How to Develop a Sports Betting App Like FanDuel

The digital sports betting world has taken off in recent years, with platforms like FanDuel leading the way. As more places legalize sports betting and people increasingly turn to mobile-first experiences, the market is growing quickly, bringing big opportunities for both newcomers and established businesses. FanDuel stands out thanks to its easy-to-use interface, cool features like in-play betting, and smart, AI-powered odds prediction. They’ve set the bar high by using the latest tech to create a smooth, data-packed experience that keeps users coming back. 

As the market grows, more businesses are jumping in, especially as today’s users demand personalized, mobile-friendly platforms that cater to their needs and help drive profits.

We understand that building a successful sports betting app requires more than just odds and payouts. It’s about creating an experience that keeps users coming back, thanks to features like personalized bet recommendations, cash-out options, and real-time updates. IdeaUsher has worked on numerous projects that focus on user behavior analytics and AI-driven predictions to make betting smarter, and through this blog, we’re putting together this knowledge to guide you in creating a sports betting app that not only captures the market but also keeps users coming back for more.

Key Market Takeaways for Sports Betting Apps

According to GrandViewResearch, the global sports betting market is on a strong upward trajectory, with an estimated value of $59.7 million in 2024 and a CAGR of 12.6% through 2030. This growth is driven by increasing internet access, widespread mobile adoption, and regulatory changes that have made sports betting more accessible. As more regions legalize the activity, consumer confidence rises, further boosting the market.

Source: GrandViewResearch

Sports betting apps have become a major part of this expansion, offering users the ability to bet from anywhere at any time. These apps provide a seamless experience with real-time betting options, live streaming, and secure digital payments. Live betting, in particular, enhances engagement by allowing users to place wagers during live events and adjust their bets as the game progresses.

Top platforms like FanDuel, DraftKings, BetMGM, and Caesars have solidified their positions in the market by offering innovative features and forming strategic partnerships with major sports leagues like the NFL and NBA. These collaborations, along with data partnerships like those with Genius Sports, have helped these platforms build trust and maintain a strong, competitive edge in the growing industry.

What are Sports Betting Apps?

A sports betting app is a digital platform that allows users to place bets on sporting events through their mobile or web devices. These apps function as online bookmakers, providing odds, managing bets, and processing payouts, all while maintaining a secure and user-friendly environment for users.

Types of Bets Supported

How Does the FanDuel App Work?

FanDuel has cemented its position as a top contender in U.S. sports betting by blending advanced technology, a sleek user experience, and sharp marketing tactics. This breakdown dives into the platform’s inner workings, exploring the features that make FanDuel stand out in an increasingly competitive market.

1. User Experience: Clean & Engaging Interface

At the core of FanDuel’s success is its user-friendly design that appeals to both casual and seasoned bettors alike.

• Simplified Bet Slip: Bettors can place wagers in a single click, with clear odds displayed for easy decision-making.
• Live Betting Hub: The platform offers real-time updates, ensuring odds and stats are always current.
• Quick Deposit/Withdrawal: With support for Apple Pay, PayPal, and instant bank transfers, users can quickly manage their funds.
• Dark Mode & Custom Themes: Designed for comfort, especially during long betting sessions.

Why It Works: Unlike many traditional sportsbooks, FanDuel’s layout is clean and accessible, allowing new users to easily navigate the platform and make informed bets without feeling overwhelmed.

2. Same Game Parlay

FanDuel revolutionized sports betting with the introduction of Same Game Parlays, giving users the ability to create custom bet combinations from a single game.

For example, you could bet on Patrick Mahomes throwing over 300 yards, Travis Kelce scoring a touchdown, and the Chiefs winning all in one parlay. It’s a fun way to increase your potential payout by combining different bets from the same game. 

Impact:

• 30% of FanDuel’s bets now come from Same Game Parlays.
• This innovation drives higher engagement as users enjoy the challenge of building personalized, high-reward bets.

3. Cross-Product Integration

FanDuel seamlessly combines multiple gambling verticals into one cohesive platform, offering a broad range of betting options for users:

Advantage: By offering all these products in one app, FanDuel ensures that users stay within its ecosystem, improving retention and encouraging cross-product engagement.

4. Fast Payouts & Trust-Building Mechanisms

Trust is key in betting, and FanDuel gets it right by offering quick and transparent payouts. Most withdrawals are processed within an hour, and you can choose from options like debit cards, PayPal, or Play+ prepaid cards. Plus, the payout limits are crystal clear, so there’s no confusion when it comes to withdrawing your winnings.

Result: FanDuel boasts one of the lowest complaint rates among U.S. sportsbooks, largely due to its fast and reliable payout process.

