At DraftKings’ Investor Day, the renowned sports betting platform announced a game-changing betting product called “Progressive Parlay.” This new offering mirrors the style and functionality of apps from smaller fantasy gaming operators, hoping to attract some of their growing user bases. Companies like PrizePicks and Underdog Fantasy have faced increasing pressure from industry leaders who allege they operate outside the law.
Progressive Parlay Targets a Specific Market Niche
DraftKings’ new product visually resembles and operates like other fantasy apps, enabling bettors to build parlay cards and potentially win money even if some bets lose. However, it strictly falls under regulated sports betting and won’t be accessible in fantasy-only states. The betting giant did not specify a launch date but remained optimistic Progressive Parlay would engage bettors.
“Those are the… things we’re focused on. The customer likes it, but there are so many of those products that can be great financial drivers for DraftKings.”
Jason Robins, DraftKings CEO
A successful launch could significantly bolster DraftKings’ impressive US presence, aiding its growth ambitions. The company’s recent Q3 financial results highlighted the success of its overall strategy and the positive impact of the company’s investments. A successful Kentucky launch means the leading operator is well underway to a record-breaking fiscal year.
DraftKings’ ability to swiftly recognize and adapt to industry trends has been one of the leading factors for its unparalleled success. Its newest Progressive Parlay product directly responds to the rising popularity of fantasy gaming, offering a similar experience for real-life sports. The gambling giant hopes it will attract new types of players, helping it compete against more niche operators.
Fantasy Sports Operators Remain on the Rise
Established operators like DraftKings argue that prop products like those offered by fantasy gaming companies are a form of gambling and should be subject to appropriate regulations, lobbying state legislators to take action. However, the fantasy operators disagree, emphasizing DraftKings’ and FanDuel’s origins as upstart fantasy operators in legal grey areas.
The intensifying feud has escalated as smaller fantasy gaming companies exhibit substantial growth in popularity and revenue. For instance, PrizePicks, operating in Arizona, reported $28.2 million in entry fees this year through August, significantly surpassing DraftKings and FanDuel in the fantasy realm. However, the two companies recorded $115 million in traditional mobile wagers, highlighting their massive scale.
While modest compared to the betting giants, the success of these smaller fantasy companies highlights their well-designed user experience and willingness to offer products in states where sports betting remains illegal. DraftKings’ new product hopes to match some of these offerings, leveraging its leadership position to increase competitiveness in regulated markets.
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