DraftKings CEO Jason Robins discusses how an unusual March Madness impacted the sports betting company and how it is preparing for the future.

Boston

DraftKings CEO Jason Robins addressed the company's recent reduction in revenue forecast, explaining that while revenue projections were lowered by approximately $200 million, the actual loss attributed to March Madness was slightly less than that amount. He indicated that about $170 million was due to sports outcomes, with an additional $30 million resulting from Jackpocket ceasing operations in Texas. Despite this, Robins emphasized that the core business fundamentals remained strong, pointing to improved structural hold rate and promotional efficiency.

Robins noted that customer winning streaks during March Madness, a period marked by unusual sports outcomes, were rare but impactful on results. He described the occurrence as likely an anomaly and suggested that such trends may not persist, citing recent upsets already occurring in the NBA playoffs as evidence that results tend to balance out over time. The CEO expressed confidence in the company's position and long-term prospects.

On the topic of Jackpocket, Robins stated that the product remains in the early stages of growth and has not yet been fully integrated into the DraftKings platform. He suggested significant future upside as integration progresses, though he noted that Jackpocket's current impact on the overall business remains limited.

Robins also addressed concerns that online gambling may cannibalize demand for traditional land-based casinos. He argued that the data on this is mixed, referencing New Jersey as an example where the legalization of online gaming reversed a declining market trend. Robins acknowledged that legacy casino operators may see online gaming as a threat due to a lack of direct involvement in the digital space but maintained that concerns about cannibalization may be overstated.



Investors look past DraftKings' weak March Madness

People look at the revenue forecast being lowered by about $200 million. Right. Bear with me Jason. Is that exactly how much DraftKings lost on March Madness. The 200 million dollar figure. No we actually put out the numbers. We have a bridge in our earnings materials. It was a little bit less but overall it's not too far off. OK. Talk to us a little bit about what's too far off as well. What else is driving perhaps an expected downgrade in full year guidance. Analysts seem to be taking this well on the chin as our investors but the regulatory environment as well. How much you having to nuance for that. Well what we we put this out that we had about one hundred and seventy million from sport outcomes and then 30 million came from jackpocket being caused to not be operating anymore in Texas. But then the overall fundamentals of the business were actually very strong. We saw increased structural hold rate our promotional efficiency increase. So some of those things offset as well. So really the fundamentals of the business are about as healthy as can be. And I think the real question is when will these sport outcomes turn around. It's been two quarters in a row now. But obviously that happens. And that's part of the greatness of the product is that customers can win and they can go on winning streaks like this. And it makes it a lot of fun obviously. And you know we'll see. It was the first time and I think second time ever there were all four number one seeds in the final four. Only the first time ever that that happened with also all twos and one three seed in the elite eight. So you never know. Maybe there will be another year like that but probably not. It was more likely an anomaly. And you know NBA playoffs already have had a bunch of upset. So it tends to kind of swing around the other way over time. Too much consistency. But what also is consistent Jason is what a massive jump in your monthly active users when you talk about the jackpot in particular. And I'm interested in how Jack Pocket is transferring to other sports casino games and the likes or are people sticking to that lottery lottery application. Well the Jack Pocket is still very early in its growth. It's still quite nascent. So we believe there's a ton of upside for that business and we're excited about it. We haven't fully integrated it into the DraftKings app yet. We haven't put it on our platform yet which should dramatically increase both the conversion metrics and also the cross sell ability and marketing ability in the cross sell is already well above our expectations. So we think there's even more upside there. So we're pretty excited about it. We think there's a lot of growth potential but it's still small. So the overall impact on the business isn't great yet. But hopefully that changes as Jack Pocket continues to grow. Jason in your industry there are big almost legacy names. Las Vegas Sands for example that are pulling out of bids for land based casinos. And I wonder how much you can assess their nervousness that online gambling just cannibalizes demand for land based and how that impacts you. Well it's certainly a perception that we have to fight because it's out there. I do think that the facts are very mixed on that. While there's certainly some examples you can point to where there's been diminishing markets where they've had online gaming it's also often where there have been declines going into that. And then you see the complete opposite story in states like New Jersey where they grew and really reversed a declining trend for years after legalizing online gaming. And it's also different property to property. I do understand though why if you're a company that has no I gaming play right now doesn't have an app doesn't have a way to make money off of it that this wouldn't be seen as any upside for you. And so naturally you know if there's no upside there there can only be downside. And I do understand that. But I think the amount of cannibalization and the downside has been greatly exaggerated and we need to do a good job or a better job I should say educating on that because the numbers don't necessarily support that story.