5. Aggressive Promotions & Gamified Engagement

FanDuel knows how to keep things exciting with great bonuses and promotions. You can score risk-free bets like “Bet $5, Get $150 in Bonus Bets,” or compete in leaderboard challenges for cash prizes. Plus, they offer odds boosts for select games and VIP rewards for the high rollers, so there’s always something to keep you coming back!

Outcome: These promotions create a dynamic and rewarding betting experience, leading to higher user engagement and loyalty.

6. Geolocation & Regulatory Compliance

FanDuel ensures that users only place bets in legally authorized regions, while preventing users from bypassing restrictions using VPNs.

• Multi-Layer Geo-Verification: Uses GPS, Wi-Fi, and IP triangulation to confirm user locations.
• KYC Checks: ID verification is mandatory before betting.
• Real-Time Compliance Alerts: Flags suspicious activity to ensure legal operations.

Result: FanDuel operates legally in over 18 states without any major compliance violations.

7. Player-Centric Personalization (AI/ML)

FanDuel takes personalization to the next level using AI and machine learning. By tracking your betting patterns and preferences, it suggests bets tailored just for you, even adjusting offers mid-game to keep things fresh. These personalized boosts have been shown to increase engagement by 25%, making the experience feel more dynamic and rewarding.

Benefits of Developing a Sports Betting App for Businesses

Developing a sports betting app opens up new revenue streams like in-app ads, commissions on bets, and premium memberships. It also boosts customer loyalty through personalized experiences and keeps users engaged with features like live betting.

Business Benefits

1. New Revenue Streams

Sports betting apps create diverse income channels, including commissions on bets (vig/juice), in-app advertising, premium memberships, and cross-selling opportunities with casino games or fantasy sports. For instance, DraftKings generated $2.24 billion in revenue in 2023, largely driven by its sportsbook and iGaming operations.

2. Increased Customer Loyalty & Retention

By offering a personalized betting experience, gamification elements like leaderboards, and live in-play betting, sports betting apps can significantly boost user retention. In fact, betting apps see three times higher retention rates compared to traditional gambling platforms, thanks to these engaging features.

3. Brand Expansion & Market Penetration

Developing a sports betting app allows businesses to tap into younger, tech-savvy demographics and expand into new geographic markets as sports betting becomes legal in more regions. For example, ESPN’s partnership with Penn Entertainment to launch ESPN Bet illustrates how media brands are entering the market to leverage their existing audience.

Technical Advantages

1. Scalable Cloud Architecture

Modern betting apps are built using scalable cloud infrastructure that handles traffic spikes, especially during major events. Features like microservices, serverless computing, and edge computing ensure seamless user experiences. FanDuel’s infrastructure, powered by AWS, supports over a million concurrent bets during events like the Super Bowl.

2. Data-Driven Personalization

Sports betting apps can leverage AI-driven odds optimization and predictive analytics to personalize users’ experiences. By analyzing betting patterns and user history, apps recommend tailored bets, ensuring users receive real-time notifications for favorable odds. Technologies like machine learning models (e.g., TensorFlow) and Apache Kafka for real-time data enhance these capabilities.

3. Secure & Fast Payment Processing

To ensure fast and secure transactions, sports betting apps use multi-layer encryption (PCI-DSS compliance) and blockchain for provably fair bets. Additionally, instant payouts via digital wallets and Open Banking APIs enhance the user experience. BetMGM, for example, processes $500M+ in monthly transactions with 99.99% uptime.

How to Develop a Sports Betting App Like FanDuel?

When developing a sports betting app, we follow a clear step-by-step process to ensure that the app meets both user needs and regulatory requirements while offering a high-quality experience.

1. Research Legal Markets

The first step in creating a sports betting app is to thoroughly research the legal landscape. We analyze the regulations, licensing requirements, and compliance standards like KYC/AML in the target jurisdictions. This ensures that your app adheres to the necessary legal frameworks and can operate smoothly across different regions.

2. Build Core Backend

To support real-time data and ensure a smooth betting experience, we develop a secure and scalable backend architecture using microservices. This allows for flexibility, easy scaling, and resilience, ensuring that your app can handle high traffic during major events while maintaining performance and security.

3. Create Engaging Frontend

The frontend of your app is designed with a focus on cross-platform compatibility, ensuring a seamless experience on both iOS and Android. We create a user-friendly, intuitive UI/UX, allowing users to easily navigate the betting platform. Engaging design elements and smooth interactions help enhance user retention and satisfaction.

4. Integrate Real-Time Sports Data

For an effective sports betting app, integrating live data is crucial. We connect the app to sports APIs that provide real-time scores, odds, and player stats, ensuring that users always have access to up-to-date information for making informed bets. This feature keeps the experience dynamic and engaging.

