Flutter CEO lauds FanDuel performance after “most severe” period of US competition

Flutter Entertainment CEO Peter Jackson has praised the FanDuel business after Q3 revenue rose by 85% to $386m, allowing the brand to retain top spot in the US market after the new NFL season kicked off.

The operator revealed a 94% contribution to US revenue from the FanDuel brand during the period, propping up a 22% Q3 decrease from its TVG and DFS businesses.

Flutter estimates it now has a 42% share of the US sports betting market, dropping to 16% for igaming.

Flutter’s US average monthly player numbers grew by 17% during Q3 to 1.3 million, rising to 1.9 million during the start of the NFL season in September.

FanDuel sportsbook revenue rocketed 97% year on year to $254m, including sportsbook growth of 422% and an 80% rise in sportsbook stakes during the quarter.

Speaking at the firm’s Q3 results call, Jackson paid tribute to new FanDuel CEO Amy Howe and her colleagues for beating off the “most severe” competition period since online sports betting was legalized in the country.

“Every year, we expect to see renewed levels of competition, and that was the case this year with people trying to claim their positions in the market, so there was a lot of free money flowing around,” Jackson explained.

“If you look at our market share figures, we were very pleased with the outcome we’ve seen.

“Clearly, we’re benefitting from the NFL partnership, and now of course we’ve got the NBA season restarting, which is an area we’ve got real strength in,” he added.

The run up to the start of this year’s NFL campaign inspired fervent marketing activity from competing US operators, particularly in new battleground states including Arizona and Connecticut, as well as in Michigan and New Jersey.

Discussing the high promotional spend, Jackson explained: “While competitors may be giving customers what is effectively free money, and they are very enticing levels of free bets, what people ultimately want are great products, and we have the best products in the US.”

Indeed, the Flutter CEO suggested that many of the operators spending big to gain market share would eventually “run out of steam” and lose any potential gains made from enticing customers with short-term sign-up offers.

He continued: “In some of the more mature states, like New Jersey and Pennsylvania, it feels like some of the other operators have given up on catching us as we’ve got such a commanding lead.

“In the newer states, we see that the new operators will try really hard to compete with us, and so I’ve been particularly pleased with the way in which we performed in Arizona. We’ve seen that market grow and mature more quickly than any other market.

“Actually, Arizona is a state where we didn’t have the DFS base to cross-sell into, so we’re relying entirely on the quality of our products and the strength of our brand.

“I think the fact that we’ve done so well in that market shows how well both our product and brand stand in the eyes of consumers interested in sports betting,” Jackson added.

One area in which the Flutter CEO acknowledged the firm could perform better was by cross-selling sports bettors into FanDuel’s igaming offering. A new promotions platform launched during Q3 to improve the issue.

“We’re excited to see the capabilities that it brings and the opportunities it provides to us,” Jackson said.

“The best place for us to start is the fact that we have the most sports betting customers in the US and a very strong brand, and that’s what we’re cross-selling into.

“Actually, the levels of cross-selling are higher in the US than we had originally anticipated, and it’s one of the things that’s been supporting the higher LTVs that we’ve seen in the market, and it’s certainly higher than what we’ve experienced in the European market.

“That’s something we’re very much focused on and we’re going to continue to try and take advantage of the strength of our sports franchise in the US,” Jackson concluded.