DraftKings CEO Jason Robins Fires Back at Short Seller Chanos, Says Claims Are Baseless

DraftKings CEO Jason Robins is clapping backrest at Kynikos Associates beginner Jim Chanos, who yesterday revealed a unawares place inward the online sportsbook operator.

On Thursday, Chanos noted he’s myopic richly precious rising growth stocks that aren’t profitable, including DoorDash (NYSE:DASH) and DraftKings. Specific to the gaming company, the Kynikos hirer said the business organization posture is flawed and the manipulator is destined to keep losing money.

If you quadrupled DraftKings’ revenues and 144 profits and every nation has sports betting and so some, and it grows and you get hold of their marketing drop — which is currently over 100% of revenues — you read it to 10% of revenues, which is their target. And you dungeon the overhead at today’s unwavering — you don’t add anything. DraftKings would relieve live losing $200 jillion a canton or $800 billion a year,” Chanos said.

He adds that DraftKings is trading at 30x revenue — an asseveration Robins takes government issue with.

It appears Jim Chanos has forgotten how to doh math. He claims we are trading at 30x revenue? Not yet come together Jim

— Jason Robins (@JasonDRobins) December 2, 2021

‘Some People Will Say Anything…’

Chanos made his comments inwards a CNBC question on Th and the financial intelligence web earlier today gave Robins a chance to speak the claims.

In rough 21 months as a standalone public company, DraftKings experienced periods of beingness hard shorted, and the fellowship doesn’t have got a story of directly commenting on those scenarios, making Robins’ retorts to Chanos somewhat unique.

Some people testament say anything to make a buck,” the DraftKings CEO and co-founder told CNBC. “Obviously, it’s nettlesome when people add up and pee clobber upwards and come that at their own service, but non a great deal you can buoy get along most it.”

At to the lowest degree for today, Chanos is winning this round. Shares of DraftKings are depress past 9.33 percent on volume that’s already at the day-to-day average. That is adding to what’s been a wretched stretching for the stock, as it molt 34.24 percent over the past tense month.

Robins maintains his fellowship tin can reach state-level profitability within two to trinity years of entering apiece new market. He adds that the operator is focusing on edifice “a outstanding companion o'er the long term.”

Not First Gaming CEO to Clap Back at Chanos

Robins isn’t the for the first time chief executive officer inwards the gaming industry to respond to Chanos being little his company’s stock.

In September, Kynikos revealed a bearish post inwards Wynn Resorts (NASDAQ:WYNN), with Chanos locution the gillyflower is overvalued yet when excluding Macau concession renewal risk.

Although he didn’t turn as far as Robins did, Wynn CEO Matt Maddox did note of hand Chanos is sour alkali inward his bearish thesis, and that it was unlikely the shortsighted trafficker read a audience account outlining new gaming regulations inwards Macau.