Flutter, the owners of FanDuel, Paddy Power, and other gambling companies, has lowered its expected US profits after gamblers won too much. After the basketball tournament, March Madness, appeared to bring betting-friendly results, Flutter will now suffer for the second quarter in a row.
The gambling giant is lowering its US financial forecast by $180 million to $1.13 billion as payouts trumped everything. However, it’s not all bad news, as the overall year-on-year growth still comes in at 123%.
In a short quote via Bloomberg, CEO Peter Jackson said:
“A huge number of the favorites won… That was unexpected.”
Apps like FanDuel have driven US growth for Flutter, as sports betting grows across the country. Flutter is mostly known for its presence in the UK and Australia, owning several major betting brands (Sky Betting, PokerStars), but FanDuel allows them to compete with one of the largest sportsbooks in the US, DraftKings.
Flutter lost to gamblers, but business is still booming
Elsewhere in the company, it managed to grow sales to 7.9%, or $3.67 billion. This is still under what analysts expected to be $3.9 billion.
Flutter is still on the up-and-up in the US, despite customer winnings impacting the numbers. The company’s overall revenue is still up 28%, and iGaming revenue jumped to $472 million, or a 32% growth.
Jackson added:
“I am pleased with the performance of the business during the first quarter, with the scaling of our US business driving a step change in the earnings profile of the Group.
“FanDuel continues to win in the US, retaining leadership positions in both online sports betting and iGaming.
“US performance continued to reflect our strong US leadership position, with sports betting and iGaming GGR market shares of 43% and 27% in the quarter, and a 48% NGR sports betting share.”
The next major sports events in the US include in May, the Indianapolis 500 and Preakness Stakes, and the 2025 US Golf Open in June.
