DraftKings Reveals Progressive Parlay: New Bet Option Explained
Transcript
00:00 (upbeat music)
00:03 - Sam, I saw this and you posted about it as well
00:08 is that we've got this,
00:10 everyone's running for these progressive parlays,
00:12 flex parlays.
00:14 It sounds like a round robin to me,
00:16 but DraftKings is unveiling their own version of it.
00:21 Tell us exactly what it is
00:22 and what makes it different with DraftKings.
00:25 - Yeah, Joe, not necessarily new,
00:28 but it's gonna be new to millions of DraftKings customers
00:31 that are loyal to the book and love to bet on it
00:34 and always want more parlay options.
00:35 It's called this progressive parlay,
00:38 which CEO Jason Robbins talked about this week
00:41 during their investor call.
00:42 And it essentially allows you to win money on a parlay,
00:46 even if every leg doesn't hit.
00:48 That'd be about three to 12 over under selections.
00:51 And there's obviously sort of a price to pay there
00:53 or a payout difference.
00:54 So say I was watching the Knicks game last night
00:57 and Randall went over his points,
00:59 Brunson went over his points,
01:00 Robinson went over his boards,
01:01 but I had all these other bets,
01:03 but Trae Young didn't hit his points total.
01:05 So you would go from being able to win no money
01:09 to being able to win a little bit of money.
01:11 And like you said, it's very similar to a round robin,
01:14 which people are casual bettors
01:16 might not be as familiar with.
01:18 But the sort of price you pay,
01:20 let's say I hit every leg of that parlay,
01:22 but it was a progressive parlay.
01:24 If it was a $10 bet, I would win probably about $1,500,
01:28 which is still nice.
01:29 But if it was a regular parlay, I would win about $6,400.
01:33 So that's kind of the catch here.
01:35 You don't get as big a payout.
01:37 It's about a four times difference in the payout.
01:40 And DraftKings definitely not the first company
01:42 to offer something like this.
01:44 Hard Rock, which you are very familiar with in Florida now,
01:47 and even more now that they're back online,
01:49 they introduced this thing called the Flex Parlay
01:52 earlier this summer when they rebranded their app,
01:55 which is pretty much the same thing
01:57 from how I understand it.
02:00 But Robins took a shot at kind of the competition saying,
02:02 "I don't think any other sports books offer this.
02:04 Certainly no major sports books."
02:07 DraftKings obviously is one of the top ones.
02:10 Hard Rock does not nearly have
02:12 as much state presence or handle share.
02:14 And then they also took a shot
02:16 at daily fantasy sports companies like Prosthix,
02:19 which offers the Flex Play,
02:22 which is essentially just the same thing,
02:23 but in a Pick'Em, a world of Pick'Em.
02:26 And they put out that this is gonna be regulated
02:28 as sports betting.
02:30 They've had kind of disagreements
02:31 about whether or not Prosthix product
02:34 is sports betting or not.
02:35 But new product, not necessarily new to the industry,
02:38 but I imagine it'll increase a lot
02:40 of the Parlay betting at DraftKings
02:42 and get people to bet more legs,
02:44 which is really what has fueled the company's growth.
02:47 As of late, they've seen in states where they've existed
02:50 for about two to three years,
02:53 revenues up 50% this past year,
02:55 just because people are betting more Parlays on average.
02:58 So they're obviously doubling down
02:59 on what's worked for them so far.
03:01 (upbeat music)
03:04 [MUSIC]