- Paddy Power Betfair changed their name to Flutter Entertainment earlier this year.
- Flutter owns a majority stake in FanDuel Sportsbook.
- Executives from Flutter believe their revenue can increase ten-fold in the US.
TALLAHASSEE, Fla. – As one of the first gaming operators to land a position in the US market post the PASPA repeal, Flutter Entertainment reported a sizeable loss in the first half of 2019.
The company, known as Paddy Power Betfair before the name change, watched their pre-tax profits dropped 24% but because of their ventures within the country, they were able to keep their revenue increasing.
With an 18% increase in the six-month revenue, Flutter took home $1.227 billion. Discovering a whole new clientele in the US didn’t help the company in their expansion efforts though, as costs associated with customer acquisitions led to a loss of over $66.2 million.
Flutter had to adjust their earnings outlook moving through the remainder of the year, just as other UK gambling companies have as well.
Thanks to increased regulations and a bump in the gambling tax rate across the pond, these companies are paying more in taxes than ever before. According to Flutter, earnings for the company would have increased by 15% if the taxes wouldn’t have been raised.
However, this is the case and the recent change isn’t going anywhere. GVC Holdings and William Hill have experienced their issues too, as William Hill wasn’t hesitant to close betting parlors in the UK earlier this year.
As all three of these operators have expanded into the US market, none of them are happily content with their position. Flutter believes the company is in a better position than these aforementioned operators due to their involvement with FanDuel Sportsbook in the New Jersey sports betting market.
In 2018, Flutter acquired enough of FanDuel to have the majority stake in the company and the plans to keep expanding across the US as legal sports betting is passed by states have been mitigating losses.
Sales for Flutter grew by 18%, evidence of their direct ties to the largest sports betting operator in the country. But executives from Flutter, including CEO Peter Jackson, believe that sales will only continue to grow in the newly forming market. Their belief is that New Jersey only represents a tenth of the entire country’s industry, and any losses can be flipped sooner than later.
“All divisions are performing strongly on an underlying basis and have responded well to the challenges faced,” said Jackson. “We are pleased with the progress we are making to build a more diversified and sustainable business.”
Michael began writing as an NBA content writer and has spent time scouting college basketball for Florida State University under Leonard Hamilton and the University of Alabama under Anthony Grant. A graduate of both schools, he covers topics focused on legal sports betting, betting odds, and casino reviews. Michael likes to golf, play basketball, hike, and kayak when not glued to the TV watching NBA games.