In iGaming, a referral program is practically a reward system where online gambling sites pay you for directing new players to their platform.
Picture it like getting paid for making introductions. When your friends sign up using your special link and start betting, you all will typically receive bonuses in return.
Why do gambling sites offer this? It’s a cost-effective business model. Instead of spending millions on TV ads or Google campaigns, operators like DraftKings and FanDuel prefer paying real people who already trust their platform. It costs them less and works better, since referral programs generate 40-60% of new player acquisitions in the industry.
The numbers behind this reveal the reality of its success, since the global iGaming market hit $78.66 billion in 2024, with nearly 600 million players expected by 2025. That’s a lot of people placing bets, and a lot of opportunities for referrers.
Some people treat referral programs like a part-time job. Casual referrers can earn a few hundred dollars monthly by sharing with friends and family. But dedicated affiliate marketers are some of the top performers earning $10,000+ monthly through revenue-sharing agreements with leading operators.
The best part is that you don’t need special skills or upfront investment. All you need is to talk about sports betting or online casinos with people in your life, then referral programs let you earn money from conversations you’re having anyway.
Step-by-Step Guide on How Referral Systems Actually Work
To Begin
Most friend referral programs are surprisingly simple to join. For sites such as BetMGM or FanDuel, all you need to do is log in to your existing account and look for the “Refer a Friend” section in your profile menu.
The site will then generate a unique referral link just for you – something like:
draftkings.com/r/yourname123
You’ll also receive a shareable referral code (typically 6-8 characters) that friends can manually enter during sign-up. Some operators provide marketing materials such as banners or social media graphics, but most people just share their link via text messages or social posts.
Requirements are minimal:
- Must be 21+ (18+ in some states)
- Have a verified account in good standing
- Live in a legal betting state
That’s all it takes. Professional affiliate programs require more paperwork, but basic friend referrals take just a few minutes to set up.
The Technical Process
Behind the scenes, sophisticated tracking ensures you get credit for referrals. When someone clicks your link, their browser stores a cookie — a tiny file that remembers you referred them.
These cookies generally last 7-365 days, so friends don’t have to sign up immediately. Your unique link contains special parameters that identify you as the referrer.
When your friend registers, the system automatically connects their new account to yours. If they use your referral code instead, they manually enter it during sign-up.
Qualification requirements:
- Identity verification (driver’s license, SSN)
- Minimum deposit (usually $10-50)
- Qualifying bet (often equal to deposit amount)
The system tracks everything in real-time. To prevent fraud, modern platforms use advanced API integrations.
Simple Example Walkthrough
This is how DraftKings’ referral program works step-by-step:
| Step | Action | Timeline | Result |
|---|---|---|---|
| 1 | You share your DraftKings referral link | Instant | Friend receives unique tracking |
| 2 | Friend clicks link and registers account | Same day | System assigns referral attribution |
| 3 | Friend deposits $50 and places qualifying bet | Within 30 days | Both accounts flagged for bonus |
| 4 | Bonuses credited as bonus bets | 3-7 business days | You both receive $50 bonus bets |
| 5 | Bonus bets can be used on any market | Valid for 7 days | Convert to real cash if bets win |
Various Types of Referral Programs and What They Pay
Friend Referral Programs
These are the simplest programs, designed for casual users to share with friends and family. Many sportsbooks offer fixed bonuses ranging from $25 to $100 when your friends meet qualification requirements.
BetMGM offers $100 to both you and your friend, while FanDuel provides $75 each.
Monthly limits to prevent abuse:
- DraftKings: max 5 friends per promotional period
- BetMGM: up to 20 referrals monthly ($2,000 max)
Affiliate Programs
Professional affiliate programs are for individuals who promote gambling sites as a business.
Two main models:
- Cost Per Acquisition (CPA): Earn $50-250 per qualified player as a one-time payment.
- Revenue Share (RevShare): Earn 20-50% of player losses for 2-3 years or lifetime.
Hybrid Models: A mix of CPA + RevShare for upfront cash and long-term residual income.
Payment Structure Comparison
| Operator | Friend Reward | Monthly Limit | Payout Timeline | Payment Method |
|---|---|---|---|---|
| BetMGM | $100 both parties | 20 referrals | 72 hours | Bonus bets |
| DraftKings | $25-100 (tiered) | 5 referrals | 3-7 days | Bonus bets |
| FanDuel | $75 both parties | 10 referrals | 72 hours | Bonus bets |
| bet365 | $50 both parties | No stated limit | 7-10 days | Bonus credits |
Important Things to Know Before You Start
Before starting, be aware of the following:
Requirements:
- Must be in a legal betting state
- 21+ age requirement (18+ in some areas)
- Tax reporting for $600+ annual earnings
- Verified account in good standing
Red Flags:
- Unlicensed or unregulated platforms
- Unrealistic earning promises
- Pressure tactics on friends to gamble
Responsible Referral: Only refer people genuinely interested in gambling, and never pressure anyone. Gambling involves real financial risk, and referral fraud accounts for 21% of e-commerce fraud.
