Understanding How DraftKings Payout Structure Works
In 2021 the sports betting industry generated roughly $4.29 billion in revenue on $57.22 billion wagered. One of the biggest sports betting platforms in the industry is DraftKings, but how does the DraftKings payout structure work?
While DraftKings has a specific type of payout structure, it is set up so that you have the chance to win big.
The amazing thing about this is that even if you don’t take first place, you can still collect some winnings from DraftKings. So if you placed your bets right, you could find yourself walking away with a nice cash prize.
With this in mind, we have created a guide to Draftkings payouts below; read on to learn more.
What Is DraftKings?
If you don’t know about DraftKings, it is an American sports betting company and fantasy sports contest. People can enter their contests and place sports bets for the chance to win big prizes.
New users join DraftKings every day for the different bets that they offer and the different prizes that are available.
One of the biggest contests that DraftKings holds is Millionaire Maker. DraftKings started with just one Millionaire Maker contest; however, it was so successful that they decided to do multiple Millionaire Maker contests.
DraftKings allows people to win big prizes with Millionaire Maker, and the first-place winner can take home $1,000,000.
DraftKings Payout Structure
When it comes to betting, one of the most important things you need to know is how the payout structure works. Draftkings has tried to make its payout structure for Millionaire Maker as clear as possible.
The Millionaire Maker event comes with a wide range of small prizes and also huge take-home prizes.
To enter Millionaire Maker, all you have to do is pay $27 for an entry. However, you can make more entries if you want.
How Is the Payout Calculated?
The first thing worth noting is that everything is calculated ‘by the numbers’. This means that there are certain percentages allocated to different places.
All of the cash prizes are then worked out using the allocated percentages.
50 percent of the overall prize goes to the top 0.12 percent of the prize pool. This means that the top 200 lineups will make more than the rest of the field combined.
Here Are the Top 6 Payouts:
- 1st place. $2,000,000 – 20% payout
- 2nd place. $1,000,000 – 10% payout
- 3rd place. $500,000 – 5% payout
- 4th place. $250,000 – 2.5% payout
- 5th place. $150,000 – 1.5% payout
- 6th place. $100,000 – 1% payout
Once the top 6 payouts have been made, then the rest of the payout percentages will get split among the descending places. For example, 7th and 8th place share a prize of $150,000 so they get $75,000 each.
As the rankings move further away from first place, players have to split more of their prize money. For example, the prize for the 801st place to the 1000th place is $80,000. So people who place in this ranking will get $400 each.
Eventually, when it gets to the final rankings, players all get $25 each. Of course, some players may not even get their $25 back and lose out on their money.
Competition
In reality, there is a lot of competition in Millionaire Maker, and you would have to beat anywhere from 547,500 lineups just to double your money. This is a huge number of people, which means that the DraftKings contest doesn’t have the odds in your favor.
However, this doesn’t necessarily mean that your chances are any slimmer than the rest of your competitors. After all, everyone who enters has a chance of winning.
One rule that DraftKings has made is that they have limited the number of entries to just 500 for one player. This can help to remove some of the competition as a group of players can’t just join together and outbuy the competition for the top cash prizes.
While you do have the option to place all your money down at once, this isn’t always advised as it may not necessarily increase your chances of winning more money. However, the way you decide to bet is your choice, and you do have a chance of winning big in Millionaire Maker.
The Winning Rankings
Another important aspect of DraftKings payout structure is how the placing works. In other words, where you end up in the overall rankings.
The way the placing works is that each time you win a bet then, you get a certain amount of points allocated to you. These points keep building throughout the Millionaire Maker contest, and there will be a final total.
The final place that you end up within the rankings will depend on how many points you have accumulated.
If your team manages to outscore every other team, then you will move to first place and take home the top prize of $1,000,000.
Of course, if you don’t score enough points or if you don’t score any points, then you may end up at the bottom of the rankings. In this case, it is unlikely that you will get your $25 back, and you will have lost your bet.
Get More Sports Betting Tips
It’s important to know the different aspects of the DraftKings payout structure so that you can understand how to win contests like Millionaire Maker. While DraftKings does offer big prizes, there are lots of other ways to win sports bets.
At The MadLab MMA, we offer regular tips, updates, and news to help you find the best bets and collect bigger winnings.
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