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- DraftKings CEO Jason Robins said the company does not accept cryptocurrency as a payment by current regulations
- Robins said that from now on, crypto is not an approving type of payment in any of the countries they live in
- However, he added that he anticipates that it is likely that some industry will transform
DraftKings CEO Jason Robins said he had looked into adding cryptocurrencies as a form of payment on his online sports betting platform during a live town hall hosted by stock trading app Public Wednesday, but that regulations had so far prevented him from doing so. He explained that the payment methods they can accept on their website are heavily influenced by individual state regulators, as each state has its own set of rules and regulations for online sports betting and payments. Cryptocurrencies will likely transform some entire industries and portions of others, according to the CEO.
Why aren’t DraftKings able to accept cryptocurrency?
While Robins, who founded DraftKings in 2012, would like to have cryptocurrencies as a way to place bets on the website, crypto is not accepted as a form of payment in any of the states where the company currently operates. Individual state regulators determine which payment methods we can accept, and crypto is currently not an approved payment method in any of the states where we live. This is particularly noteworthy because only ten states in the US allow sports betting and only four allow online gambling, and DraftKings currently operates in 12 of them.
Recently, cryptocurrency regulation – or the lack thereof – has been in the news. The Internal Revenue Service (IRS) asked Congress on Tuesday for more authority and funding to regulate the rapidly changing industry. SEC Commissioner Hester Pierce, for example, has warned that stricter regulations will harm the cryptocurrency market. Currently, depending on the service, DraftKing operations vary by state. When it accepts cryptocurrencies, it will most likely be the same.
According to its website, users can play DraftKings daily fantasy sports anywhere in the United States except Montana, Washington, Idaho, Nevada, and Arizona. Meanwhile, only ten states allow sports betting, with only four allowing online gambling (Pennsylvania, Michigan, West Virginia, and New Jersey).
Using cryptocurrencies for sports betting
Wyoming passed a bill in April that allows bets to be placed on online sports betting platforms using cryptocurrencies, indicating that sports betting is gaining a lot of traction as interest in the emerging industry grows. Cryptocurrencies, according to the CEO, will disrupt entire industries while only partially disrupting others. All of this is happening in the midst of calls for cryptocurrency regulation. Some believe that cryptocurrencies should be regulated as soon as possible, while others believe that excessive regulation will stifle the cryptocurrency market’s growth.
Sports betting has aided the growth of DraftKings
In the last year, DraftKings has benefited from a surge of interest in the country’s nascent sports betting industry. Sports betting is expected to generate $5.8 billion in revenue by 2023, according to research firm Eilers & Krejcik Gaming, up from $920 million in 2019.
In May, the Boston-based company reported a lower loss per share and higher revenue for the first quarter of 2021 than expected. The company, which was founded in 2012, also raised its full-year revenue forecast from $900 million to $1 billion to $1.05 billion to $1.15 billion.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
