FanDuel in ‘Clear No. 1 Position’ of US Sportsbook Market in Q2, Flutter Says

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FanDuel has reportedly carved out 47 percent of the US online sportsbook market share in the second quarter of 2023, cementing its leading sportsbook position.

The news came Wednesday during Flutter Entertainment’s earnings call for the first half (H1) of 2023 ending June 30. Flutter — FanDuel’s parent company — remains focused on player acquisition in 2023 and 2024.

Interim results for the first half of the year released by Flutter on Wednesday show FanDuel generated $100 million adjusted EBITDA in the first six months, driving 63 percent of Flutter’s US revenue growth and allowing the company to reach US profitability for the first time. The US performance gives FanDuel a substantial share of the US online sports betting market and 23 percent of the US online iGaming market, according to Flutter’s H1 2023 interim financial statement

“The US delivered another exceptional performance,” Flutter CEO Peter Jackson announced Wednesday. “We acquired over 2 million new players in the period, cemented our leadership position in sports, and grew our share in iGaming to 23 percent.

“The (FanDuel) profit profile provides us with a clear platform to invest materially in the second half, as we strive to continuously improve our customer offering.”

Flutter expects US revenue of between $4.5 billion and $4.9 billion and adjusted EBITDA of $120 million to $240 million for the rest of the year pending what it called “normalized sports results,” per Wednesday’s earnings statement.

Future Player Acquisition Cost Offset by Recent Growth

Next up for Flutter US operations is future player acquisition. According to the company’s interim statement released Wednesday, the existing US player base will “more than offset” that acquisition cost. 

FanDuel’s acquisition of over 2 million new players in H1 was a new record and an 18 percent increase over acquisitions for the same period in 2022, Flutter reported Wednesday. Much of that growth came from new accounts in Ohio and Massachusetts in 2023 “along with continued strong momentum in more mature states,” per Flutter’s earnings statement. 

According to the H1 financial statement, Flutter’s anticipated $4.5-$4.9 billion in US revenue for the rest of 2023 will largely hinge on a pre-NFL regular season launch in Kentucky combined with investment. 

“We do not expect to incur significant losses in H2. Currently, we estimate that states representing an additional 4% and 5% of the population will regulate sports betting in 2024 and 2025 respectively,” according to the statement. “(Ohio) is a good framework for considering the financial profile of these states in the period post-launch.” 

Flutter CEO Jackson rounded out the outlook:

 “Our player acquisition strategy has consistently delivered, generating excellent returns on investment, embedding even greater value into our customer base, and increasing our future profitability. … The second half of the year has started well and we look forward to adding a US listing for Flutter shares later this year or early next year.” 

FOX Bet Out at Flutter

The US Division of Flutter Entertainment — including FanDuel, TVG horse race betting platform, and PokerStars — accounts for approximately 34 percent of the company’s worldwide revenue. 

Flutter closed its secondary sports betting platform FOX Bet on July 31, 2023. The platform was part of The Stars Groups US along with PokerStars US operations.

According to Flutter’s H1 financial statement released Wednesday, Flutter retains ownership of PokerStars while FOX will retain the FOX and FOX Bet brands. “Approximately half of the losses associated with TSG US will no longer be incurred following FOX Bet’s closure,” per the statement.

Worldwide, Flutter reports over $9 billion in total revenue in over 100 international markets in 2022. 

About the Author
Rebecca Hanchett

Rebecca Hanchett

Legislative Writer
Based in Kentucky's Bluegrass region, Rebecca Hanchett is a political writer who covers legislative developments at Gaming Today. She worked as a public affairs specialist for 23 years at the Kentucky State Capitol. A University of Kentucky grad, Hanchett has been known to watch UK. basketball from time to time.

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