DraftKings launches monthly subscription service to enhance parlay bets
Sportsbook operator DraftKings has introduced DraftKings Sportsbook+, a new subscription service aimed at enhancing parlay bets for users, while it is also expected to increase the operator’s profitability on bets. Priced to the user at $20 a month, the service was launched earlier this week in New York and is expected to be rolled out gradually in more states where DraftKings is licensed.
DraftKings Sportsbook+ subscribers will benefit from “stepped-up” profit boosts on parlays where individual legs have odds of -500 or narrower. The boost scales with the number of parlay legs: a 10% increase for two-leg parlays, rising to a 100% profit boost—doubling winnings—for parlays with 11 or more legs.
DraftKings stated that the service was created to enhance the customer experience and offer additional value on parlay bets. Initially, the subscription will be available only to “select, eligible customers” in New York, though the company has not clarified the selection criteria.
Parlay bets have become a major focus for DraftKings Sportsbook, especially because they tend to have better margins since every part of the bet needs to win for a payout.
During the earnings calls for the first and second quarters, DraftKings CEO Jason Robins mentioned that the company is putting a strong emphasis on boosting parlay usage and increasing the average number of legs in these bets.
In late 2023, DraftKings introduced a new parlay product that aligns with this goal by allowing for partial payouts if not all picks are successful. In the Q3 earnings call, Robins and CFO Alan Ellingson pointed out the growth in parlay margins, noting that NFL parlays are set to see a 5% rise compared to the previous season.
Ellingson linked this improvement to greater customer engagement with their parlay offerings.
Additionally, DraftKings Sportsbook+ will give users unlimited access to odds boosts, which is quite uncommon in the U.S. market. This move aims to help keep customers around and minimize turnover.
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