DraftKings is once again leaning into the Kentucky Derby as a key customer acquisition and engagement opportunity, and this year’s effort comes with several changes aimed to improve access and ease of use around the Super Bowl of horse racing.
This year’s Kentucky Derby is expected to once again draw more than $200 million in wagers on the main race alone, reinforcing its role as a high-volume, high-stakes event for operators like DraftKings looking to capitalize and attract new users in a short, concentrated window.
“The Derby is like the Super Bowl for horse racing, and we prepare accordingly,” said Johnny Avello, DraftKings’ director of race and sportsbook operations. “There’s a lot of traffic, especially from first-time users and late bettors. Our app has handled it smoothly.”
Tech upgrades boost engagement
DraftKings’ DK Horse app launched a single sign-on with the main DraftKings sportsbook and fantasy platform ahead of last year’s Derby, allowing bettors to go between products without needing separate logins. Avello told LSR the enhancement led to twice as much engagement on the app.
“That’s something we’ve had for close to a year now,” Avello said. “We’re also building out a page on the sportsbook site with handicapping content, using different handicappers and shows. We have big plans to expand that over time.”
That mirrors DraftKings’ efforts to embed analysis into its sports betting interface, part of a strategy to drive engagement and keep users in the app longer.
Kentucky Derby promotion
In preparation for Derby Day, DraftKings is running a new promotion — “King of the Track” — offering a $1 million prize pool to users who opt in and correctly pick the winner with a $5 bet.
Meanwhile, DraftKings continues to rely on a white-labeled version of TwinSpires, Churchill Downs’ wagering platform, for its horse racing product. The partnership allowed DraftKings to enter the space quickly, though Avello added that the company plans to keep enhancing the tech over time.
Risk and behavioral differences
Unlike fixed-odds sports betting, DraftKings takes no direct position on race outcomes. Wagers are pooled in a pari-mutuel system, where final payouts are based on the total amount bet and the track’s take — typically around 16% for win/place/show wagers.
“We’re not at risk the way we are with traditional fixed-odds sports betting,” Avello said. “Our goal is just to get as many people betting as possible.”
The structure also affects bettor behavior. With odds not fixed at time of bet, some wait to see how prices develop. Others place bets early, knowing the lines will shift.
Regulatory patchwork limits Kentucky Derby offerings
In total, 39 states permit horse racing betting, though fewer have clearly legalized advance deposit wagering, allowing bettors to fund their accounts and place wagers remotely. DraftKings currently operates its horse betting product in 21 states.
“ADW allows people to bet from home, across all tracks, including international ones,” Avello said. “Without it, they’d have to go to the track. We offer harness racing at night, European races in the morning, and pretty much everything in between.”
DraftKings has yet to introduce a shared wallet that would unify account funding across DK Horse, its sportsbook, and iCasino. FanDuel remains the only platform to offer an integrated balance across all three products. DraftKings is eyeing fixed-odds horse racing as a potential future offering, allowing customers to wager on props like horse-vs.-horse matchups or top-finishing jockeys, though regulatory hurdles remain.
“Fixed-odds racing is something we’d love to offer,” Avello said. “We need jurisdictions to approve it. Hopefully that’s a conversation we can have down the road.”
