Progressive Parlay Feature Debuting at DraftKings Sportsbook Michigan Soon

Jessica Aletor
By:
Jessica Aletor
27/11/2023/
Industry
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Highlights

  • DraftKings has teased that it will be launching a progressive parlay product in the near future. It made this announcement at a recent investors call.
  • Progressive parlays are an exclusive feature at DraftKings, and the sportsbook has even applied for a copyright on the name.
  • While there is no set launch date for the DraftKings progressive parlays, stakeholders expect that special regulatory approval may be required before launch.

The past three months have been a rollercoaster for the Michigan online sports betting industry. First, there was the tussle between daily fantasy sports operators and regular sportsbooks regarding the legality of over/under prop bets by DFS sites. Eventually, this would culminate in the Michigan Gaming Control Board banning prop bet fantasy contests in the state.

While many stakeholders believed that such a regulatory move would trigger the exit of DFS sites from the Michigan gambling space, the opposite happened. PrizePicks, one of the leading DFS providers in Michigan launched free-to-play pick’em parlay games hoping to re-establish its hold on the industry. DraftKings is now attempting to introduce a similar product but for a slightly different market.

Introducing DraftKings’ Progressive Parlay: The First of Its Kind 

At its investor’s call on Tuesday, November 14, DraftKings released a video hinting at the launch of progressive parlay, one of its new product features. This offering is set to allow sports bettors pick over/under props, build wagers and win even if sides of the bet fail.

Potentially, this feature differs greatly from a traditional parlay. In the more traditional system, players are required to win each of their bets in a parlay to earn a win. Losing one leg of the bet translates to losing the entire bet.

DraftKings has gone on to give a more comprehensive definition of the progressive parlay. According to the sportsbook, the progressive parlay allows a multi-wager bet typically on one or more sporting events at a time. With this new offering, bettors make as many as 12 picks, starting from a minimum of three picks. Ideally, the more the picks, the higher the payout. But with progressive parlays, bettors can still cash out if they get some picks wrong.

Further explaining the product, DraftKings revealed that bet legs can include team-level wagers such as total points, goals scored, strikeouts or other props. Every individual wager will depend on the type of game and player props that are available on selected sporting events.

Bettors must match a number of their bet legs to win a parlay. The exact number will depend on the size of the parlay. So, a six-leg parlay would lead to a payout even if the bettor only got five legs correctly, and a 10-leg parlay could pay out with just eight successful legs.

Prospective bettors should also know that the odds of the parlay reduce whenever legs are lost. Imagine a seven-leg parlay having odds of +2000. If the bettor loses two legs, the odds will decrease, for example, to +1500. The recalculated odds depend on the type of bet that fails.

DraftKings Reveals That Progressive Parlay Falls Within the Sports Betting Market 

Jason Robins, the CEO of DraftKings has revealed that the company will be adding the “progressive parlay builder” into its sportsbook app. What this means is that the new feature will be available only on its sports betting market and not as a daily fantasy option as certain features of the product offering may suggest.

“We’re excited about our Progressive Parlay offering and its potential to generate higher parlay mix and leg count, and thus higher hold percentage, as well as being a great win with customers who will be able to win money on their parlays even if they don’t win every leg of their bet,” Robins told stakeholders at the investors call.

The chief executive also noted that the wagers will be “regulated as sports betting.” This comes several weeks after Michigan and New York amended their laws to ban pick’em fantasy products, while other states like Florida, Arizona and Wyoming issued cease and desist letters to DFS sites. Clearly, DraftKings is stating from the get-go that its product is a sports betting feature and not a DFS pick’em, thereby avoiding a regulatory head-on clash.

Navigating Possible Regulation of Progressive Parlay in Michigan  

Nonetheless, there are still possible complications that may arise from progressive parlays coming to DraftKings Sportsbook Michigan. This is the first ever sportsbook to launch such a product in the entire country, and it’s bound to attract investigation by regulators.

The Michigan Gaming Control Board may also need to provide approval before DraftKings is permitted to launch this feature in the state. One of the major considerations that will arise is how the greater winning chances available with the progressive parlays may trigger problem gambling or irresponsible betting practices.

But for now, there is no launch date in sight for progressive parlays at DraftKings. So, it is expected that all regulatory loose ends will be tied ahead of a possible rollout to the market sometime next year.

Jessica is a news contributor to Gamble Online Michigan. She holds a Bachelor's degree in Economics but has over three years of experience working in the hospitality and gambling industry. Despite her core finance and investment banking background, she has been a casino feature writer for N1 Interactive Limited and multiple gambling affiliate sites. Her work has been featured on the bet365 blog, casino.zone and Max Force Racing. She spends her time between Michigan and California, staying up-to-date on the latest industry developments