DraftKings has unveiled Sportsbook+, a subscription service providing enhanced odds on parlays, the type of bet combining multiple outcomes into a single wager. Currently exclusive to New York, the service costs $20 per month, following a free trial period. Subscribers gain access to “stepped up” boosts, increasing profits on parlays with up to 11 legs.

A parlay bet, the core of the new Sportsbook+ subscription, combines two or more individual wagers into a single bet. All selections (or “legs”) in the parlay must be correct to win. While parlays offer higher potential payouts than individual bets, they are also significantly harder to win, making them highly profitable for sportsbooks. For example:

• A two-leg parlay might involve betting on both Team A to win and Player B to score a touchdown in the same game.
• An 11-leg parlay could combine multiple events, such as outcomes across several games or specific player stats.

How DraftKings Sportsbook+ Works
Here’s what subscribers can expect:

• Profit Boosts: Members receive profit boosts for parlays. For example, a two-leg parlay gets a 10% profit boost, while an 11-leg parlay’s profits are doubled.
• Usage Limits: Boosts apply to wagers up to $25 but can be used an unlimited number of times during the subscription period.
• Exclusive Access: Currently available only to select users in New York who meet DraftKings’ eligibility requirements.

Subscribers can sign up via the DraftKings mobile app, paying $20/month after a free trial. Payment methods include debit cards, credit cards, or Crowns (DraftKings’ loyalty currency).

Why DraftKings Is Betting on Parlays
During recent earnings calls, DraftKings CEO Jason Robins emphasized the importance of growing parlay adoption, particularly multi-leg parlays. Parlays are a high-margin product because they are unlikely to succeed, but they entice bettors with the possibility of outsized payouts.

For DraftKings, Sportsbook+ is a dual play:

1. Increased Parlay Margins: Encouraging longer parlays helps grow profit margins while giving bettors a reason to engage more frequently.
2. Customer Retention: The subscription model locks in users by offering perks, such as unlimited boosts, to keep them on the DraftKings platform instead of competitors.

INSIDER TAKE

DraftKings is pioneering a unique use of subscription models in a competitive and regulatory-heavy industry, showcasing how recurring revenue models can be used in unconventional markets to retain customers, offset costs, and innovate profit streams. Here’s why this matters:

1. Hybrid Revenue Models: DraftKings is the first sportsbook to introduce a subscription layer, blending recurring revenue with transaction-based income. Subscription leaders in other industries should watch closely as a potential model for high-churn sectors.
2. Customer Engagement & Retention: Unlimited boosts are a powerful retention tool, incentivizing customers to stay with DraftKings for their betting needs, even in a crowded market.
3. Regulatory Pressure Response: By testing Sportsbook+ in New York, DraftKings is navigating one of the most challenging regulatory environments with a 51% tax rate. This experiment could inform similar strategies in other high-tax states.
4. Profit Growth from High-Margin Bets: The odds boosts aim to drive more frequent and larger parlay bets, capitalizing on the already high margins these wagers provide sportsbooks.

Whether in sports betting or streaming, DraftKings Sportsbook+’s success underscores the subscription model’s adaptability and potential to redefine customer engagement and profitability.