Flutter Entertainment: This Global Online Betting Leader Has The Top U.S. Share (PDYPF)

Connie Bruck is author of The Predator’s Ball. Flutter Entertainment is a global online betting leader.

It's been five years since the Supreme Court overturned the PASPA law and set in motion the explosion of legal sports betting in the U.S. The market is crowded with investors who are trying to mine customers with overblown promotional giveaways. DraftKings, Inc. stock soared to $72 in 2021 and has since fallen to under $14. Cathie Woods’ Ark Investment Management sold 368,418 shares in 3Q22. It left the second-largest position among DKNG”s institutional holders with 24.7m shares valued at $322m.

Flutter Entertainment has the top share in the U.S. New York State, New Jersey and Pennsylvania are the other states with the biggest share.

Pennsylvania generated $18.1 billion in handle since May 2018. New Jersey generated almost $32 billion. NY generated nearly $15 billion and has $1.2 billion of handle.

Pennsylvania has the most betting shares in the U.S. New Jersey has $32.6 billion in handle and New York $15 billion.

The grand totals during Phase One of this industry (2018 to YTD date) are impressive for investors.

Flutter Entertainment has the top U.S. share of PYDPA. The company has won $13.7 billion in three years.

The key to the kingdom is betting on scale as we face a probable recession. The best bet is tier one platform stocks with a disproportionate share of the total market. Tier two and three sports betting stocks have their place in the sector, but they are single-digit market share companies.

Fanatics and ESPN are potential market disruptors. Flutter Entertainment is a global online betting leader with the top U.S. share.  Flutter is also too big to be hurt by any of these developments. It is not likely to bruise its stock. The company is probably not far away from spinning off FanDuel.

Flutter Entertainment is the biggest online and live sports betting and iGaming platform on the globe. Its revenue in the last 5 years grew 33% a year. FanDuel’s U.S. business contributed $2.9b to $3.2b in revenue for 2022. Flutter U will show an overall profit for the year in U.,S., while most competitors are likely to remain net losers until mid-2024.

FanDuel is the leading platform in the sector with a realistic market share somewhere between 37% and 42%. DraftKings is second with 22% to 29%. BetMGM is 50% owned by MGM and UK-based betting giant Entain. Caesars Sports Book is third with 15%. The rest of the pack has single-digit shares. Flutter Entertainment is a global leader in sports betting.

FanDuel is entering the most profitable quarters of the season. The company has followed the pace of legalization and revenue flows. It has projected a market between $25 billion and $33 billion by 2025. Ohio and Massachusetts are the recent states to join the party. There are 40 million potential sports bettors in the states. FanDue is a low margin business made or broken by management skill. New UK gaming regulations will put strong breaks on amounts of best and other curbs on gaming. Flutter is the parent company of Fanduel. They are aware of this.

Flutter Entertainment plc has the top U.S.-traded share price. DKNG is second, but needs to show more cost discipline. Sports betting is a superior sales growth opportunity for MGM and CZR. Their bread and butter is the brick and mortar casino businesses. Flutter has a sunniest future in sports betting over the next five years.