DraftKings is expanding its focus on original games for its online casino, taking inspiration from Netflix in the way it delivers user experience and recommendations. In the fourth quarter, DraftKings' online casino business saw a 21% year-over-year growth.
Modeling User Experience After Netflix
Corey Gottlieb, the Chief Product Officer at DraftKings, revealed that Netflix's content recommendation system served as a model for their online casino experience. Speaking at Next.io's Next Summit in New York in March, Gottlieb highlighted the influence of Netflix's approach to surfacing shows and movies based on user preferences.
DraftKings' Casino App Features
Similar to Netflix, DraftKings' casino app offers curated "lobbies" with game carousels, showcasing top slots, table games, exclusive titles, recently played games, personalized recommendations, and themed game collections like "spin the wheel." Currently, users can enjoy an "Easter Hunt" section with spring-themed games such as "Charmed Rabbits" and "Celtic Gold."
Merchandising Strategy and Original Content
The Netflix-inspired model is part of DraftKings' merchandising strategy, focusing on three key pillars: original content, gamification, and personalized experiences. The company has invested heavily in producing original titles through its casino studio, with these games accounting for a significant portion of the total wagers.
Growth in Online Casino Revenue
Despite online casino gambling being legal in limited US regions, DraftKings sees significant growth potential in this sector. Revenue from its online casino business, known as igaming, surged by 21% in the fourth quarter to $426 million. The company's overall revenue also increased by 13% year over year during the same period.
Developing More Original Games and Betting Markets
Gottlieb emphasized DraftKings' strategy of producing in-house content to differentiate itself in the market. By creating unique betting markets and reducing reliance on third-party providers, DraftKings aims to enhance control over pricing and betting options. The company plans to transition all live and in-game betting content to in-house by the end of 2025.
By focusing on original games, personalized experiences, and innovative betting markets, DraftKings is positioning itself for continued growth and success in the competitive online casino industry.
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By: mmeaney@businessinsider.com (Mackenzie Meaney)
Title: How DraftKings Modeled Its Casino App After Netflix
Sourced From: www.businessinsider.com/draftkings-models-online-casino-app-netflix-expands-original-games-2025-3
Published Date: Mon, 17 Mar 2025 13:09:35 +0000
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