DraftKings CEO Becomes Billionaire On Strength Of Surging

Welcome to another brand new billionaire at the club – DraftKings CEO, Jason Robbins. The 40-year-old saw shares of his company rise more than 11% to close recently at $ 69.29. The increase resulted in the company’s net revenue projection of $ 3.7 billion to $ 5.4 billion. When Robbins became a billionaire, his two co-founders, Paul Lieberman and Matthew Kalish, saw his net worth rise to at least $ 500 million. DraftKings had a large fourth quarter with revenue of $ 322 million, an increase of 146% from $ 131 million in revenue from the year-ago period.

Robbins co-founded Draftings in 2011 with Lieberman and Kalish. The trio was found when they all worked for Vistaprint. Kalish’s 1.8% stake in the company is his net worth of $ 500 million while Liberman’s 2% stake is $ 550 million. Robbins holds a 4% stake in the company. He is the second billionaire in the company. Israeli entrepreneur Shalom Mackenzie became a billionaire in May 2020 during a previous surge in the company’s stock price. McKenzie established SBTech, a gaming technology company, in 2007. SBTech was part of the SPAC deal when DraftKings publicly worked with Diamond Eagle Acquisition Corp in April. Meckenzie is one of the largest shareholders of DraftKings and a member of its board of directors. .

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DraftKings was born of Robbins’ love for the Fantasy Sports League. At one point, he was in 100 different fantasy sports leagues, according to an interview given in November 2020. The company was launched from one of his co-founders’ spare bedrooms, while it raised seed money and closed deals with ESPN, MLB. , And the NHL. There were bumps on the road on the way. In 2015, the New York Attorney General accused the company of running regulatory issues when an employee was accused of insider trading. In 2017, DraftKings unsuccessfully attempted to merge with competitor FanDuel.

DraftKings benefited greatly after the Supreme Court’s decision that the Professional and Amateur Sports Protection Act was unconstitutional, allowing 20 states and Washington DC to legalize sports gambling. If all 50 states legalized sports gambling according to DraftKings, the online sports betting market would be a $ 22 billion industry. DraftKings participated in the SPAC merger and IPO during the thick of the Kovid-19 epidemic when live sports were extremely limited. Since the IPO, the company’s stock has risen 250%.

Robbins’ career goals in high school were simple. He wanted to get rich by doing his MBA. He enrolled at Duke and studied economics, mathematics and computer science. Instead of pursuing an MBA, he moved into the world of technology. He worked at Capital One and then convinced his bosses to hand it over to a Boston-based startup that was acquired by the credit card company. He moved to marketing company Vistaprint where he met Lieberman and Kalish. Along the way, he raised the ins and outs of data analytics, web marketing and corporate accounting. He starts thinking that he wants to start his own company. As noted, he was an obsessive sports fan in hundreds of fantasy sports leagues. It was Kabish, who in 2011 based Robbins’ original concept in a conference room at Vistaprint that would one day become DraftKings. Robbins immediately knew that this was the company he wanted to find.

Robbins, Kalisch and Lieberman made Lieberman’s additional bedroom the first headquarters for the drafters. He quit his job at VistaPrint and invested his savings in a running company. There was just one problem – his idea was not as original as he thought it was. FanDuel was already up and running. Robbins disaffected and pointed out that Google launched years after the first search engines and Facebook first social networks – both of those companies did just what they did better. Robbins determined to do the same with the drafters.

Sunshine’s approach to DraftKings’ revenue is based on the mainstreaming of legal gambling proliferation. Currently, California, New York, Texas and Florida are considering legalizing online sports betting. It will represent more than 100 million potential new DraftKings customers. They represent about 60% of the sports betting market of the four states.

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