DraftKings CEO Jason Robins directly addressed the sportsbook’s future in Kentucky during his company’s 2023 first quarter earnings call last Friday. Most notably, he told investors to expect more clarity on a launch timeline during the August earnings call.
“Kentucky, of course, already passed this year,” Robins said. “We don’t have any update yet on the timing of launch, but we expect by our August call, we’ll have a little bit more clarity there and can factor that into any future guidance to the extent that it’s relevant to this year.”
How Kentucky affects DraftKings’ 2023 projection
Robins also said DraftKings has factored the Kentucky sports betting launch into its 2023 projection of full-year revenue of $3.235 billion, compared to $3.135 billion in 2022.
Kentucky is the only known launch for 2023.
That means that, as of now, DraftKings Kentucky will be the only new version of the Boston-based sports betting app this year. However, other states have bills currently being discussed.
“Right now, I think if you look at bills that are live, you could see a scenario where it’s above what we forecasted, below or right on,” Robins said. “Obviously, if Texas comes through then that plus Kentucky alone is already over the target.
“If Texas does not, you still get into that sort of range that we’ve said is an expectation if North Carolina, Minnesota and Vermont end up passing alongside Kentucky. So I think either of those are potential scenarios to get at or above. And obviously if some or none of those bills pass, then we won’t. So I think too early in the year to kind of call that.”
When might sportsbooks launch in KY?
Kentucky must launch its legal sports betting market by Dec. 28, per House Bill 551, which legalizes sports betting in the state. But officials hope to launch sooner than that.
The Kentucky Horse Racing Commission, which was tapped to regulate the market, is already working on drafts of regulations ahead of its June 20 public meeting. State lawmakers, including Gov. Andy Beshear, have publicly stated their goal of getting Kentucky sportsbooks up and running by the NFL season.
The Kentucky sports betting bill projected $23 million in annual sportsbook tax revenue.
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