The FanDuel US operations really carried the ball for Flutter Entertainment during Q1 2022, the Dublin-based online gambling company said today in its trading update.
Flutter is FanDuel’s primary owner.
Flutter CEO Peter Jackson said in today’s announcement:
“In the US, we had another exciting quarter as FanDuel continued to deliver unparalleled scale, with the US accounting for over half of all stakes for the Flutter Group in Q1.
“We launched our FanDuel sportsbook in New York and Louisiana in January and also expanded into Ontario in April. We beat a number of FanDuel records in the quarter; Super Bowl Sunday was the single biggest day ever for new customers and we had over 1.5 [million] active customers on the day. March Madness this year also proved our most popular season yet, attracting 19 [million] wagers across the tournament.”
Flutter stock rose nearly 10% today.
Flutter has 5 US brands
When Flutter talks about its US brands, it means FanDuel, Television Games Network (TVG), Stardust, Fox Bet and PokerStars.
FanDuel Sportsbook and Fox Bet combine to make Flutter the No. 1 US online sports betting company, with 37% of the market share.
FanDuel Casino and Flutter’s gaming brands hold 20% of the US online casino market share, according to Flutter’s trading update.
Flutter’s US iGaming brands are usurped by BetMGM, which held 29% of the market share during Q4 2021. Jersey City, NJ-based BetMGM is updating investors with current numbers on May 12.
Today’s announcement names Mohegan Sun Casino, which is powered by FanDuel Casino:
“iGaming growth reflects the launch of Connecticut in Q4 and good cross-sell to SuperBowl and March Madness players. We continued to improve our customer proposition with FanDuel rated the number 1 casino app in Q1.”
US FanDuel helped Flutter’s global revenue
During 2021, FanDuel quietly become the only major US online gambling brand to turn a profit.
In Q1 2022, FanDuel was the main driver behind Flutter’s US online gambling revenue growth. During the quarter, Flutter saw US-generated revenue increase 45% to $574 million.
Meanwhile, non-US revenue decreased 3%.
As a result, Flutter’s overall revenue grew 6%.
If that’s confusing to Canadians, there’s an easy explanation. Q1 2022 ended on March 31 and Ontario‘s iGaming marketplace allowed private operators to launch products on April 4.
FanDuel IPO still not scheduled
FanDuel watchers expected a US FanDuel IPO last summer.
Various impediments stood in the way. All of those hindrances now appear to be cleared.
Flutter didn’t mention its arbitration proceedings with New York City-based Fox Corporation.
However, Flutter did detail the disagreement with its media partner in its 2021 annual report:
“In April 2021, FOX filed an arbitration claim against the Group with respect to its option to acquire an 18.6% equity interest in FanDuel for the same price that the Group paid for the acquisition of 37.2% of FanDuel from Fastball Holdings LLC in December 2020, representing an $11.2 billion valuation for FanDuel.
“In the Group’s opinion, this valuation would be materially favourable for FOX compared to the fair market valuation as of July 2021. An arbitrator has been appointed and the Group intends to vigorously defend its position. A ruling in the arbitration is not expected before Quarter 2, 2022.”