DraftKings ‘Cashpicks’ Trademark Filing Raises Questions About Plans for Prop-Style DFS

If DraftKings can't beat props-style DFS companies out of unregulated markets, it might be thinking about joining them.
Photo by Shutterstock/Imageman

A recently uncovered trademark filing by DraftKings is generating speculation about whether the operator is preparing to launch props-style daily fantasy sports (DFS). DFS prop bets allow users to bet on a player’s performance and combine multiple players for higher payouts.

A filling at the United States Patent and Trademark Office from May 11 shows that DraftKings applied to trademark “DraftKings Cashpicks.” (DraftKings user and Microsoft employee Mike Dzikowski first called attention to the filing on X – formerly Twitter).

The filling suggests that Cashpicks is an extension of DraftKings’ DFS offerings. In the category “Goods and Services,” it says:

Downloadable mobile applications for use in fantasy sports competitions, namely, mobile applications for managing and participating in fantasy sports competitions

Additional language includes “entertainment services in the nature of fantasy sports competitions” and “entertainment services in the nature of sports betting.” That implies that the product will resemble sports betting, perhaps like DFS prop bets.

The name DraftKings is attempting to trademark is similarly interesting in its resemblance to that of PrizePicks. DraftKings has pushed back against PrizePicks and similar companies like Underdog Fantasy, which offer parlay-style player-against-the-house propositions they claim are a form of DFS. DraftKings has described those rivals as illegal sportsbooks.

It’s not clear if DraftKings has filed the trademark as a precautionary measure or if it plans on entering the fray with a similar product of its own. Multiple states are examining the legality of these types of bets, and DraftKings may want to have contingency plans in place for all possible outcomes.

DraftKings Has Long Opposed Props-Style DFS

The two largest sportsbooks by market share, FanDuel and DraftKings, started as DFS sites before sports betting legalization in 2018. But while they fought hard for the legal status of DFS in the past, now they strongly oppose props-style DFS. During this year’s National Council of Legislators from Gaming States 2023 Summer Meeting, FanDuel Head of State Government Relations Cesar Fernandez said:

There are companies today posing as fantasy-sports operators, and they are running illegal sportsbooks.

FanDuel and DraftKings view DFS operators as illegal sportsbooks mainly because of regulations and taxes. After the legalization of sports betting, the operators spent millions in licensing and market-access fees. They also pay up to 51% in taxes in each state they operate in. FanDuel and DraftKings believe that companies like PrizePicks go around taxation and licensing costs.

Meanwhile, DFS operators think DraftKings and FanDuel are scared of the competition and want to hold a monopoly. Underdog founder and Co-CEO Jeremy Levine recently wrote an open letter in which he said the two operators are using their lobbying power to paint Underdog and other similar operators as illegal. Levine argues that DFS prop bets are skill-based games and not gambling.

If You Can’t Beat Them, Join Them?

Filing for a trademark could mean that DraftKings is looking into potentially entering a big opportunity market. Offering DFS prop bets means that the operator can possibly enter the country’s largest states – California, Texas, and Florida, without fighting with native tribes or lawmakers.

PrizePicks and Underdog Fantasy offer DFS prop bets in over 30 states, many of which don’t have legal sportsbooks. That means that DraftKings’ reach could extend to those states. If it follows that strategy, DraftKings could force competition out, as it has substantially larger financial power.

DraftKings Cashpicks could also be a way for the company to become a leader in the skill-based game market. Skill games are unregulated and could be a significant piece of the gambling scene in the US. DraftKings has already invested in skill games through its multi-stage venture capital firm, Drive by DraftKings. If it’s looking into skill games, Cashpicks could solidify DraftKings’ position.

CA, NY Could Decide Future of DFS Prop Bets

Whether DraftKings is looking to launch props-style DFS or not is unknown. However, lawsuits and state regulators could determine the future of these types of bets.

