How to Develop A Fantasy Sports App Like DraftKings?

Let’s be honest: building a digital business today is brutal. Customer acquisition costs are rising. Retaining users is harder than ever. And unless your idea delivers both engagement and revenue, it won’t survive the competition.

Now look at DraftKings. In less than a decade, it transformed from a scrappy startup into a billion-dollar empire. Not by luck but by understanding one simple truth: sports fans don’t just want to watch, they want to play, predict, and profit.

That’s exactly why fantasy sports apps are exploding worldwide. They turn passion into participation, and participation into profit. For entrepreneurs and investors, this is much more than a trend. It’s one of the few digital models where engagement directly translates into recurring revenue.

But here’s the catch: to develop a fantasy sports app like DraftKings, you need more than coding skills. You need a solid plan, the right sports betting software development plan, and an understanding of which features drive retention. Miss any of these, and you’re building another forgettable app in a crowded market. Nail them, and you’re sitting on the next big growth story.

This blog is your roadmap. From DraftKings’ success playbook to the development process and cost for a fantasy sports app like DraftKings, we’ll cover it all.

Let’s dive in.

Why You Must Invest in Fantasy Sports App Development?

You might wonder: Is this just another crowded app category? Not at all. The numbers tell a compelling story.

1. Explosive Market Growth

The fantasy sports market is on fire. From $30.5 billion in 2023, it’s projected to exceed $114.7 billion by 2033. Grand View Research also highlights North America’s dominance, while Asia-Pacific (including India) surges fastest.

If you want to develop a fantasy sports app like DraftKings, you’re entering a market that’s growing faster than almost any other.

2. High User Engagement = Repeat Revenue

Fantasy sports is built on habit and excitement. Users return week after week to draft, track, compete, and win. A recent fantasy media platform saw an average session time of 22 minutes per user, more than typical social media engagement. That user attention translates directly into revenue. Platforms that tie in sports betting software development amplify that further through real-time wagers.

3. Monetization Engine That Works

Few app models convert engagement into money like fantasy platforms. Revenue streams are multiple and scalable:

• Entry fees with platform rake
• Sports betting integration
• In-app ads, sponsorships, data insights
• Premium memberships and analytics tools

DraftKings and FanDuel effectively pulled this off, combining commission-based contests with advertising and partnerships to generate billions. Even Investopedia notes that their revenue isn’t just from games, but from a smart monetization layering approach.

4. Strategic Validation from Investors

This isn’t just theory. Investors agree, they’re putting real money behind fantasy startups. Fantasy Life, led by NBC’s fantasy expert Matthew Berry, raised $7 million in July 2025. And they’re not a giant platform, but smart businesses tapping into engaged fans. When capital moves quickly into this space, you know the model works.

Now that you see why the fantasy sports model works for entrepreneurs, let’s break down what makes DraftKings the gold standard.

Understanding DraftKings and Its Business Model

DraftKings is an American online fantasy sports betting company founded in 2012. What started as a daily fantasy sports platform has now established itself as a multi-billion-dollar enterprise. It deals with fantasy sports, online sports betting, and iGaming.

DraftKings has over 4.8 million monthly unique paying customers and revenues crossing $4.76 billion in 2024. It has become a symbol of how innovation and timing can create industry leaders. Its robust brand recognition, advanced technology, and collaborations with top leagues like the NFL, NBA, and MLB have contributed to dominating the market.

DraftKings’ Business Model

The DraftKings business model is built on a diverse and scalable revenue system, making it far more than just a gaming app:

• Fantasy Sports Contests: Participants are charged an entry fee to participate in the contests, and DraftKings receives a percentage as a commission.
• Sports Betting Software Development Integration: The platform offers live sports betting, where odds and wagers generate continuous revenue streams.
• iGaming & Casino: Online casino games are an additional revenue stream.
• Advertising & Partnerships: The association with leagues, teams, and sponsors promotes exposure and revenue.
• Data & Analytics: DraftKings utilises user data to make offers more personalised and boost engagement, which promotes retention.

This mix of fantasy sports app development and smart collaborations has enabled DraftKings to demonstrate prototypes in startups in all parts of the world.

You now know why this market matters. Next, build it the right way: step by step.

Step-by-Step Process to Develop a Fantasy Sports App Like DraftKings

A billion-dollar company like DraftKings is not an overnight accomplishment. If you want to develop an AI in a fantasy sports app like DraftKings, the only way to minimize risks and maximize ROI is to implement the proven process.

Below are the 8 essential steps to develop your idea into a market-ready product.