Russia pummeled Kyiv with the largest drone attack of the war, injuring at least 23 people and damaging buildings across the capital only hours after U.S. President Donald Trump spoke with Russia's Vladimir Putin, officials said.

Kyiv

Ukraine Invasion

Russia hits Kyiv with largest drone attack after Trump-Putin call

U.S. President Donald Trump marked the passage of the new spending bill, which includes changes to food assistance, student loan programs, and clean energy credits. Robert Costa joins "CBS Mornings" to break down what's in the legislation.

Washington

Trump set to sign "big, beautiful bill"

More than 80 Palestinians were killed in Gaza on Thursday (July 3), according to health officials, as Israel intensified its strikes, hitting a school-turned-displacement facility. CNN’s Paula Hancocks looks at the damage and humanitarian toll.

Jerusalem

More than 80 people killed in Gaza in one day

Ukrainian President Volodymyr Zelenskyy said Kyiv will do "anything" to advance EU accession talks. Zelenskyy spoke alongside Danish Prime Minister Mette Frederiksen, President of the European Council António Costa and President of the European Commission Ursula von der Leyen.

Ukraine will do 'anything' to advance EU accession talks: Zelenskyy

President Donald Trump said Washington will start sending letters to countries on Friday specifying what tariff rates they will face on imports to the United States, a clear shift from earlier pledges to strike scores of individual deals.

Global Tariffs

Trump: Letters telling countries their tariff rate going out Friday

Indonesian rescuers on Thursday (July 3) temporarily halted a search for 30 people still missing after a ferry carrying 65 people sank near the island of Bali with the loss of six lives, the national search and rescue agency said.

Gilimanuk

Indonesia suspends search for 30 missing after ferry sinks near Bali

After marathon debate sessions in the Senate and House, President Donald Trump’s budget bill passed in the House. Republicans secured the biggest win of Trump’s presidency.

Trump’s landmark ‘big, beautiful bill’ narrowly passes U.S. House

Florida says the first group of migrant detainees have arrived at the new immigration detention center known as "Alligator Alcatraz." CBS News correspondent Shanelle Kaul has more.

Ochopee

First group of detainees arrive at "Alligator Alcatraz," Florida says

U.S. President Donald Trump said Thursday (July 3) that he spoke with Russian President Vladimir Putin and that he plans to hold a call with Ukrainian President Volodymyr Zelenskyy. CBS News White House reporter Willie James Inman has more.

Trump speaks with Putin, plans call with Zelenskyy

CNN’s Priscilla Alvarez reports on a lawsuit from lawyers for Kilmar Abrego Garcia alleging he suffered “torture and mistreatment” after he was wrongfully deported and held in El Salvador’s notorious mega prison.

Tecoluca

Kilmar Abrego Garcia claims he was tortured in El Salvadoran prison

The Kremlin welcomed the development, with spokesman Dmitry Peskov claiming it proves Western arsenals are being depleted and predicting that less aid will hasten the end of the conflict.

U.S. pauses military aid to Ukraine over depleted weapons stockpile

Two contractors employed by UG Solutions spoke to the AP on condition of anonymity as they were revealing their employers’ internal operations.

U.S. contractors say live ammo used at Gaza aid distribution site

Democratic leader Hakeem Jeffries spoke for hours on the House floor about potential impacts of President Trump's "big, beautiful bill" that Republicans are looking to pass before July 4. Following debate, the House is set for a final vote on the massive budget bill.

House debates Trump's 'big, beautiful bill' ahead of final vote

CBS News political contributor Caroline Polisi joins "CBS Mornings" to break down the jury's verdict in Sean "Diddy" Combs' federal trial and the judge's decision to deny bail for the music mogul ahead of his sentencing.

