- Legal States
Stoyan Todorov June 10, 2021 3 min read
DraftKings’ CEO Says Regulation Only Deterrent to Crypto Adoption
Cryptocurrencies are a viable payment option for DraftKings, argues chief executive Jason Robins, but lack of regulatory clarity prevents their adoption.
DraftKings CEO Talks Crypto Implementation
DraftKings has long been looking to implement cryptocurrencies as a viable payment method, company chief executive Jason Robins said, but the lack of regulatory clarity has been a deterrent against their mass adoption. Whether this will change any time soon depends on how well Biden’s administration handles the matter. Yet, operators do stand to benefit from cryptocurrency payments, and so do their consumers, as Nick Hill recently argued on the “Hash It Out” Ep 4 with Becky Fontana.
Biden’s office has sent an unequivocal sign that the administration will focus on fighting ransomware attacks and combat cybercrime, which often uses cryptocurrencies and thus requires stricter and clearer regulatory frameworks. A lot of government funding has been spent on technology that would allow tracing arguably “untraceable cryptocurrencies” such as Monero, for example.
It’s because of this and more that DraftKings has been reluctant to pursue the matter more aggressively, Robins explained in a live town hall hosted by Public Wednesday, a stock trading app. He drew attention that individual states are usually the ones to determine whether a payment method is accepted and that crypto is not approved in any state where the company is live.
Cryptocurrencies Will Disrupt Industries, Entirely and Partially
Wyoming, though, does offer crypto payments as part of its sports betting legalization. Even though DraftKings doesn’t support payments in crypto just yet, Robinson feels confident that digital currencies are likely to transform entire industries and portions of others. The Internal Revenue Service (IRS) and SEC Commissioner Hester Pierce have called for stricter but fairer rules on crypto, and so have others.
DraftKings already uses an individualistic approach to payments making sure to comply with local regulations, and this is likely to be the case once cryptocurrencies are allowed as a viable payment method. There is already a demand for crypto gambling, as Americas Cardroom reported a few months ago that it was handling around $160 million in Bitcoin payments every month.
Crypto markets have been in a state of flux in recent months, with the bullish run coming to an end. After Tesla CEO Elon Musk withdrew support of Bitcoin as not eco-friendly enough, markets have been losing some of their momenta.