DraftKings Sportsbook Makes Mainstream Pitch with Pool App
Making the act of betting on games as mainstream as playing daily fantasy – and establishing the arc between them - will be an important facet in expanding business for online sportsbooks as legal wagering becomes more prevalent nationally.
DFS purveyor and online sports betting newcomer DraftKings, like competitor Fan Duel, has a natural stake in both ventures succeeding in unison. With its online app thriving in New Jersey – where $184 million was wagered in September – the Boston-based company took what would appear a step toward courting an uninitiated sector on Thursday in announcing "a new and easier way to bet on sports” in DraftKings Sportsbook Pools.
While the iOS version is available in the App Store, gambling restrictions prevent its inclusion in the Google Play Store. The Android version is available through DraftKings.
A DraftKings press release asserts that the game will "provide the opportunity to bet on games like the ones often enjoyed among coworkers in office pools, offering fans a more casual alternative to navigating odds and point spreads.”
App Could Be Starting Point for Wagering Novices
Sports fans who have never sidled up to a betting window or made a wager online, but have filled out an NCAA Tournament grid or thrown a $20 bill into a Super Bowl party pot will at least have some familiarity, and an entry point with the concept. Which is the point.
A recent study by Morgan Stanley found that $216 billion could be bet legally in the United States by 2025. The $11 billion in profit for operators, according to the study, would be roughly equal to 2017 North American movie box office sales.
“Millions of Americans have been playing in sports pools for years with their friends and coworkers, and now one of the most popular ways that fans can get ‘skin in the game’ is live on DraftKings Sportsbook.” said Matt Kalish, Chief Revenue Officer and co-founder of DraftKings. “DraftKings Sportsbook Pools features simple predictions, such as picking the winner of each NFL game weekly, combined with the potential to win jackpot-style prizes.
"This product will unquestionably make every game more exciting for DraftKings Sportsbook players of all levels.”
For a $20 entry fee, players are given a “collection of questions related to potential outcomes in a specific game or series of games. Players select from provided responses and submit their entry into a pool where winners are then determined based on the number of correct picks as the real life events unfold,” according to a release.
Players can win a minimum of $200,000 in total prizes, including a $100,000 bonus to be shared by any who correctly pick the winner of every Week 10 game in the National Football League.For the first week of competition, players will “receive 20 percent of the prize pool for 10 correct picks, 30 percent for 11 correct picks and 50 percent for making all 12 picks correctly,” according to a DraftKings release.
The lure of an unknown payout, as opposed to a fixed prize figure in daily fantasy, figures to add a titillation for new customers. Which is the point.
DraftKings the New Jersey Leader in Sports Betting
DraftKings is licensed to provide sports betting only in New Jersey – daily fantasy was ruled to constitute sports betting by Nevada regulators in 2015 and the company has not applied to take wagers there – and bets can only be placed there. The app, however, is accessible (above) nationally for previews of all sportsbook products and promotions. Odds and lines are also displayed.
DraftKings has emerged as the leader after just three months of operators taking legal sports bets in New Jersey. The company, working with BetStars under a license issued to Resorts, accounted for $8,505,940 of the stunningly high September total in New Jersey. Fan Duel, with a license issued to Meadowlands, where it also has a physical sportsbook, was the second-highest recipient at $2,852,548. DraftKings and FanDuel had each taken roughly $3 million in August bets.
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