Flutter Entertainment, the parent company of FanDuel, has projected that the U.S. gambling market will grow significantly, expecting it to exceed $60 billion by 2030. The latest forecast marks a notable increase of almost 60% from previous estimates made in 2022. Flutter’s stock surged by 8% following the announcement, reaching an all-time high. As part of its strategic expansion, the company has also announced a $5 billion share repurchase program.
The U.S. gambling market, as projected by Flutter, will account for $63 billion of North America’s total $70 billion market by 2030. This revised projection is a substantial leap from the previous estimate of $40 billion for the U.S. market. Globally, Flutter estimates the total gambling market to reach $368 billion by 2030.
“We are the No. 1 business here in America with FanDuel, No. 1 in sports, and No. 1 in iGaming, and it gives us a lot of confidence around projecting the size of the market,” said Peter Jackson, CEO of Flutter, cited by Yahoo Finance.
Flutter’s Global Expansion and Growth Strategy
Flutter’s global footprint continues to play a significant role in its success. The company reported a 14% annual revenue growth, with a projection to reach $21 billion in revenue by 2027, nearly doubling the $11.79 billion booked in 2023. An essential part of Flutter’s growth includes a recent $2.6 billion acquisition of Playtech’s Italian gambling business, strengthening its presence in Italy. Jackson emphasized the strategic importance of becoming the No. 1 player in Italy, noting: “We know that when we’re No. 1 in the market, we make a disproportionate share of the economics.”
In the U.S., FanDuel operates in 26 states and continues to lead the market. With its existing operations, FanDuel projects $2.4 billion in EBITDA by 2027, a substantial increase from $65 million in 2023. Jackson highlighted the value of the existing markets, noting that 50% of Americans currently live in states where they can legally bet on sports, offering significant potential for growth as more states legalize mobile gambling.
Large states such as California and Texas, which have not yet legalized online mobile gambling, are seen as crucial to Flutter’s future success. Jackson expressed confidence that more states would eventually join the market, giving Flutter access to roughly 80% of the U.S. gambling market in the long term.
FanDuel’s Path to U.S. Dominance
At Flutter’s recent investor day presentation, FanDuel CEO Amy Howe reflected on the company’s extraordinary growth in the U.S. gambling market. FanDuel has not only secured its position as the top player in sports betting but has also become the largest iGaming brand by gross gaming revenue (GGR). Since 2022, FanDuel’s GGR margin has increased from 10% to 13%, and its combined market share for sports betting and iGaming now stands at 38%, the highest in the U.S.
Looking ahead, FanDuel expects its U.S. revenue to reach $9.7 billion by 2027, with an adjusted EBITDA of $2.4 billion. Howe emphasized that ongoing lobbying and educational efforts will be essential to unlocking new opportunities in key U.S. states such as California, Texas, and Florida. While these states remain hurdles, with California’s unsuccessful lobbying campaign in 2022 and Florida’s existing gambling monopoly, Howe remains optimistic that the right messaging can pave the way for future legalization efforts.
Global Opportunities and Financial Performance
While the U.S. is a significant focus, Flutter’s international business is also poised for continued growth. Dan Taylor, Flutter’s international CEO, noted that the company is well-positioned to capture market share in developing regions such as Latin America, India, and Central and Eastern Europe. Recent acquisitions, including the €2.3 billion purchase of Italian operator Snaitech and the purchase of NSX Group in Brazil, have cemented Flutter’s leadership in mature markets like the U.K., Ireland, and Australia.
Taylor emphasized Flutter’s strategy of investing in “local heroes,” or brands that resonate strongly in specific regions. This approach, paired with Flutter’s global resources and purchasing power, has enabled the company to deliver impressive value from recent acquisitions, such as Adjarabet, Sisal, and Tombola Arcade.
Group CFO Rob Coldrake provided a comprehensive financial overview during the presentation. Flutter’s projected revenue compound annual growth rate (CAGR) through 2027 is 16%, positioning it alongside other fast-growing companies like Doordash, Pinterest, and Tesla. Notably, Flutter’s adjusted EBITDA CAGR of 48% significantly outpaces these companies. The company is also targeting $5.2 billion in adjusted EBITDA by 2027, bolstered by an efficiency program that is expected to save $300 million.
Flutter’s recent approval of up to $5 billion in share buybacks over the next few years reflects its strong financial position. While Coldrake did not rule out a future dividend, the company’s focus remains on maximizing shareholder returns through the buyback program.
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