5. Add Payment Systems

A seamless payment system is essential for any betting platform. We integrate secure payment gateways, supporting traditional payment methods as well as cryptocurrencies for added flexibility. Fast withdrawal options and a smooth deposit process ensure that users can easily manage their funds without delays or issues.

6. Personalize User Experience

To enhance user engagement and retention, we integrate AI-driven recommendations and personalized content. Loyalty programs and social features create a community-driven experience, motivating users to return to the app. Tailoring the app’s offerings to individual preferences fosters a more engaging and dynamic betting environment.

Key Challenges to Developing a Sports Betting App

Having worked with numerous clients on sports betting apps, we understand the challenges that often arise during development and how to tackle them. Here’s a look at the most common hurdles and effective solutions.

1. Regulatory Fragmentation

Sports betting laws differ significantly across countries, states, and even sports leagues. For instance, New Jersey allows online betting, while Utah bans it altogether, and some leagues restrict certain types of bets, like prop bets. An example is a bettor in New York who can wager on the NFL but not college games played within the state.

The Solution

To address this, we partner with gambling compliance firms like GLI and eCOGRA to ensure full legal adherence. Multi-layered geofencing (GPS, IP, Wi-Fi triangulation) helps restrict access based on location, while adaptive rule engines adjust betting markets in real-time depending on the jurisdiction.

Pro Tip: FanDuel uses GeoComply to prevent cross-border betting fraud.

2. Data Latency in Live Betting

Live betting relies on real-time data, requiring sub-second updates during games, synchronized across millions of devices, with no discrepancies between the backend and user interface. Even a slight delay can cause significant losses—just 10 milliseconds can result in costly arbitrage errors.

The Solution

We use WebSockets and Server-Sent Events (SSE) for faster data transfer than traditional REST APIs. Edge computing, through providers like Cloudflare and AWS Lambda@Edge, ensures that data is processed closer to users, minimizing latency. Direct integrations with data providers like Sportradar and Genius Sports help further optimize live data feeds.

Tech Stack Used by Bet365: Kafka (real-time data streaming), Redis (in-memory caching).

3. Security Risks & Fraud Prevention

Security remains a major concern, as sports betting apps are vulnerable to account takeovers (ATO), bonus abuse, and money laundering. In fact, 30% of betting fraud is attributed to bonus exploitation, where users exploit free bets across multiple accounts.

The Solution

We implement multi-factor authentication (MFA), combining SMS and biometrics for added security. AI-powered fraud detection helps track suspicious patterns, such as bettors who always win or make abnormal betting activity. Additionally, blockchain auditing ensures an immutable transaction log for transparency and fraud prevention.

Example: DraftKings uses Sift’s machine learning to detect arbitrage bettors.

4. Scalability During Peak Traffic

High-traffic events like the Super Bowl lead to a 10X surge in user activity, with a spike in concurrent bets and significant server load risks. FanDuel, for example, handles over 1 million bets per minute during March Madness.

The Solution

To handle these massive surges, we use a microservices architecture that isolates critical functions like payments and odds engines. Cloud auto-scaling with AWS EC2 and Kubernetes allows us to dynamically allocate resources based on traffic. Load testing simulates traffic from hundreds of thousands of users before launch to ensure a smooth user experience.

Essential Tools & APIs for Building a Sports Betting App

Creating a sports betting app like FanDuel requires a robust technology stack to ensure high performance, security, and scalability. Below are the essential tools, APIs, and frameworks that will help you build a seamless, cutting-edge sports betting platform.

1. Sports Data APIs (Real-Time Odds & Stats)

For real-time betting, you need reliable data feeds that provide live scores, odds, and player stats. Here are the top providers:

Why It Matters:

• Live odds updates are crucial for in-play betting.
• Historical data supports predictive modeling for smarter bets.

Integration Tip: For real-time data streaming, use WebSockets instead of REST APIs to reduce latency and improve performance.

2. Payment Gateways (Deposits & Withdrawals)

Payment processing is a key part of any betting platform. You need a secure and fast system for deposits and withdrawals. The best solutions include:

Key Considerations:

• PCI-DSS Compliance for secure card transactions.
• Multi-Currency Support to cater to global users.
• Instant Payouts, as users expect withdrawals in less than 24 hours.

Pro Tip: Use tokenization (e.g., Stripe, Braintree) to securely store payment details and enhance data security.

