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DraftKings: Resolving Talent Crunch During Growth

Abstract

The case follows DraftKings Inc (DraftKings), an online gaming and fantasy sports company headed by Jason Robins (CEO). To rapidly gain capital access, Robins got DraftKings listed on the stock exchange through the special purpose acquisition company (SPAC) route. As DraftKings was expanding, it needed to solve not only a financial crunch, but also a talent crunch. The company allied with the University of Nevada, Las Vegas, where engineering students were encouraged to develop gaming software in association with incubator cells established by DraftKings and the university. However, the online gaming industry, including DraftKings employees, suffered from workplace stress issues. DraftKings employees reported being woken up in the middle of the night to work on gaming projects. Such issues resulted in massive attrition, and engineers preferred to be freelancing consultants rather than work full-time. How could Robins handle the talent crunch problem? How could he ensure that employees can manage workplace stress?

This case study is provided in this Sage Business collection primarily as a basis for classroom discussion or self-study and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case study is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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