There’s never a dull moment in the sports betting industry, and it’s already been quite the start to 2025. Late last week, DraftKings announced the launch of a new subscription service in New York that will give its customers the chance to wager on parlays with better odds. The service is designed to “enhance [the] sports betting experience” and is only available to select customers physically located in New York.
What is the DraftKings subscription service called?
The company is calling the subscription service DraftKings Sportsbook+ and will cost members $20 a month. The service is for select users of DraftKings Sportsbook and there is a free trial available for the first month. Subscribers will receive unlimited boosts on parlays of at least two legs and the maximum bet is $25. A two-leg parlay receives a 10% boost, all the way up to an 11-leg parlay receiving a 100% boost.
DraftKings is the first legal U.S. sports betting operator to offer a subscription service. The news was first reported by Sportico.
Why is DraftKings launching a subscription service?
Parlays are the highest hold products for the sportsbook (e.g. make the most money), so this allows users to make more money on the parlays that they win, while also giving DraftKings incremental revenue from the subscription service. With the tax rate on sports betting revenue at a very high 51% in the Empire State (tied with New Hampshire for the highest rate in the U.S.), the subscription service is another way for DraftKings to offset some of that lost revenue.
DraftKings floated introducing a small tax on winning bets in multiple states back in August that was set to go live this month in another effort to help offset high tax rates, but nixed the potential plan a few weeks later.
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