DraftKings Inc. (NASDAQ: DKNG) saw its shares slide 3.8% on Monday, closing at $24.29, as competition with rival FanDuel intensified ahead of the NFL season. Flutter Entertainment plc (NYSE: FLUT), FanDuel's parent, also declined, losing 1.57% to end at $100.18.
The catalyst was FanDuel's aggressive new customer promotion, which offers up to $350 in bonus bets for new users who place a $5 wager each day for seven consecutive days. In contrast, DraftKings is offering $200 after a single qualifying $5 bet. The promotional battle underscores the escalating spending by sportsbooks to attract and retain customers during the most lucrative betting period of the year.
FanDuel's headline bonus is 75% larger than DraftKings', but it requires a more sustained commitment from users. This strategic divergence reflects each company's approach to customer acquisition: FanDuel is betting that a larger, extended incentive will foster longer-term loyalty, while DraftKings opts for a simpler, lower-barrier offer.
The market's reaction suggests investors are wary of the financial impact of these promotions. DraftKings' stock has fallen 5.8% over the past five sessions, while Flutter has dropped 1.8% in the same period. Trading volume for DraftKings reached 11.5 million shares on Monday, nearly matching its three-month average, indicating heightened investor attention.
The promotional push comes on the heels of a challenging second quarter for both operators. FanDuel reported a 6% decline in U.S. revenue to $1.683 billion, while DraftKings saw revenue fall 4.6% to $1.443 billion. Despite the revenue drop, DraftKings posted a stronger adjusted EBITDA margin of 7.94% versus FanDuel's 7.07%, though FanDuel's revenue base was 16.6% larger.
Both companies are investing heavily in growth, with Flutter projecting a $385 million reduction in U.S. revenue and a $270 million hit to adjusted EBITDA due to its customer acquisition strategy. DraftKings, however, maintained its full-year 2026 outlook, expecting revenue between $6.5 billion and $6.9 billion and adjusted EBITDA of $700 million to $900 million.
The NFL recently extended its official sportsbook partnerships with DraftKings and FanDuel, also adding Fanatics as a third partner. These agreements grant operators access to official league data and event presence, but they also come with significant costs that are now being passed through to promotional offers.
Investors will be closely monitoring football season performance to see whether FanDuel's extended bonus or DraftKings' straightforward offer proves more effective in building a durable customer base without further eroding margins. The outcome could shape the competitive landscape for the remainder of the year.