Step 1: Research the Market and Competitors

Every successful app starts with market intelligence. Study user behavior, sports trends, and the growth of fantasy sports app development worldwide. Understand the strengths of DraftKings and identify weaknesses in competitor apps.

The analysis will help you identify opportunities and establish a distinctive positioning for your platform.

Step 2: Define Your Business and Revenue Model

Determine in advance how exactly your app will generate revenue. DraftKings is able to succeed because of entry fees, contests, advertising, and the betting platform.

The most effective method of guaranteeing sustainability is to choose a model that fits in your target market. This openness will also contribute to attracting investors and reducing scaling-related risk.

Step 3: Ensure Legal Compliance and Licensing

Fantasy sports operate in a regulated industry, having non-negotiable compliance. It has secure licenses, integrates age verification, and plans geofencing for restricted regions.

An app that is legal will bring a sense of trust to the user and prevent expensive closure. This step is especially critical if you plan sports betting software development features.

Step 4: Decide the Core Features and MVP Scope

An MVP helps you launch quickly while testing the features.

Consider essential fantasy sports app features such as onboarding, contests, leaderboards, live scoring, and wallet management. Launching lean cuts costs, validates your idea, and sets the stage for scaling.

Step 5: Design a User-Friendly Interface

User engagement can be created or ruined by the design. Keep navigation simple, use gamification, and prioritize a mobile-first experience. DraftKings outshines competitors because its design makes gaming seamless, not complex. A refined UI guarantees that the players will continue to revisit it.

Step 6: Build a Scalable Technical Architecture

Your app must handle real-time data, millions of players, and secure transactions. Choose a stack that supports cross-platform delivery and expandability.

Good architecture will make sure your app does not collapse further in peak matches, which is a predominant attribute of user retention.

Step 7: Integrate Third-Party Services

The backbone of a reliable app lies in integrations. Include anti-fraud, real-time sports data APIs, and PCI-compliant payment gateways. These services bring credibility, smooth gameplay, and secure transactions are essentials for a DraftKings-like experience.

Step 8: Develop, Test, and Launch Strategically

Go agile and have quick iterations and scalability. Test your platform under peak loads, ensure airtight security, and deliver a seamless user experience. Launch regionally first, gather feedback, and grow.

Partnering with a skilled fantasy sports app development company accelerates this journey.

With the development process clear, let’s explore the must-have features of a fantasy sports app like DraftKings that keep users hooked.

Must-Have Features to Build a Fantasy Sports App Like DraftKings

If you want to develop a fantasy sports app like DraftKings, you need more than just a scoreboard and a payment system. What makes DraftKings and similar platforms addictive is their feature stack designed to drive engagement, retention, and revenue.

Below are the essential fantasy sports app features you must include.

1. Seamless User Registration and Onboarding

The journey starts here. Provide easy sign-up via email, mobile, or social accounts. Integrate KYC and verification to safely onboard. A smooth start ensures users trust your app from day one.

2. Personalized Dashboard

Players need a central hub to track contests, scores, and rewards. An AI-powered personalized dashboard makes users engaged and informed. This feature also boosts app stickiness.

3. Game Lobby with Contest Filters

The game lobby is the heart of your platform. Allow users to explore ongoing and upcoming matches, entry fees, and prize pools. Advanced filters make navigation effortless and encourage higher participation.

4. Real-Time Live Score Updates

Without real-time data, fantasy apps lose their charm. Integrating live scoring through reliable APIs ensures players always stay updated. This is critical for user retention and competitive play.

5. Team Creation and Player Drafting

Let users build and manage teams with ease. Add functionalities like salary caps, auto-draft, and substitution options. This creates the “game within the game” that makes fantasy sports addictive.

6. Secure Digital Wallet and Payments

No fantasy sports app can thrive without trust in transactions. Offer multiple payment gateways, instant deposits, and quick withdrawals. Include wallet history and multi-currency support to cater to global players.

7. Leaderboards and Rankings

Competition fuels engagement. Dynamic leaderboards with daily, weekly, and seasonal rankings add excitement. Show top winners and reward streaks to motivate users to play more.

8. Reward System and Bonuses

Gamification keeps players loyal. Provide referral bonuses, loyalty points, and promo codes. Rewarding the users transforms a casual player into a long-time customer.

9. Push Notifications and Alerts

Send personalized updates about contests, winnings, and new promotions. Smart notifications amplify engagement and minimize churn.

10. Social Sharing and Community Features

Fantasy sports are social by nature. Add chat, groups, and sharing options so players can compete with friends. Community-driven features boost retention and brand value.

