FanDuel has hired former National Indian Gaming Commission (NIGC) chair E. Sequoyah Simermeyer as VP of strategic partnerships.

Simermeyer was appointed as chair of the federal regulatory agency by president Donald Trump in 2019, where he was confirmed by the US Senate.

As NIGC chairman, Simermeyer was charged with enforcing US federal regulations, reviewing gaming facility licences and deciding on approvals of all tribal gaming ordinances.

“I am joining the private sector for the first time, and it mattered to me to join a team where I could use my background as a former regulator, legislative staffer, and public servant to Indian Country,” said Simermeyer.

“FanDuel is the leader in mobile gaming and has helped shape the rise of the legalised and regulated marketplace in the US.

“Mobile gaming remains a very young and dynamic industry, and I’m excited to help the team build out our capacity to work within Indian Country nationally to take advantage of opportunities ahead.”

Altogether, the Cornell Law School graduate served with the NIGC for eight years, first being appointed by US secretary of interior as a commissioner in 2015.

In this capacity he was charged with approving agency budgets and promulgating federal Indian gambling regulations.

Prior to joining the NIGC, Simermeyer was deputy chief of staff to the assistant secretary of Indian affairs. In this position, he worked on an array of national policy issues.

FanDuel attempts to build bridges with Indian Country

The move has been widely understood as a bid to re-engage tribal interests, after a period which has seen tribal relations with operators hit a low ebb.

This followed a disastrous 2022 campaign in California, where the tribes and operators floated duelling online sports betting proposals that both failed.

The operator-led measure faced particular criticism for framing the ballot as an anti-homelessness initiative, which led to accusations of “deceptive” campaigning.

FanDuel has also hired San Manuel Band of Mission Indians COO Rikki Tanenbaum and former San Manuel vice president of operations Frank Sizemore as SVP and VP of strategic partnerships respectively.

FanDuel’s outperformance in same-game parlays (SGPs), and the associated higher sportsbook margins, continue to drive the brand’s dominance in the US online sports betting sector in 2024.

That’s according to the latest Sports Betting Market Monitor report from Eilers & Krejcik Gaming (EKG).

The report includes several key data points and analysis from the US sports betting market, including market share statistics as well as predictions for the future of the sector.

Below, sets out some of the key talking points from the February edition of the report, using data up to January 2024.

January US market share

The February report offers a first look at market share figures from January 2024, using handle and GGR data from New York, Indiana, Iowa, Maryland, Kansas and Massachusetts.

The picture is a fairly familiar one, with FanDuel and DraftKings together accounting for 77% of overall betting handle and 85% of total GGR.

The differences in market share when comparing handle to GGR, however, help to demonstrate the power of FanDuel’s superior margins, driven by the popularity of its SGP offering.

The Flutter Entertainment-owned brand was able to generate 48% of GGR despite handling just 40% of the total betting volume, making it the only brand with a higher proportion of GGR than betting handle.

DraftKings, meanwhile, generated 37% of market GGR from handling 37% of betting volume. BetMGM’s handle and GGR figures also matched up in January, as it accounted for just 6% of each.

Still, that left the brand in third place by share of GGR, despite Caesars handling a higher proportion of bets, as it accounted for around 8% of betting handle across the analysed states.

Despite its 8% share of handle, the casino giant accounted for just 5% of overall GGR.

For Penn Entertainment-powered newcomer ESPN Bet, the figures were even more stark as it experienced high promotional costs in its launch phase.

While rapid customer acquisition led the brand to handle around 4% of all betting volume across the analysed states in January, it managed to generate just 1% of overall GGR, as the high cost of signing up customers hit the new brand’s hold rate hard.

BetRivers also managed to generate 1% of GGR from 2% of handle, while all other brands put together generated just 2% of GGR, from around 3% of the total betting handle.

Hold rates by operator

The reason for FanDuel’s outstanding conversion of handle to GGR can be seen in the above graphic, which compares the online sports betting gross hold rates of the four market-leading brands between 2022 and 2023.

