I mean people don’t buy lottery tickets today, sometimes, I think, due to convenience. And just like being able to make a bet on your phone, shooting, I mean if you look at anywhere right now that’s legalized betting, online betting makes up a much larger portion of the handles than retail betting. It just makes sense when you give people a digital and mobile option that you’re going to grow the market and also reach a new demographic of person. So that’s really what we found when we dug in there. And I’m sorry, what was the second part of the question?
Brandt Montour: iGaming or OSB
Jason Robins: iGaming or OSB. So actually another interesting thing we saw, I had gone in thinking this was going to be much more propensity to cross-sell to iGaming this type of customer. But when we did the overlap analysis, it was actually quite similar — the overlap between OSB customers and iGaming customers. So that gave us great confidence that — which makes sense in some ways, right, because the overlap between iGaming and OSB and the cross-sell rates are so high. So it kind of makes sense when you think about it, but I would have gone in and probably think it would skew a little more iGaming and it was actually very similar.
Brandt Montour: That’s really interesting. Thanks for that. And then maybe more on the sort of maybe competitive landscape. This is a disruptive technology service that is growing based on penetration. And I think this is the number one player in the space, but you guys mentioned that regulatory — the regulatory structure wasn’t exactly high problem. And so, maybe we wonder about barrier to entry and if that’s sort of low. And so — are there sort of second, third, fourth sort of apps out there nipping at the heels of this one? And what’s the competitive landscape look like?
Jason Robins: Well, no doubt, I think there will be more. And I think what, you really have to think about is — you’re right, from a regulatory perspective, there are other — it’s not as hard. But I think that what really is hard is the technology side. It’s a very complicated fulfillment process, and every state is a little bit different. So you have to build a solution that can be flexible and it’s actually quite similar to what we’ve built in terms of our multistate regulatory structure in OSB and iGaming. But I think the added piece for them is the fulfillment, and that’s very complicated to do that at scale in a cost-effective manner and have a technology system, they have patents as well on various pieces that they’ve created — to have a technology system that can support rapid launch of states is not something that you can build right overnight.
So no doubt there will be more competition over time, but I think these guys have a big head start. And while the barriers to entry may not be super high, I think that head start is real.
Brandt Montour: Helpful. Thanks, Jason.
Operator: Thanks you. Our next question comes from Ryan Sigdahl with Craig-Hallum Capital Group.
Ryan Sigdahl: Thanks. Good morning, guys. Just staying on Jackpocket. Curious get all the cross synergies you mentioned. But are there any features that Jackpocket has that could potentially be useful, whether it be OSB or iGaming. Thinking pool play, where they split winnings? There’s an auto play feature, so on?
Jason Robins: Yes. I haven’t really thought as much about that. They do have a lot of interesting things they’ve worked. I know they have a bingo product that were — that they recently launched. So there could be some leverageable things there for sure. Definitely, I’ve thought about it more is they’re building out a great lottery experience and by plugging in the iGaming experience that we’ve been able to build out in the OSB experience that we’ve been able to build out, to the lottery experience they’ve been able to build out. I think that’s where the real power is. But there also might be — you’re right, some good nuggets there in terms of features and other things that are repurposeful across other products. So that’s something that we’ll have to look into a little bit more.
Ryan Sigdahl: Great. And then just as a follow-up on DFS, any early metrics and thoughts on the [Pix6] (ph) product? And then how should we think about the take rate, gross margins, et cetera, relative to your traditional DFS business?
Jason Robins: Well, that’s a product we’re very excited about. We haven’t talked as much about it because it just launched, but it’s something that we think could really reinvigorate DFS growth in a real meaningful way. Right now, we’re seeing really good early signal, very strong retention numbers, good monetization. The fees that we take, they are guaranteed price pools are actually higher than the average DFS fee. So that’s good, too. So a lot of things to like about that product, and I think it’s something that we could really see be a meaningful contributor in the future.
Ryan Sigdahl: Thanks, Jason. Good luck, guys.
Jason Robins: Thank you.
Operator: Thank you. Our next question comes from John DeCree with CBRE. Your line is open.
John DeCree: Good morning, everyone. Thanks for taking my questions. Your covered a lot of ground, but maybe a high-level question on iGaming. So a lot of success for you over the past year. Can you talk a little bit about if we talk sports and Jackpocket. But about some of the stuff you have planned for iGaming, I think your proprietary content has been a big driver of some of your success. But as we think about 2024 and where you’re going in iGaming, high level, what should we think about?
