DraftKings Expands Online Casino Offerings, Takes Cues from Netflix
DraftKings, a leading player in the online gambling industry, is making significant strides in expanding its online casino offerings with a focus on original games. The company is drawing inspiration from Netflix’s recommendation model to enhance user experience and drive growth in its digital casino business.
In the fourth quarter, DraftKings’ online casino business saw a 21% year-over-year growth, reaching $426 million in revenue. This growth comes as part of the company’s overall revenue increase of 13% for the same period.
Chief Product Officer Corey Gottlieb highlighted the influence of Netflix’s content recommendation system on DraftKings’ approach. The company’s app now features “lobbies” with game carousels similar to Netflix’s content categories, including top games, exclusive titles, recently played, and themed games like “spin the wheel.” Seasonal sections, such as the “Easter Hunt,” offer themed games to keep the content fresh and engaging.
This Netflix-inspired model is a key component of DraftKings’ merchandising strategy, which forms one of the three pillars of their product plan alongside in-house content development and gamification. The lobbies are tailored to cater to different types of bettors, from VIPs to casual gamers.
DraftKings has significantly increased its original content production, creating 110 original titles. These in-house games accounted for approximately half of the casino games’ handle last year. The company aims to reduce its reliance on third-party content by developing more games internally.
While online casino gambling is currently legal in limited areas in the United States, DraftKings sees significant growth potential in this sector. To strengthen its position, the company has made strategic acquisitions, including Golden Nugget Online Gaming and Blue Ribbon, and invested in digital lottery through Jackpocket.
The focus on in-house content development extends beyond the casino offerings to include the sportsbook. DraftKings is working towards producing all live and in-game betting content in-house by 2025, aiming to have more control over pricing and bet types.
This shift towards original content and in-house development is part of DraftKings’ strategy to differentiate itself in a competitive market. The company’s ultimate goal is to establish a fully functional end-to-end studio for game development and betting markets, providing unique content and experiences for its users.
As DraftKings continues to innovate and expand its offerings, the online gambling industry watches closely to see how this Netflix-inspired approach will shape the future of digital casino gaming.