Since the overturning of PASPA by the Supreme Court in 2018, thirty states, along with Washington DC, have legalized some form of sports betting. Before 2018, US states weren’t allowed to operate, regulate, or tax sports wagering in the state. Since overturning PASPA, over $1.6 billion has been generated for state tax revenue. The sports betting industry has reported a total handle of $146.2 billion since 2018.
Leading the pack is none other than Flutter Entertainment’s FanDuel sportsbook.
Last week, FanDuel became the first US sportsbook to report a profitable quarter. FanDuel’s parent company, Flutter Entertainment, announced the brand generated $22 million in EBITDA (earnings before interest, taxes, depreciation, and amortization). Other sportsbooks in the US have hopes of turning a profit by mid-2023 or 2024. FanDuel is leading the way in the US sports betting market and isn’t showing any signs of slowing down.
How did FanDuel become #1?
According to FanDuel’s website, the sportsbook has over 12 million registered users on its site. Many of those users began using the FanDuel app as a daily fantasy sports (DFS) site. Before legal sports betting, sports fans had the option of playing daily fantasy sports which have been legal for several years. Many of FanDuel’s current user base came from players using the daily fantasy sports on its website. FanDuel figured out how to master transitioning daily fantasy players to sports betting players. FanDuel has reported a whopping 60% of DFS players have converted to sports betting players. On top of this stat, the sportsbook was quick to legalize in every market and has a presence across all fifty states despite sports betting being legal in only 30 states. Kansas, for example, is officially launching sports betting tomorrow (September 1st, 2022), and FanDuel is one of four sportsbooks launching in the state tomorrow. In the 15 states where sports betting is currently legal (excluding Kansas), FanDuel ranks #1 in 13 of the 15 states, according to Flutter’s CEO, Peter Jackson.
“We are particularly pleased with momentum in the US where we extended our leadership in online sports betting with FanDuel claiming a 51 percent share of the market and number one position in 13 of 15 states, helping contribute to positive earnings in Q2. We remain firmly on the path to profitability in 2023, driven by our compelling customer economics and disciplined investment,” commented Jackson.
During a financial presentation, Jackson reported the company saw US revenues top $1.9 billion in 2021, a 97 percent increase from 2019. During Q2 of 2022, FanDuel reported revenue exceeding $750 million for the first time during Q2 with a positive adjusted EBITDA of $22 million for the three months.
Ryan Butler, a sports betting reporter for iGaming NEXT, was quick to comment on the news, stating, “I talk a lot about the US sports betting “Big Four.” As of now, it’s FanDuel and then everyone else. Their parent company’s report today showed some of the strongest numbers any US sportsbook has seen in the four+ years since single-game wagering was permitted outside Nevada.”
Flutter Entertainment acquired FanDuel in December 2020 for $4.2 billion. Flutter has grown FanDuel’s average monthly number of players on the site to 8.7 million as of August 2022. Sports revenue made up 73.2% of total revenue in the US for Flutter during the first half of 2022.
Mac Daniel is a South Carolina-based freelance writer for PlayOnlineCasino and PlayOnlineSportsBetting. He has experience writing about a wide variety of topics, including healthcare, tourism, non-profit organizations, and most recently casino and sportsbetting news. To check out more of his work, visit www.playonlinecasinomi.com or www.playonlinesportsbetting.com