FanDuel owner, Flutter Entertainment, has reported a significant financial impact due to an unprecedented winning streak by favorites in US sports events during late 2024.

Between November 12th and the end of December 2024, Flutter reported that there was an unusually high rate of favorites winning in US sports, marking the most “customer-friendly” period in nearly two decades. This trend was most notable in NFL games, where a significant percentage of favored teams secured victories, resulting in increased payouts on popular bets such as Parlays and Same Game Parlays.

Flutter estimates an adverse gross gaming revenue impact of approximately $438 million during this period, with a corresponding revenue reduction of about $390 million. The most significant single loss occurred on December 30th, when the Detroit Lions beat the San Francisco 49ers with a 40-34 victory, costing the company $74 million.

As a result, Flutter has revised its US revenue forecast for 2024, now estimating approximately $5.78 billion, down from the previous guidance range of $6.05 billion to $6.25 billion. Additionally, after implementing one-off cost mitigations, the company’s US Adjusted EBITDA is projected to be around $505 million, a decrease from the prior guidance range of $670 million to $750 million.

Despite the challenges in the US market, Flutter’s operations in the UK and Ireland have experienced positive momentum, aided by favorable sports results in the English Premier League. The company anticipates that revenue and Adjusted EBITDA for these regions will be approximately 1% and 2% higher, respectively, than previous estimates.

Flutter will provide a more detailed update during its scheduled Q4 earnings release on March 4th, 2025.

Market Reaction

Following the announcement, Flutter’s shares experienced a decline, with a 1.9% drop in after-hours trading in New York and a 2.3% decrease in London. Despite this setback, the company’s stock has shown resilience over the past six months, reflecting a 29% increase.

Q3 Earnings

In its quarterly report for Q3 2024, Flutter revealed that group revenues increased by 27%.

Revenues for the quarter came to $3.2 billion, up by 27% on the $2.5 billion reported in Q3 2023. However, this also represented a drop of $600 million compared to the previous quarter. The company also reported net loss of -$114 million, a 56% improvement on loss reported in the same period in 2023.

The Group reported that Flutter’s brand portfolio increased its average monthly players (AMPs) to 12.9 million, up by 16% year-on-year.

The company is currently ranked first out of the top 50 publicly traded gambling companies by market cap with a value of $45.37 billion.

Jenny Tang

An experienced iGaming commentator and analyst based in New York City – Jenny reports on regulation and gambling industry news and events.