DraftKings shares continued their climb Wednesday, as investors cheered what they heard at the company’s virtual investor presentation yesterday. The stock is now up more than 40% from the start of the year to a recent $68.
The run-up pushed CEO Jason Robins into the three-comma club, with an estimated net worth of $1.2 billion, based on his current holdings, as well as stock sales since April when the company went public in a reverse merger with SBTech and special purpose acquisition firm Diamond Eagle Acquisition Corp. Robins co-founded the company in 2011 with Matthew Kalish and Paul Lieberman.
Robins, 40, is the second DraftKings billionaire after Israeli entrepreneur Shalom Meckenzie, who founded gambling-technology provider SBTech in 2007. McKenzie has sold more than $500 million worth of shares but is still the largest individual shareholder at 5.6% per the latest SEC filings. Robins currently owns 4.2%, or 16.6 million shares. He didn’t reply to a request for comment.
DraftKings was founded as a daily fantasy platform by the three friends and coworkers, and got a shot of jet fuel when the Supreme Court overturned the federal ban on sports betting in 2018. There are now 20 states, plus Washington, D.C., accepting legal sports bets with more states joining the rolls each year. The company currently operates mobile betting in 12 states that represent 25% of the U.S. population.
At its investor day Tuesday, the company raised its long-term net revenue guidance from $3.7 billion to $5.4 billion, while adjusted EBITDA targets were boosted to $1.7 billion from $1.2 billion.
DraftKings is the official daily fantasy partner of the NFL, MLB and PGA Tour and is a gaming partner of the NBA and MLB. Its latest partnership is with UFC to serve as the official sportsbook in a deal worth more than $100 million over five years. “These guys have a platform that is second-to-none in the United States,” UFC chief operating officer Lawrence Epstein told Sportico last week. “And that’s what makes this deal so groundbreaking. It’s one that is going to give us, I think, the most meaningful opportunity we’ve ever had to engage our existing fanbase and grow a new one.”
Walt Disney is the second largest shareholder in DraftKings after Meckenzie, while other significant investors include NFL owners Robert Kraft and Daniel Snyder, as well as the NHL and WWE.
(This story has updated the details of DraftKings’ mobile betting in the fourth paragraph.)