Jason Robins, CEO of DraftKings, is a brand-new billionaire who you are all welcome to join. Shares of the 40-year-business old’s recently increased by more than 11% to close at $69.29. Due to this increase, the company increased its forecast for net sales from $3.7 billion to $5.4 billion. While Robins became a billionaire, his two co-founders, Paul Liberman and Matthew Kalish saw their net worths rise to at least $500 million each. DraftKings had a great fourth quarter with revenue of $322 million, which is 146% more than the $131 million in revenue from the same time period a year earlier.
In 2011, Robins, Liberman, and Kalish co-founded DraftKings. The three of them first worked together at Vistaprint. Liberman’s 2 percent interest in the company is worth $550 million, while Kalish’s 1.8 percent holding increases his net worth to $500 million. A 4% ownership part in the business belongs to Robins. He is the organization’s second billionaire. During a prior rise in the company’s stock price in May 2020, Israeli entrepreneur Shalom Meckenzie became a millionaire. In 2007, Meckenzie established the gaming technology business SBTech. When DraftKings and Diamond Eagle Acquisition Corp. went public in April 2020, SBTech was a part of the SPAC acquisition. Meckenzie is a director of DraftKings and one of the company’s top shareholders.
Getty Images/Steve Jennings
Because of Robins’ passion for fantasy sports leagues, DraftKings was created. He once participated in 100 different fantasy sports leagues, according to a November 2020 interview he conducted. One of his co-founders started the business in his spare bedroom as it raised initial money and signed contracts with ESPN, MLB, and the NHL. Along the trip, there were humps in the road. In 2015, after a worker was charged with insider trading, the New York Attorney General charged the corporation with breaking regulatory rules. DraftKings attempted to merge with rival FanDuel in 2017, but failed.
DraftKings benefitted greatly after the Supreme Court ruled that the Professional and Amateur Sports Protection Act was unconstitutional, leading 20 states and Washington D.C. to legalize sports gambling. According to DraftKings, if sports gambling were authorized in all 50 states, the online sports betting market would be a $22 billion industry. During the height of the Covid-19 outbreak, when access to live sports was severely restricted, DraftKings participated in the SPAC merger and IPO. The company’s stock has increased by 250 percent since the IPO.
In high school, Robins had straightforward professional goals. He desired to earn his MBA and become wealthy. He enrolled at Duke University to study computer technology, math, and economics. Instead of pursuing an MBA, he entered the tech industry. He took a job at Capital One and then convinced his bosses to assign him to a Boston-based startup the credit card company had acquired. The next stop was Vistaprint, a marketing firm, when he ran across Liberman and Kalish. He gained knowledge of corporate accountancy, web marketing, and data analytics along the road. He began to consider launching his own business. As mentioned, he was (is) an obsessive sports fan who was in hundreds of fantasy sports leagues. In a conference room at Vistaprint, it was Kalish who introduced Robins to the fundamental idea that would one day become DraftKings. This happened in 2011. The moment Robins saw this, he knew it was the business he wanted to start.
The initial headquarters for DraftKings were established in Liberman’s spare bedroom by Robins, Kalish, and Liberman. They left their positions at Vistaprint and put their funds into the startup business. There was only one issue: their concept wasn’t as novel as they had hoped. FanDuel had already begun to function. Robins was unfazed and noted that Facebook and Google just did what they do better. Both firms began years after the initial social networks and years after the first search engines, respectively. That was Robins’ goal with DraftKings.
The positive prognosis for income at DraftKings is predicated on the widespread acceptance of legal gambling. At the moment, legalizing online sports betting is being discussed in California, New York, Texas, and Florida. This would represent more than 100 million potential new DraftKings customers. About 60% of the sports betting market in the US is concentrated in just four states.
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