Sports betting giant DraftKings has launched DraftKings Subscription+, a new service that offers boosted parlay profits for a subscription fee of $20 a month.
At the moment, the service is available to select customers in New York before it rolls out elsewhere.
“We’re constantly communicating with our customers to understand the products they use and love in their daily lives, and exploring how we can apply those insights to DraftKings,” DraftKings Chief Product Officer Corey Gottlieb said in a statement. “This process led us to developing a low-cost, recurring subscription designed to provide customers with exceptional value.
“As we test this new offering, we’ll refine our approach in order to provide the most engaging customer experience.”
How DraftKings Subscription+ works
Those who sign up for the service will receive “Stepped Up” boost tokens, which they can apply to eligible bets. After the initial sign-up, users should receive their first token within 30 minutes, according to DraftKings.
Users can apply the tokens to parlays and same-game parlays. The boost starts at 10% for a two-leg parlay or SGP and maxes out at 100% for parlays and SGPs of 11 legs or more. For example, if a bettor placed a 12-leg anytime touchdown parlay that would pay $50,000, that bettor could add a boost token to double the win to a potential $100,000.
The boost comes with an important caveat, though: The max bet is $25.
The subscription is monthly, and users can cancel at any time in the DK Shop.
Why a parlay subscription makes sense for DraftKings
Parlays are a profitable offering for sportsbooks, generally speaking. The product is popular because small bets can turn into huge wins.
For example, this month a DraftKings bettor won $20,000 on a nine-leg UFC parlay that cost $10.08. However, because parlays require at least two bets, the odds are longer than a single bet. Those odds get longer as bettors add more legs to their parlay.
And, as the odds lengthen, DraftKings increases its chances of taking the bettor’s money. Consequently, the biggest DraftKings Subscription+ boost is reserved for parlays of at least 11 legs.
Parlays’ ability to draw bettors into longer odds but bigger potential payouts has resulted in considerable popularity. For example, Colorado sportsbooks generated around $680 million in handle in November. Parlays accounted for more than 25% of the money wagered.