While the chart shows significant natural variance over time, FanDuel has consistently outperformed its competitors, regularly generating hold rates of above 12% and reaching as high as 14% at certain points.

Meanwhile, DraftKings has consistently generated a hold rate of between 6% and 10% over the past year, and exceeded 10% only by a small margin for just two very brief periods.

Although it holds a smaller percentage of the overall market, BetMGM has demonstrated a consistently higher hold rate than DraftKings for much of the last two years, having reached further above 10% for longer periods than its competitor.

As of the end of the reported period, however, DraftKings remained in second place with a hold rate in the region of 9.5%, while BetMGM’s hold rate remained closer to around 8.5%.

Elsewhere, Caesars has been by far the worst performing brand of the four by hold rate over the past year, as it hovered consistently between 4% and 8%. As of the end of the reported period, the brand’s hold rate sits at just over 6%.

That leaves the firm well short of the trailing 12-month market average hold rate of 8.87%.

SGPs trending upwards

Hold rates across the market ought to be improving in US sports betting, given a steady increase in SGPs as a proportion of the overall betting market.

The above chart shows a continued average improvement in the proportion of GGR earnt from SGPs in recent years, from less than 40% in September 2018 to over 60% in November 2023.

That improvement has come in spite of SGPs as a proportion of betting handle rising more modestly from under 20% to around 25% over the same period.

That phenomenon can be explained by a continued increase in the average hold percentage of SGPs, to as high as 20% by November 2023.

That clearly puts the product head and shoulders above regular betting markets in terms of its profitability.

Elsewhere, the February Market Monitor shows the extent to which FanDuel dominates the market for SGPs specifically.

A detailed analysis of the Illinois market shows that the operator took 54.4% of all SGP bets in the state over the trailing 12-month period, with a total of more than 106 million SGPs placed on FanDuel.

It is worth noting that the figure represented a smaller percentage of all SGPs than in the previous 12 months, when FanDuel took 61.8% of all parlays, which suggests that other operators are beginning to catch up with the firm, which has until now benefitted from a significant first mover advantage on SGPs.

For example, DraftKings took 34.2% of SGPs in Illinois over the trailing 12 months, compared to 29.5% in the previous 12 months.

No other operator came close to the market leaders in terms of the proportion of SGPs they took, with only BetRivers taking more than 3% of all parlays.

Also worth noting is FanDuel’s outstanding parlay hold percentage, which came to 21.28% in Illinois over the trailing 12 months. 

No other operator came close, although PointsBet’s 17.52% hold rate, BetRivers’ 16.87% and DraftKings’ 15.14% also meant parlays were a significantly more profitable business for them than traditional wagers.

EKG’s monthly report provides a digest of news and data points, including forecasts, for the emerging market for regulated sports betting in the United States. Please contact managing director Chris Krafcik for more information.

Flutter Entertainment-owned FanDuel has acquired iGaming industry start-up BeyondPlay for an undisclosed sum.

Following the acquisition, BeyondPlay will integrate into FanDuel Casino.

Founded in 2021 by CEO Karolina Pelc, BeyondPlay offers two main products: a jackpot management system that enables flexible and tailored jackpot campaigns, and a multiplayer software allowing multiple users to engage in shared casino game sessions, pooling their stakes for a collective entertainment experience.

BeyondPlay’s client roster includes well-known brands like LeoVegas, Casumo, and ComeOn, and the company holds gambling licences in Ontario, the UK and Malta.

“As a founder, witnessing the journey of our start-up from its humble beginnings to becoming part of the world’s leading online sports betting and iGaming company is an incredibly gratifying experience,” said BeyondPlay CEO Pelc.

“This acquisition validates the hard work and dedication of our team and the vision behind our products. We are excited to join forces with FanDuel Casino to amplify the impact of our technology on a global scale. 

“This milestone marks not just the culmination of our tireless efforts, but the beginning of an exciting new chapter,” she added. 

Expanding US iGaming market share

FanDuel highlighted that the acquisition will further enhance its iGaming offer. 

