Right shares of draftings honestly bouncing all over the place, but currently up almost five percent after reporting third quarter results. Look at that stot Go five percent gain. The Sports Bending Company cut his full year revenue forecast below analyst estimates, reported a wider and then expected loss per share. That gets Drafting CEO Jason robbins, there's this idea that the streets fixated on that there were customer friendly outcomes, particularly
in the realm of NFL. Is that true to your mind? What's a customer friendly outcome?
Well? Q three actually we said that we had neutral outcomes, so you know, we had exactly kind of as we expected, and we ended up having a beat in Q three, which is great. Q four, aside from these outcomes, would have been on track for the same So you know, basically what it means is that the favorites won a lot and the big name players scored touchdowns and had a lot of yards. And sometimes that happens in sports. You know, the book sometimes wins, sometimes the customers win.
And it's hard to know, right because we're only you know, halfway through the quarter yet how it's all going to end. It could easily swing the other way. But at this point for the quarter, at least the five weeks that we're into it, the customers are winning, and you know, over the long term that's great. We need our customers to win. Sometimes they want to win sometimes that's part of experiencing the product. So we're really excited though that
the fundamentals are super strong. We saw three hundred BIPs year of year improvement in both promotional and gross margin percentage. Cats were down twenty percent in the quarter. Lots of really good things going on.
It's well, there's lots of things, full stop going on. Let's get technology in a little bit. But in a week where you have a US election and it's getting towards the end of the year, the holidays are fast approaching, how does sports betting stand out? Like what is the consumer attitude towards placing a bet in a week like this one?
Well, obviously a lot of distraction with the election going on, but you know, as you might imagine, people were even talking about speculating on one side or the other the election markets, and that was available in certain places too. So you know, I think it's very much part of the culture now that people want to be you know, a participant by having an idea, a prediction, a viewpoint on what they think is going to happen. And I think betting is really just you know, part of that overall trend.
Jason, I want to jump in on that polymarket call a lot of people's attention.
Would you go there?
Would you expand in pass sports?
Well, we would only do it if it were in a legal and regulated fashion. So you know, these types of markets on elections are regulated at the federal level. It's different than the way betting is regulated. You know, it's something that maybe we would you know, consider looking
into before the next election. But I do think that it's only something that we would do in a legal, regulated environment, which is what differentiates us from some of those that are offering and now some are offering it legally now too, there is a legal framework for it as well, but not everybody is.
Let's just talk about therefore that passage of legalization. Is that going to be easy are under the next administration? I mean also just from the point of sports betting too, we see Missouri come in line for example.
Well, definitely for us, it's really you know, the states that are legalizing and so a lot of what we were watching were the various outcomes in state houses and governors races around the nation. Obviously, you know there is some impact from federal federal government impacts every industry in some way or another, but you know, taxes other ways, corporate taxes, meaning but you know, in terms of legalization,
our action is really at the state level. So as you knowed, Missouri is big win passed about initiative to legalize sports betting, and very excited about that. Missouri is the eighteenth largest state and a huge sports state. Really great sports fans in Missouri, so excited about that one. Hopefully that'll get up and running soon, and you know, hopefully we'll see even more action when the legislators come back in session.
In Q one, Jason, we focused a lot on this program about how sport is access technology, right, a transition from linear television to OTT and I'm fascinated by how the betting markets either benefit or don't benefit from that. Right. The consumer has so many options about how to watch sport and pay for it. You know, it's astonishing. Actually what flies out of my bank account each month, is that a tailwind or a headwind to you when you're thinking about bets being placed in parallel.
Well, I think it's actually a tail in that it's part of the overall trend we're seeing, which is sports and interest in sports continues to grow, and betting is a part of that. They're very intertwined, so I think they feed off each other as more and more, you know, people can see more and more sports from around the world, not just their favorite sports or their favorite teams, but they can watch any team or they can watch any sport, and that access is there that's going to be a
benefit to our business. But it's really part of the same overall mega trend, which is, you know, information is easier to come for the consumer, and the consumer wants to be a more active participant because they have more information and have a viewpoint on things. And I think that's why you're seeing this mega trend around betting that continues to grow the overall industry in the US and really internationally as well.
Mega trend that you are going to continue to enhance products into. Jason Robbins, we appreciate your time. DraftKings CEO