FanDuel – Sales & Marketing – Wagering America – A Kelly Criterion Capital Company

Marketing / Advertising / Brand Teardown — OSB & iGaming Operator Capability Series

FanDuel (Flutter)

NYSE: FLUT / LSE: FLTR · US segment = FanDuel + TVG · FY ends 31-Dec · Currency USD · Tier-1 reference (self) · Trailing reference: theScore Bet (PENN)

Source tiers  F filing / disclosed  ·  P press / trade-media  ·  E estimated / triangulated (order-of-magnitude)  ·  G gap (not found)

0 · Scorecard

Marketing-Maturity Tier

Tier-1 Leader (the benchmark)

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Spend Eff.

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Unit Econ.

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Brand

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Channel Mix

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Sponsorship

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Promo Disc.

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Reg. Posture

Harvey-ball scale  ○ Unfit / Trailing◔ Weak◑ Moderate◕ Strong● Excellent / Leading

Headline read

FanDuel is the reference tier-1 marketing operator in US OSB — the benchmark every other name in this series is scored against. It holds ~41% US sportsbook GGR share and ~27–28% iGaming share, and management states FanDuel captures roughly 70% of total US market EBITDA. Sharpest differentiator: disciplined generosity — FanDuel demonstrably declined to match competitors’ ‘uneconomic’ Same-Game-Parlay promotional generosity at the 2025 NFL season start, accepted a temporary share dip, and protected a structural revenue margin that ran ~50% higher than competing operators in Q4 2025. That is the single cleanest filed example of promo discipline beating promo volume in the sector. It also runs the lowest-friction welcome mechanic of the majors (1x playthrough; winnings settle as cash) and owns a genuine media flywheel (FanDuel Sports Network, 16 RSNs) that DraftKings lacks. Most material weakness: a comparatively thin loyalty/reload program (no rich points-for-cash VIP ladder; reviewers flag the rewards program as lighter than peers) and rising regulatory/tax drag (Illinois wager fee, UK tax, prediction-market regulatory tests). FanDuel earns top balls for efficiency and discipline, explicitly not for out-spending — it frequently spends less generously than rivals and wins anyway.

1 · Spend Trend-Line — the centerpiece

Accounting basis: Flutter reports a US reportable segment (FanDuel + TVG); the segment Sales & Marketing line excludes amortization of trademarks/customer relations, SBC of S&M personnel, and restructuring/integration (per Flutter’s segment-reporting footnotes). This is a cleaner ‘pure-ish’ marketing line than DraftKings’ consolidated S&M. Currency USD. Important basis caveat: Flutter is a UK/Ireland filer reporting US-GAAP since the 2024 NYSE listing; pre-2024 US figures are segment reconstructions and the FY2025 full-year US S&M dollar line below is triangulated from the disclosed ratio — treat as E.

FISCAL YEAR	S&M SPEND ($M)	YOY	YOY Δ	% OF REVENUE	SRC
FY2022 (US seg)	~1,560	▬	—	~46%	E
FY2023 (US seg)	~1,370	▼	~−190	~28%	E
FY2024 (US seg)	1,278	▼	~−92	~20–22%	P
FY2025 (US seg)	~1,575–1,650	▲	~+300	~21–22%	E

P = trade-source (Scaleo cites Flutter US-segment S&M $1.278B for FY2024). E = triangulated from disclosed S&M-%-of-revenue (~22% per Flutter; ~20.4% if computed on Flutter’s own disclosed US FY24 revenue ~$6.26B) applied to US revenue. US revenue: FY24 ~$6.26B (F), FY25 ~$7.5B (+20% disclosed, F). FY22–23 US-segment S&M are reconstructions (E). Direction glyphs: ▲ up · ▼ down · ▬ flat.

The spend story, reconciled to the math

FanDuel’s S&M-as-%-of-revenue fell from the mid-40s (FY22 land-grab) to ~20–22% (FY24–25) — the same operating-leverage shape as DraftKings, but FanDuel reached profitability earlier and deeper (US Adjusted EBITDA $922M FY25, +82% YoY). The discrepancy worth flagging: the widely-cited ‘$1.278B = 22% of US revenue’ (Scaleo) implies a US FY24 revenue base ~$5.8B, whereas Flutter’s own disclosure puts US FY24 revenue nearer $6.26B, which would make the ratio ~20.4%. Either way the conclusion holds — FanDuel runs the most efficient S&M ratio of the US majors — but the exact dollar line is a diligence item until read straight from the segment note in the 20-F/10-K equivalent.

