Flutter Financial Report Shows US Betting Market Success

If you ever doubted the US betting market’s growth potential, look no further than the recent financial reports of companies such as Flutter Entertainment.

The Dublin-based FanDuel owner proved that its bet on the US market is paying off after Flutter annual reporting shows that it more than doubled its revenues in 2020, as Covid-19 pushed more players online and the popularity of sports betting in the US surged.

In the year ending December 31^st, 2020, Flutter’s total revenues increased 28% to £5.2 billion ($7.2 billion), partially due to its integration with The Stars Group.

As per Flutter Entertainment’s Chief Executive, Peter Jackson:

“Nowhere has our growth been more evident than in the US where we have consolidated our #1 position in this crucial market, with customer economics that continue to exceed our expectations, finishing the year as the first US online operator to reach over $1.1bn in gross gaming revenue.”

Growth was also driven by Flutter’s strategic targeting of low-stakes players.

What did Flutter Entertainment Achieve in 2020?

Flutter’s Q4 results were remarkable:

• The average number of monthly US players was up 62% year on year.
• US revenues increased 81% in 2020.
• Increased its ownership of fantasy sports and online betting company FanDuel to 95%.
• Achieved a 40% market share in the US online sports betting market in the fourth quarter.
• Reported a 20% market share in the US gaming market in the fourth quarter.
• Customers that Flutter acquired in the US in 2018 and 2019 (in New Jersey, Pennsylvania, West Virginia, and Indiana) contributed £70 million ($84 million).

Integrating The Stars Group

One of Flutter’s most notable achievements for 2020 was the completion of the integration of The Stars Group into its platform in May.  Last year, shareholders of both companies approved the move, and regulators gave the merger their blessing.

The process began in October 2019 when both companies announced their plans to create a new gambling and betting giant. They predicted revenue of $4.7 billion a year.

At the time, Peter Jackson said that the enlarged group would bring “together exceptional brands, products and businesses, a hugely talented and experienced team and a diverse global presence.”

Which Brands Make up Flutter Entertainment?

Flutter Entertainment is proving its predictions to become one of the largest and most diverse gambling and betting companies globally.

Its empirical portfolio currently encompasses:

• Paddy Power – Operates across online and retail in the UK and Ireland
• Betfair – Operates sports betting and exchange brands across the globe
• FanDuel – The driving force behind Daily Fantasy Sports in the US, with over 8 million customers.  Since changes to US regulations, FanDuel has launched its sportsbooks in multiple US states.
• FOX Bet – An online and mobile sportsbook developed through a pioneering national media and sports betting partnership in the US with Fox Sports.
• PokerStars – Home of the world’s largest poker site, which has since launched PokerStars Casino and PokerStars Sports.
• Sportsbet – An online-only sports betting brand in Australia.
• TVG – Broadcaster, which not only beams horseracing live into 60 million homes across the US, but also operates an online betting network that is active in 30 states.
• Adjarabet – Gaming and sports betting brand in the country, Georgia.
• Sky Betting and Gambling – Mainly UK-operating company consisting of five core brands: Sky Bet, Sky Vegas, Sky Casino, Sky Poker and Sky Bingo.
• Bet Easy – One of the leading online sports betting platforms in Australia.
• Oddschecker – Uses cutting-edge technology to bring customers the best odds, tips, and information in the market.

What’s on the Cards for Flutter Entertainment in 2021 and Beyond?

Flutter Entertainment got off to an exceptional start in 2021. The Financial Times reports Flutter acquired more US customers in the week before the Super Bowl in February 2021 than during all of 2019.

It’s clear that with such wide market coverage, Flutter Entertainment is well placed to continue leading in the US market. The company recently launched in Virginia and Michigan, and FanDuel is now live in 10 states – accessible to nearly a quarter of the US population.

Flutter expects the Total Accessible Market (TAM) for its US brands to exceed $20 billion in 2025.  That will happen, it predicts, by increasing the estimated value of sportsbook and gaming driven by the spending patterns it has witnessed in the earlier states that went live (New Jersey, Pennsylvania, and Michigan). 

Also, it expects to see an increase in the number of states that will regulate sports betting and gaming. Flutter believes that by 2025, 65% of the US adult population will have access to online sports betting, while online gaming will be accessible to 16% (up from 10%).