DraftKings CEO Jason Robins is optimistic about progress in legalizing sports betting and online casino gambling in more states.
“I feel like we have some real momentum in iGaming now, the first time I’ve felt that way in a few years,” Robins said Tuesday at a Morgan Stanley conference, as reported by Covers. “We also, I think, will get some sports states done this year.”
Robins attributed his optimism to shifting legislative priorities, noting that 2024 was a tough year for gaming-related bills as lawmakers were preoccupied with elections.
He noted that the only significant win last year was the District of Columbia expanding its sports betting market. However, with elections behind them, Robins expects “at least a few states” to authorize sports betting or iGaming soon.
While Robins did not specify which states might legalize sports betting or iGaming next, numerous bills are currently under consideration in state legislatures.
Mississippi is discussing a bill that would legalize statewide online sports betting, Oklahoma lawmakers are considering multiple legalization measures (despite opposition from the governor), and efforts are ongoing in Georgia, Minnesota, and Texas.
For online casino gambling, legislation has been introduced in Illinois, Maryland, and New York. Even a single state legalizing iGaming would be significant, given its slower adoption compared to sports betting. Currently, 38 states allow some form of legal sports betting, but only seven have legalized iGaming.
Concerns over competition with brick-and-mortar casinos, among other factors, have slowed progress. Still, iGaming is proving profitable where it is allowed—DraftKings reported a record $426 million in iGaming revenue for the final quarter of 2024, up from $352 million the year before.
DraftKings and other operators are also closely monitoring potential tax increases and other state measures. Lawmakers in Maryland and New Jersey have proposed tax hikes and DraftKings has faced regulatory pushback in Texas over its Jackpocket lottery courier app.
Robins acknowledged the legislative and regulatory “noise,” but pointed out that only two states—Ohio and Illinois—have recently increased online sports betting taxes. Among them, only Illinois’ hike—to as much as 40%—was significant enough to be considered “off-market.”
In response, DraftKings initially proposed a surcharge on winning bets in higher-tax states but scrapped the plan after customer feedback and a lack of industry-wide support. Robins noted that only four U.S. states have a sports betting tax rate above 20%, with most remaining stable. “The vast majority of states are very stable on that front,” he said.
Robins admitted that tax hikes can sometimes benefit market leaders like DraftKings and FanDuel by making it harder for smaller competitors to operate. However, he emphasized the need to educate policymakers about the risks of excessive taxation.
“We need to make sure that we also educate policymakers that at some point it’s going to come out of the consumer and that deteriorates the value proposition and that makes it harder to compete with the illegal market and grow,” Robins said.
“We want to make sure people understand that. But we also kind of look at some of the states that have increased taxes, and they’re still growing nicely and there has been some consolidation there.”
Robins said the company is actively working to persuade lawmakers that higher taxes make it harder to combat unregulated offshore gambling.
Original article: https://www.yogonet.com/international/news/2025/03/05/97173-draftkings-ceo-sees-real-momentum-for-legal-sports-betting-igaming-expansion
