Tech

DraftKings CEO on sports betting merger possibilities: Everybody's talking to everybody

Key Points
  • DraftKings is setting its sights on its future now that states can legalize sports betting, CEO Jason Robins says.
  • His preference has always been an initial public offering, but he's "open to different outcomes."
  • "There's a lot of activity going on right now, so you can imagine everybody is kind of talking to everybody at this point," Robins says.
Draftkings CEO talks possible IPO and Esports betting
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Draftkings CEO talks possible IPO and Esports betting

DraftKings is setting its sights on its future now that the Supreme Court is allowing states to legalize sports betting, CEO Jason Robins told CNBC on Wednesday.

That could mean an initial public offering, but he's not ruling out a possible merger.

"My preference has always been to IPO, but we're open to different outcomes," Robins said on "Power Lunch."

On Monday, Irish bookmaker Paddy Power Betfair announced it has agreed to merge with fantasy sports company FanDuel to target the U.S. sports betting market.

Earlier this month, the Supreme Court upheld a 2014 New Jersey law that permitted sports betting at casinos and racetracks in the state and voided the federal Professional and Amateur Sports Protection Act.

Robins wouldn't comment on whether his company has been approached by anyone or whom it may be talking to.

"There's a lot of activity going on right now, so you can imagine everybody is kind of talking to everybody at this point," he said.

He also insisted that the FanDuel news would not change the timing for changes with DraftKings.

"We like to really focus on our own path and what we can control," Robins said. "It would be a mistake if we let it really affect our decision-making around timing for an IPO or any other sort of strategic transaction."

If anything, the Supreme Court decision is going to have a much bigger effect on timing, he added.

The company has been preparing for its sports betting business since the court decided last summer to take up the issue.

"We've been working on this product for almost a year at this point and feel very excited about the position we're in," Robins said.

"For us it's really just about finding the right partners now to bring it to market. People who help us on the licensing and distribution side."

— Disclosure: CNBC parent Comcast and NBC Sports are investors in FanDuel.

—CNBC's Michael Scheetz contributed to this report.