In the flurry of mergers and acquisitions that took place in the sector over the last decade or so one business has emerged as the largest online gambling operator in the world.
That business is now named Flutter Entertainment and under its banner there are a number of big names. These include the brands Betfair, Paddy Power, Poker Stars and, perhaps the best known name in North America, Fan Duel. It also continues on its relentless path of acquisition and it has recently moved its main listing on the stock market to the US, although it still retains a secondary listing on the UK stock exchange.
To give an idea of the sheer size of Flutter Entertainment, it has over 25,000 people on its payroll worldwide and a stock market value of over US$40 billion.
Recent performance
When the annual results for 2024-2025 were announced in March the news of the group’s performance was overwhelmingly positive. Annual revenue had seen a 19% rise up to US$14 billion with a profit of US$162 million – a major turnaround from the previous year’s figures which had shown a loss of US$1.2 billion.
Net debt carried by the group had also fallen from US$7.1 billion down to US$6.74 billion. Looking to this year, the expectations are that revenues are set to grow by around 13% and the business will become even more profitable, perhaps by as much as 34%.
That said, first quarter results released in May of this year have suggested that these figures may be on the slightly optimistic side. Compared with the revenue estimate for the period of US$3.84 billion the actual figure was US$3.67 billion and the projected Earnings Per Share of US$1.89 came in at US$1.59.
While the release of the figures saw an immediate fall of 4% in the share price this was a fairly predictable market reaction and the price has since rallied.
Trading conditions
Ever since the Supreme Court’s historic decision to legalise sports betting that came seven years ago now operators in the field of sports books have seen their stock steadily rise.
However, this year has seen modest falls across the board which some observers put down to fewer states than anticipated allowing sports betting. At the moment there are 12 states that still forbid it and it may be this lack of truly national coverage that may be holding some investors back. May is also fairly early in the year so the most recent figures can’t include the revenue that the NFL and MLB seasons will generate once they’re in full swing.
Commenting on the results CEO of Flutter Entertainment Peter Jackson also cited that the large number of favourites that won in the March Madness NCAA basketball tournament this year led to larger than expected payouts and this inevitably hit the bottom line. But it must also be noted that other online sportsbook and gambling operators have also seen similar falls in their share prices so Flutter cannot be singled out in this respect.
Positive signs
Any potential investor will be looking for positive signs when it comes to making a decision. One of the most obvious of these can be found when looking at the brands under the Flutter umbrella. Finances and balance sheets will of course be covered but the operator’s public perception will also be high on the list of things to consider before making an investment. There are a lot of resources on the internet that dive deep into the statistics for each operator when reviewing online casinos to help their players make a good choice, and it is likely that serious investors will also be reading up on the brand from third-party sources.
You’ll see that these are market leaders offering competitive bonuses, a wide range of games and strong brands. Another great strength is the sheer diversity of brands that covers everything from fantasy sports to poker and sportsbooks to casinos.
This also has to be put into the context of a gambling market that is growing year on year, so much so that it’s estimated that by 2029 there will be around 1.1 billion active participants in the activity worldwide.
Add to this the fact that, even in challenging economic conditions, it’s a sector that continues to do well and it becomes an even more appealing investment opportunity. And, to cap it all, it’s one sector that at the moment seems to be escaping the threatened tariffs that President Trump aims to impose.
A consideration
The most significant factor that could affect the business is a tightening up of regulation for gambling operators. Already in some countries greater restrictions are starting to be imposed on the ways in which gambling operators can promote themselves. If these become too draconian then it’s almost certain that it will hit profitability – but at the moment this is still only a vague possibility.
So, while no investment can genuinely be considered to be a 100% safe bet, Flutter Entertainment looks like a wise enough choice for anyone want to add it to their investment portfolio.
