DraftKings Inc. (NASDAQ:DKNG) Q4 2022 Earnings Call Transcript

Jason Robins: So, the team is working at bringing that in-house now. As far as our ’23 guide, we do expect, at some point in 2023, that, that will be the case and that is built into the guide, but it won’t affect the entirety of 2023. And I noted this earlier, we have already started to roll out some of our own in-house SGP — most recently, the live SGP MBA product we rolled out, which was the first in the industry to — we were the first in the industry to have it. So, I think that’s a good signal that we’re reaching a period where we have now with over a 1.5 years under our belt, lots of data to build out some of these new models. We’ve gotten to a point where we feel like we can put out models that are as good or better than what we can get off the shelf from third parties.

Operator: Our next question comes from Chad Beynon with Macquarie.

Chad Beynon: First, just wanted to ask about opportunities or aspirations in non-North American markets. Given your data science and kind of all the learnings that you’ve had in the past couple of years, it seems like you’re in a pretty good position to make it then in some of those markets, obviously, a lot to do still here in North America, but wondering if anything has changed in other markets.

Jason Robins: I do think you’re right that the technology we’ve built is going to be very portable to the global gaming market. And we believe that when we do decide to expand overseas, we’ll have advantages over incumbent competition when it comes to product, when it comes to hold rate, things like that. That said, we are laser-focused on the U.S. and on Ontario right now. I think that the opportunity here remains very significant and growing. We have a lot of work to do to become more efficient as an organization that we need to focus on. There will be a time and a place to focus on international expansion, but it’s not going to be right now. Doesn’t mean that we won’t look at it and start to do some exploratory work this year behind the scenes.

I think we have to always be thinking about what future things we want to do and start laying some of the research and groundwork for that. But on the whole, the team is very focused on how do we continue to make progress and do better for the customer in the U.S. and how do we continue to become more efficient and cost effective as an organization.

Chad Beynon: And then a follow-up to that, just on the iGaming, iCasino legislation, I know you and your competitors on the mobile side are doing a lot of work communicating the story, but it also seems like a lot of the land-based operators are as well, as they’ve seen probably lower cannibalization than they may have feared. So do you think there will be more momentum? Do you think that’s more based on kind of what happens in the economy? What’s really going to start kind of the rolling stone for more iCasino discussions?