Forward block. Company guidance (F, 26-Feb-2026): FY2026 US revenue ~$7.8B and US Adjusted EBITDA ~$1.05B midpoints, explicitly absorbing a new-state EBITDA loss of ~$70m and a prediction-markets (FanDuel Predicts) investment toward the top of a $200–300m loss range. Flutter does not guide a standalone US S&M dollar line. Analyst/modelled (E): holding S&M at ~21–22% of the ~$7.8B US guide implies ~$1.6–1.7B US S&M in FY2026 (method: prior-year ratio × guided revenue; order-of-magnitude). FanDuel Predicts is the line item to watch — it is a fresh, deliberately-funded acquisition front layered on top of the disciplined core.

2 · Unit Economics

FanDuel/Flutter is the most transparent of the US majors on acquisition economics method — it defines and discloses a payback period (‘the projected average time for players to generate sufficient adjusted gross profit to repay average acquisition cost’) and repeatedly states paybacks are ‘in line with historic trends.’ It still does not publish a hard CAC dollar, so derived figures below are labelled E/order-of-magnitude.

Metric	Read	Src
US sportsbook GGR share (FY25)	~41% — clear #1	F
US iGaming GGR share (FY25)	~27–28% — #1	F
Share of total US market EBITDA (mgmt)	~70%	P
Structural sportsbook revenue margin (FY25)	~14.2% group; Q4 ~15.5%; ~50% above rivals (mgmt)	F/P
Payback period	Disclosed method; ‘in line with historic’; scale + high hold = faster payback	F
Cost per acquisition (CAC $)	NOT disclosed — diligence item	G
1.2x return on user-acquisition cost (FY24, trade est.)	Implies LTV/CAC ~1.2x at acquisition window	E

‘~50% above rivals’ margin and ‘~70% of US EBITDA’ are management commentary (P). The 1.2x acquisition-return is a trade-source estimate (Scaleo, E) and is a payback-window figure, NOT a lifetime LTV/CAC — lifetime ratio is undisclosed (G).

Efficiency read

FanDuel is the efficiency leader of the cohort on every axis that is observable: highest GGR share, highest structural hold, deepest US profitability, and the only major to disclose a payback methodology. The honest limitation is identical to DraftKings — no published CAC or lifetime LTV/CAC, so the leadership claim rests on share + margin + disclosed-payback direction, not on a printed ratio. Where DraftKings’ efficiency case is ‘flat spend, rising ARPMUP,’ FanDuel’s is stronger: lower promo generosity than rivals AND higher margin AND bigger share — the trifecta that defines the benchmark.

3 · Brand Position & Equity

Positioning thesis. FanDuel positions on simplicity, trust and ‘America’s #1 Sportsbook’ — a value-and-ease message anchored by the Same Game Parlay as its signature product. Versus DraftKings (product-led, DFS-engagement framing) the two are co-leaders on fame; on share and margin FanDuel is ahead. Versus trailing operators like theScore Bet (PENN, the live ESPN BET successor) the gap is categorical.

Brand-equity axis	FanDuel	Read	Src
US OSB handle / GGR share	#1 (~41%)	Clear leader; pricing power on promo	F
Aided brand awareness (US OSB)	Top-1/2	Near-universal; ‘America’s #1’ claim	E
App-store ranking (sports/betting)	Consistently #1-tier	Peaks NFL kickoff, Super Bowl, March Madness	P
DFS heritage / owned audience	Strong	Pre-OSB funnel (shared trait with DKNG)	F
Owned national media network	YES — FanDuel Sports Network (16 RSNs)	STRUCTURAL — the asset DKNG lacks	P

FanDuel Sports Network = the former Diamond/Bally regional sports networks rebranded Oct-2024; also distributed as an Amazon Prime Video add-on (Feb-2025). Awareness/app-rank reads are E/P (no single audited public tracker).

Tier-1 read. FanDuel has the strongest brand-equity position in US OSB: category-leading fame plus a real owned-distribution asset (FanDuel Sports Network) that converts rented reach into an owned screen — the one place FanDuel structurally out-positions DraftKings. The caveat: the RSN model itself is a declining-linear business, so the network is a brand/owned-reach asset of uncertain long-run economics, not a guaranteed flywheel.

4 · Channel & Campaign Mix

FanDuel blends national TV/streaming + performance digital + affiliate + a DFS-to-OSB funnel, and uniquely anchors an owned-media layer (FanDuel Sports Network) on top. The owned network is the structural differentiator; everything else is high-quality rented reach at duopoly scale.

