A popular online sports betting operator released a new subscription service this week aimed at customers specifically wanting higher parlay boosts.
DraftKings’ new “plus” service is currently available to select customers physically located in New York. Anyone outside the market can’t yet access the new service, and the company did not specify any other eligibility requirements.
“We are excited to present select, eligible customers in New York with the opportunity to try DraftKings Sportsbook Plus – a premium subscription service that offers participants up to a 100% profit boost on all winning parlays," a DraftKings spokesperson told Covers. "The subscription service was designed to offer our customers an enhanced fan experience, creating more excitement and value to our extensive parlay offering.”
Subscribers pay $20 monthly, but the sportsbook is giving away a free trial with a special code.
The service gives subscribers unlimited “Stepped Up” boost tokens to use on parlays and same-game parlays. The maximum wager is $25 and the max boost is 100% on 11 legs.
Parlay emphasis
This is likely a trial run for what could eventually become an offering in other markets.
The service is aimed at bettors who like the low-risk, big payout wagers. Parlays typically give sports betting operators their highest profit margins.
DraftKings has repeatedly mentioned it as a major area of emphasis. Company executives said in a letter to investors in November that the multi-leg bet handles continue to improve, resulting in better hold percentages.
“Notably, our NFL parlay handle mix is pacing more than 500 basis points ahead of the 2023-2024 season,” DraftKings said in the letter. “We also expanded our in-house Same Game Parlay offering to more than 50 new NBA markets.”
Making up lost ground?
The new subscription service could also be a way for DraftKings to recoup some of its losses from 2024’s third quarter, where unforeseen and unprecedented NFL favorites left sportsbooks reeling.
DraftKings reported a net income loss of $293.7 million, and CEO Jason Robins said “customer-friendly sport outcomes” led the company to lower its 2024 guidance. Despite a strong start in Q4, DraftKings reduced fiscal-year revenue projections from the $5.05-to-$5.25 billion range in August to $4.85 billion-$4.95 billion in November.
Executives also expect 2024 Adjusted EBITDA to fall by as much as $140 million from an earlier projected range.
