00:00All right, finally, let's get to the latest with FanDuel and DraftKings, putting some reporting
00:05out there as far as their strategy is concerned. It seems like, at least from what I read here
00:09over at Legal Sports Report, Sam, that DraftKings is making some solid strides in terms of
00:14financially, and FanDuel has really fallen behind a little bit. And FanDuel, of course, for years
00:19was arguably ahead of DraftKings. So what do you think this switch ended up happening? Does it
00:24have to do strictly with the strategy of DK's prediction markets?
00:28Yeah, I would say it's a number of different factors, which, like you mentioned, Craig,
00:33have led this scenario now where we have FanDuel suddenly kind of in scramble mode, trying to
00:38catch up, trying to maintain their number one position, while DraftKings, their long-term
00:42rival, seems to be making strides. You have this crazy environment right now with prediction
00:46markets, where investors are spooked, where Handel has been slowing down over the last
00:51couple of months. And FanDuel really kind of exhibited that problem when they revealed their
00:56earnings. They showed that Handel, or Handel, rather, the total amount of dollars bet, fell
01:01for the first time ever in a quarter, which investors definitely don't want to see. They
01:05want to see growing the business. Meanwhile, it has to spend a ton of money on its own prediction
01:11market business, so it can compete with Kalshi, so it can compete with Polymarket, and now
01:15DraftKings, which has entered the business. That's one of the reasons that FanDuel moved on
01:19from its longtime CEO last week and has this new sportsbook recovery plan, where it wants
01:25to really execute on a lot of new initiatives ahead of football season, which is pretty crazy
01:29to say. You know, I never thought I would be talking about FanDuel that way. Just a couple
01:32months ago, even. And then meanwhile, DraftKings says they're making a lot of money out of prediction
01:37markets already. It's really allowed them to enter states like California and Texas for
01:42a very cheap price, lower customer acquisition costs. And they're also doing something really interesting,
01:48Craig, is that they're participating on third-party market or third-party prediction markets like
01:54Kalshi and Polymarket and using their own sportsbook trading capabilities to offer contracts there
02:00and make money there and take advantage of that peer-to-peer process. So it's pretty interesting.
02:05It's not just DraftKings predictions where they're making a lot of money. It's also just their own
02:09business kind of as sports bettors on these other prediction markets. I know FanDuel has a similar
02:14plan. We'll see if it helps them make money the same way. But right now, DraftKings definitely
02:19operating from a place of advantage and growth in the prediction markets and FanDuel, not so much.
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