Flutter expects FanDuel to be adjusted EBITDA positive in 2023, which would make it the first major US digital gaming operator to hit that mark. In Q2 2022, FanDuel became the first US operator to record an ABITDA-positive fiscal quarter.
“We have an unparalleled No. 1 position in the US where we continue to go from strength to strength,” Flutter CEO Peter Jackson said in a statement announcing the company’s 2022 results. “The combined power of the ‘FanDuel Advantage’ and the ‘Flutter Edge’ delivered our most successful launches to date in Maryland and Ohio. Leveraging our number one FanDuel brand we had a record Super Bowl and have acquired over 1.2m customers in 2023 so far.”
FanDuel continues lead in new markets
Launches in Maryland Ohio, the most recent states to start taking mobile bets, have built on FanDuel’s market dominance.
Recent earnings reports show FanDuel has majority market share in both states. In Ohio, which released its initial monthly earnings report earlier this week, FanDuel had more gross gaming revenue market share than the state’s 15 other live sportsbooks combined. That list included DraftKings and BetMGM, its two closest competitors, as well as European gaming giant bet365 and a host of other major national US brands.
Flutter officials said the company would have had an AEBITDA-positive fourth quarter if it weren’t for promotional costs leading up to Maryland’s launch in November and Ohio’s in January. The company spent nearly $169m in promotional free bets in Ohio, far and away the highest total of any operator in the state. Like most other operators in the state, FanDuel’s promotions exceeded its gross gaming revenue for the month (roughly $103m) as companies spent heavily on player acquisition costs.Flutter CEO Peter Jackson: “We have an unparalleled No. 1 position in the US where we continue to go from strength to strength,”
While promotional spending and marketing have undoubtedly contributed to FanDuel’s dominance, company officials stressed again within the recent earnings report that the company’s product innovations have been a key factor in its success. Notably, this includes the proliferation of single-game parlays, which have even higher holds than standard bets and even multi-game parlay wagers.
Other highlights
Including Maryland and Ohio, FanDuel is now the gross gaming revenue market leader in 15 of the 18 states where it offers mobile sports bets. In seven of those states, FanDuel has more than 50% GGR market share.
That list of majority market share includes New York, the nation’s largest market by handle. It also has majority share in New Jersey (the No. 3 market by handle) as well as Pennsylvania, Virginia, Louisiana, Connecticut in Kansas.FanDuel had 2.3m average monthly players in calendar year 2022, a 49% year-over-year increase from 2021.
The company grew its sports betting GGR market share from 40% in Q4 2021 to 50% in Q4 2022. FanDuel estimates DraftKings and BetMGM have market shares of 27% and 12%, respectively.
Flutter reported $3.1bn in revenue for its US properties in 2022, nearly double its revenue from the year prior, with the vast majority of that coming from the FanDuel online sportsbook and iCasino platform. The company reported ($299m) in 2022 AEBITDA losses, an increase from the ($290m) in 2021 losses but a 6% improvement when considering the growth in revenue.