The Michigan Gaming Control Board already proposed that lawmakers ban these types of bets. Ohio, Wyoming, and Maine regulators are also looking into props-style DFS. Meanwhile, the Alabama Attorney General’s Office asked PrizePicks and Underdog Fantasy to revise the bets offered.

But resolutions in two states, California and New York, could largely influence the future of DFS prop bets. In an update to the public register on Aug. 2, the New York State Gaming Commission decided that these bets “mimic proposition betting.” The regulator rejected a commenter’s request to change the law and allow props-style DFS.

New York regulations allow the public to comment and for an agency to accept comments for at least 60 days after an update. That means DFS operators like PrizePicks have until Oct. 3 to comment. If they fail to do so, the state will update the law and ban the bets. It’s possible that DraftKings is waiting on New York’s decision before it decides whether to launch Cashpicks.

The outcome of a case in California could also be crucial. Social sportsbook Fliff is facing a class-action lawsuit that accuses the operator of being an illegal sportsbook. Fliff argues that users have agreed to the terms and conditions, and California law doesn’t apply. Fliff also claims it uses a sweepstakes model.

However, plaintiff Bishoy Nessim argues the terms and conditions do not apply to California law. If the court sides with the plaintiff, it could imply that DFS prop bets are illegal. Losing access to California and New York could be a major financial blow to DFS operators.

About the Author

Chav Vasilev

Chav Vasilev

After years of managing fast-casual restaurants, Chav turned his passion for sports and occasional slot wins into a career as an iGaming writer. Sharing his time between Europe and the US, he has been exposed to betting and gambling for years and has closely followed the growth in the US. Chav is a proponent of playing responsibly and playing only at legal online sites. When not writing, you will find him watching and betting on sports, especially soccer, or trying to land the next big bonus on a slot.

Get connected with us on Social Media

Want the Good Stuff? We’ve Got You. Get The Drop—Bonus.com’s sharp, weekly newsletter with the wildest gambling headlines actually worth your time. Plus, we’ll hit your inbox now and then with exclusive offers, big jackpots, and other things we’d hate for you to miss.
Select a state
Select a state

                    Alabama                Alabama

                    Alaska                Alaska

                    Arizona                Arizona

                    Arkansas                Arkansas

                    California                California

                    Colorado                Colorado

                    Connecticut                Connecticut

                    District of Columbia                District of Columbia

                    Delaware                Delaware

                    Florida                Florida

                    Georgia                Georgia

                    Hawaii                Hawaii

                    Idaho                Idaho

                    Illinois                Illinois

                    Indiana                Indiana

                    Iowa                Iowa

                    Kansas                Kansas

                    Kentucky                Kentucky

                    Louisiana                Louisiana

                    Maine                Maine

                    Maryland                Maryland

                    Massachusetts                Massachusetts

                    Michigan                Michigan

                    Minnesota                Minnesota

                    Mississippi                Mississippi

                    Missouri                Missouri

                    Montana                Montana

                    Nebraska                Nebraska

                    Nevada                Nevada

                    New Hampshire                New Hampshire

                    New Jersey                New Jersey

                    New Mexico                New Mexico

                    New York                New York

                    North Carolina                North Carolina

                    North Dakota                North Dakota

                    Ohio                Ohio

                    Oklahoma                Oklahoma

                    Oregon                Oregon

                    Pennsylvania                Pennsylvania

                    Rhode Island                Rhode Island

                    South Carolina                South Carolina

                    South Dakota                South Dakota

                    Tennessee                Tennessee

                    Texas                Texas

                    Utah                Utah

                    Vermont                Vermont

                    Virginia                Virginia

                    Washington                Washington

                    West Virginia                West Virginia

                    Wisconsin                Wisconsin

                    Wyoming                Wyoming
Rest of the World
No Results
You are already subscribed to our newsletter. Want to update your preferences data?
Thank you for signing up! You’re all set to receive the latest reviews, expert advice, and exclusive offers straight to your inbox. Stay tuned!
View Offers
Something went wrong. Please try again later