Flutter Entertainment, the company behind FanDuel, is anticipating a significant increase in the U.S. gambling market, predicting it to surpass $60 billion by 2030. This latest forecast shows a substantial jump of nearly 60% from previous estimates made in 2022. The stock of Flutter soared by 8% after this announcement, hitting a record high. In line with its expansion plans, the company has also revealed a $5 billion share repurchase program.
“We are the No. 1 business here in America with FanDuel, No. 1 in sports, and No. 1 in iGaming, and it gives us a lot of confidence around projecting the size of the market,” stated Peter Jackson, CEO of Flutter, as cited by Yahoo Finance.
Flutter’s strategic growth strategy is further boosted by its global expansion efforts. The company has reported a 14% annual revenue growth, with a forecast to achieve $21 billion in revenue by 2027, nearly doubling the $11.79 billion recorded in 2023. A key part of Flutter’s expansion strategy includes a recent acquisition of Playtech’s Italian gambling business for $2.6 billion, reinforcing its presence in Italy. Jackson highlighted the importance of becoming the dominant player in Italy, explaining that “We know that when we’re No. 1 in the market, we make a disproportionate share of the economics.”
Large states like California and Texas, where online mobile gambling is currently not legalized, are crucial for Flutter’s future success. Jackson expressed confidence that more states will eventually enter the market, providing Flutter access to approximately 80% of the U.S. gambling market in the long run.
At a recent investor day presentation, FanDuel CEO Amy Howe discussed the company’s remarkable growth in the U.S. gambling market. FanDuel has cemented its position as the leading player in sports betting and has also become the top iGaming brand in terms of gross gaming revenue (GGR). Since 2022, FanDuel’s GGR margin has risen from 10% to 13%, and its combined market share for sports betting and iGaming now stands at 38%, the highest in the U.S.
Looking forward, FanDuel anticipates its U.S. revenue to hit $9.7 billion by 2027, with an adjusted EBITDA of $2.4 billion. Howe stressed that continuous lobbying and educational efforts are crucial to unlocking new opportunities in key U.S. states like California, Texas, and Florida. Despite facing obstacles in these states, such as California’s failed lobbying campaign in 2022 and Florida’s existing gambling monopoly, Howe remains positive that effective messaging can pave the way for future legalization attempts.
