WHEN: Today, Tuesday, September 10
WHERE: CNBC x Boardroom Game Plan Summit
Following are excerpts from the unofficial transcripts of panels from the CNBC x Boardroom Game Plan Summit which took place today, Tuesday, September 10 in Los Angeles.
Mandatory credit: CNBC x Boardroom Game Plan Summit.
The Future of Sports Betting panel featuring Marie Donoghue, DraftKings Chief Business and Growth Officer and Matt King, Fanatics Betting and Gaming CEO
MATT KING ON SPORTS BETTING TAXES
I think it’s obviously an ongoing discussion we have with the states because the tax rates one point, I think the other point though, is at some point it also pushes things into the illegal market, right? So if you think about the job of a state, it’s actually to maximize the total tax dollars. If you tax it at such a high percentage that either operators don’t operate or, from a customer perspective, they can get a better deal offshore, they’ll just move offshore. And so I think what’s important for us as an industry is to work constructively with the states to explain to them and kind of work with them to find that optimal rate. Because ultimately, we as operators need to acknowledge that the states are doing this to raise tax revenue, and it’s important for the states to acknowledge that there is an equilibrium point that’s important. The other thing, I would say, and you’ve seen states like New Jersey and Pennsylvania realize this is the other piece of it is, iGaming is a huge industry opportunity for them. It is something that goes on in the illegal markets, and from a tax dollar opportunity perspective, is orders of magnitude bigger than raising taxes on sports betting?
MARIE DONOGHUE ON THE FUTURE OF SPORTS BETTING
I’ll watch the customer, watch the sports fan, and I think in the next year, you’ll continue to see the trends you see now, which is you’ll see a lot more interest in individual athletes. We just launched, we’re really focused on touchdowns. We launched this past weekend. It’s incredibly popular with fans. I think you’ll see women’s sports. There are betting markets on, our betting handle on sports, on women’s sports is through the roof. So I think you’ll see, it’s only a year, so I think you’ll continue to see sports fans engage more. You’ll see us focus and serve them more with more personalized bets and markets. I think you’ll also see, I know for us, you’ll see a lot more focus on AI improving productivity behind the scenes, whether it be software engineering or responsible gaming, helping us with tools there. So I think it’ll be incredibly robust and exciting.
Bob Myers, Washington Commanders Advisor and former Golden State Warriors General Manager
BOB MYERS ON THE IMPORTANCE OF WINNING
It’s almost like climbing Mount Everest. You don’t, it doesn’t count unless you reach the summit. Sports is kind of the same way. A lot of people get 10 feet away, maybe they get 500 feet away, but in our society and our profession, you have to summit.
BOB MYERS ON BUILDING FROM THE GROUND UP
The joy in anything is rising up from nothing, you know, rising up from being written off and no national TV games and no media and no beat writers and you’re ranked 32 or, you know, the Warriors were the same thing. You know, I grew up in the Bay Area. Nobody cared about the Warriors and it was bottom five every year. You know, nobody is, Warriors aren’t win – Warriors weren’t going to the playoffs. So to try and help something ascend again, that’s the fun in it, right? That’s a new mountain to try and climb. That’s the joy in all of it.
Rich Paul, Klutch Sports Founder and CEO
RICH PAUL ON HIS SUCCESS
Most of the things I attribute to my success today came from one having a great example of my dad, who got up every day and worked for the lowest margins you could ever imagine. We sold beer, wine, cigarettes and candy, and that’s where I learned math on the lottery machine. And the most important thing I learned was customer service, because this is a service industry that we work in. And then also it allowed me to gain perspective through the lens of all types of walks of life, which created this relatability that’s holistic. I can relate in any environment in front of me. And so those things now help me in the boardrooms and in the, you know, negotiation rooms.
RICH PAUL ON THE REPRESENTATION BUSINESS
The representation business in sports is a scarcity today. There’s no more representation business. These people are not being represented, right? What’s happening is there’s a VC component to it. There’s a private equity component to it, and now the athlete is making so much money, and they know that they want the money, they want to – social media has expedited this idea of I want to be perceived to be living this way right now. And when you put the family dynamic in that position, the days that, first of all, private equity never wanted to be a part of representation business, first of all, and now, even more than ever, it’s the race to debt. So how fast can I get this kid in debt in the disguise of giving you $2 million but I’m disguising – I’m giving you this money because you’re just that talented, but really, I’m giving you this money because I understand an exit strategy.
For more information contact:
Erin Kitzie
CNBC
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