DraftKings CEO Jason Robins Talks Disney Deal

Summary

Bloomberg Talks: DraftKings CEO Jason Robins Talks Disney Deal

Date: November 8, 2025
Host: Bloomberg
Guest: Jason Robins, CEO of DraftKings
Episode Theme:
An in-depth conversation with Jason Robins on DraftKings’ new multi-year partnership with Disney’s ESPN, expanding product offerings in the prediction markets, financial discipline, and the bullish outlook for DraftKings’ future.

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Main Theme & Purpose

The episode centers on DraftKings’ recent strategic partnership with Disney (via ESPN), the evolution of sports betting and prediction markets in the US, and how DraftKings is positioning itself both in terms of product innovation and financial health. Jason Robins discusses industry trends, regulatory advances, business model risks, and DraftKings’ momentum as it enters new markets.

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Key Discussion Points & Insights

1. DraftKings & ESPN/Disney Partnership

• Significance of ESPN:

  • Robins underscores ESPN's unmatched reputation in US sports and its influential media and talent portfolio.
  • Quote: “ESPN is an iconic brand. It’s by far the biggest name in sports in the United States and they have an incredible portfolio, unmatched portfolio of sports content, influencers, talent… So it's really, you know, for us just the greatest partner you can have when you're in the space we're in.” (01:01, Jason Robins)

• Strategic Fit & Familiarity:

  • DraftKings has previously partnered with ESPN, so the collaboration is “familiar territory.”
  • Partnership adds to DraftKings’ deals with NBCUniversal and Amazon, creating broad sports media presence.
  • “We know all the people there and we're looking forward to working together. And you add that to our deals with NBCUniversal and Amazon and others, we have an unmatched, I think presence across the sports landscape over the next several years.” (01:32, Jason Robins)

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2. Expansion Into Prediction Markets

• Incremental Opportunity vs. Cannibalization:

  • DraftKings’ move into “exchange-based betting”—prediction markets—is positioned as additive, not cannibalistic.
  • Robins notes that in the UK, exchange betting is only about 5% of the total market, suggesting minimal impact on other offerings.
  • “I think a lot of it is largely incremental because there are market makers and others that are not present on traditional sportsbooks that generate a lot of the volume.” (02:25, Jason Robins)

• New Acquisitions & Rollout Timeline:

  • Reference to DraftKings’ acquisition of Railbird and a target to enter the US predictions market “in the next couple months.” (02:39, Jason Robins)

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3. Financial Discipline & Marketing Spend

• Managing Investment in Predictions:

  • Robins details a “conservative” approach to deploying capital in prediction products given the nascent US market.
  • “We do plan to make some investment there. We mentioned this on the call that we're going to be more, I think, conservative in terms of the paybacks we're looking for...” (03:13, Jason Robins)
  • Product excellence is deemed the “most important thing”—the DraftKings approach is methodical: build, test, analyze, and scale if metrics support further spending.

• Guidance on Expenses:

  • Investors/analysts noted higher sales and marketing expenses and “ugly outcomes” in some sports games, but Robins emphasizes data-driven, flexible spend to capture upside in emerging segments.

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4. Regulation & Market Access

• Predictions Product as a Path to More States:

  • Because prediction markets can be accessed in all 50 states, unlike sportsbook betting which is currently limited (~25 states + DC), DraftKings sees this as a lever to push for further legalization.
  • “It's, I think predictions are a powerful talking point for that because... it's activity that's already happening in the state at some level that they are not directly benefiting from and regulating. So I do think that'll motivate some states…” (04:30, Jason Robins)

• Minimal Cannibalization Observed:

  • Robins draws from international comparisons to reassure concerns, pointing out decades of coexistence in the UK market.

