Online gambling company DraftKings (DKNG) is placing a bet on a new subscription service.
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The Boston-based company known for offering sports betting says it is trialing a new subscription service called “DraftKings Sportsbook+” that it claims gives paying customers a boost in the betting odds. DraftKings is offering the first month free, and then the subscription fee kicks in. The subscription service is currently only available in New York state, although DraftKings plans to expand it to other jurisdictions.
The trial taking part in across New York state charges $20 per month for the subscription service. People who sign-up get up to a 100% profit boost on winning parlays. In sports gambling, parlays involve bets on multiple games. The maximum bet eligible under the new subscription service is $25.
Rolling the Dice
Parlays, where people wager on more than one game at a time, are a popular, profitable, and growing area of sports betting. Enhancing the profits on parlay betting could attract customers to the new subscription service.
In a statement, DraftKings said the subscription service that’s being trialed is designed to offer customers an enhanced fan experience. The gaming industry is likely to be watching developments closely at DraftKings as the company is the first U.S. operator to tryout a subscription service.
DKNG stock has gained 14% over the last 12 months.
Is DKNG Stock a Buy?
The stock of DraftKings has a consensus Strong Buy rating among 27 Wall Street analysts. That rating is based on 25 Buy and two Hold recommendations issued in the last three months. The average price target on DKNG stock of $51.15 implies 36.58% upside from current levels.
