16th Nov 2022 21:00
(Alliance News) - Flutter Entertainment PLC talked up the strength of its US business at an investor day on Wednesday, as FanDuel continues to gain traction.
The Paddy Power owner said FanDuel is the "number one" sports betting operator in the US, with a 42% share of the online market.
"This leading position is underpinned by a range of sustainable competitive advantages, alongside access to unique benefits enabled by the Flutter group," the gambling firm said.
"We are confident in a path to a 2030 total addressable market of more than USD40 billion in gross gaming revenue which represents growth of 4.5 times the size of the market today."
Flutter said "mature" earnings before interest, tax, depreciation and amortisation margins in its US arm are expected to be similar to the 25% to 30% seen in the company's existing divisions.
"This growth potential would imply significant levels of long-term profitability, transforming the Flutter group," the company said.
Chief Executive Peter Jackson added: "The US market represents the single biggest opportunity in our sector today and we are proud to own FanDuel, the premier asset within this market. The business has transformed the Flutter Group, performing better than we could have hoped and growing tenfold since [Professional & Amateur Sports Protection Act] was repealed in 2018."
Sports betting is being legalised in many US states for the first time following a Supreme Court ruling in 2018, allowing bookmakers to tap into the lucrative market there.
Flutter shares closed 1.4% lower at 11,290.00 pence each in London on Wednesday.
By Eric Cunha; [email protected]
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