Flutter Entertainment is issuing a profit warning to its investors prepping them for some bad news that’s likely been inflicted by some very sharp US players. In a recent trade update the gaming giant, which is based in the UK, suggested that its US earnings target could be missed by as much as $370 million (£297 million).
At the heart of Flutter’s headaches is its main US division, FanDuel. FanDuel, like most US-facing sportsbooks, was hit hard during American football season. Because of its focus on popular products like parlays and same game parlays, FanDuel took a bit more punishment during November and December than its competitors. To put things in perspective, Flutter called the 2024 NFL season, “the most customer friendly since the launch of online sports betting with the highest rate of favourites winning in nearly 20 years”.
One of the problems that FanDuel, and all US-facing operators, are dealing with is the narrow window during which a large percentage of US sports betting takes place. In an interview with iGamingBusiness.com, a spokesperson for Regulus Partners pointed out the challenges of America’s very seasonal betting habits saying, “The NFL is by far the worst example…with [around] 15% of US wagering balanced upon less than 300 games played over just 18 weeks – with this level of risk concentration Black Swans are bound to appear in flocks.”
But Regulus warns that FanDuel won’t be the only operator feeling this kind of pain noting, “FanDuel’s leading same game parlay mix probably exposes them more to this run of bad results for bookmakers. But we doubt FanDuel will be the only US betting revenue disappointment or profit warning.”
Despite its challenges with NFL parlays, FanDuel did manage to pull in $438 million in gross gaming revenue during Q4 2024.