igamingnext photo
DraftKings CEO Jason Robins has revealed the company is investing heavily in in-house live dealer casino games to improve its product offering.

Speaking at Morgan Stanley’s Technology, Media and Telecom Conference in March, Robins suggested there was more “untapped upside” in iGaming than in sports betting.

The operator has been developing proprietary online casino products since completing the all-stock acquisition of Golden Nugget Online Gaming (GNOG) in May 2022.

“iGaming is another one where I think there is huge product upside,” said Robins.

“We’re investing in our own live dealer products now and it’s a multi-year effort, but that is something I think could be really interesting over the long term.

“Now we’re up to a point where the majority of DraftKings’ iGaming volume comes on games and content that we’ve created in house, which we believe is not just good for the differentiation side, but also because you’re not paying third-party providers for that content.

“That helps the bottom-line margins too, which is good for profitability, but it also gives us more room to reinvest in those products.”

Robins said DraftKings was seeking to “dramatically” bolster the iCasino experience by taking advantage of emerging technologies such as artificial intelligence.

“Think about live dealer but instead it’s an AI dealer on the other side,” he said.

AI: Friend or foe?

The use of AI in online gambling became a major talking point last year, in part due to the rapid adoption of software including ChatGPT and Midjourney.

Morgan Stanley MD for EMEA Media and Communications Daniel Vyravipillai asked Robins whether the technology would become a friend or foe to DraftKings in the future.

“100% a friend,” said Robins. “We’ve been focused on machine learning for a long time. The companies that will benefit the most from this are the companies with the most robust data, and I think that benefits the larger scale operators.”

The CEO said AI should help to improve the overall customer experience, primarily through personalisation and faster response times to customer queries.  

He also hinted at the prospect of more interactive experiences on the company’s sportsbook, which is also in-house, by providing a ChatGPT-style interface to pick bets, instead of a standard text-based search bar.

“All those things should increase retention and customer loyalty and improve the experience,” said Robins. “There is so much room on AI and we haven’t even got to the cost side, where there is a tonne of opportunity by improving efficiency in all sorts of areas.

“I think AI has the potential to be transformational for us in the same way it does for many other industries. But I think the fact we’re starting from a position of scale and with such a robust data set, it puts us in a position to capitalise on it in an even bigger way,” he added.

Similar posts