Profitable Q2 for FanDuel Leads To Flutter Stock Jump
Interestingly, two of the biggest online sportsbooks out there are DraftKings Sportsbook and FanDuel Sportsbook, both of which started as daily fantasy sports rivals and have since grown into major mobile betting apps and online casinos. FanDuel Sportsbook has been a big hit with bettors as of late, expanding into new markets such as Ontario, Arizona, and Louisiana in the past year. Let’s take a look at how FanDuel’s recent success has been a major benefit for the sportsbook’s parent company.
Big Year For FanDuel and Flutter
Despite a tough year economically around the globe, Flutter Entertainment (the parent company of FanDuel and numerous other betting brands) has been on the rise. According to Reuters, Flutter has recently announced no slowdown in betting while revealing a continued growth in the U.S. market. Despite decreased earnings in the first half (which was to be expected), Flutter shares have now seen a major jump.
This is partially due to a profitable quarter from FanDuel, which was Flutter’s first U.S. betting operator to turn a profit. The news has the company looking towards 2023 for profitability in each quarter. However, the outlook isn’t as sunny for some of Flutter’s competitors. Another top betting company, Entain (formerly known as GVC Holdings) has recently reduced its forecasted revenue due to lowered spending.
Gaming stocks making gains on a strong day for markets overall
– $DKNG is trading up more than 10%
– $PENN is up nearly 6%, one of the biggest gainers in the S&P 500
– FanDuel, part of Flutter Entertainment, reported its first-ever profitable sports betting quarter earlier today— Ryan Butler (@ButlerBets) August 12, 2022
A Quick Look at Flutter Entertainment
Flutter Entertainment is one of the biggest names in gambling. The gaming, entertainment, and sports wagering company has some of the biggest names in betting under its umbrella. Some of the recognizable names that are Flutter subsidiaries include PokerStars, Betfair, TVG, FOX Bet, and Adjarabet.
The pure variety of brands with Flutter Entertainment as a parent company is interesting, as everything from horse racing (TVG) to online casino gaming (Adjarabet) to sports wagering (FOX Bet) is represented. However, FanDuel might be one of the most popular names associated with Flutter, considering the platform offers sports betting, daily fantasy sports contests, and an online casino.
FanDuel is the first US sportsbook to report profitability in a quarter, according to interim results from Flutter Entertainment. $FLTR reported $22 million in EBITDA from sports betting in Q2, thanks in large part to no new states launching.
— Sam McQuillan (@sam_mcquill) August 12, 2022
FanDuel Remains A Top Choice For Sports Bettors
FanDuel’s profitable second quarter goes to show just how successful the online betting app has become. It’s been a positive year for FanDuel overall, as seen by April’s news that it was now on top of the Indiana sports betting market, edging out top rival DraftKings Sportsbook. The platform is popular with bettors thanks to a well-designed app and numerous promotions, as well as the availability to place same-game parlays on different events.
With the NFL season kicking off on September 8th, 2022, as well as plenty of other leagues starting in the coming months, don’t expect the competition between FanDuel and the rest of the betting field to cool down anytime soon.