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5. DraftKings’ Bullish Outlook & Turnaround

• Historic Progress & Current Momentum:

  • DraftKings turned its fortunes from heavy losses to profitability.
  • “Remember two years ago we weren't even profitable. Three years ago we had nearly $1 billion adjusted EBITDA loss. At that point, you know, we were getting killed in the market because people thought we were going to run out of money and go out of business. We really buckled down, we grew revenues, we managed costs and you know, just a few years later we've had over a billion and a half swing.” (05:37, Jason Robins)

• Position to Play Offense:

  • With profitability and scale, DraftKings can now “play offense”—meaning expansion, product launches (predictions), and leveraging premium partnerships.
  • Robins dismisses recent sports outcome “noise” as a minor, temporary issue, not reflective of business health:
    • “The only real negative on the quarter was the sport outcomes… that's a temporary thing… nothing to do with the fundamentals.” (06:29, Jason Robins)

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Notable Quotes & Memorable Moments

• On ESPN Partnership:

  • “It’s really, you know, for us just the greatest partner you can have when you're in the space we're in.” (01:05, Jason Robins)

• On Predictions Market and Cannibalization:

  • “We feel like there's pretty good data out there to show that head to head, the traditional sports betting product is a much far superior product for customers.” (05:03, Jason Robins)

• On Company Resilience:

  • “We really buckled down, we grew revenues, we managed costs and you know, just a few years later we've had over a billion and a half swing.” (05:44, Jason Robins)

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Timestamps for Key Segments

• [01:01] DraftKings-ESPN partnership overview and impact
• [02:21] Discussion on the nascent US prediction markets and cannibalization risk
• [03:13] Approach to investing and marketing in prediction products
• [04:24] Leveraging prediction markets to broaden state-level legal access
• [05:32] Robins on being most bullish about the company’s future
• [05:44] Company’s journey from heavy losses to profitability
• [06:29] Sports outcomes and their (non)-impact on long-term prospects

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Takeaways

• DraftKings’ tie-up with ESPN/Disney is framed as a watershed moment, offering unmatched media leverage.
• Foray into prediction markets is seen as a complementary growth driver, not a threat to core sportsbooks.
• Disciplined financial management remains a priority as DraftKings pursues new product verticals.
• Prediction markets could help accelerate state-level adoption of sports betting legislation.
• Leadership’s bullishness is founded on recent performance turnaround, strong partnerships, and new markets on the horizon.

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Summary Prepared For:
Listeners seeking a comprehensive, nuanced recap of DraftKings’ latest strategic moves, direct from CEO Jason Robins—highlighting the ESPN/Disney partnership, industry trends, and DraftKings’ operational direction, in his own candid, data-grounded language.

Transcript

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[Interviewer]

News We head back to earnings with DraftKings out with their results, cutting its revenue forecast for the full year. The company also out though with news that Disney signed a new multi year deal to make the sports betting company the official betting site and odds provider for the ESPN Sports Network. Let's bring in DraftKings CEO Jason Robbins. It's an interesting partnership and I think that's where we should start. How much does this move the needle for you? You know, we've talked in the past on this program, Jason with you about the integration of the live sports event and the broadcast with the betting activity. Your big picture goal with this deal.

[Jason Robbins]

Well, first of all, ESPN is a iconic brand. It's by far the biggest name in sports in the United States and they have an incredible portfolio, unmatched portfolio of sports content, influencers, talent. So it's really, you know, for us just the greatest partner you can have when you're in the space we're in and Jimmy Pitaro runs it really understands and I think values the sports betting space and understands that the customer overlap is high and it's important that they engage their customers by being partnered with somebody like DraftKings. So really excited to embark on it. We've been partners with them many times in the past, so it's familiar territory. We know all the people there and we're looking forward to working together. And you add that to our deals with NBCUniversal and Amazon and others, we have an unmatched, I think presence across the sports landscape over the next several years.

[Interviewer]

Prediction markets Wednesday night we were with Robin Hood at that in person earnings call that was wacky. Dunno if you consider that. But the month of October, massive volumes for them. You're being super thoughtful about predictions. I understand that. And you have a clear strategy. My question has always been how much a growth in a nascent predictions market cannibalizes other offerings that you have?

