Sportsbook marketing: what DraftKings and FanDuel spend

DraftKings spent $1.38 billion on sales and marketing in 2025, 22.8% of revenue, down from 75.7% in 2021. Flutter's U.S. segment (FanDuel and TVG) spent $1.32 billion, or 18.9% of its revenue, on a narrower basis. At both leaders of U.S. sportsbook marketing, budgets kept growing in dollars while revenue grew faster.

Results at a glance

Calendar-year figures from each company's Form 10-K. Both totals cover sportsbook, iGaming and other products; neither company splits marketing by product. Per-customer figures are our arithmetic.

Context: the sportsbook marketing land grab

The U.S. Supreme Court struck down the federal ban on state-authorized sports betting in May 2018, and states then legalized one at a time. DraftKings says in its 10-K that when it enters a new jurisdiction it "invests heavily" in acquisition, retention and cross-selling until the state reaches critical mass.

That shaped sports betting marketing early on: DraftKings' sales and marketing nearly doubled from $495.2 million in 2020 to $981.5 million in 2021, when revenue was $1.30 billion.

Mind the accounting. At DraftKings, incentives such as free plays, deposit bonuses and rebates reduce revenue instead of appearing in sales and marketing. Flutter reports sportsbook revenue net of winnings and "expenses associated with promotional activity," although its marketing line also includes some other promotional activities. So most player incentives sit outside the marketing line, which understates the full cost of winning a customer. The same netting affects hold and net revenue margin.

What they did

Both filings describe a similar sportsbook digital marketing mix: TV and media deals, league partnerships, paid digital channels, affiliates and promotions.

DraftKings marketing: media, leagues, affiliates

DraftKings lists television, radio, social platforms (TikTok, Facebook, Instagram, X and Snapchat), affiliates, paid and organic search and mobile display as its paid channels. Advertising, which includes "strategic league and team partnerships," came to $1,124.8 million of the $1,379.9 million sales and marketing total in 2025.

As of its February 2026 10-K, DraftKings was the official sportsbook and odds provider of ESPN and also named NBC and Amazon as media partners. For how an earlier media-branded sportsbook deal worked out, see our ESPN Bet case.

The DraftKings marketing strategy for promotions is model-driven: it sets promotional levels with return-on-investment models built on gross profit paybacks, lifetime value, segmentation and retention. It does not publish the payback target.

FanDuel marketing: partnerships and promotions

Flutter names three channel groups for FanDuel: paid advertising in traditional and digital media, new-player and event-driven sportsbook promotions, and paid affiliate programs. It also lists U.S. media partners including Amazon Prime Video, Paramount, Netflix, Fox Sports and The Ringer, and official betting partnerships with the NBA, NFL and MLB. Streaming partners like these sit close to CTV advertising.

In 2025, Flutter's U.S. marketing grew 3%. The company tied the increase mainly to the Missouri launch and its FanDuel Predicts product, partly offset by spending on the North Carolina launch in the prior year.

Results

Revenue outgrew marketing every year, so the ratio fell sharply.

Flutter's 10-K shows U.S. segment figures for 2023 to 2025 only.

Profit followed. DraftKings' adjusted EBITDA, a non-GAAP measure, rose from its 2022 low of minus $721.8 million to $620.0 million in 2025. Its net income moved from a $1.52 billion loss in 2021 to $3.7 million in 2025. Flutter's U.S. adjusted EBITDA rose from $232 million in 2023 to $922 million in 2025. Flutter credited the 310 basis point fall in its 2025 U.S. marketing share to "sustained operating leverage."

What a customer costs. Neither company discloses a customer acquisition cost or a payback target. Method: sales and marketing divided by a player count from the same 10-K, in two versions:

• Per average monthly customer (spend / average MUPs or AMPs). For 2025 that is about $345 at DraftKings and $327 at Flutter U.S. This is a floor, not an acquisition cost, because most of that spend went on players already on the books.

• Per net added customer (spend / the year's growth in average AMPs). For Flutter U.S. that is about $2,020 in 2024 (632,000 net adds) and $5,410 in 2025 (244,000). This is a ceiling: it charges the whole budget to one year's growth, although churned players were replaced and the spend also served retention. The 2025 figure jumped mainly because net adds slowed; spend that year also carried the Missouri launch and FanDuel Predicts.

