DraftKings CEO Jason Robbins warns Americans to avoid sports betting as a form of investing, saying, “They’re likely to lose money.”
DraftKings, the American gambling giant is one of the biggest names in the sportsbook and fantasy industry. It sees millions of users visit its site every year, and an increasing number of them are placing bets as a form of investment.
In an interview with Fortune, Robbins said: “It’s an entertainment product. It’s not something that we recommend people looking at as an investment.”
With events such as Super Bowl LIX estimated to have brought $1.4 billion in bets, more Americans are turning to gambling as a potential source of income.
As nerdwallet reports, a December 2024 survey questioned more than 2,000 U.S adults, questioning their betting habits over the past year. In the survey, 31% of sports bettors viewed gambling as an investment, a 14% increase from the previous year.
Elizabeth Ayoola, personal finance expert at nerdwallet, said: “While successful gambling can be a form of extra income, it’s important to ensure you have your financial priorities in order before you take those risks.
“That means having a sufficient emergency fund in place, contributing enough to workplace retirement plans to capture an employee match, and paying down high-interest debt.”
Rising popularity of sports betting
Few states in the U.S. prohibit gambling, and even that number is dwindling as places like Hawaii consider making sports betting legal.
More Americans desire to profit in a rapidly growing betting and casino industry, meaning more may develop an addiction and create debts. On the other hand, awareness surrounding the risks involved with gambling remains high.
Robins said: “Most people over the long term, you know, they understand that they’re likely to lose money.
“So I think that it’s much more of, ‘I enjoy this, and it entertains me, and it’s worth me spending on in the same way that I would spend on, you know, anything I find entertaining; going out to the movies or going out to dinner or whatever.’”
The gambling industry is expected to reach a total value of $169 billion by 2030, and plenty of online users are craving to benefit as much as gambling operators. However, experts stress that gambling as an investment is an uphill struggle.
In a comment shared with Fortune, Stephen Shapiro, a sports and entertainment professor at the University of South Carolina, said: “Typically, risk is evaluated and considered more heavily in investing, and although there is risk involved in both activities, it can be accounted for in more depth within the context of investments.”
Featured image: Erik Mclean / Unsplash
