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DraftKings Introduces New Subscription Option for New York Customers
DraftKings becomes the first sports betting platform to offer a subscription option after launching DraftKings Sportsbook+ to New York bettors. The service costs $20 per month and will provide players with unlimited boosts on their winning parlays, a rare sighting in the industry.
A statement released by the sportsbook said, “The subscription service was designed to offer our customers an enhanced fan experience, creating more excitement and value to our extensive parlay offering.” Players can enjoy a 10% profit boost on two-leg winning parlays, with potential increases of up to 100% on parlays featuring 11 or more legs, effectively doubling their winnings.
This is not the first time DraftKings would be launching something like this. In December 2023, it introduced the progressive parlay feature, which paid out partial winnings on parlays that fell just short of a full win.
The new subscription service is another one of DraftKings’ initiatives aimed at increasing the adoption of parlay bets, as it delivers higher profit margins for the sportsbook. In the Q2 earning calls, CEO Jason Robins spoke on parlays, saying, “Certainly, we feel like there’s a ton of room to increase our parlay mix and increase our average leg count still. The team is very focused on that.”
According to industry analysts, the rise of parlay betting nationwide is leading to increased revenue for sportsbooks. Data from betting analytics provider Juice Reel had previously showed that the average number of legs per parlay in the US rose from 4.2 in January 2022 to 5.0 in January 2024.
However, increased revenue may not be the only motivation behind this new service. With New York imposing the highest tax rate in the country at 51%, DraftKings could be using this subscription model as a counterbalance to mitigate the impact of those high taxes.
Last year, the sportsbook reversed a decision to impose a winning surcharge in states where sports betting taxes were above 20%. It only stopped after its rival, FanDuel, pulled out of a similar move.
A Busy Start to the Year For DraftKings
While the company prepares for this era with this new service, it also faces fresh legal challenges. A Texas resident has filed a class action lawsuit accusing the sportsbook of unjustly closing player accounts and retaining their balances.
The lawsuit was filed in Massachusetts federal court on December 23, five days before the subscription service launch, and claims that DraftKings creates a “catch-22” situation by closing accounts and denying access to funds. Eric Avila, the lead plaintiff, reported that his account was closed in September 2024 with about $100 in remaining balance, and customer service could not specify the rule he allegedly violated.
It also seeks to represent all users who have had their accounts terminated and denied access to their balance. DraftKings has yet to respond to the lawsuit, which also names a subsidiary, DK Player Reserve LLC, as a defendant. DK Player Reserve LLC maintains account balances for the sportsbook.
Source: Yogonet
