Flutter Surges On FanDuel-Led US Growth, Despite $1.21 Billion Net Loss Overall 

FanDuel became the leading U.S. iGaming brand by gross gaming revenue in January 2024, reported parent Flutter Entertainment on Tuesday, following a year in which Flutter’s U.S. revenue soared 40.7% to $4.48 billion.

After adding more than 3.7 million sports betting and iGaming players in the U.S., FanDuel also remains the leading U.S. sportsbook with a 53.4% share of net gaming revenue and saw its first EBITDA-positive full year. U.S. sportsbook revenue was up 45.9%, including growth of 24.8% in states where the company has operated since before 2022. Overall, the U.S. is Flutter’s biggest region by revenue and fastest growing region, representing 38% of 2023 revenue.  

“Flutter delivered a strong 2023 performance as we continued to deliver on our strategy,” said CEO Peter Jackson. “This was underpinned by a localized approach to technology and product coupled with the unique scale advantages of the Flutter Edge. As anticipated, our number-one position in the U.S. has transformed the Group’s earnings profile during 2023 as FanDuel delivered a positive U.S. full year Adjusted EBITDA for the first time.”

Flutter still reported an overall net accounting loss of $1.21 billion after non-cash expenses including a $725 million trademark infringement charge related to its PokerStars brand — which is taking a backseat to local brands like FanDuel, Asia’s Junglee, and Italy’s Sisal — and $791 million in acquired intangibles amortization. Adjusting earnings before interest, taxes, debt, amortization, and share-based compensation was a positive $1.87 billion, up 45% year over year.

Eyeing further growth ahead

The company remains the world’s largest online sports betting and iGaming company by revenue, according to its annual report. Sportsbooks represent 55.9% of Flutter’s revenue, with iGaming providing another 39.2%. The company also operates brick-and-mortar betting locations in several countries, including the U.S., U.K., Ireland, and Italy.

Outside the U.S., the company saw revenue rise from $6.28 billion to $7.31 billion, with average monthly player counts rising outside the U.S. from 7.93 million to 9.12 million. Australia saw a notable decline, with revenue down 8.8%, which the company attributed to “softness” in the racing market and overall declines in player engagement.

“Clearly the business has come down significantly as the result of customer spend back to pre-COVID levels,” Jackson said during the company’s earnings call.

The company predicts further revenue growth of 17.5% for 2024, including anticipated U.S. revenue between $5.8 billion and $6.2 billion. FanDuel saw rising engagement during the NFL season thanks to improved parlay and live betting features, including more than 1.5 million same-game parlays booked during the Super Bowl. 

FanDuel’s iGaming features also continue to grow, with 82% more gaming titles launched in 2023 than the previous year and additional features expected to be unveiled in 2024. The company announced exclusive iGaming rights to digital slot games including Fort Knox Cleopatra and World of Wonka.

“The year has started well with very good momentum continuing into Q1,” Jackson said. “Record Super Bowl engagement contributed to U.S. revenue growth of 55.6% for the period from January 1, 2024 to March 17, 2024.”

The sportsbook and iGaming industry continues to grow overall in the States, with FanDuel’s rival DraftKings reporting 64% year-over-year revenue growth in 2023. DraftKings, which saw $3.67 billion in revenue for 2023, is predicting 2024 revenue in the $4.65 to $4.9 billion range. 

Dublin-based Flutter trades on the London Stock Exchange under the ticker symbol FLTR and, since Jan. 29, on the New York Stock Exchange as FLUT. The company is slated to ask shareholders on May 1 to approve moving the primary listing to the NYSE.

Flutter continues to expand into new international markets, including with the acquisition of Serbia’s MaxBet, which closed in January 2024. It has also expanded into new U.S. states, including adding sportsbook capabilities in Massachusetts and Ohio last year and Vermont and North Carolina in 2024, with FanDuel’s online sportsbook now operating in 20 states.