Jason Robins went on CNBC on Oct. 28 and told parents to sit down with their kids and educate them about gambling.
During the interview, the DraftKings (DKNG) CEO urged families to maintain open communication, comparing the discussion to how parents approach discussions of underage alcohol consumption.
Even though Robins runs America’s second-largest sportsbook, and his company’s stock is having a rough year, he still feels parents have a role to play in keeping their underage kids away from gambling platforms.
His warning coincides with a recent spike in gambling disorder diagnoses among young adults.
DraftKings’ Robins compares the “gambling talk” to the “wine talk” at home
Speaking on CNBC, Robins said his own kids already know what “point spreads” and “money lines” are because they grow up around the industry.
His point was that kids from non-betting households also hear similar things from ads or from other kids at school. So he feels even families with no link to betting should answer their kids’ questions honestly and remind them they cannot legally place a bet until age 21.
Also read: Sports betting reality bites for Gen Z, Millennials
“Every parent, even if you don’t have a business or don’t live in a world where the kids grow up around it, I think it’s something every parent should have conversations with their kids about,” Robins told CNBC.
He compared the situation to when a child asks his parents about the wine on the table. Parents often take that opportunity to educate their kids about drinking.
Robins feels parents should address gambling the same way. “The important thing is just to have a transparent relationship with your kids, where they feel like they can ask you anything,” he said.
DraftKings CEO Jason Robins has urged parents to speak openly with their kids about gambling.SOPA Images / Getty Images
New study puts youth gambling warning in sharper focus
One of the reasons people are paying attention to Robins’ comment is that gambling addiction appears more prevalent in states that have legalized sports betting.
According to a study from Epic Research, the quarterly rate of diagnosed gambling disorders in those states increased by about 61% between the first quarter of 2018 and the first quarter of 2026.
Meanwhile, states that did not legalize sports betting saw their rates fall by about 29%. The study also noted that the disorder’s fastest-growing prevalence was among young adults aged 18 to 29.
Treatment specialists have also noticed the increase in gambling addiction. “We’ve seen definitely an increase in related referrals and diagnoses,” Steven Heim, an outpatient supervisor at New Hope Integrated Behavioral Health Care in New Jersey, told NBC News.
More Gambling Coverage:
Prediction markets like Kalshi are booming. 79% of users say they’ve lost money
Dave Ramsey names the two apps draining Gen Z savings
DraftKings gets upgrade as a feared threat becomes an edge
Apart from the study results, DraftKings faces legal pressure from users. A federal lawsuit cited by Daily Citizen was filed in June, accusing the company of using customer data to spot heavy losers and offer them VIP perks.
Then a ProPublica reporter tested the app’s responsible gaming features in early October and found faster deposit options that pushed people to continue playing, despite warnings.
The warning works as a quiet shield for DraftKings shareholders
Robins’ message to parents gives DraftKings a clear answer for lawmakers when they ask what the company is doing about rising addiction rates.
If state officials see the company’s responsible-gambling tools, combined with open family talks, as a solid safety net, they may hold off on tougher ad rules or limits on prop bets.
Related: Dave Ramsey warns Americans on 401(k)s, Roth 401(k)s
DraftKings needs that shield right now, since the stock is already under pressure. DKNG is down about 42% this year, mostly because the company is putting money into prediction markets to keep up with players like Kalshi and Polymarket.
The spending’s effects showed up clearly in DraftKings’ second-quarter report, where adjusted EBITDA dropped about 62% to $114.6 million due to heavy promotions and prediction infrastructure costs, according to an SEC filing.
Steps parents and DKNG shareholders can take now
Parents don’t have to wait on Washington to act on Robins’ advice. Most states offer self-exclusion lists through their gaming portals, and it usually only takes a few minutes to set up the protection your kids need.
If you hear your teen or their friends discussing terms such as “money line,” it could be an early signal that you should start educating them about gambling.
DKNG shareholders should wait for the company to report its third-quarter results on Nov. 5. The report should show whether its growth can keep pace with its spending on the prediction market.
More Stocks NewsADT agrees to $7.6 billion buyout; more offers possibleCathie Wood buys $9.1 million of tumbling tech stockUnitedHealth is bouncing back, but a major risk remainsBoeing’s comeback hits another frustrating roadblock