- DraftKings is expanding original games for its online casino.
- It’s modeling the user experience after Netflix and the way it delivers recommendations.
- DraftKings’ online casino business grew 21% year over year in the fourth quarter.
DraftKings is modeling its online casino experience after Netflix as it expands its focus on original games.
Chief Product Officer Corey Gottlieb said Netflix’s content recommendations inspired his team at DraftKings. He spoke in March at Next.io’s Next Summit, a gambling conference in New York.
Netflix’s app is known for surfacing shows and movies based on what users have watched, grouping titles in unique categories, and putting highlights, like new releases or Christmas movies around the holidays, at the top of the homepage.
Swiping through DraftKings’ casino app, users can similarly find “lobbies” with carousels of games. They include the top 10 slots or table games, titles that are “only at DraftKings,” recently played games, suggested games for a particular user, and games grouped by themes like “spin the wheel.” The app even has an “Easter Hunt” section right now with spring-themed games like “Charmed Rabbits” and “Celtic Gold.”
“It was really modeled after Netflix from a content delivery perspective,” Gottlieb said. “This next-gen lobby product we’ve created essentially allows our operators to manage dozens of lobbies concurrently with one another, and every lobby is themed.”
Gottlieb said there are also lobbies tailored for different types of bettors like VIPs and casual gamers.
The Netflix model is part of DraftKings’ merchandising strategy, one of three pillars of its product plan that also includes in-house content and gamification.
DraftKings has doubled down on original content to propel its casino business. Gottlieb said the company now produces 110 original titles through its casino studio, which made up about half of the amount wagered on its casino games last year, a metric known as handle. That was out of the thousands of games it offers.
While online casino gambling is legal in a small portion of the US, the business is key to DraftKings’ future because of its growth potential. DraftKings acquired Golden Nugget Online Gaming and software company Blue Ribbon a few years ago to pave its entry into the space. It’s also bet on adjacent areas like digital lottery through the purchase of Jackpocket.
DraftKings’ revenue from its online casino, referred to as igaming, grew about 21% year over year in the fourth quarter to $426 million, according to a financial presentation. Overall revenue for the period was up 13% year over year.
DraftKings is developing more of its own games and betting markets
Gottlieb said producing in-house content is part of a larger plan to create more originals across its business, including the sportsbook.
It’s creating more of its own bets, rather than relying on third parties for live betting or same-game parlays on different outcomes within a game.
“We have made a major investment both in bringing new content to market,” and in “bringing that content in-house,” Gottlieb said, referring to betting markets.
He said this gives DraftKings more control over areas like pricing and the types of bets it offers, helping the company stand out in a “very redundant” marketplace.
Gottlieb said that by the end of 2025, all DraftKings’ live and in-game betting content will be in-house.
“The goal for us initially was, how do we just sort of reduce a third-party dependency, create some cost savings?” Gottlieb said. “And what we sort of found our way into was a fully functional end-to-end studio with everything from game development to in-house.”