Manhattan

Sean "Diddy" Combs denied bail after split verdict

Liverpool soccer player Diogo Jota has died aged 28, just weeks after marrying his childhood sweetheart. The footballer passed away in a car crash in northern Spain.

Madrid

Liverpool soccer player dies in car crash 10 days after wedding

The Pentagon said that U.S. strikes 10 days ago had degraded Iran's nuclear program by up to two years, suggesting the U.S. military operation likely achieved its goals despite a far more cautious initial assessment that leaked to the public.

Tehran

Iran Strikes

Iran nuclear program degraded by up to two years: Pentagon

Days before his 90th birthday, the Dalai Lama announced the Gaden Phodrang Trust, a non-profit he founded, will have the sole authority to recognize his future reincarnation, but China insists it will choose the successor of the Tibetan spiritual leader.

Lhasa

China rejects Dalai Lama’s succession plan

The U.S. Congress inched towards approving President Donald Trump’s Big Beautiful Bill, despite attempts by Democrats to stop it. The bill is Trump’s signature legislation which includes massive spending increases on the military and immigration enforcement while slashing social programs.

Trump’s Big Beautiful Bill nears approval

Sean (Diddy) Combs was found guilty on prostitution-related charges, but was acquitted on more serious charges of racketeering and sex trafficking giving him a maximum sentence of 20 years. But the courtroom victory was subdued following a judge’s ruling to deny him bail.

New York

Diddy denied bail, avoids life in prison

President Trump says Israel has agreed to a 60-day ceasefire in Gaza, but it remains unclear if Hamas will accept the terms. CBS News senior foreign correspondent Debora Patta has more.

Trump says Israel has agreed to Gaza ceasefire conditions

Bryan Kohberger changed his plea to guilty Wednesday for the 2022 murders of four University of Idaho students. CBS News national correspondent Carter Evans has more on the case.

Boise

New details revealed as Kohberger pleads guilty for 2022 Idaho murders

The Wisconsin Supreme Court struck down a state abortion law that was adopted in 1849 in a 4-3 landmark decision. CBS News' Shanelle Kaul reports.

Madison

Wisconsin Supreme Court strikes down 176-year-old state abortion ban

Macron and Putin held regular discussions around the start of Russia's invasion of Ukraine, with Macron visiting Putin in Russia in February 2022, but dialogue eventually stalled.

Paris

Macron held 'substantial' phone call with Putin

President Trump toured “Alligator Alcatraz,” a migrant detention center he teamed up with Ron DeSantis to build in the Everglades.

Everglades

Protesters gather around ‘Alligator Alcatraz’ as President Trump visits

Jurors in Sean “Diddy” Combs’ federal criminal trial said they have reached a verdict on four of the five counts, but they cannot reach a verdict on Count 1, which is racketeering conspiracy. The judge has instructed the jury to keep deliberating. Deliberations will resume Wednesday (July 2).

Jury reaches partial verdict in Sean "Diddy" Combs case

The U.S. Senate passed the Republicans' reconciliation bill on Tuesday (July 1) after more than 24 hours of marathon voting on amendments. Vice President JD Vance cast the tie-breaking vote.

U.S. Senate passes Trump's "big, beautiful bill"

The new order does not rescind existing sanctions on ousted longtime President Bashar al-Assad, his top aides, officials and family members who are accused of having committed war crimes and human rights violations against Syrian civilians.

Trump signs executive order lifting U.S. sanctions on Syria

Former criminology graduate student Bryan Kohberger has agreed to plead guilty to killing four Idaho college students in 2022, a move that would spare him the death penalty under a deal with prosecutors, ABC News reported on Monday (June 30).

Moscow

Suspect in murders of four Idaho college students to plead guilty

Thailand's Constitutional Court on Tuesday suspended Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, adding to mounting pressure on a government fighting for survival on multiple fronts.

Bangkok

Thai court suspends PM from duty pending case seeking her dismissal

Israeli strikes killed at least 60 people across Gaza on June 30 in some of the heaviest attacks in weeks as Israeli officials were due in Washington for a new ceasefire push by U.S. President Donald Trump.