Channel	Role	Structural vs rented	Src
FanDuel Sports Network (16 RSNs)	Owned brand + in-game integration	STRUCTURAL (owned) — unique among US majors	P
DFS → OSB / iGaming cross-sell	Owned acquisition funnel	STRUCTURAL — shared-wallet across products	F
National TV / streaming	Brand + live-bet prompts	Rented	P
Performance digital / paid social	Direct-response acquisition	Rented	E
Affiliates	Lower-funnel; performance-tied	Rented	P

Channel-share percentages are not disclosed (G); allocation reads are qualitative (E/P) anchored to disclosed assets and management commentary.

Structural advantage vs rented reach

FanDuel is the only US major with two owned acquisition assets — the DFS funnel (shared with DraftKings) and the FanDuel Sports Network owned-media layer (which DraftKings has no equivalent of). The shared wallet across Sportsbook / Casino / DFS / Racing compounds the funnel. This is the clearest channel-moat edge over DraftKings in the entire teardown — though, again, the RSN business carries its own linear-decline risk.

5 · Sponsorships, Partnerships & Ambassadors

Property / partner	Nature	Disclosed value	Src
NFL	Official sportsbook partner (one of)	~$40M / yr class (precedent) — UNCONFIRMED est.	P/E
Diamond / FanDuel Sports Network	RSN naming + content (16 networks)	Undisclosed deal economics; equity/branding structure	P
Amazon Prime Video (FanDuel Sports Network add-on)	Distribution partnership	Undisclosed	P
NBA, MLB, NHL, etc.	League authorisations / partnerships	Mostly undisclosed	P
PokerStars-on-FanDuel (US)	Cross-product content (intl brand into US)	Internal — n/a	F

UNCONFIRMED: NFL ~$40M/yr per GlobalData precedent class (P/E). FanDuel Sports Network economics not disclosed. Do not treat any value here as filed.

Strategic-fit read. FanDuel’s portfolio is coherent and, with the RSN network, partly owned rather than purely rented — a structurally stronger sponsorship posture than DraftKings’ all-rented portfolio. The trade-off is concentration in a declining linear-RSN vehicle. Net: Strong, well-fitted, with an owned-media twist no rival matches — but every headline value is press/estimate, never filed.

6 · Promotional Offer Architecture & Aggressiveness

6a · Offer-type inventory. Every distinct promo mechanic FanDuel runs, with terms, bonus-vs-cash treatment, frequency and source tier. Terms are P (FanDuel promo pages / T&Cs) or E (aggregator triangulation); none are filed (F).

OFFER MECHANIC	HEADLINE VALUE	KEY TERMS	BONUS / CASH	FREQUENCY	SRC
Welcome / sign-up (current)	Bet $5, get $350 in bonus bets (paid $50/day ×7 days)	First real-money wager; bonus bets nonwithdrawable, 1x use, expire 7 days; some variants require first bet to win	Bonus bets	Always-on (new users)	P
Welcome (web variant)	No-Sweat First Bet up to $2,500 back	Refund as bonus bets if first bet loses; 1x; 7-day expiry	Bonus bets	Periodic / web	P
No-Sweat / parlay-insurance tokens	Stake back as bonus bet if it loses	Opt-in; per-event; small max caps (reviewers flag caps as low)	Bonus bets	~Weekly in football season	P
Odds boosts	Enhanced odds on selected markets	Opt-in; market-specific; min-odds vary by state/day	Cash winnings	~Daily	P
Profit-boost tokens	+% on winnings (e.g. 30% MLB token)	Opt-in; toggled in bet slip; eligibility caps	Cash winnings	Frequent / event-driven	P
SGP / Boost Builder	Enhanced same-game-parlay pricing	Opt-in; FanDuel’s signature product hook	Cash winnings	Always-on	P
Deposit match / reload	% of deposit matched in bonus bets	Rare — ‘a couple times per year,’ not all users	Bonus bets	Rare / targeted	P
Referral	Both parties get $50 bonus bets (or 2×100% boost tokens)	Friend new + deposits $10+; first bet settles ≤30 days	Bonus bets / tokens	Always-on	P
Reactivation / win-back	Targeted boosts / ‘WFH’ / ‘Keep the cash’ style	Targeted; state-specific (e.g. CO ‘Anything Book’)	Mixed	Targeted	P
Loyalty — FanDuel Players Club	FanDuel Points (FDP) → rewards	Auto-enrolled; reviewers call it lighter than peers	Bonus play / perks	Always-on	P
FanDuel Casino welcome	Deposit $10, get up to ~500 spins + casino bonus; or 24h loss-refund up to $1,000	Spins state-locked to select games; playthrough applies	Site credit / spins	Always-on (casino)	P
Free-to-play / DFS pools	Bet Your Bracket, free contests	No-stake engagement funnel	Free entry	Event-driven	P

Sources: FanDuel.com promo pages and major aggregator reviews (CBS Sports, Sportsline, FantasyLabs, RotoWire, FoxSports), June 2026. Headline welcome value cycles ($100/$150/$200/$350) by period and state; $350-bet-$5-for-7-days is the current headline. Bonus bets carry an effective 1x requirement — winnings settle as withdrawable cash; the stake has no cash value. Treat all values as P, not filed.

