Draftocks are planning to provide long -term contracts on sporting results – adjacent markets that have recently gained popularity in fintech companies – if the US government gives them the green light, CEO Jason Robins said in an interview on Friday.
The company (Nasdaq: DKNG) can also explore the possibility of accepting certain cryptocurrencies, said Robins. This occurs while cryptographic markets have seen an increase in value and opportunities with the incoming presidency of Donald Trump.
“We are 30 days in the new administration – I think everyone has an idea of the place where things go in some ways, but it’s still early,” said Robins. “From the point of view of the draftings, we must pay particular attention to everything that can be an opportunity or in any way.”
Under -term contracts are probably the most immediate opportunity. Read by the law on the exchange of goods, they historically existed to predict and cover the price of products such as oil and agriculture. Companies have expanded products to more familiar areas to retail investors, such as prediction markets surrounding the results of American elections, and more recently, sports results. These offers are controversial, because criticisms say that similarities with sports play make inappropriate to be supervised by the Combo Futures Trading Federal Commission (CFTC) rather than by state regulators that govern sports books such as draftings .
Kalshi and Crypto.com are the two US financial technology companies with trial markets on active sporting events, pushing forward despite regulatory uncertainty. Kalshi, for example, says he saw around 27 million dollars in contracts bought on last week’s Super Bowl. Robinhood listed future sportsmen for a day this month thanks to a partnership with Kalshi before following the CFTC’s request to remove them. Webull announced this week a pact with Kalshi to fuel transactions in the long term on its platform, but without sport.
The CFTC is currently in a 45 -day examination period analyzing the merits of term contracts, and Robins said that his business was waiting for the commission’s official decision. As a potential indication of the place where things can take place, Donald Trump Jr. is a Kalshi advisor, and President Trump appointed Brian Quintenz, a member of the Kalshi board of directors, to manage the CFTC. Even after the CFTC’s decision, draft merchants should decide how to result in its general deference to state game regulators for its other products.
Robins said his business was spending no lobbying on the subject and has no problem with competition from fintech companies.
“I don’t consider him a threat,” he said. “This increases the total addressable market for people who like these types of products, which is a good thing.”
This is notable, because other members of the industry have problems with new players. The American Gaming Association, whose members include the draftings, wrote this month this month that it was “concerned” by the “efforts of certain trading platforms and digital exchanges to launch contracts of sporting events nationals which seem to bypass the regulatory framework of the State ”.
Accepting stablescoins – cryptocurrencies criminrages set for a trustee currency, such as the US dollar – is another opportunity that could extend the Draftock user basis and allow it to match the offers currently made by other companies. In order for draft to accept stablecoins, this would require the green light from individual regulators, said Robins, and there are only a few that would allow it. If this number was to grow, it could change the approach of Draftings in terms of digital currencies.
“You have to look at the overall momentum right now as being very positive for the crypto,” he said.
In both cases, said Robins, the company’s calculation will examine more than legality and regulations. The launch of new products takes money and labor.
“What does this mean for our product roadmap if we have to prioritize other things to build something new?” He said. “These are all conversations that we have in preparation for different results that could occur, so we are ready to leave.”
Draftings published the results of the fourth quarter on Thursday after the fence. The stock increased by 12% on Friday.
