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Saturday, June 22, 2024

FanDuel Owner Posts $383M Loss in 2021

  • FanDuel owner Flutter Entertainment reported a pre-tax loss of $383 million in 2021.
  • The world's largest gambling group also saw revenue grow thanks to the U.S. gambling market.
Flutter Entertainment/Design: Alex Brooks

FanDuel owner Flutter Entertainment reported a pre-tax loss of $383 million in 2021 behind efforts to curb gambling addiction, but saw revenue grow thanks to the U.S. gambling market. 

Flutter — the world’s largest listed gambling group — generated $8 billion in revenue in FY2021, a 37% increase year-over-year. The favorable results were driven by FanDuel, which leads the U.S. with a 40% market share among online sportsbooks as of Q4 2021.

FanDuel pocketed $2 billion in revenue in FY2021, a 113% uptick compared to the year prior. Flutter bought Fastball Holding’s stake in FanDuel in 2020 for $4.2 billion, increasing its share from 58% to 95% for a total estimated value of $11.2 billion.

Flutter’s efforts to curtail problematic gambling have been costly and hampered potential profits. 

  • The company banned credit card deposits in Ireland.
  • It launched a trial limit of $13 on online slot stakes in the U.K. 
  • The company plans to tie staff bonuses to safer gambling targets.
  • It is introducing mandatory deposit limits for customers under the age of 25. 

Flutter also attributed its losses to marketing costs associated with customer acquisition in the U.S. and the reopening of leisure venues following temporary closures caused by COVID.

Big Spending 

In December 2021, Flutter purchased Italian gambling operator Sisal for $2.2 billion. Previously bought by CVC Capital Partners in 2016 for $1.1 billion, Sisal — Italy’s oldest gaming company — has access to Flutter’s gaming content and its existing brands PokerStars and Betfair.

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