FanDuel Casino has become the number-two iGaming brand in the US, growing its share of the market to 26% in Q4 2023, which was up 5% year-on-year.

Commenting on the acquisition, FanDuel Casino managing director Asaf Noifeld said: “Our US strategy is about investing to win, and continuously improving our iGaming proposition for our customers is a key part of that. 

“This acquisition further strengthens FanDuel Casino’s leading customer experience, by adding BeyondPlay’s best-in-class jackpots and multiplayer technology. 

“We’re also excited to welcome their experienced team to FanDuel and look forward to working together to continue to grow our rising share of the US iGaming market.”

Initially part of LeoVentures, the LeoVegas Group divested its initial 25% shareholding in BeyondPlay in February 2023.

BeyondPlay generated a 73% return for LeoVentures in less than two years.

In April 2023, BeyondPlay secured an additional €5m in funding from various industry investors to enhance its online casino experience. 

Led by US-based venture capital fund Bettor Capital, this round of funding also attracted support from Tigrim Capital, Winforton Investments, as well as from influential individuals in the iGaming sector such as Feda Mecan, Mark Blandford, and Alexandre Tomic.

New York has once again broken its online sports betting revenue record in January, with licensed operators combining to generate $211.5m in GGR.

This marked a 12.3% increase from the previous record of $188.3m set last month in December 2023. 

Handle for the month reached $1.96bn, representing an 11.5% annual increase from January 2023 ($1.79bn) but a 2.3% sequential decrease on December 2023 ($2.04bn). 

However, January marked the end of a streak where New York bettors consistently wagered more than $2bn on online sports betting for three months straight, starting October 2023.

Flutter Entertainment’s FanDuel brand continues to lead the pack. 

Last month, FanDuel generated $109.2m in online sports betting revenue, marking the highest figure ever reported by a single operator in New York, handling $867.1m in wagers for January. 

Meanwhile, DraftKings secured second spot with $71m in revenue, also marking its highest monthly total to date. The operator took bets totalling $664.8m.

Caesars Sportsbook secured third place, generating $13.6m in revenue from $198m in bets throughout the month. 

Following closely was BetMGM with $10m in revenue from a $118.8m handle, trailed by Rush Street Interactive with $3.5m from $50.1m. 

PointsBet came next, reporting revenue of $2.6m and a handle of $31.7m. 

Resorts World Bet recorded $752,478 from $6.9m in bets, while Bally Bet reported $425,689 in revenue from a $9.4m handle. 

Wynn Interactive concluded the market rankings with $358,497 in revenue from an $8.8m total spend.

Last month, fresh legislation was lodged to bring iGaming to New York as State Senator Joseph Addabbo Jr. reintroduced a bill aimed at legalising online casino in the state. 

The proposed Senate Bill S4856 outlines provisions for operators to offer online casino services for a single license fee of $2m, with iGaming revenue subject to a 30.5% tax rate.

However, a potential tax windfall from iGaming was not included in New York Governor Kathy Hochul’s 2025 budget, striking a sizeable blow to any near-term legislative prospects.

Flutter Entertainment’s listing on the New York Stock Exchange made waves this week – but what does it mean for the industry as a whole?

To the victor go the spoils. Flutter announced this week it would be seeking a primary US listing on the NYSE “as soon as practicable”, after achieving a dominant position stateside.

With the runaway success of its FanDuel subsidiary, Flutter is now Big American Business, an ocean away from its origins as a consortium of Irish bookies in the late 1980s.

The news is symbolic of the great shifts that have riven online gambling in the last decade.

It is also the greatest sign yet of the industry’s shift westwards, as European giants look to the freshly regulated US to oil their growth engines.

In the mainstream press, it is news beyond the gambling industry, as London loses its prime position as a listing destination for companies hungry for deeper capital markets.

What should we make it of it all? asks four big questions about Flutter’s move to the Wall Street.

1. How will the Flutter share price fare?

Last year, the macro-environment led to depressed share prices across the board, with spill-over effects including record activist investor campaigns and increased heat on management.

