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Automatic TRANSCRIPT

Draftkings an SP tech or combining and they're becoming a public publicly traded company through this acquisition that's great explanation as a good explanation of why they did the deal from Dr king CEO and co founder Jason Robinson Dr bluebird TV team earlier today allowed us to do all three in one transaction so you know it's a bit of a complicated transaction but it was also stationed in the sense that we can accomplish all three objectives perfectly and do so in a pretty short time frame think about all the IPO bankers are like what well there but does it doesn't make sense from a business sense here and then in terms of these guys all coming together I think from a thirty thousand foot view it does I mean the the thing that Dr king's gets by merging with SP tech is you know that now they control and own all of the tech in the background right which is not true of a lot of sports gambling companies often times the company that's doing the risk analysis are offering the markets is some other company then the the name on the on the top of the website that you're using hi but now they save money on on that process and they can work with you know SP tech now draftkings they can get kind of exclusive access to what their markets look like and what they want to offer and if they want to do what we want to try something totally different the no one else is doing it's easier to do that when you own kind of the entire stack it's all in house exactly so in that regard that's great and the second thing which you heard Jason mention their tracking needs money right this is a a world where their competitors are you know flutter which includes FanDuel stars group paddy power but fair they're also competing with MGM they're competing with Caesar's these are much bigger companies that have more access to cash right and and Jeff kings needed the cash so this is also an answer to you know needing money to spend it to expand into a bunch of new states in the U. S. I'm curious to end all of those competitors that you just ran down the laundry list of when they saw this deal does it mean that they have to now make some kind of move to counterbalance it Gimme Carol there's been so much consolidation already have their their have all doing it already and and everybody is offering kind of something unique that they think is kind of the the catch all the solution so I'm sure they're old taking note of this I think draftkings becomes you know a bigger player long term in this space now that they have figured out this portion of their future right and maybe they were of about a week ago but you know there's been so much noise around draftkings and when they're gonna go public and how they were going to do it I think everyone kind of expected that this was gonna happen in some capacity at some point Evan is it taking off like everybody thought I mean everybody could not wait you know for the states to rules and you know all these rules that came down that finally made you online betting in sports betting you know a loud is it taking off like everybody anticipated I think the easy answer is is yes there there's been tremendous appetite for sports betting in the in the in the states that have legalized it and most people in is it is it will tell you that in the next couple years they expect the US to be the biggest sports betting market in the world where it's a little trickier is is for these companies right just like how they make money yeah just like one fan doing draftkings were competing in daily fantasy the cost to acquire new users is super high right tries so much being spent on marketing there's a lot being spent on lobbying each state you know New Jersey next to New York and Pennsylvania has different rules for operators than the other to do some operators can be in one state but not the other there's so much a little state by state specificity to to the way this is going so so I think the easy answer is that yes this tremendous appetite here that has not been under sold but I think it's been a little bit trickier than maybe some operators thought in terms of how to profit off it right out of the gate crystal looks pain so terms of the long term we get a deal like this structured did they wanna operated to try to make even more money or do they think at some point down the road they're able to flip this entity and make a capital gain for themself and if that is the case what needs to change in the space and ordered for the girls to take a meaningful leg up yeah I think that's a really good question what Jason will tell you right now because I asked him a sense of that same question this morning but this is this is their solution is their end game right to become a publicly traded company I keep this thing going for awhile there is going to be more consolidation in this industry for sure and whether that's at an acquisition of this new publicly traded Jeff king who knows what that looks like but I would not I don't think anybody would tell you that they think that the landscape the way it looks right now is the way it's going to look in five or six years when we have thirty five states on board and and a lot of these companies have figured out exactly how they make money how they don't make money and whether they want to be in this game at all but yeah I I think that this is the the short term solution for draft kings and with the long term solution looks like who knows but then there's a become so much consolidation that regulators get involved that's also good question I were certainly not we're certainly not there yet and we're kind of at this point where there is two factions in this world right you have the the the casinos yeah I'm GM you know Caesars they are obviously dominant in this world and they bring you know their rewards and their tremendous you know they're they're tremendous database of of users to to the table here and then you have you know companies like draftkings companies like flutter which is FanDuel and and paddy power and bet there and a lot of other European operators were kind of sweeping in without a brick and mortar location anywhere no presence in Las Vegas or kind of trying to do this on a state by state basis as well I don't think were were anywhere close right now to regulators hopping in right but it does certainly seem clear that there is interest from investors and getting involved in this and there is there there's a lot of properties out there beyond even just the four I just mentioned second there there's opportunity here for sure there's a