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DraftKings CEO: ‘We Can Adjust To Be Profitable In New York’

“We want to be global one day.”

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DraftKings CEO Jason Robbins recently spoke at a gaming summit and had some very interesting things to say on a few different topics.

New York just recently legalized sports betting in the state, and DraftKings was one of the nine sportsbook operators that received a license to operate in the state. However, the state has put a huge tax on the revenue that sportsbooks can take in. At 51%, the New York tax is far higher than any other state’s. Many question whether or not sportsbooks can turn a profit with such high taxes, but Robins did not seem concerned about that whatsoever.

“Australia is a 43% tax, and it’s one of the most profitable countries for a lot of the operators there,” Robins said. “I think that high tax rates certainly favor scale-operators because the fixed costs are buried in a lot more top-line revenue. I also think that you adjust, so we’ll run [fewer] promotions. We’ll spend less long-term on marketing.

Jason Robins said that at the start, marketing costs in New York will be high, like most states. DraftKings is operating under the assumption that the lifetime value of its customer will start to drop roughly four years after the state goes live. That means that marketing costs will go down for the company years after they first enter.

Robins also talked about DraftKings’ future in the global market. The company had talks previously to purchase sports betting giant Entain, but those talks shut down in October. He says that for the time being the company may have to focus on their market here in the U.S, with global aspirations taking a backseat.

“We want to be global one day,” Jason Robins said. “I think we would have to feel like the asset we’re getting is kind of on autopilot, and we don’t have to focus much attention, because we really do need to focus all of our attention on winning in the U.S. and Canada.”

Sports Online

Mike Francesa: George Steinbrenner’s Idea to Put Mike and The Mad Dog On YES Network

“It was George’s idea. So give him credit for it. He wanted Mike and The Mad Dog as part of the CBS Radio contract, and we were.”

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Mike and The Mad Dog is often cited as one of, if not the, best sports radio shows of all time. The show saw an expanded reach with its partnership with the YES Network beginning in 2002. During his podcast Tuesday, Mike Francesa gave all the credit to the simulcast hitting the air on YES Network to the late Yankees owner George Steinbrenner.

“It was George Steinbrenner that came up with the idea of Mike and The Mad Dog being on the YES Network. No one else,” Francesa said.

“They came to us when they were negotiating a new radio deal with him and they said ‘Hey, we need a quick answer on this. Would you guys want to be on the YES Network every day, simulcasting? You know what Imus is doing with MSNBC? We wanna do it with you guys, but we need a very quick answer’.”

Francesa said the show airing on YES Network was a sticking point for the Yankees in negotiations with CBS Radio to continue airing the franchise’s broadcasts.

“Our first deal with them were not for a lot of money. Our later deals with them were for a very significant amount of money. But it was George’s idea. So give him credit for it. He wanted Mike and The Mad Dog as part of the CBS Radio contract, and we were. Our joining the YES Network was part of the CBS Radio contract.”

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Sports Online

Dave Portnoy Reveals Back-And-Forth With New York Times Reporter Who Claimed He ‘Did Not Provide Answers’

“You waited till (sic) your hit piece was done and now you just need to say you gave me a fair chance to speak even though you have no interest in the truth and your article is already written”.

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A story from The New York Times centered around “aging casino company” — Penn National Gaming — and its relationship with “degenerate gambler” — Barstool Sports founder Dave Portnoy — caught the eye of the face of the online outlet after the claim that he “didn’t provide answers”.

In the story, Steel claims “Penn and Barstool executives did not respond to repeated messages. Mr. Portnoy did not provide answers.” Portnoy brought the receipts to Twitter with a video of all of the correspondence he had with Times writer Emily Steel.

The alleged conversation takes place sporadically from May through November, with Portnoy offering to meet face-to-face with Steel for an interview that is mutually audio and video recorded, which Steel declines. She offered to meet Portnoy in New York for an audio recorded interview, which he declined, saying the interview needed to take place in Miami, because “I’m not running around to accommodate you at the 11th hour.”

He added “You waited till (sic) your hit piece was done and now you just need to say you gave me a fair chance to speak even though you have no interest in the truth and your article is already written”.

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Sports Online

Kareem Daniel Leaving Disney After Bob Iger Reassumes Role as Company CEO

“This is a time of enormous change and challenges in our industry, and our work will also focus on creating a more efficient and cost-effective structure.”

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Bob Iger is back as the CEO of Disney, and one of the first moves he made was to announce a company restructure. Part of that restructure includes the departure of Kareem Daniel, the chair of Disney Media and Entertainment Distribution (DMED).

DMED was formed under now-previous CEO Bob Chapek. The division manages Disney’s streaming services which includes ESPN+.

Daniel was considered one of those closest to Chapek. Iger announced Daniel’s departure in a memo to employees at DMED.

“It is my intention to restructure things in a way that honors and respects creativity as the heart and soul of who we are,” Iger said in the memo. “As you know, this is a time of enormous change and challenges in our industry, and our work will also focus on creating a more efficient and cost-effective structure.”

ESPN president Jimmy Pitaro will join other company leaders in coming up with a new company structure that Iger hopes “puts more decision-making back in the hands of our creative teams and rationalizes costs.”

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