Given the increased number of investors active in the US, Flutter will be hoping for an increased valuation, as detailed by Eilers & Krejcik’s Chris Grove in the New York Times.

So far this seems to be a minor effect (although it’s still early days), with the company’s £163.70 London Stock Exchange share price around 40 cents below the $208.81 NYSE price as of 31 January.

Once US institutional investors have a bit more time to get a handle on the business, we might see more divergent effects.

If correct, a consistently high valuation will prove to be an asset for the business. It will discourage acquisition attempts, enable easier equity financing, calm investors and generate positive press.

2. Will investor interest spread across the gambling industry?

US land-based giants will likely be confined to second-tier OSB operator status for the foreseeable future.

Historically, DraftKings has been the business that benefited most from the sports betting boom – with the company’s share price up 164.2% over the last year.

While active in other markets, Flutter will certainly be hoping its strong exposure to US online sports betting through FanDuel will encourage investors to treat it the same as its biggest competitor.

But the presence of another leader listed in the US could lead investors to reassess other possible betting and gaming investment opportunities.

This could lead to spill-over effects such as increased share prices for suppliers and affiliates with strong fundamentals.

One example is Bragg, which has struggled with low valuations in the recent past.

A November Bragg investor open letter addressed to CEO Matevz Mazij argued public markets had failed to correctly assess its share price, and therefore said the group should pursue an outright sale to realise shareholder value.

Public markets are often unsure what to make of gambling businesses due to perceived higher risk and regulatory burdens.

In 2013, Entain’s listing on the LSE arguably set a precedent as to the amount of grey market liability the London markets would permit.

Perhaps the Flutter NYSE listing will serve a similar purpose, working to unclog investor capital skittish about gambling.

3. How will this affect the fight for market share?

Since 2018 we have seen market entries, exits, economic shocks and a shifting regulatory environment.

However, for all the ups and downs, the FanDuel-DraftKings duopoly in the US mobile betting market has remained remarkably durable.

Now things are gearing up for another showdown, with many players prepping a renewed investment drive to prop up product quality.

This will likely prove more and more important as US consumers mature and become more promiscuous with alternative offerings.

Flutter itself highlighted the benefits of deeper capital markets, increased US visibility and better access to US talent as reasons to pursue the secondary listing.

Will this move the dial?

It remains to be seen. While no doubt the listing effects could influence things at the margin, Flutter is not short of cash to finance its investments in FanDuel.

The big question mark remains over iGaming, which has traditionally been a weak spot for the business.

It was DraftKings’ relative dominance in online casino that helped it overtake FanDuel as the overall US online gambling market leader (with FanDuel retaining its OSB lead).

No doubt we will see in future if the business can maintain its prime position in the US. However, its choice of listing will likely remain at most a tertiary factor.

4. Will others follow suit?

A successful transatlantic voyage would set a precedent for other European companies with a large US customer base.

The big one is Flutter’s traditional competitor Entain, which has suffered a languishing share price despite the relative success of its BetMGM joint venture.

Whatever the case, that Flutter is now pursuing a primary US listing should have the UK government ringing alarm bells.

“London’s role as jilted partner continues, with yet another company leaving its embrace on the promise of higher valuations and deeper pools of capital in the US,” said director of research at Edison Group Neil Shah.

“Certainly, the easing of sports betting regulation in the US, coinciding with heavier regulation in the UK, is a major factor in the scramble for US market share.

“However, that a top 20 company has chosen to depart the City, with Flutter’s secondary listing status excluding it from FTSE 100 inclusion, follows a very worrying and very public trend of listed companies losing trust in the City, which must prompt the government to turbo-charge its listing reforms.”

The North Carolina State Lottery Commission has approved the launch of regulated online sports betting in the state from 11 March this year.

From 1 March, customers in the Tar Heel State will be able to register online betting accounts with licensed operators and make deposits, in advance of the state’s official go-live day.

Currently seeking licensure in the state are most of the usual suspects in US sports betting, including FanDuel, DraftKings, BetMGM, bet365, Fanatics and ESPN Bet.

