On the call, Robins remained coy about how much DraftKings would spend to compete in the space, but he said that a significant amount of prediction market spending would just be repurposed from elsewhere.
“From a spend perspective, there’s fixed costs, which is double-digits [of millions], which is not that significant. That would include headcount, which is mostly repurposed but some new headcount,” he said.
“Marketing we’re expecting to spend. For competitive purposes I don’t want to give an exact number. But we can repurpose some of our national spend.”
The DraftKings CEO went on to add that the business can market its sportsbook and prediction market offering via the same campaigns, because most customers see the products as effectively the same.
“I think this is actually a huge advantage of ours,” he said. “Most customers don’t really even understand the difference. So I think the national marketing footprint is a big advantage because we can drive people towards our product and we can use it in ways that we can rotate messages and have slightly different things, but in essence it’s the same message to the customer. It can drive value to both products at the same time.”