Oregon Lottery Hint Of DraftKings Transition

During Friday’s commission meeting, the Oregon Lottery hinted that it would be converting from its new system, the Oregon Scoreboard app, to one operated by DraftKings.

Indirectly, DraftKings is now affiliated with the Oregon Lottery. SBTech, which DraftKings purchased in 2020, operates the Oregon Scoreboard software, but SBTech’s deal started before the purchase.

DraftKings purchase SBTech

On Friday, Oregon Lottery Director Barry Pack said: “In Scoreboard news, with all of the events over the last year, you may have missed that our Scoreboard platform partner SBTech was purchased by DraftKings. DraftKings is well-established in the US and this presents a lottery with opportunities, including benefitting from the economies of scale offered by the company.

“We are in initial discussions with them about a new contract to transition Scoreboard off the SBTech platform and onto the DraftKings platform, as well as any other potential products and services. It is likely I will be coming to you in the March meeting for approval of a major procurement for this purpose.”

During its earnings call on Friday, DraftKings also mentioned that it would be shifting its company to the SBTech network. The business also announced that it would first test the transfer in a single state, suggesting that the Oregon sportsbook software could be used in that test.

Oregon lottery arrangement

SBTech’s arrangement with the Oregon Lottery has caused some uproar in the state, as the firm has struggled to shield the specifics of its agreement from the media.

It’s uncertain if the current DraftKings deal would work. Scoreboard, on the other hand, is actually a stand-alone product that runs on SBTech’s software. Through deploying a DraftKings sportsbook app that is monopolised in Oregon, any costs involved with running an app in the current state will be greatly minimised. DraftKings has a sports betting app for virtually every other state that allows online sports betting.

The bad news for sports bettors in Oregon is that, considering the move, online sports betting will remain a monopoly between the lottery and DraftKings.

Monopolies have traditionally underperformed economies in a dynamic sector. However, the findings have been stronger in New Hampshire, another state where DraftKings has a state-sanctioned monopoly.

In reality, comparing the two markets is fascinating. Oregon has a population of 4.2 million inhabitants, while New Hampshire has a population of 1.3 million. Despite the population gap, DraftKings in New Hampshire created more betting activity in 2020 than Oregon Scoreboard, despite Oregon having released its betting app first.

In 2020, DraftKings managed more than $350 million in wagers, compared to $300 million for the Oregon Lottery.