OREGON LOTTERY APPROVES DRAFTKINGS SPORTSBOOK’S TAKEOVER

The Oregon Lottery Commission has approved a switch for the DraftKings Sportsbook to take over the Oregon sports betting app. This switch was unanimously approved by the Oregon Lottery Commission. The DraftKings app will be taking over from the Scoreboard app, which is powered by SBTech.

This is also the only Oregon sports betting app. This change has been coming for a while now, it was first mentioned in a February meeting of the Oregon Lottery Commission.

As of right now, the legal status of daily fantasy sports in Oregon has been in question. So, DraftKings has agreed to drop daily fantasy sports in Oregon during negotiations as an act of good faith.

It is interesting to note that DraftKings acquired SBTech last year, in 2020. Even so, the switch will not be without its issues unfortunately. Existing users will now have to create new sports betting accounts on the app, for instance.

The Oregon Lottery seems especially committed to making this switch as soon as can be. So, that can be welcome news for anyone who is excited to see DraftKings take over the app sooner rather than later. However, the Oregon Lottery Commission has not announced an exact date for when this switch will happen.

The hope is that users will not be put off by the fact that they will need to create new accounts on the app once the switch has been made. This is because DraftKings has such a great reputation that the takeover could mean an overall bettor app for Oregon sports bettors. The Oregon Lottery Commission does not expect to see a large drop in revenue as a result of the switch.

They hope that the experience DraftKings will provide as well as the potential additional betting options will be able to entice users. An interesting fact is that this switch has been approved by the commission despite the fact that a contract does not yet exist. As a result, contract negotiations between DraftKings and the Oregon Lottery Commission will now be underway.

This is not a typical move seen from a sports betting governing body. And, it could result in more expense for the state if the company decides it wants a larger revenue share. At first, the contract between the Oregon Lottery and SBTech was not made public.

Now, the details of that contract have been made public. The SBTech contract reveals that the Oregon Lottery could potentially share up to 51% of its monthly revenue at maturity. So, DraftKings could be eyeing that number when it comes to its own revenue share.

Written by Allie Nelson, our US Sports Betting Industry expert. You can learn more about our author's expertise here.