The second-largest U.S. online sportsbook by market share has unveiled a new subscription service. DraftKings Sportsbook+ is being piloted in the New York State region, in a bid to deliver “added value” to its loyal band of bettors.
The company has sought to test the service in New York since the state has one of the biggest tax regimes on online sports betting in all of America. At the time of writing, New York taxes online sportsbooks at 51% of online revenue, making it the joint-highest tax rate for online sportsbook operators with New Hampshire and Rhode Island.
The implementation of a $20-a-month subscription-based service may be a strategic decision to try and offset some of those costs in NY.
How does DraftKings Sportsbook+ work?
For the sum of $20 a month, subscribers to DraftKings Sportsbook+ receive “stepped-up” boosts to parlay odds, increasing the potential winnings of bettors who prefer to place multi-leg betslips.
Two-leg parlays get a 10% odds boost, while three-leg parlays get a 20% odds boost. For those with a ‘go big or go home’ attitude to their sports betting, parlays with 11 or more legs will receive a 100% odds boost.
There’s only one drawback in that no leg within a boosted parlay can have odds shorter than -500. The service is being made available to selected NY-based customers free of charge for the first month. After which, bettors will be asked to pay $20 a month if they like what they see.
There’s no doubt that parlays are a major part of DraftKings Sportsbook’s bottom line. In its latest trading update, chief executive Jason Robins pointed to a 5% year-on-year rise in the parlay mix for bets placed on the NFL through the ninth week of the 2024-25 season.
As a matter of fact, DraftKings has worked hard on its parlay game. It’s released a string of innovations for parlay bettors in the last year or so, starting with progressive parlays, which were unveiled in December 2023. A progressive parlay lets bettors take partial payouts if some of their selections lose, albeit at lesser odds.
There’s also the opportunity for bettors to place same-game parlays now on NFL and NBA matches. It’s safe to say that DraftKings is trying to replicate the successful model of its market rival, FanDuel, where parlays are said to account for almost three-quarters (70%) of all NFL and NBA betting revenue.
DraftKings is certainly trying hard to grab market share from FanDuel wherever it can. Its payment methods are one way that U.S. sports bettors are becoming increasingly impressed with their service. There are several popular deposit methods at DraftKings, most of which are processed instantly. However, its withdrawal methods are equally impressive, with many finding the platform to offer the fastest withdrawal times in the market right now.
Certainly, DraftKings Sportsbook+ looks to have been better received than the brand’s controversial idea to impose a surcharge on winning bets last year. This move was swiftly canned after significant backlash from customers and shareholders alike.
All eyes will be fixed on DraftKings Sportsbook’s Q4 24 earnings report, which is due next month. This will provide a solid indication as to the success of the subscription-based service, disclosing subscriber numbers and retention rates too.
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