6b · Volume & aggressiveness read. Scored against the tier-1 reference (here, FanDuel is the reference, so it is benchmarked vs DraftKings as co-leader) and the trailing reference (theScore Bet, PENN). Top balls reward disciplined generosity — competitive headline value with customer-friendly terms and contained margin drag — not the biggest blitz.

Promo axis	This operator	Tier-1 ref	Trailing ref
Headline generosity (welcome)	◕	◕	●
Terms friendliness (low playthrough / cash settle)	●	◕	◑
Offer breadth (distinct live mechanics)	●	◕	◑
Refresh cadence (boosts/no-sweat frequency)	●	◕	◑
Reload / loyalty depth	◑	◕	◔
Promo-as-margin-drag discipline (low = better)	●	◕	○

theScore Bet (PENN Interactive; live successor to the wound-down ESPN BET brand, rebranded 1-Dec-2025) leads on raw headline ceiling — a $1,000 first-bet-reset — which earns it ● on headline generosity, but the reset is insurance (5×20% bonus bets, win-required variants) and PENN limits sharp bettors quickly, so ○ on margin-drag discipline; not a sustainable blitz. FanDuel’s lighter loyalty/reload depth is its one below-peer promo axis. DraftKings sits between on most axes. Aggressiveness reads are E/P from aggregator observation; offer counts are not filed.

Promo-Aggressiveness Spectrum

Disciplined

Competitive

Aggressive

Blitz

FanDuel sits at the DISCIPLINED end of the spectrum — and the stated narrative matches the observed behaviour. The decisive evidence is filed/management-disclosed, not inferred: at the 2025 NFL season start FanDuel declined to match competitors’ ‘very high levels of uneconomic generosity’ on Same Game Parlays, took a temporary sportsbook-share/AMP dip (Q3 sportsbook revenue -5%, AMP -4%), then re-invested selectively in Q4 (handle +10% QTD) once economics justified it — while holding group promo spend at ~4.0% of GGR (down 20bps YoY) and running a structural margin ~50% above rivals. This is the cleanest sector example of discipline beating volume: the headline welcome offer is competitive (not the biggest), the terms are the friendliest of the majors (1x playthrough, winnings settle as cash), and the loyalty/reload layer is deliberately thin. The one honest tension: a thin loyalty ladder is a retention risk, and the Q4 re-investment shows discipline is conditional — FanDuel will spend when payback math says so, it simply refuses to chase share at a loss.

7 · Regulatory & Responsible-Marketing Exposure

FanDuel carries category-standard US state-by-state advertising constraints (college/student-targeting limits, inducement/affiliate rules, ‘risk-free’/’bonus’ language scrutiny) plus, via FanDuel Predicts (live Dec-2025 in 18 states for sports, 50 for non-sports), CFTC/prediction-market regulatory tests that are actively contested in states such as Massachusetts, Nevada and New York. Tax is the sharper near-term pressure: the Illinois per-wager fee (now treated as taxable by Flutter) and UK tax increases directly compress the margin that funds promotional generosity.

Litigation / allegations — unproven, contested, no findings

As an industry leader FanDuel is, in the ordinary course, subject to putative class-action and consumer litigation of the type affecting the sector (including historical promotional-language and advertising-substantiation claims), and to prediction-market regulatory challenges. These are allegations, pending matters and regulatory questions — unproven and contested, with no adverse findings asserted here; Flutter disputes claims against it in the ordinary course. They are noted only as a marketing-exposure surface (promo-language substantiation; prediction-market advertising risk), contained to this one labelled box, and not characterised as wrongdoing. The forward marketing point: promo-language compliance and FanDuel Predicts advertising are active cost-and-risk axes.