11. Admin Panel for App Management

Your app isn’t just for users. A user-friendly admin interface assists you in managing contests, users, payouts, reports, and fraud detection. This feature is vital for smooth backend operations.

12. Anti-Fraud and Security Tools

Fraudulent activity can severely damage customer trust. Use advanced verification, AI-based fraud detection, and real-time monitoring. Security-first design is essential in fantasy sports app development.

13. Advanced Analytics and Reporting

Data drives growth. Analytics will assist you in monitoring user activity, income, and competitor activity. Insights allow you to refine strategies and maximize ROI.

14. Integration with Sports Betting Software Development

For markets where betting is legal, integrating sports betting software development adds massive revenue potential. This creates a hybrid model, fantasy sports plus betting for maximum monetization.

15. Multi-Sport and Multi-Language Support

DraftKings is winning since it provides a variety of sports in a single house. The inclusion of multi-sport support expands your audience. Pair that with multi-language features to appeal to users across the globe.

What Does It Cost to Develop a Fantasy Sports App Like DraftKings?

When planning to develop a fantasy sports app like DraftKings, the very first thing that comes to mind is: What will it cost? The reality is that there is no universal answer. The cost to develop a fantasy sports app like DraftKings depends largely on its complexity, features, and user experience.

On average, building such an app can range from $10,000 to $70,000+. A basic variant with simple fantasy sports features may sit at the lower end of this range. whereas a full-scale platform with advanced analytics, live integrations, and multi-sport support will lean toward the higher end.

Starting with a minimum viable product is definately a wise decision for startups. It authorizes you to test the market before scaling into a more robust version. Established businesses, on the other hand, may directly invest in a feature-rich app to gain a competitive advantage.

App Type	Estimated Cost	Development Time	Description
Simple App	$10,000 – $30,000+	3 – 4 months	Basic features, single sport, limited user engagement.
Moderate App	$30,000 – $60,000+	5 – 7 months	Multi-sport support,better UI/UX, enhanced analytics.
Complex App	$60,000+	8 – 12 months	Full-scale platform, advanced features, real-time updates, global scalability.

But why do costs vary so much? Let’s discuss the factors that affect fantasy sports app development cost.

What Factors Affect the Cost to Develop a Fantasy Sports App Like DraftKings?

The cost to develop a fantasy sports app like DraftKings is not fixed. It relies on a number of important variables that influence the scope, timeline, and complexity of your project. Being aware of these factors will help you set the right budget and prevent surprises.

1. Features and Functionality

The number and depth of features directly impact the fantasy sports app development cost. More features = higher costs.

A simple version might have team creation, basic contests, and leaderboards. A complex app like DraftKings requires advanced features such as live match updates, multi-sport support, AI-based predictions, and social interactions.

2. Design and User Experience

User experience is important in apps where participation earns money. A clean, intuitive design keeps users playing longer. Despite the fact that custom UI/UX design, animations, and premium graphics amplify development expenses.

In case you are willing to develop a fantasy sports app like DraftKings, investing in top-notch design is a must.

3. Platform and Technology Stack

The pricing varies depending on whether you’re developing for cross-platform, iOS, or Android. Although native development is more expensive, it performs better. Cost-effective cross-platform frameworks include React Native and Flutter.

The total cost of developing a fantasy sports app is further influenced by the selection of backend technologies, cloud hosting, and third-party APIs.

4. Real-Time Data Integration

Fantasy sports apps are based on real-time stats, live scores, and player performance data. High-quality sports data APIs integration is a must, but comes at a price. The more sports and leagues you cover, the higher the recurring cost. Otherwise, you cannot build a competitive DraftKings-like app development solution.

5. Compliance and Security

Legal compliance and safety are not negotiable in this sector. KYC, secure payment interfaces, data protection, and geolocation features contribute to expenses. If your app grows into sports betting software development, be prepared for even greater compliance costs to comply with regional gambling regulations.

6. Development Team and Location

Your team’s location and expertise are key factors. Having the best fantasy sports app development company in Europe or the US is more expensive than outsourcing to India or Eastern Europe. A quality team might be more expensive, but it will deliver sooner with high-quality results.

Bonus Read: AR Game Development Cost

How Do Fantasy Sports Apps Like DraftKings Make Money?

When you choose to create a fantasy sports app like DraftKings, make sure your firm is profitable in the long run. Leading fantasy sites like DraftKings thrive because they integrate several income sources that increase user engagement and lifetime value.

