DraftKings Files Patent for “Progressive Parlays” Ahead of Big Announcement

DraftKings filed a trademark for “Progressive Parlays” with the United States Patent Trademark Office on Tuesday, Oct. 31.

What are progressive parlays? That answer remains locked behind closed doors. However, DraftKings CEO Jason Robins hinted that a new feature would be coming for legal sports bettors on Nov. 14, and the company also recently filed for several other patents. 

The patent application was for intent to use, meaning that it has not used the term in its offerings but plans to do so.

DraftKings has not provided any official comment on the patent application or what exactly progressive parlays entail.

This is the third round of patent applications DraftKings has made recently, starting with the application for “DraftKings Cash Picks” submitted in May. It also submitted applications for “DraftKings Pick 6,” “DraftKings Pick6,” and “DraftKings Pick Six” on Oct.6.

According to the company, all three terms are related to “entertainment services in the nature of fantasy sports competitions.”

Very little is known about these applications as well other than DraftKings submitted plan-to-use patents, and they relate to the company’s legal sports betting or Daily Fantasy Sports platforms.

DK’s company Investor Day is Nov. 14, the day that Robins hinted that more will be revealed about its upcoming plans. It’s also the day that ESPN Bet, which hopes to acquire a 10% market share within the first three years, will launch with the help of PENN Entertainment.

Jeremy Levine, founder and co-CEO of Underdog Fantasy, left a concise response to the patent application for “DraftKings Cash Picks” on X (formerly Twitter) back in May.

“Oh?” Levine quoted in response to the news.

Underdog and fellow Over/Under betting platform PrizePicks have been locked in a power struggle with DraftKings and FanDuel recently. Underdog even released a letter that accused the two operators of attempting to rid the market of competition and stated that they will remain committed to growing their platform.

There’s been widespread debate over the legal standing of Underdog, PrizePicks, and Betr since what they offer is not traditional sports betting. They help boil down gambling to a series of parlay-style wagers that prompt users to pick “More” or “Less” when presented with a certain betting line.

The platforms are subject to the rules for “games of skill” established by the Unlawful Internet Gambling Enforcement Act.

All three platforms were sent cease and desist letters by Florida in September because of uncertainty over whether they were offering legal or illegal gaming options to customers. Several other states, including New York, joined and blocked the platforms from operating within their jurisdiction.

Regardless of what the future holds, the “More” or “Less” style of betting has built quite a large following. And as powerful as the top sports betting operators are, their offerings do not include this style of wagering.

According to research firm Eilers & Krejcik Gaming, DraftKings recently became the leader in American sports betting, earning 31% of all online sports betting gross gaming revenue, while FanDuel claimed 30%.

FanDuel still holds the lead in online gambling market share (42% at the end of 2022).

DraftKings’ stock is up 202% year-to-year despite starting the year unsure of how it would handle new-user promotions and firing 3.5% of its workforce. It should be buoyed by the recent patent application and could be sent for another jump depending on the details of the announcement shared on Investor Day.