Jason Robins: Yeah. It’s a good question. I definitely think that cracking down on the legal market is a good thing for us. And the AGA, I believe, I hope I don’t mess this number up, said that just in legal betting states alone, there’s about $4 billion right now of revenue leakage that’s happening into the illegal market. So it’s a real issue and probably costing states close to $1 billion in tax revenues at this point. So definitely a big deal and something that we’re happy to see states doing. But we haven’t really thought about any direct impacts on the business. It’s not something we contemplate in our guidance and I think depending on the situation, there could be a potential for some of that revenue to leak into the illegal market to come back into the legal market. And if that happens, we certainly hope that we get our fair share of it.
Ryan Sigdahl: Impressive performance guys. Good luck.
Jason Robins: Thank you.
Operator: One moment for our next question. Our next question comes from Jordan Bender with JMP Securities. Your line is open.
Jordan Bender: Great. Good morning. From the market share gains in recent quarters, I was wondering if you guys had a sense of how much of that is true player conversion coming from other apps versus finding new players in existing space versus even hold rates pushing a GGR share and just overall growing the market? Thank you.
Jason Robins: I think it’s a combination of multiple things. I mean, internally, we see all of our metrics going in the right direction. Retention rates are up, hold rates up, promotional reinvestment rate across OSB and iGaming is down. All of that independent of any sort of competitor of wallet dynamics, all of that is true. So just sort of based on that math, yes, that certainly led to a reasonable amount of the share increase. It’s really hard to say how much of it is that, how much of its new players coming into the market and us disproportionately acquiring those players relative to competition and then retaining those players better relative to competition versus truly stealing players from competitors. We don’t really know.
We certainly know that amongst some players that they have tried multiple apps. And we think they’re getting them to decide that we’re the best and where the place they want to concentrate their play is an advantage, but it’s hard to say historically how much of share gain has been driven by one factor or another.
Jordan Bender: Great. And then for my follow-up, Jason Park, I believe you said you’re assuming next year 5% legalization that’s legalized not launched yet. Is that to say you guys are moving away from assuming incremental legalization within your revenue guidance?
Jason Park: That’s correct. Our revenue guidance includes assumed launches of states that in total represent 5% of the population.
Jordan Bender: Thank you very much.
Operator: One moment for our next question. Our next question comes from Stephen Glagola with TD Cowen. Your line is open.
Stephen Glagola: Thanks for the questions. DraftKings took pretty significant OSB share in New Jersey in Q3, and the state license, I think, got to like almost 49%. Can you just provide some more color on what’s driving that, what you’re doing with the VIP activity there? If you can quantify on the revenue upside for the quarter, how much was driven by New Jersey? And then do you expect this market share to be maintained in Q4 and 2024? Thank you.
Jason Robins: Very good question. New Jersey has been a real great story for us. It was our first state. It continues to be one of our largest states. But early on, we got off to a hot start and then we, candidly, in our first state had a weaker product at that point, and we lost a lot of share to the competition and ended up dropping down quite a bit relative to where we are today. And I think the team is really focused on building out that great experience, driven by a great product, and we’re winning across segments from the most casual the VIP in New Jersey. All of our segments are performing well. Customer acquisition continues to be very strong in New Jersey, whoever thought that once New York and Connecticut and everywhere else in Pennsylvania launch that New Jersey would not have any growth anymore, I was wrong, continue to see quite a bit of customer acquisition and growth in New Jersey and iGaming has been around for like a decade there and continues to grow at a steady clip.
So I think when you kind of put all that together, New Jersey has obviously always been a big focal point for us, and we knew that there was a lot of opportunity to recapture there given that it was our first state, and we’ve made so many enhancements to our products in some of the early days. And we’re very grateful that many customers have given us a shot and have seen a lot of the product and experience improvements that we’ve made.
Stephen Glagola: Thank you.
Operator: One moment for our next question. Our next question comes from Chad Beynon with Macquarie. Your line is open.
Chad Beynon: Good morning. Thanks for taking my question. Understanding that the focus remains in North America, given some settling out in some international markets, given regulation changes. Has anything changed just in terms of the risk reward kind of looking outside of North America given where your product is right now and where the balance sheet is?
Jason Robins: We obviously are aware of the global gaming market. And I think long term, there’s a lot of upside for us there. We believe that the product and technology investments and other operational infrastructure, marketing infrastructure we’re building will be very portable throughout the globe. That said, we also understand that the largest market in the world is developing right now, and we’re in a really strong position. And a lot of what we feel has helped us and benefited us has been our singular focus here. So that’s something that we’re very cognizant of. And as we think about longer-term opportunities, it’s really important that we always keep that in mind and continue to make sure that the focus is here. And if we can figure out over time a way to find other ways to capitalize on the global opportunity, we will.
