings will be able to harness our proven technology to provide our customers with innovative online sports betting products," Robins said in a statement.
He added: "This ruling gives us the ability to further diversify our product offerings and build on our unique capacity to drive fan engagement."