Also seeking licences are Underdog Sports, Tribal Casino Gaming Enterprise Cherokee and the Catawba Two Kings Casino.

Applicants have been asked to submit their internal controls to the state regulator by 26 January, to demonstrate that they will be able to begin accepting bets on 11 March.

North Carolina sports betting background

At present, sports betting is permitted in North Carolina at retail locations inside the state’s land-based casinos.

However sports betting bill HB347, which legalised online betting in the state, was signed into law in June last year, authorising the launch of up to 12 online sportsbooks and eight retail sportsbooks.

In autumn, the rules of the bill were amended and now require each operator to hold a written agreement with one of 11 professional sports organisations in the state.

At present, bet365 has agreed a partnership with the NBA’s Charlotte Hornets, BetMGM with the Charlotte Motor Speedway, DraftKings with Nascar, Fanatics with the NHL’s Carolina Hurricanes, FanDuel with the PGA Tour and ESPN Bet with the Quail Hollow Club, a PGA Tour golf course.

A five-year licence in the state carries a $1m fee, and operators will be taxed at 18% of their revenue.

The sector will be overseen by the North Carolina Education Lottery.

Washington, D.C. officials are looking to replace Intralot’s GambetDC sports betting platform in the face of disappointing results.

A top official at Washington, D.C.’s Office of Lottery and Gaming (OLG) has confirmed it is looking to replace the current Intralot-powered GambetDC sports betting platform with a “bigger brand”.

The news was announced by agency head Frank Suarez (pictured), who fielded questions from DC council members in the city’s Committee of Economic & Business Development.

“Having a strong nationally recognised platform will help to quickly reverse the current trend and drive renewed revenue growth,” he said.

Council member Kenyan R. McDuffie, who led the oversight hearing, slammed GambetDC for its “woeful performance”, highlighting issues around usability, customer service and declining revenue.

“We know the current model simply is not working,” she said.

Council members blasted GambetDC for the $4.3m earned over its lifetime, a far cry from the approximately $21m per year projections prior the rollout of the programme.

Future prospects also look bleak, with GambetDC also witnessing a decline in last year’s revenue compared to the previous fiscal year.   

GambetDC plagued by issues

The platform has been plagued with technical problems and other issues since 2019 when Intralot was awarded the $215m contract to develop the city’s sole sports betting system.

Issues included a 2019 subcontract to a local DC business, as required by law, Veterans Services Corp (VSC), with zero employees.

VSC’s head Emmanuel Bailey received a six-figure salary in 2019, multiple times higher than that of the DC mayor.

Currently, FanDuel, DraftKings, Ceasars Sportsbook and BetMGM are all present in DC through partnerships with professional sports teams, albeit limited to in-stadia retail offerings and a two-block radius from the stadium for mobile betting.

Reportedly, frustrated bettors often cross the border into Maryland and Virginia to bet with more traditional online sports betting platforms.

Intralot’s contract is due for renewal in July this year, sparking questions from council members about whether the Greek lottery operator is fit for purpose.

Suarez said the OLG planned to hand over the operation to a more conventional sports betting operator still via an Intralot subcontract, with the Greek supplier retaining a role as provider.

The OLG head said the subcontract extension was the “fastest” way to solve the issue, with a possible February relaunch date.

This compares to putting the entire contract back out to tender, which Suarez said could take up to a year to see through.

As such, the department has already submitted a plan to the US capital’s Department of Small and Local Business to modify Intralot’s contract with a subcontractor to operate sports betting.

While a subcontractor has already been found, presumably in the form of a US sports betting operator, Suarez did not reveal the name of the entity to the committee.

Flutter Entertainment has suspended trading on Euronext Dublin ahead of its planned listing on the New York Stock Exchange.

The FanDuel operator confirmed its shares will be delisted from the Irish stock exchange at 8am on 29 January, the same day it will dual list shares on the NYSE.

The final remaining step required to list on the US exchange is to migrate the settlement system of its shares from Euroclear Bank to the Depository Trust Company, Flutter said.

