In that cohort’s second year, it paid back $6 million.

In 2018, FanDuel signed up 64,000 new customers at a cost of $13 million.

Those that flood the market with offers to players who leave once the free money is gone won’t fare as well.įanDuel says it’s now better than its competitors at identifying and attracting high-yield customers - leading to an average payback time of less than 18 months, extraordinarily high compared to prior expectations.

A sportsbook that targets that offer to a new customer who ends up being loyal might get the $500 back in the first year, leading to further deposits. Here’s how that works: To attract new customers, sportsbooks offer generous bonuses, such as rewarding a bettor who makes a $500 first-time deposit with a $500 risk-free bet. The most compelling argument came as FanDuel CFO David Jennings broke down the math behind each cohort of customers that FanDuel has added since launching its sportsbook in 2018, laying out a history that shows the company spending more on acquisition each year as the population that can bet legally expands - but quickly turning that expense into revenue. FanDuel quickly turning acquisition expenses into revenueįlutter gave investors a look under the hood of its FanDuel business during a Capital Markets Day in New York on Wednesday afternoon, building the case that the lead it has established is not only sustainable, but likely to grow.

That’s well behind $2.2 billion wagered on hoops, $1.4 billion on football and $1.1 billion on baseball, but it’s about 45% more than was bet on hockey and more than triple what was bet on golf.

In the last 12 months, bettors in Illinois have wagered $409.8 million on soccer, putting it behind only the Big 3 (if you lump college and pro together, as betting regulators do) and tennis. Looking at the last 12 months of betting activity there, it makes you think World Cup wagering may have legs there. Only a few states release data that breaks down betting by sport beyond football, basketball, baseball and the dreaded “other.” Illinois is the largest of them.

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