[Jason Robbins]

I think very little. If you look at the UK for example, exchange based betting is about 5% of the total pie. So you know, that's probably about right. And I think a lot of it is largely incremental because there are market makers and others that are not present on traditional sportsbooks that generate a lot of the volume. So I think it's very much an incremental opportunity for us and that's why we're so excited about it. We acquired Railbird and we're also looking to, you know, enter the market sometime in the next couple months.

[Podcast Host]

What's interesting, Jason, is investors analysts out there called out on the actual earnings script talking about how marketing expenses, higher sales expenses did eat into the results. And they call them also some ugly outcomes when it comes to the sports games for that you can't control. But what about the expenses you're going to have to have on the predictions markets?

[Jason Robbins]

Well, we do plan to make some investment there. We mentioned this on the call that we're going to be more, I think, conservative in terms of the paybacks we're looking for, just given how nascent a space it is and the fact that, you know, it's unclear kind of how this will all play out. But we are going to make some investment there first, of course, in getting a product developed and making sure that that's, you know, the best in class. You can't win. And we've always said this product is the most important thing. You can't win if you don't have a great product. And then, you know, assuming that the numbers check out, we'll spend marketing accordingly. We're going to be very data driven like we always are and everything we will test into it. But we did want to make sure as we guided that we were thoughtful about giving the team some space to be able to accelerate spend if the.

[Podcast Host]

Numbers look good and therefore the guide did pull back rather than uplift going forward. Jason. But you say it's conservative. You talk about an incremental opportunity from predictions. And I'm really interested as to how you make sure this doesn't cannibalize what you already have out there. You've talked a lot about how this might actually make more states accessible to sports betting. Because at the moment you can get 50 states with this predictions market. But what you've got 25 at the moment for your offering and you're about to have. And you also have DC and then you're adding Missouri.

[Jason Robbins]

Yeah, I mean, I think you're exactly right that this will hopefully lead more states to decide that they might as well legalize sports betting. It's, I think predictions are a powerful talking point for that because, you know, same as the illegal market, same as anything in this case. It's regulated. But the bottom line is it's activity that's already happening in the state at some level that they are not directly benefiting from and regulating. So I do think that'll motivate some states, but, but for us really the cannibalization thing isn't a huge concern. We haven't seen that happen, not just here, but as I mentioned, overseas where there's long established, I mean it's not a brand new thing like it is here. There's been predictions in sports exchanges around for decades in the UK for example. So we feel like there's pretty good data out there to show that head to head, the traditional sports betting product is a much far superior product for customers.

[Interviewer]

Jason, you said that this is the most bullish you've ever felt about the company's future. What are the underlying trends, data points, behaviors of your customers that give you that conviction? And why do you have it now that you didn't have previously?

[Jason Robbins]

Well, I think if you take a step back, you know, it really starts with the progress that we've made over the last few years in the position we put ourselves in. Remember two years ago we weren't even profitable. Three years ago we had nearly $1 billion adjusted EBITDA loss. At that point, you know, we were getting killed in the market because people thought we were going to run out of money and go out of business. We really buckled down, we grew revenues, we managed costs and you know, just a few years later we've had over a billion and a half swing. So I think that shows that we are in a great position. But also more importantly now we're in a position to play offense. We are profitable, we have scale, we have the best product in the market, we have the absolute best partnerships and presence across the media landscape. About to launch sports predictions, which I believe represents a huge incremental opportunity for us. So a lot of really exciting things going on and the only real negative on the quarter was the sport outcomes. I think all the stereo over predictions is kind of nonsense. But the really only negative sport outcomes, that's a temporary thing. That's not something that has anything to do with the fundamentals of the business.

[Interviewer]

DraftKings CEO Jason Robbins thank you very much.

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