The CEO of DraftKings says he's looked into adding crypto as a form of payment, but regulations are preventing it
DraftKingsCEO Jason Robins said current regulations prevent the company from accepting cryptocurrency as payment.
- "As of now, crypto is not an approved payment type in any of the states where we're live," Robins said.
- But he added he foresees cryptocurrencies to "likely transform some entire industries."
DraftKings CEO Jason Robins said he has looked into adding cryptocurrencies as a form of payment for his online sports betting company but admitted that the current regulations prevented him from pursuing the matter further.
"The payment methods we can accept are determined by the individual state regulators and, as of now, crypto is not an approved payment type in any of the states where we're live," Robins said during a live town hall hosted by stock trading app Public Wednesday.
The chief executive added that cryptocurrencies will "likely transform some entire industries and portions of others."
Cryptocurrency regulation - or a lack of - has been in the spotlight recently. On Tuesday, the Internal Revenue Service asked lawmakers to give the agency more authority and funding to regulate the rapidly evolving industry.
Yet, some, such as SEC Commissioner Hester Pierce, have warned that stricter rules will hurt the cryptocurrency market.
Currently, DraftKing operations vary per state depending on the service. It will likely be the same case for when it accepts cryptocurrencies.
For instance, users can play DraftKings daily fantasy sports throughout the US except in Montana, Washington, Idaho, Nevada, and Arizona, according to its website.
DraftKings in the past year has been benefitting from a wave of enthusiasm over the country's emerging sports-betting industry. Research firm Eilers & Krejcik Gaming in February projected that sports betting would generate $5.8 billion in revenue by 2023, up from an estimated $920 million in 2019.
The Boston-based company in May reported a better-than-expected loss per share and higher revenue for the first quarter of 2021. The company, founded in 2012, also lifted its full-year revenue guidance from a range of $900 million - $1 billion to a range of $1.05 billion - $1.15 billion.
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