3. Geolocation & Compliance Services

Ensuring that users can only place bets in legally approved regions is essential for compliance. Key tools for geolocation and user verification include:

Why It’s Critical:

• Regulatory Compliance: Legal requirements like verifying that a user is in a state like New Jersey to bet.
• Preventing VPN Spoofing: Tools like GeoComply detect fake GPS apps and ensure the user’s location is legitimate.
  

4. Cloud Hosting & Scalability

A reliable cloud platform is essential for scalability, especially during peak traffic. Here are the best options:

Key Services Needed:

• EC2 (AWS) / Compute Engine (GCP) for virtual servers.
• Lambda / Cloud Functions for serverless processing.
• Kubernetes for container orchestration in microservices.

Example: FanDuel uses AWS to handle over 1 million concurrent users during major events like the Super Bowl.

5. AI/ML Tools (Personalization & Fraud Detection)

AI and machine learning are vital for personalizing the user experience and detecting fraud. Recommended tools include:

Use Cases:

• Dynamic Odds Adjustment: React to changing betting volumes.
• Personalized Promotions: E.g., “You usually bet on NBA—here’s a Celtics boost!”

6. Security & Compliance Tech

Security is a top priority in sports betting. Essential tools and solutions include:

Critical Measures:

• End-to-End Encryption (TLS 1.3) to protect user data.
• Regular Penetration Testing to identify and fix vulnerabilities.

Use Case: Enhancing a Gaming Platform with Sports Betting

Our client, a fast-growing fantasy sports platform with over 500,000 active users, wanted to expand into real-money sports betting without disrupting their existing ecosystem. They needed seamless integration, live betting features, and regulatory compliance for a state-by-state U.S. rollout, all while offering a unified wallet for both fantasy entries and sports bets. We successfully delivered these solutions, enhancing their platform’s user engagement and revenue.

Our Solution: A Hybrid Sports Betting Integration

We integrated real-time odds and live betting features alongside the existing fantasy contests, creating a unified wallet system for both fantasy entries and sports bets. This ensured seamless user experience while maintaining regulatory compliance across multiple states.

Live Odds Feed Integration

We used the Sportradar API to integrate real-time pre-match and in-play odds for major leagues like NFL, NBA, and MLB. The “Bet Now” feature during live fantasy contests allowed users to place bets on the spot, keeping them engaged. This led to a 35% boost in session duration, as users stayed active throughout the events.

Unified Wallet System

We used Stripe Connect for fiat transactions and Fireblocks for crypto deposits, creating a unified wallet for both fantasy entry fees and sports betting. This allowed for instant withdrawals via PayPal and streamlined the user experience. As a result, we saw a 50% increase in deposit volume, making it easier for users to manage all their funds in one place.

Geolocation Compliance Engine

We used GeoComply for real-time location checks to ensure users were in legal betting states and Jumio for KYC/AML verification. This helped us enforce state-specific rules, like banning college prop bets in New York, while also detecting VPN or spoofing attempts. The result was zero regulatory violations across 12+ states where the platform operates.

Technical Architecture Highlights

Business Outcomes Achieved

• Revenue Impact: The platform generated $2.3 million in monthly betting handle within 6 months, with 20% of fantasy users converting to sports bettors.
• User Engagement: A 45% increase in DAU and 28% of total wagers placed on parlay bets highlighted strong user interaction with new features.
• Compliance Success: The platform achieved compliance in 8 states and a 100% pass rate on geolocation audits, ensuring full regulatory adherence.

Conclusion

FanDuel continues to lead the market with innovative, user-centric betting solutions, capitalizing on the booming demand for sports betting. As this market expands in 2025, businesses must act quickly to stay ahead. Idea Usher excels in creating secure, scalable, and engaging betting platforms, ensuring a seamless experience for users. Partner with Idea Usher to build your next-generation sports betting app and unlock your business’s potential in this fast-growing industry.

Looking to Develop a Sports Betting App Like FanDuel?

At IdeaUsher, we specialize in building high-performance, scalable, and fully compliant sports betting apps designed to excel in the booming $100B+ industry.

Why Choose Us?

• 500,000+ Hours of Coding Expertise – Our former FAANG/MAANG engineers develop reliable, secure betting platforms.
• FanDuel-Level Tech – Real-time odds, AI-driven personalization, geofencing, and fraud prevention are built in.
• End-to-End Development – From sleek UI/UX design to regulatory compliance, we manage the entire process.
• Proven Success – Check out our latest projects to see our expertise in action.

We Deliver:

• White-label betting solutions – Get your app to market quickly.
• AI-driven analytics – Boost player engagement and retention.
• Bank-grade security – Safeguard your platform from fraud and ensure a fair gaming experience.

Let’s build your winning sportsbook! Reach out for a Free Consultation now.

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