Flutter bets on US as states allow gambling for tax funds

Flutter, owner of PaddyPower and SkyBet, has said that the take up of sports betting and online gambling in the US far exceeded its expectations as more states permit betting to replenish tax coffers depleted by the pandemic.

The Dublin-based group on Tuesday said it now expected the total addressable market for its US brands, which include FanDuel and FOX Bet, to exceed $20bn by 2025 — double its forecast this time last year.

Flutter, which completed its acquisition of the Canadian gambling company Stars Group in May, said that its average number of monthly players in the US was up 62 per cent year on year, while revenues increased 81 per cent to £695m in 2020.

However, investment in its rapid expansion there led to a loss in earnings before interest, tax, depreciation and amortisation of £170m.

The figures show the speed at which the US has taken up betting after the Supreme Court ruled that it could be made legal in states outside Nevada in 2018.

Up to 14 states are expected to introduce sports betting legislation this year as state governments try to relieve budget pressures as a result of the coronavirus crisis.

Flutter’s total revenues increased 28 per cent to £5.3bn in the year to the end of 2020, adjusted to account for the acquisition of Stars. Adjusted operating profit was up 14 per cent to £990m.

The group has been hit, however, by the enforced closure of its retail outlets in the UK and Ireland, which it said cost about £9m per month in lost earnings.

Peter Jackson, chief executive, described the year as “historic”. “While the global outlook remains uncertain, our momentum remains strong,” he added.