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DraftKings has rolled out a new subscription product that allows players unlimited boosts to parlay odds for a flat monthly fee.
The new offering, entitled DraftKings Sportsbook+, is currently only available in New York to “select customers” but allows players to pay a $20 monthly fee in exchange for unlimited “stepped up” boost tokens that can be applied to parlays and same-game parlays.
The tokens allow players to boost odds with the percentage depending on how many legs are in the parlay, with a parlay that includes 11 legs receiving a 100 percent odds boost. The tokens come with a maximum wager of $25.
In a statement, the company said Friday (January 3) that it was “excited to present select, eligible customers” in the Empire State the ability to try the product.
“The subscription service was designed to offer our customers an enhanced fan experience, creating more excitement and value to our extensive parlay offering,” a company spokesman said.
The service is DraftKings’ latest attempt to offset the impact of a 51 percent tax rate in New York, as the highest boosts offered would be on the types of parlays that customers are least likely to win.
The company announced last August that it would implement a surcharge on winning bets in jurisdictions with tax rates over 20 percent of gross revenues, but quickly reversed course and scrapped the plan weeks later.
The company cited feedback from customers as the reason for the decision, but it also came after competitors, including top rival FanDuel, announced that they would not pursue their own surcharge plan. State regulators also said they were reviewing the initiative.
CEO Jason Robins maintained last year that there was room for DraftKings to grow its parlay offerings, including by increasing the number of legs on each parlay.
Doing so, Robins said, would continue to increase DraftKings’ structural hold, with the company pursuing an 11 percent hold in fiscal year 2025 and further upside in 2026.
“I think that the path to 12 percent, 13 percent is really [bet] mix driven,” Robins said during the company’s quarterly earnings call in November. “There are other things, of course, on the margin you can always do to improve your sharp modeling, improve your risk mitigation, things like that, but 90-plus percent of that is just mix, so we're continuing to focus on that.”
“It's been a real great point of success this year,” Robins added at the time. “We feel like we have a great plan going into next year, drive it even higher, and it’s exciting to know that there’s a clear path to getting much higher on hold rate, and we think that is actually a big upside lever of the business that maybe people aren’t counting on.”
