DraftKings rolls out new ‘Pick6’ app around player prop picks

DraftKings takes another swipe at the player prop product that has driven rapid growth for daily fantasy competitors PrizePicks and Underdog today, rolling out a similar offering that differs in a way meant to distinguish it from sports betting -- a peer-to-peer contest framework similar to traditional DFS.

Launching in Maryland, Minnesota, Oklahoma, South Carolina, Tennessee and Wisconsin, DraftKings' new “Pick 6” app allows players to combine predictions on the performance of as many as six NFL or NBA players -- for example, Cavaliers G Donovan Mitchell over or under 26.5 points tonight -- choosing from at least two games.

But rather than offering parlay odds, as Prize Picks, Underdog and others do, DraftKings will funnel contestants into pools based on the size of their entry fee, paying off winners based on where they finished in the standings.

DFS operators that offer player prop games have come under scrutiny from gaming regulators in N.Y., Michigan, Florida and several other states in part because they set odds on those picks, paying off similarly to the way sportsbooks do on player prop parlay wagers, such as the 10-1 odds on a five-player combination standardly offered by PrizePicks.

During an investor day last month, DraftKings announced a “progressive parlay” sportsbook product that will work similarly to Prize Picks, allowing fans to win at shorter odds even if they do not hit every leg.

“There’s a real consciousness on our part around which product is a sports betting product and which product is a fantasy product, where they will live in our product ecosystem, and what states they’ll be allowed in based on what category they qualify as,” said Corey Gottlieb, DraftKings chief product officer. “And our decision to launch them in tandem is a very explicit one. There are two different mechanics in-market that we think will be attractive to customers and really engaging for our users. But one is a sportsbook product and the other is a fantasy product. And we’re going to launch them as such.”

Along with creating new options for current DFS and sportsbook users, the new app could serve as an acquisition vehicle for potential sportsbook customers who had no interest in DFS, which requires more research and more complex scoring. DraftKings opted to have the game live in its own app to make it more user friendly, and to drive trial by first-time players and those who have bet parlay props on other DFS apps.

“When acquisition and new user flow is a driver of value, the standalone app tends to be a better acquisition vehicle for us,” Gottlieb said. “We’ll talk about it in our marketing and on TV and you can go directly to the app store. You heard ‘pick six’, and now you type ‘pick six.’”