FanDuel vs. DraftKings: The Heated Debate Over New ‘Injury Protection’ Fees

• FanDuel has debuted a full-game insurance program for player props and parlays
• Bet Protect+ costs 3% of the bet
• DraftKings bettors are criticizing its rival’s insurance program

While FanDuel claims its new Bet Protect+ puts users in control, rival DraftKings bettors are warning that the mandatory 3% premium for injury protection is effectively a hidden tax on winning.

FanDuel Bet Protect+ is an optional feature within FanDuel Sportsbook that allows bettors to obtain full-game injury insurance on their prop bets and parlays. Bet Protect+ costs 3% of the bet, which FanDuel calls “nominal.”

If the player on the bet leaves the game at any point due to injury, Bet Protect+ refunds a straight bet in cash (not Bonus Bets). On a parlay, the injured leg will be removed and the odds and payout recalculated.

The challenge is that even with the most well-planned bet, the most comprehensive research, the best hunch — it can all get squashed by an unexpected injury,” said Jon Sadow, FanDuel’s vice president of sportsbook product. “We want to allow our customers to regain that loss of control.”

Bet Protect+ is currently live for the NBA Playoffs, with plans for the insurance program to be rolled out to other sports in the coming weeks.

FanDuel Insurance Criticized

While FanDuel argues Bet Protect+ is a “nominal premium” for full-game insurance against player injuries, critics say the cost gives even more “vig,” or juice, to the sportsbook.

Fans of DraftKings say their sportsbook provides similar protections against player injuries for free through the platform’s Early Exit Program. But the DraftKings program typically only provides insurance against injuries in the first half of games.

For MLB, the cash-back insurance is limited to a pitcher exiting due to injury before recording three outs or a batter leaving before their second plate appearance.

Bet Protect+ provides significantly more insurance than Early Exit, but that didn’t stop Barstool founder Dave Portnoy, a DraftKings partner, from mocking FanDuel’s initiative.

“If you’re betting on NBA Playoffs with player props, you know DraftKings gives you free Early Exit. If your player gets hurt in the first half, all parlays and props are refunded. FanDuel is charging you for this service. You pay money for this,” Portnoy said on X.

You are a moron if you are not using our friends at DraftKings. You got to protect yourself. Early insurance on DraftKings, your player goes out, refunded. The competitors, they charge you for this,” Portnoy continued.

Bet Protect+ is essentially a 3% vig for second-half insurance, as FanDuel, like DraftKings, has historically voided and refunded player prop bets on early-game injuries through its complementary Bet Protect. Although with the introduction of Bet Protect+, FanDuel might be less liberal in refunding injuries.

Play Prop Protections

The battle for customers in the highly saturated online sportsbook industry led to operators voiding and returning player prop bets due to early injuries. Along with “bad beats” being refunded, critics of the US market say it has resulted in sports bettors becoming spoiled.

Ed Miller, a longtime Las Vegas bettor, said bad beat refunds are “cheapening” the trade and fostering a culture of entitlement.

“Professional bettors play the game on a more serious level,” Miller said.