Published on: September 21, 2022, 02:47 am.
Last update: September 21, 2022, 02:47.
Contrary to some media reports, the DraftKings NFL Up 10 promotion is not dead, but the online sportsbook operator admitted that the gambit resulted in a total of $75 million in payouts in the first two weeks of the NFL season.
Citing an unidentified source, a betting-related website published an article on Tuesday saying that DraftKings is halting the promotion after receiving the aforementioned $75 million. Earlier today, a spokesman for the Boston-based company said Casino.org that the promotion will be available for the Cleveland Browns/Pittsburgh Steelers Thursday night football and that it will be re-evaluated later.
We’ll see what we do going forward – we’re not committing one way or the other,” the spokesman said. “It would be unfair to say that we are canceling the promotion. It would also be false to state that we are stopping the promotion after paying $75 million, which some reports have indicated.”
The Up 10 offer pays bettors as long as the team they select goes up by 10 or more points at any time during an NFL game, but the team selected does not have to win outright or cover a traditional spread. In a hypothetical example, a DraftKings customer who picked the Cleveland Browns to go 10 against the New York Jets last Sunday was a winner under the terms of the promotion, despite the Browns losing the game in historically epic fashion.
Conversely, although the Jets won the game, they never led by at least 10 points, meaning a bettor who went with that team in the Up 10 would have lost.
With up to 10, Devils in the details
For novice bettors and those new to the industry, understanding the correct application of terms such as “leverage” and “hold” is important to gain insight into what may or may not happen with the Up 10 promotion.
The handle is the total amount wagered, while the hold is what the sportsbook retains after paying out the winners. In the case of the $75 million mentioned above, that’s actually what DraftKings paid, but as the spokesperson said Casino.orgthe company only publishes what it paid for in the promo – not the general management.
“It would be impossible for anyone to know if we lost money or won money with the promotion without knowing the total hand. The only thing the $75 million figure represents is that the engagement was strong,” said the game company’s representative.
The spokesperson added that DraftKings has used similar promotions in the past.
Promotions are still under review
After a dismal 2021 and a largely forgotten 2022, publicly traded sportsbooks like DraftKings and casino companies with direct business exposure are under scrutiny from analysts and investors for promotional spending.
There have been encouraging signs of this recently, with Caesars Sportsbook cutting a significant portion of its traditional media buys after March Madness and PointsBet and WynnBET dropping NFL ads this season.
Some analysts see signs of streamlining promotion from DraftKings as the gaming company is under pressure to stem losses and show investors there is a viable path to profitability sooner rather than later.