Neither number is a CAC; together they show the spread between a floor that is too low and a ceiling that is too high. DraftKings MUPs are rounded to 0.1 million and include casino, fantasy, lottery and prediction-market users, so we do not run the second calculation for it. For a refresher on how CPA, LTV and ROI relate, see our affiliate metrics guide.

What did not work

• Taxes took margin. DraftKings' gaming taxes rose $473.4 million in 2025 with revenue, and the company also cited higher tax rates in certain jurisdictions. Flutter said higher state taxes took about 210 basis points off its U.S. segment margin that year. Illinois added a per-wager tax on online sports bets from July 1, 2025: $0.25 per wager for a licensee's first 20 million wagers in a fiscal year and $0.50 after that, on top of existing taxes. Neither company says how taxes affected its marketing budget.

• New growth got more expensive. Flutter's U.S. average player count grew by 244,000 in 2025, less than half the 632,000 added in 2024, while U.S. marketing spend still rose 3%.

• Advertising rules tightened. The American Gaming Association's Responsible Marketing Code for Sports Wagering is a voluntary code adopted by AGA members. Its March 2023 revision, the latest we found, bans "risk free" language, restricts college partnerships and asks that ads run only where at least 73.6% of the expected audience is 21 or older. Flutter's 10-K also flags tightening rules outside the U.S.

This is a summary of public documents as of October 2026 (last updated October 2026), not legal advice.

Takeaways for affiliates

• Do not read these figures as a CPA benchmark. Neither company discloses what it pays to acquire a player. Our two calculations show how much total marketing each average player carries, not a payout ceiling. Ask your manager for actual CPA, approval rate and 30-day value on your own traffic. Bring player-quality data, not volume, to rate talks.

• Expect deal structure questions. This is our reading, not something either company states: with marketing now below a quarter of revenue at both leaders, programs may push for hybrid or RevShare terms that tie your pay to player value. Know how each model pays before you negotiate (CPA vs RevShare vs Hybrid).

• Watch new-state launches. DraftKings says it invests heavily in acquisition in a new state until it reaches critical mass, and Flutter tied part of its 2025 U.S. marketing growth to the Missouri launch (alongside FanDuel Predicts). Launch periods are when operators are most likely to buy volume, so ask programs which new states they are pushing.

• Expect operators to watch margin. Where a state adds taxes, as Illinois did with its per-wager charge, operators keep less of each bet. Ask whether payout terms differ by state before you plan volume there.

• Keep creatives compliant. "Risk free" claims and ads placed where fewer than 73.6% of the expected audience is 21 or older break the industry code, and each state adds its own advertising rules. Check them before a campaign goes live.

FAQ

How much does DraftKings spend on marketing?

DraftKings reported $1,379.9 million in sales and marketing expense for 2025, up 9.1% from $1,264.9 million in 2024. The increase came mainly from $75.2 million more advertising. As a share of revenue, the DraftKings marketing spend fell from 75.7% in 2021 to 22.8% in 2025.

How much does it cost a sportsbook to acquire a customer?

No major operator discloses a customer acquisition cost, and neither Flutter nor DraftKings publishes a payback target. For 2025, Flutter's U.S. segment spent about $327 of sales and marketing per average monthly player over the year, and about $5,400 per net added average player. The first mostly reflects spending on existing players; the second charges the whole budget to one year's growth. Neither is a CAC, and promotions come on top.

Do DraftKings and FanDuel use affiliates?

Yes. Both name affiliates among their paid marketing channels in their 2025 annual reports. Neither discloses how much it pays affiliates or on what terms.

Why did sportsbook marketing spend fall as a share of revenue?

Revenue grew much faster than marketing. DraftKings' revenue rose 27.0% in 2025 against a 9.1% rise in sales and marketing; its 10-K credits revenue growth to payer growth and a higher sportsbook net revenue margin and gives no explanation of its own for the falling marketing ratio. Flutter attributed the 310 basis point fall in its U.S. marketing share to "sustained operating leverage." In dollars, spend still rose every year shown.

Sources

• DraftKings Inc., Form 10-K for fiscal 2025, filed February 2026 (Item 7, sales and marketing)

• DraftKings Inc., Form 10-K for fiscal 2022, filed February 2023

• Flutter Entertainment plc, Form 10-K for fiscal 2025, filed February 2026 (segment information note)

• Illinois Gaming Board, FAQs on the new statutory sports wager tax, June 2025

• American Gaming Association, Responsible Marketing Code for Sports Wagering, March 2023

• SEC EDGAR, DraftKings XBRL financial data (2020 and 2021 figures)