- DraftKings CEO Jason Robins unveiled a new “progressive parlay” feature during the company’s investor day
- Progressive parlays allow customers to still receive money if they do not get all legs of a parlay correct
- No launch date for the feature
Progressive parlays are coming to DraftKings Sportsbook.
Just two weeks after the company filed a trademark for the term “progressive parlay,” DraftKings CEO Jason Robins introduced the new sportsbook feature during the company’s investor day presentation. The progressive parlay feature will require users to make over/under picks for three to 12 legs and pit them against the house.
The parlays can win if a user misses one or more legs, but will pay out a lower rate.
Progressive Parlays…What Are They?
There is no official launch date for the new feature, Robins said.
In the investor day presentation, DraftKings gave an example of a progressive parlay. A user was shown making 10 selections, which would pay out at 150/1 if all legs were correct. However, if the user gets one of the legs incorrect, the bet payout decreased to 15/1, and if two were incorrect the payout decreased to +300.
During a Q&A portion of the investor day, Robins said he did not believe any other major sportsbook operator in the country was offering something similar to DraftKings’ progressive parlay feature.
It is worth noting that Hard Rock Bet introduced “Flex Parlays” over the summer, which is similar to the DraftKings progressive parlay. Hard Rock Bet’s flex parlays allow users to put together parlays with a maximum number of 10 legs and can choose a minimum number of bets that must hit for the parlay to win. The odds are adjusted based on the minimum number of bets selected.
Hard Rock Bet took notice of Robins’ comment on social media.
— Hard Rock Bet (@HardRockBet) November 14, 2023
Regulated as Sports Betting
Robins noted that the new feature will be regulated as sports betting, which is an important distinction moving forward. PrizePicks, a daily fantasy sports operator, offers something called “Flex Play” where users make a number of over/under selections and can win money if they do not correctly guess every legs. However, PrizePicks offerings are regulated as daily fantasy sports contests, which several states have started to ban or prohibit.
Progressive parlays will be integrated into the DraftKings Sportsbook and will be subjected to all state sports betting regulations and taxes moving forward.
The distinction is important as a number of states have started to prohibit similar DFS offerings from company’s like PrizePicks and Underdog Fantasy. Regulators have started to ban traditional pick’em style DFS games where customers play against the house and make over-under type selections on a combination of statistical outcomes for athletes.
The Maine Gambling Control Unit recently issued a $391,850 fine to Underdog Fantasy for offering traditional pick ’em games in their state. Maine gambling regulators took aim at Underdog Fantasy’s pick’em games this past May, sending the operator a cease-and-desist letter.
New York recently approved an alteration of its DFS rules to prohibit traditional pick’em games. The New York State Gaming Commission unanimously finalized DFS rules that likely include a ban on Pick Em’ style games. The new DFS rules declare that “contests shall not be based on proposition betting and shall not have the effect of mimicking proposition betting.”
Colorado, Arizona, and Michigan have all taken recent steps to alter or outright ban pick’em games as well.
Here’s the slide.
As I wrote about in the above story, DraftKings filed for a “Progressive Parlay” trademark last month.
Progressive parlays pay out even if every single leg of a bet doesn’t hit. pic.twitter.com/zq8HaSDVP6
— RLinnehanXL (@RLinnehanXl) November 14, 2023
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