FanDuel sees high gold medal costs in US sports betting


""US Sports"" – Google News

FanDuel owner Fluttering entertainment confirmed its place as the largest US online gambling company in a release on Tuesday with its latest earnings report, which increased US sales 81% to $ 967 million in 2020.

That included one 86% Increase in stakes at FanDuel Sports Betting to $ 6.1 billion and a 101% Increase in sports betting income.

Flutter said all of US business, including casino, daily fantasy sports, and horse racing, was 40% bigger than its closest competitor DraftKings. It was also bigger than the second and third largest U.S. operators combined, the company said.

In the fourth quarter, FanDuel 40% of the online sports betting market and 20% from iGaming.

FanDuel tops the US fee for flutter

Flutter CEO Peter Jackson specifically mentioned the US in its comments on the trade update:

“Nowhere has our growth been as evident as in the United States, where we have cemented our leadership position in this critical market,” said Jackson. “We ended the year as the first US online operator to achieve gross gaming revenue of over $ 1.1 billion.”

The operator has a $ 237 million EBITDA loss for the US business in 2020. Below that $ 484 million spent on sales and marketing.

US sports betting customers more valuable than Europeans?

However, management said the customer economy is so strong that it continues to make heavy investments. For example, is the average score of a US player 80% higher in the first 12 months than a European equivalent, Flutter said.

That number is likely to decrease as the market becomes more competitive. However, Flutter said some of it was powered by its “market leading” product and features like the Parlay for the same game.

With this in mind, the company aims to fully migrate to the internal betting platform before the next time NFL betting Season.

The proprietary platform offers scalability and full access to the “Flutter Feature Factory”, according to the company.

What’s next for FanDuel?

Elsewhere, management was non-committal when asked about the prospects for the spin-off of FanDuel as an independent company.

However, management has upgraded 2025 addressable market projection on more than $ 20 billion. That contained Texas for the first time.

The upgrade was also driven by an increase in customer value in states like New Jersey and Michigan. Flatter’s share price had recently fallen 2% after the trade update.

Source Link

Leave a Reply