This has already been approved by shareholders at the company’s 2023 annual general meeting and is expected to complete by 6am GMT on 29 January.  

Flutter shares to remain on LSE

The company previously announced that the 24 January suspension of trading on Euronext Dublin is to allow for the settlement of pending trades, as well as repositioning instructions ahead of the US listing.

Flutter shares will also remain available on the London Stock Exchange. To minimise regulatory complexities, the operator has said it will retain only two listings.

In London, the operator’s ticker symbol will continue as FLTR, but it will use the FLUT symbol for its NYSE listing.

However, Flutter has also stated that “the group may pursue a primary US listing in due course”. This comes as an increasing share of the company’s revenue originates from North America.

FanDuel, its US-facing DFS, online sports betting and iGaming brand, is ranked as the number one sports betting and number two online casino operator in the market.

In its preliminary Q4 2023 financial results, Flutter said it currently holds 43% of the country’s sports betting market, as well as a 26% iGaming market share.

The company also reported its US revenue grew £1.14bn in Q4, up 26% compared to 2022. This was driven by a 33% uptick in average monthly players to approximately 4 million, and occurred despite adverse sporting results in the quarter.

Flutter will now report its financial results using US GAAP, commencing with full-year results on 26 March 2024.

Rationale for dual listing

Since Flutter’s 2018 acquisition of FanDuel, the business has grown to be among the most successful US sports betting and iGaming operators.

This means American revenue has become an increasingly large fraction of the business’ overall takings.

In February 2023, Flutter outlined the potential strategic and capital market benefits of a dual US listing to its shareholders.

These included an enhanced US profile, better recruitment and retention of US talent, as well as the ability to tap into deeper capital markets.

The company added it also gave the business the option of pursuing a primary US listing in due course. This is one of the criteria to access some important US indices.

In March the same year, investigated why Flutter wanted a dual listing. One analyst said that for a tech business with a strong American audience, a US stock listing was a “damn sight more attractive than the UK.”

Flutter opted to choose the NYSE over the Nasdaq for its listing in November 2023.

Flutter Entertainment CEO Peter Jackson hinted the business could contemplate M&A to shore up its market position in post-regulation Brazil.

On today’s (18 January) Q4 2023 earnings call, the chief executive fielded questions from analysts about the company’s Brazilian strategy following the long-awaited regulation of the country’s gaming market.

Jackson said the business was “pleased” with the performance of its PokerStars and Betfair brands in the local market and that organic growth will play a key role in Flutter’s strategy going forward.

However, he also hinted the business could contemplate M&A to boost growth in the region.

“We’ve used M&A as a means of cementing positions on the podium and trying to achieve that goal final position.

“I think you shouldn’t be surprised at this continued push from an organic basis and also contemplate whether there are other ways of increasing our scale and in the market,” he said.

iGaming revenue on the up

The FanDuel operator saw continued gains in the iGaming segment during the quarter.

The group reported 49% year-on-year revenue growth for US iGaming, while the online casino total outside the US rose 11%.

Flutter’s US iGaming brand FanDuel Casino saw increased market share to 26%, continuing its position as the second most popular online casino site nationwide.

Jackson argued this was a consequence of the company’s long-term product strategy articulated at its 2022 Capital Markets Day.

“We said in the first year there were things that were broken that we’re going to fix,” he said.

“We said in the second year we get to product parity, and then third year we get ahead of the market. We’re in the third year – we’re going to get ahead of the market.”

Product is king

While acknowledging the historic importance of cross-sell to the company’s iGaming strategy, Jackson said a great deal of the new growth was coming from sole online casino customers attracted by the improved product.

The executive pointed to changes made to its iGaming products across branding, free-to-play mechanics, positioning and the available games as driving revenue increases.

The theme of product pushing revenue growth also extended to the company’s US online sports betting business.

CFO Paul Edgecliffe-Johnson said Flutter’s leadership on same game parlays helped push the company’s expected margins up 200 basis points to 13.5% in Q4.

