DraftKings Predictions Adds Combos Feature and New Fee Structure
DraftKings Predictions, the prediction markets arm of the popular gambling brand, has added a Combos feature along with a new fee structure.
Currently, DraftKings Predictions offers a fraction of the event contracts displayed by the big players, Kalshi and Polymarket, but the betting giant is looking to change that.
DraftKings Predictions adds new Combos feature
As it continues to expand its prediction market platform, DraftKings Predictions recently added the Combos feature. DK has invested heavily in DraftKings Predictions to expand the product in the rapidly growing predictions market industry.
What are Combos?
The Combos feature is like a parlay bet at a typical sportsbook, where users can combine multiple events into one. When a player picks multiple trades, they can now group them into a single Combo for a shot at larger payouts — with additional risk.
Just like a regular parlay, all of the bets and trades must be winners for the overall Combo to be a winner.
You can have up to six trades in a Combo. Not all sports or events are available for Combos, such as ATP and WTA tennis matches, PGA Tour events, and political and economic markets.
DraftKings Predictions is going all in
DraftKings is going all in on the development of its prediction market platform to compete with the bigger brands. DraftKings Predictions is already available in the new Super App, where users can — if available in the jurisdiction — wager on sports, play casino games, enjoy DFS, and access the prediction markets from one place.
The new Combos feature and fee structure were planned to launch in time for the World Cup this summer.
DraftKings CEO Jason Robins stated, “Our Super App, market-making capabilities, proprietary exchange, and combos are coming together ahead of the World Cup.”
During a Q1 earnings call, DraftKings executives stated that the majority of activity on its prediction market platform came from states where sports betting is not legal, such as California and Texas. DraftKings has used its prediction market platform to attract new customers nationwide, not just state by state, where it also offers an online sportsbook.
DraftKings introduced Combos at a time when parlays were experiencing significant growth across its sportsbooks in Q1.
New fee structure
DraftKings also introduced a new fee structure for DraftKings Predictions.
- For contracts between $0.01 and $0.19, and between $0.97 and $0.99, the fee is $0.01.
- For contracts between $0.20 and $0.96, the fee is $0.02.
DraftKings stated that all applicable Introducing Broker (IB) commissions and Exchange Fees are included in the listed contract price.
Still in some hot water
While DraftKings has rolled out new implementations to its products, the company is still in some hot water.
In March, DraftKings was one of four defendants, including FanDuel and the NFL, that alleged they use advanced technology, such as AI, to enhance gambling addiction. At the crux of the case is DraftKings Sportsbook's micro-betting feature, which allows users to place rapid bets on the outcomes of upcoming plays.
DraftKings also received one of the letters from concerned U.S. lawmakers, which stated that it uses predatory advertising to lure young adults to its betting platforms.
