Core Viewpoint - Flutter Entertainment is positioned for growth in the online sports betting market, with a strong market share and significant opportunities, particularly in the U.S. market, which is expected to drive earnings growth [1][2]. Group 1: Market Position and Growth Potential - Flutter's leadership in the U.S. online sports betting market is projected to contribute to a 25% global adjusted EBITDA compound annual growth rate (CAGR) over the next three years [2]. - The total addressable market (TAM) for online sports betting in the U.S. is anticipated to exceed previous expectations, with the U.S. accounting for nearly 75% of the asset value in Needham's sum of the parts analysis [2][5]. - FanDuel, owned by Flutter, has demonstrated strong revenue and customer growth, maintaining a near duopoly with DraftKings in the U.S. online sports betting market [3]. Group 2: Competitive Landscape - FanDuel and DraftKings together hold a combined market share of 73% in 2023, with FanDuel at 37.8% and DraftKings at 34.8% [5]. - In the second quarter of 2024, FanDuel's market share was 37.3%, slightly ahead of DraftKings at 37.0%, while competitors like BetMGM and Caesars saw lower market shares compared to 2023 [6]. - The competitive dynamics suggest that unless there is a significant change in market structure, FanDuel and DraftKings will continue to dominate the market [5]. Group 3: Future Outlook - An upcoming Flutter Investor Day on September 25 is expected to provide further insights into the total addressable market size and EBITDA goals for the company [4]. - The potential for earnings growth is significant for operators that can consolidate market share in the expanding U.S. online sports betting market [5].
Flutter Analyst Sees 'Significant Earnings Power' With Growing Duopoly, Sports Betting Market Size: 'Add It To The Bet Slip'