Here are the five best strategies to monetize fantasy sports apps:

1. Contest Entry Fees

The backbone of any fantasy sports app is paid contests. Leagues, tournaments, or daily fantasy matches cost users an entry fee. The site then deducts a small percentage commonly referred to as a rake, and then pays the rest of the wins to the players.

It is the largest contributor to DraftKings’ expansion that brings millions of recurring revenue annually. For entrepreneurs, it’s the easiest route to monetary gains through active involvement, with a steady flow of cash.

2. Subscription & Freemium Models

Not all users want to pay per contest. That is why most successful apps offer subscription or freemium levels. Basic features remain free, while advanced stats, premium lineups, insider tips, or ad-free experiences are available as a subscription package.

This model produces revenue that is predictable either monthly or annually. What is more important, it assists in supplementing Average Revenue Per User and ensures the profitability of your platform even when contest participation slows down.

3. In-App Advertising & Sponsorships

Advertising a fantasy sports app is ideal because the audience is highly targeted, sports fans. You can collaborate with brands, leagues, and even teams to run sponsored contests, banner ads, or co-branded events.

Due to formal affiliations with the NFL, NBA, and other major sports leagues, DraftKings can conduct unique campaigns and premium promos. Even regional sports teams or bookmakers may be effective sponsors for new businesses.

4. Affiliate Marketing & Partnerships

Affiliate marketing is another smart source of revenue. You may get commissions by collaborating with sportsbooks, betting exchanges, or even merchandise sellers, every time a user clicks through or makes a purchase.

Affiliate agreements are particularly effective because they let you monetize even free users. It also ensures that every download contributes to your bottom line in some way.

5. In-App Purchases

Above tournaments and ads, users love personalization. Selling in-app purchases like player boosters, premium analytics, or even virtual collectibles can generate a powerful secondary revenue stream.

DraftKings has already tested this with its NFT-based marketplace, where fans buy, trade, and own digital collectibles. For startups, this could be as simple as selling digital passes, premium contest tickets, or exclusive rewards.

At this point, where monetization has been made evident, what remains is to address the legal ground. Find out what compliance and licensing you must make certain of.

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Risks & Challenges of Building a Fantasy Sports App Like DraftKings

With any opportunity, there come challenges, and fantasy sports is no exception. Despite the market’s explosive growth, entrepreneurs must prepare for the hurdles that come with developing a fantasy sports app like DraftKings. Neglecting them may cost you time, money, and momentum.

Here are five major risks and challenges to consider:

1. Navigating Legal & Regulatory Barriers

Fantasy sports apps are walking a tightrope when it comes to laws and regulations. The rules regarding gambling, skill-based gaming, and sports betting vary depending on the regions. If you’re also exploring sports betting software development, compliance becomes even more complex. Lack of suitable licenses and legal counsel can lead to bans, lawsuits, or even closures of your app.

2. Intense Market Competition

Giants like DraftKings and FanDuel dominate the highly competitive fantasy sports market. Whether it’s specialized sports, improved user experience, or creative monetization, startups need to create their own positioning. Coming in blindly without differentiation risks turning your investment into just another app that nobody notices.

3. Data Accuracy & Real-Time Integration

Fantasy sports thrives on live player stats and instant scoring updates. Any delay or inaccuracy damages user faith and retention. High-quality data APIs are costly, but cutting corners here can kill your platform. A successful DraftKings-like app development strategy must prioritize credible real-time integrations.

4. High Development & Maintenance Costs

The app’s creation is only the initial step. Ongoing expenses like server scaling, bug fixes, data licensing, and security enhancements can be significant. Without clear financial planning, businesses often underestimate the true fantasy sports app development cost. And keep struggling to sustain operations long-term.

5. User Retention & Engagement

It is costly to acquire users, but even more challenging to retain them. With so many choices, users tend to drop apps that are not exciting or rewarding. To build a fantasy sports app like DraftKings, investing in gamification, social aspects, and intuitive design is essential to retain players.

EndNote

The rise of platforms like DraftKings demonstrates that fantasy sports is a remarkable business model. For entrepreneurs and startups, the potential to develop a fantasy sports app like DraftKings is greater than ever. The market size is expanding at a fast pace, user participation is unmatched, and revenue models are varied and sustainable.

Yes, there are challenges like regulations, data costs, and user retention. But with the right strategy and the right partner, these challenges can turn into competitive advantages. By investing in expert fantasy sports app development, you’re positioning your business at the intersection of passion and profit.

Apptunix, as a trusted sports betting app development company, has already helped businesses worldwide launch successful apps that scale.

Sports fans are ready. The market is ready. The only question is, are you?