Last Thursday, August 26th, the four-member Oregon Lottery Commission voted unanimously to change its mobile sportsbook operator from Scoreboard to DraftKings. Scoreboard has been the only sports betting operator in the state for the past three years, but the regulator decided to switch to DraftKings, a juggernaut in the US sports betting sector.

Oregon established a closed sports betting market model, unlike other US states where retail, online, and mobile sports betting is legal. Rather than granting licenses to different operators, the Oregon Lottery permits only a single sportsbook operator to serve the state’s sports betting fans. Barry Pack, the Executive Director of the Oregon Lottery, state that the switch to DraftKings was the best move because:

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“There are a number of business benefits in terms of simplifying some of the structure, and there are player benefits as the experience will be improved on the new platform.”

After Director Pack first mentioned it in a Commission meeting in February, the transition from Scoreboard had been in the works for a couple of months. Following weeks of negotiations, DraftKings then agreed to cease its DFS operations in the Beaver State as an act of good faith. Given that Oregon’s DFS legality is a grey area, DraftKings decided it was best to stay clear of any controversy, even though it believes that the activity is rightfully permissible.  

Oregon’s Sportsbook Migration is Technically not a Switch, it's an Upgrade

If we take a closer look at Oregon’s sports betting platform migration, it’s interesting to note that the switch is essentially from SBTech to SBTech. How so? Well, SBTech, a leading sports betting technology provider, has been powering Scoreboard since the Beaver State launched its regulated sportsbook market in October 2019.

But then, less than two months later, in December 2019, DraftKings acquired SBTech as it prepared to make its debut on the Nasdaq. DraftKings bought out the sports tech provider and completed a reverse merger acquisition deal with Diamond Eagle Acquisition Corp, a blank check company. Previously DraftKings sportsbook was powered by Kambi before changing over to SBTech after acquiring it.

So, the switch to DraftKings will basically be from an older SBTech version to a newer one, though this time, Oregon Lottery won’t be working directly with the platform provider. For now, however, the Oregon Lottery Commission hasn’t issued a tentative date of when the migration will occur.

The switch is expected to occur by the third quarter of this year as the fall season is usually a sports-heavy calendar with MLB playoffs and the start of NHL, NFL, and NBA seasons. About the timeline of the switch to the new sportsbook platform, Director Pack said:

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“One of the factors we’re going to have to work on soon is how to fit a transition from one platform to the other while still heading into a busy season of professional sports. Both the NFL and NBA are coming up here really soon. We want to make sure that we’re able to seize the right window when we have enough information to know what it’s going to take and how long it’s going to take to make the transition work.”

Upgrading to an Improved User Experience and Better Options

For a long time, sports betting fans in the Beaver state have complained about the SBTech sportsbook software and line juicing. As such, the switch, or rather upgrade, is a much welcome move for a lot of sports bettors in Oregon.

Nevertheless, the biggest challenge that the switch brings is that former Scoreboard users will now have to create a new account with DraftKings to access the state’s only sportsbook. With that, the Oregon Lottery expects a slight dip in revenue as some people might be unwilling to re-register for a sports betting account.

Still, the regulator sees this as a temporary challenge given that DraftKings sportsbook design offers a better USA-focused interface and player experience. For that, Director Barry Pack explained that:

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“We may see some players who choose not to make that transition, but I think that will probably be offset by the improved customer experience and the additional wagering options that the DraftKings platform will offer. The DraftKings platform is a lot more familiar to regular US sports bettors. The SBTech platform was more of a European design.”