00:00Sam's going to tell us more about this DraftKings Super App.
00:03What's so super about it?
00:06Yeah, the DraftKings Super App, which was just announced this week,
00:10is really just a combination of DraftKings Sportsbook.
00:14It's, you know, chief product.
00:16DraftKings iCasino, it's online casino.
00:19Daily Fantasy Sports.
00:20And, of course, Prediction Markets, because we all know, Craig,
00:23it wouldn't be a show if we didn't mention Prediction Markets.
00:26And that's really the focus of this Super App.
00:29Again, DraftKings has all these apps and different products.
00:32It's now working on putting them together in one seamless experience,
00:36where one wallet can be used across all these features.
00:39But more importantly, I think, is just wherever you are in any state,
00:44in any jurisdiction, all you have to do is open up the DraftKings app.
00:49And if your state allows sports betting, it'll direct you to DraftKings Sportsbook.
00:53If you live in a state now like California, where sports betting is not legal,
00:57and you want to bet on sports, it'll automatically direct you to the DraftKings prediction market,
01:02which DraftKings revealed how it's going to look,
01:05looks almost exactly like how its sportsbook looks.
01:09So, functionally, it'll be like if you're a sports bettor,
01:11you're always on DraftKings Sportsbook.
01:14It's just the back-end mechanics that are different.
01:16Obviously, prediction markets, very different than sports betting on the back-end.
01:20But DraftKings, really, with this move, is trying to make it so the consumer can really
01:25not see a difference between the two.
01:27At least that's my read on it.
01:29It is offering the same odds in the same way, in the same manner,
01:33which is a little bit different than how Kalshi and Robinhood and Polymarket have been moving so far.
01:40Although, you know, those prediction market platforms have also been moving towards
01:44increasingly looking like sports betting.
01:46You know, there's all the lawsuits going on of, you know, is this sports betting, is it not?
01:51But for DraftKings, they're looking at it as about a $10 billion opportunity to expand
01:56their total addressable market, getting into states that doesn't have sports betting.
02:00This is just another way they're trying to leverage that and really capitalize on the opportunity.
02:05They also announced with this super app, which is going to be available around March Madness, I'm told,
02:10is that they're moving a lot of their in-house trading and pricing capabilities
02:16everything that has made it a really good sports book over to its prediction market,
02:20which right now relies on third-party technology.
02:23It's not dissimilar from when sports betting first launched in the States.
02:28A lot of companies like DraftKings were using third-party technology
02:31where they couldn't adjust their pricing themselves,
02:34where they couldn't customize the products themselves.
02:37It's one of the reasons we saw, you know, them able to offer things like same-game parlays,
02:41which really took off.
02:42Now it's really trying to do that with its prediction market service as well.
02:45So it's going to invest a lot of money in that as well.
02:48It'll still be the same DraftKings features and everything,
02:51just under one app, rollout during March Madness,
02:54and then they'll really try to ramp it up before NFL season,
02:56which is when they want to be in front of those states like California,
02:59where they're offering what looks like sports betting,
03:02even though we all know it's technically not for some reason.
03:06And that's a whole bunch of mishegas we can get into on another topic, I'm sure.
03:10But it's just another move where a sports betting company is doubling down
03:13on prediction markets that look like sports betting.
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