DraftKings Unveils Progressive Parlay Betting Product at Investor Day
During DraftKings’ Investor Day, the sports betting platform unveiled a new betting product known as “Progressive Parlay,” aiming to rival smaller fantasy gaming operators. The company hopes to tap into the expanding user bases of companies like PrizePicks and Underdog Fantasy, who are under scrutiny for allegedly operating outside the law.
The Progressive Parlay betting product is designed to resemble and function like other fantasy apps, allowing bettors to create parlay cards and potentially win money even if some of their bets lose. However, it will only be accessible in states where sports betting is regulated, not in fantasy-only states. DraftKings did not specify a launch date for the new product but expressed optimism that it would attract bettors.
CEO Jason Robins emphasized the importance of products like Progressive Parlay in driving financial success for DraftKings. A successful launch could significantly strengthen the company’s position in the US market and contribute to its growth ambitions. The company’s recent Q3 financial results showcased the success of its overall strategy, indicating a potentially record-breaking fiscal year with a successful launch in Kentucky.
DraftKings has been known for swiftly adapting to industry trends, and the introduction of Progressive Parlay is a response to the growing popularity of fantasy gaming. The company aims to attract new types of players and compete against niche operators by offering a similar experience for real-life sports.
Meanwhile, established operators like DraftKings advocate for appropriate regulation of prop products offered by fantasy gaming companies, arguing that they constitute gambling. The intensifying feud between industry giants and smaller fantasy gaming companies has intensified as the latter exhibit substantial growth in popularity and revenue. PrizePicks, for example, reported $28.2 million in entry fees in Arizona, surpassing DraftKings and FanDuel in the fantasy realm, while the two companies recorded $115 million in traditional mobile wagers.
Despite their smaller scale, the success of these fantasy companies highlights their well-designed user experience and willingness to offer products in states where sports betting is illegal. DraftKings’ new product aims to compete with these offerings and increase its competitiveness in regulated markets leveraging its leadership position.