DraftKings hit the headlines this week when it introduced a new paid service that allows subscribers to pay $20 per month to get access to super-boosted odds for same-game and multi-game parlays.

On the latest episode of iGaming Daily, Jessica Welman, Editor of SBC Americas, was joined by Charlie Horner, SBC’s Media Manager, and Ted Orme-Claye, Editor of Payment Expert, to consider if DraftKings+ is the future of sports betting.

The subscription has initially been made available in New York, a state notable for levying a 51% tax rate on sports betting operators.

On the service, Charlie said: “Immediately when I saw this, I thought it was another way of DraftKings trying to get around that 51% tax rate and I don’t blame them for it. It’s something that sportsbooks, particularly DraftKings and FanDuel, have been trying to get around and I think they’ve been lobbying to lower that tax rate for quite some time now. 

“Operators went into New York fully aware that the rate was 51% so they don’t really have a leg to stand on but with these new innovative features and new products, I don’t think you can begrudge DraftKings trying and it’s up to consumers whether they take them up on that.”

In the US parlays have become an increasingly important part of sportsbooks’ offerings. In November, Jason Robins, CEO of DraftKings, cited an increased parlay mix and product enhancements as key to improving the operator’s hold which is projected to sit at 11% in FY 2025.

Despite this, reliance on parlays does come with its dangers. At the beginning of the year, Flutter downgraded its revenue guidance for 2024 by $370m following two months of negative outcomes connected to NFL parlays and Same Game Parlays.

“I think that’s the risk you take when you make a decision to put such an emphasis on the parlay mix,” said Charlie.

“For the most part, it works in the favour of the operator because most of the time it’s hard to hit a parlay which is why operators make so much money out of it. [But] you’re always going to get that unlucky spell where players win.”

To end the episode, the trio considered how the new service could be received by the wider sports betting industry and the potential for it to be adopted by others.

“I could see this happening,” admitted Ted. “If this proves a successful trial in New York, I don’t see any reason why other operators wouldn’t have a crack at it. Operators are always taking inspiration from each other when there’s a successful product.”

Charlie agreed and added that although traditionally it has been viewed that the US has learnt from the more mature European markets, this may be a time when Europe looks to its US counterparts for inspiration.