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DraftKings plans to expand its online slots offerings as part of its push to increase revenue. Known as a leader in sports betting, the company has historically avoided entering the online slots segment of the iGaming industry.
That is about to change, according to CEO Jason Robins’ remarks at the Bank of America Securities 2025 Gaming and Lodging Conference. Robins said the company now sees significant potential in focusing on players who primarily prefer slot games.
DraftKings’ table games dominate, but online slots lag behind
DraftKings is best known as a sports betting platform, generating substantial revenue thanks to its high-quality products. Within its iGaming division, the company has historically seen stronger performance from table games than from slots. It has also prioritized its popular crash game, Rocket, over expanding its slot offerings.
At the conference, Robins acknowledged that DraftKings had not done enough to attract slot-first customers. Analysts say this gap has left room for competitors to capture market share among slot players.
The trend was reflected in second-quarter 2025 earnings reports from US gambling operators. FanDuel led the market with more than $500 million in revenue from online slots and table games, a 42% year-over-year increase. DraftKings ranked second with $430 million in iGaming revenue, up 22.5% from the prior year.
The key role of online slots in casino revenue
Slot-first players account for a significant portion of online casino playtime and represent a substantial revenue stream for operators. As a result, they are a key target group for any platform seeking to scale.
Many rivals have already built strong appeal among slot players through curated game libraries and segmented marketing campaigns. Compared with those competitors, DraftKings has struggled to stand out in the slot market.
Robins has described slot-first players as “low-hanging fruit.” He said with the right product improvements and marketing strategy, DraftKings could unlock steady, recurring revenue from this audience. Additional casino revenue could position DraftKings to overtake FanDuel in profitability.
How DraftKings plans to win the online slots market
DraftKings said it is making significant upgrades to both its product and marketing efforts as it works to attract slot-first players. The company is shifting from a sports-first approach toward a casino-first strategy. Planned initiatives include:
- Tailoring game lobbies
- Expanding original slot titles
- Revamping recommendations and promotions
Robins said changes are already underway but cautioned that results may not yet be visible in public metrics. Management expects the impact to become clearer in the coming quarters.
Competitive pressure heats up in US iGaming
DraftKings is widely recognized as a sportsbook operator, but its focus on sports betting has left it playing catch-up in casino play. Competitors such as BetMGM and Caesars boast larger slot libraries and longer histories of casino-first marketing.
FanDuel has also grown its casino market share recently. New entrants, including Fanatics, are launching casino apps targeting slot players, further intensifying competition in the US online casino market.
States eye online casino taxes as new revenue source
Robins told investors that while some states may raise sports betting tax rates, lawmakers are more likely to target online casinos as the next source of new revenue. Several states have already debated or approved higher sports betting levies in 2025, prompting operators to evaluate the impact on margins and pricing.
At the same time, multiple states are considering iGaming legalization as a way to boost tax revenue and fund education and government programs. Online gaming has been a significant growth driver for state tax collections, and iGaming is increasingly viewed as a viable budget component.
Investor watch: Will online slots deliver growth?
Robins first highlighted the opportunity in slots during DraftKings’ Q2 earnings call and reiterated his views at the Bank of America conference. Analysts see the move as evidence of management’s commitment to iGaming expansion.
Sports betting remains DraftKings’ primary revenue driver, but executives believe a stronger focus on slots could diversify income and reduce reliance on sportsbook performance. Investors are closely watching to see whether product updates and targeted marketing will translate into measurable slot growth and impact valuations.
If DraftKings executes successfully, its expanded slots portfolio could deliver significant returns. Investors will be monitoring upcoming earnings reports for early signs of momentum. Continued state-level moves to legalize iGaming may further support DraftKings’ strategy by opening new markets.