Flutter commits to wide-ranging investments

Elsewhere, Jackson said that the business expects to make large scale investments in the not-too-distant future.

He said Flutter is making sure “we have the right size of infrastructure for the business that we’re going to become.”

“You can see the level of growth we’re exhibiting in the States. We don’t see that slowing down anytime soon.

“And we think it’s important to continue to invest in the infrastructure that supports the scale business that we are and indeed are becoming.”

This comes at a time of increased competitive pressure for the business. The group’s US competitor BetMGM announced in December that 2024 would be an “investment year”.

Additionally, the company is dealing with the arrival of newer competitors, including ESPN Bet, Fanatics and bet365 onto the scene, as well as its main rival DraftKings.

Due to iGaming growth, DraftKings became the number one US operator in terms of overall revenue last year, although FanDuel still has the leading sportsbook.

Jackson shrugged off the competition, arguing that the business remained in a good overall position for market leadership.

“Over the years we’ve had a lot of competitors – I think this year was very intense,” he said. “But I think the quality of our product stands us in very good stead.

“So the I think the business is in a good place. We’ve got a great product and great momentum to exit the year in the States.”

Flutter Entertainment has reported a 15% year-on-year rise in revenue to £2.67bn for Q4 2024.

The US was again Flutter’s strongest performing geography, where FanDuel is the number one market leader for sports betting with an estimated 43% gross revenue market share. It is also the number two operator for iGaming, with a 26% share.

US revenue jumped to £1.14bn in Q4, up 26% compared to the same quarter last year, driven by a 33% uptick in average monthly players to 4,032.

Gaming revenue rose by 49% as sports betting revenue rose by 21%, helped by a 53% uplift in sportsbook stakes.

Flutter said US revenue growth in Q4 was partially offset by a sportsbook net revenue margin decline of 150bps to 7%.

This was due to customer-friendly sports results during the quarter and a 4.2% increase in promotional spend.

The adverse sporting results caused a negative impact of £343m in the quarter. This saw US net revenue come in nearly £150m below guidance provided in Q3, with adjusted EBITDA negatively impacted by approximately 35% as a result.

Flutter CEO Peter Jackson said: “In the US, FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength.

“While sports results were very customer friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024.”

Outside of the US

Excluding the US, group revenue was in line with previous guidance and increased by 8% to £1.53bn.

Growth was reported in the UK & Ireland (19%) and International divisions (4%), with Australia the only territory to report declines, amid an annual downturn of 2%.

“Outside of the US, the quarter traded in line with expectations, with continued strong momentum in the UK&I supported by recent product enhancements and International growth driven by our “Consolidate and Invest” markets,” said Jackson.

The full breakdown is below:

Full-year results

Flutter also posted some impressive numbers for the full-year, as overall 2023 revenue climbed 25% to £9.51bn, driven by a 23% rise in sports revenue and a 29% rise in gaming revenue.

US revenue soared 41% year-on-year to £3.6bn. The full-year results reflected the Q4 pattern, with all major territories reporting impressive gains except for Australia, which dropped 3% to £1.17bn.

The full-year 2023 breakdown is below:

Regulus Partners analyst Paul Leyland said Flutter’s performance in the UK was the standout, especially when compared to competitors such as 888, which reported an 8% dip in full-year UK online revenue.

“As we anticipated on the Paddy Power Betfair merger, Flutter’s platform and operational capability is now putting distance between the market leader and rivals,” wrote Leyland.

“In this context, DraftKing’s US achievement is all the more remarkable,” he added.

US listing update

Flutter expects its additional US listing of shares to commence from 29 January 2024 on the New York Stock Exchange.

The business will now report in US dollars, starting with its full-year 2023 results, scheduled for 26 March 2024. This is also when 2024 guidance will be revealed.

“We are very excited that the addition of a US Flutter listing is now just days away,” said Jackson.

“This is a pivotal moment for the group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets.

“I am looking forward to 2024 and further building on the momentum within the group to continue delivering growth,” he added.