FanDuel’s parent company Flutter Entertainment posted their Q3 results on November 2. Despite increased competition, FanDuel maintained its position as market leader.
Flutter CEO Peter Jackson commented:
“Places like New Jersey and Pennsylvania that we have been operating for a while, sometimes it feels like some of the other operators have given up in those markets because they see we’ve got such a strong and commanding lead.”
FanDuel sportsbook and online casino operate in Pennsylvania through a partnership with Valley Forge Casino. Since Aug. 2019, FanDuel online sportsbook has had the highest handle each month in PA. Even as more sports betting apps launched in PA, FanDuel continued to take about 40% of all bets placed online.
Here are the highlights from Flutter Entertainment’s Q3 results.
Key figures for Flutter Entertainment Q3
US revenue: $386 million which represents an 85% YoY growth.
Leader in the market: In the US, they continued to lead in Q3 with a 42% share of online sports betting and an 18% share of online gaming. US revenue for online sports betting grew by 85% (to $386 million) with FanDuel accounting for 94% of the total. FanDuel also had a 17% YoY increase in sportsbook and iGaming users.
Comments from Flutter Entertainment on Q3
Comments from CEO Jackson during Flutter Q3 update.
“Competitors threw pretty much everything at us and we delivered a 42% share of the sports betting market. The customer response has been very encouraging with FanDuel now regularly experiencing staking levels on Sundays that match its 2021 Super Bowl performance. Early engagement on NBA since the recent start of season has also been strong.”
Major League Baseball betting:
“Baseball has not been as popular as we would have thought for in-play products.”
Single game parlay feature at FanDuel:
“We are really pleased with single game parlay and increased levels of recreational customers, promotions and integration.”
Competitors promotions and staying power:
“A lot of people focus their promotional firepower around the launch of the football season and are beginning to run out of dry powder to some extent. We have been aggressive and will continue to do so. We think some of the people who have tried to grab some of the market early in the football season are probably running out of steam and we are continuing to push hard. Competitors may be giving customers enticing levels of free bets but what people ultimately want are great products and we have the best products in America.
Online casino growth:
“Casino is a very important part of what we do. When you think about it from a customer perspective, that’s where the growth is coming from.”
What’s next for FanDuel?
- Full year guidance US net revenue: Unchanged ($1.8-$2 billion) but adjusted EBITDA loss increased to $341-$375 million. (Why the increase? Unfavorable outcomes of games for the sportsbook in early October.)
- Of course, more states legalizing sports betting and online casinos.
- Just like nearly every other industry, Flutter admitted to labor shortages. Jackson pointed out “the most pressure is around tech and tech and engineering roles.”
- During the earnings call, Jackson denied FanDuel’s reported interest in purchasing The Athletic.
- On Nov. 4, FanDuel and the NBA announced a multi-year expanded partnership that makes FanDuel an official sports betting partner of the league. Also, they announced a “landmark” multi-year pairing with the National Basketball Players Association (NBPA), which gives FanDuel rights to feature game highlights across their platforms.