DraftKings is inarguably one of the most recognized names in the sports gambling industry. It was among the first to launch in the US and the first to become a public company after it hooked onto a SPAC a little more than a year ago. Although it continues to sign new partnerships and alliances that give it greater exposure and access to gamblers, the company still hasn’t turned a profit. According to DraftKings CEO Jason Robins, that won’t be possible until more states offer legalized sports gambling.

DraftKings Wants the US Gambling Market to Mature

Robins participated in an interview with Forbes recently where he explained the company’s mindset. DraftKings had revenue of more than $600 million last year, but the goal is to reach the $1-billion mark this year. The CEO and other company executives are optimistic about the “tremendous momentum” the US sports gambling market is witnessing and feel that reaching the ten-figure point is not out of reach.

However, even if it were to achieve that goal, there are still issues that need to be overcome. DraftKings may have seen revenue of $600 million last year; however, it still operated at a loss. The company reported a net loss of $844 million for 2020, and doesn’t expect things to be much better in the near-term. Through the first three months of the year, despite having Super Bowl LV and March Madness on the schedule, the company reported a loss of about $325 million.

Continued losses, according to Robins, are likely until more states introduce legalized sports gambling. He told Forbes, “We don’t know how many states are going to launch and over what time frame. What gives us confidence, and I think gives investors confidence, is that we are profitable in our longest-tenured state, New Jersey.”

The Garden State to the Rescue

Last year, New Jersey, with its robust and popular gambling market, was responsible for 25% of the revenue DraftKings reported for 2020, helping boost it through both the sports gambling and iGaming segments. In 2019, DraftKings’ in-state revenue was $85 million and it almost doubled last year. This year, the company expects to see revenue of over $200 million. However, that still won’t be enough to tilt the scales.

DraftKings believes it won’t be profitable until the US online sports gambling market reaches “maturity.” It defines that as legalized in 65% of the country; however, a number of states have opted to, thus far, not authorize online sports gambling. This makes it difficult to ascertain when maturity might be reached. When it happens, though, the continued growth of DraftKings will likely provide it with revenue of as much as $4.3 billion a year. It currently has control over a significant percentage of the market, and is constantly looking for new areas of growth.

Despite not yet being profitable, DraftKings is still attracting a lot of attention from investors. With a $22 billion market cap, it is running strong and, despite a dip in its stock in the middle of May, has seen notable gains recently. The sportsbook’s stock isn’t yet back to the $72 level it recorded in March of last year, but has gone from $41 on May 13 to $53.14 as of last Friday afternoon.