8 · Build / Buy / Partner Read

Weak / exposed pillar	Gap	Build / Buy / Partner	Difficulty
Loyalty / reload depth	Players Club lighter than peers; thin reload cadence	BUILD — richer VIP/points ladder; cheapest gap to close	Easy
CAC transparency	No disclosed CAC / lifetime LTV-CAC	BUILD — internal exists; disclosure is a choice	Easy (internal)
Owned-media durability	FanDuel Sports Network = declining linear RSNs	PARTNER/BUILD — push streaming (Amazon add-on done); de-risk linear	Hard
Prediction-markets brand	FanDuel Predicts new vs Kalshi/Polymarket; regulatory contest	BUILD + PARTNER; outcome regulator-dependent	Medium/Hard

Operator lens, vendor-neutral. No investment recommendation. ‘Difficulty’ is qualitative effort, not cost.

9 · Tier-1 vs Trailing Synthesis

Weighted Harvey-ball comparison — FanDuel (the tier-1 reference) vs DraftKings (co-leader) and theScore Bet / PENN (trailing reference). Balls reward demonstrable efficiency/discipline, not budget size.

Marketing pillar (weight)	FanDuel	DraftKings (co-leader)	theScore Bet (trail ref)
Spend efficiency (25%)	●	●	◔
Unit economics (20%)	●	◕	◔
Brand equity (15%)	●	◕	◑
Channel mix / owned assets (15%)	●	●	◑
Sponsorship fit (10%)	◕	◕	◕
Promo discipline (10%)	●	◕	○
Reg / RG-marketing posture (5%)	◑	◑	◑

FanDuel edges DraftKings on unit economics (higher share + margin + disclosed payback), promo discipline (declined to match uneconomic generosity), and owned assets (FanDuel Sports Network). DraftKings matches on raw spend efficiency and edges on DFS-funnel breadth perception. theScore Bet (PENN) — the ~3%-share successor to ESPN BET — trails on efficiency, unit economics and promo discipline despite a high $1,000 headline reset.

Harvey-ball scale  ○ Unfit / Trailing◔ Weak◑ Moderate◕ Strong● Excellent / Leading

Verdict — maturity tier & the moves that matter

Tier-1 Leader — the sector benchmark. FanDuel is the most efficient, highest-share, most promo-disciplined marketing operator in US OSB, and the only major pairing a DFS funnel with an owned-media layer. Its defining trait is disciplined generosity: it wins with competitive-not-maximal headline offers, the friendliest terms of the majors, and a documented willingness to cede short-term share rather than chase uneconomic promo — then re-invest when payback justifies it. The three moves that would extend the lead: (1) close the loyalty/reload gap — the cheapest, clearest weakness; a richer VIP ladder would harden retention without breaking discipline; (2) de-risk owned media — accelerate the FanDuel Sports Network shift from declining linear RSNs toward streaming/digital; (3) win the prediction-markets brand via FanDuel Predicts before Kalshi/Polymarket define it, subject to the regulatory contest. The honest caveat throughout: FanDuel’s true CAC, payback dollar and lifetime LTV/CAC are undisclosed, so the leadership case rests on share, margin, disclosed-payback direction and observed promo discipline — not on a published ratio.

· Known / Unknown / Diligence Register

Item	Status	Tag
US FY24 segment S&M (~$1.278B)	PARTIAL — trade-sourced; reconcile to segment note	P
US FY25 full-year S&M $ line	UNKNOWN — triangulated ~$1.58–1.65B from ratio	E
US FY24/FY25 revenue, EBITDA, share	KNOWN — disclosed	F
Promo spend as % of GGR (4.0% Q4’25)	KNOWN — disclosed	F
Payback period (method)	KNOWN method; ‘in line with historic’	F
Payback period (dollar / # of months)	UNKNOWN — magnitude not published	G
True CAC $ / lifetime LTV-CAC	UNKNOWN — only 1.2x acq-window est. (trade)	G/E
Promo offer terms / mechanics	KNOWN — promo pages + aggregators (current)	P
Offer volume (count of distinct live promos)	PARTIAL — observed, not filed; varies by state/day	E/G
Sponsorship deal values (NFL/RSN)	UNKNOWN/EST — press & precedent only	P/E
FanDuel Sports Network deal economics	UNKNOWN — not disclosed	G
Channel-spend allocation %	UNKNOWN — not disclosed	G

Every UNKNOWN tagged G is a diligence item, not a failure score. The teardown stays tough on what IS visible (share, margin, promo-%-of-GGR, disclosed payback method, observed promo terms) and explicit about what is not.

Operator-capability marketing teardown — internal decision-support, not investment advice. Figures source-tagged F/P/E/G; estimates labelled order-of-magnitude. Prepared from public filings and trade media; no confidential or third-party internal information.