Super Bowl Lifts FanDuel During $1.6B Quarter

FanDuel owner Flutter Entertainment reported a favorable first quarter driven by the company’s U.S. sports betting business. 

Flutter — the world’s largest listed gambling group — generated $1.6 billion in revenue in Q1 2022, a 6% increase year-over-year. The company based in Dublin, Ireland saw its U.S. business pocket $574 million during the quarter, a 45% increase compared to the same period the year prior.

• Super Bowl LVI provided FanDuel with its largest day ever for new customers.
• FanDuel has 2.4 million U.S. customers with a 37% market share — the No. 1 U.S. sportsbook.
• It launched in New York and Louisiana during the quarter.
• Customers placed 19 million wagers over the entire men’s March Madness tournament.

Flutter bought Fastball Holding’s stake in FanDuel in 2020 for $4.2 billion, increasing its share from 58% to 95% for a total value of $11.2 billion. The investment is paying off now that 19 states have legalized online sports betting, providing access to over 100 million Americans. 

Struggling Partner

Flutter is also a partner of Fox Bet, which has struggled to be a leader in the U.S. betting market. Fox Corp.’s platform partnered with Flutter after the latter bought The Stars Group, the online gambling company that created Fox Bet, for $6 billion in 2019.

Fox Bet has struggled to gain traction due to its poor reach and overall technology. The app is only available in four states (Colorado, Michigan, Pennsylvania, and New Jersey) and has less than a 1% share of the U.S. online betting market outside Nevada.