Betting giant Flutter doubles down on US despite punters’ success

THE gambling group behind Paddy Power is doubling down on its expansion into the US despite a series of unfavourable NFL results costing it hundreds of millions of dollars.

Flutter, which also owns brands such as Betfair and Pokerstars, will list in New York within a fortnight as it looks to capitalise on a boom in demand for gambling in the US, triggered by a Supreme Court decision in 2018 that allowed states to set their own gaming laws. The US now accounts for around 40pc of Flutter’s business after sales there grew by 38pc to £3.6bn in 2023.

Shares in Flutter surged by more than 12pc as markets opened yesterday as investors cheered a 19pc rise in US revenues over the three months to Dec 31, which helped drive global sales up 11pc.

Investors greeted rising revenues even as a string of “customer-friendly” NFL results cost Flutter a combined $343m (£270). This included one match between the Dallas Cowboys and the

Seattle Seahawks in November that cost the company $80m (£63m) alone after the Texas favourites won.

Showdowns between the New York Jets and Cleveland Browns and the Jets and the Miami Dolphins also proved costly.

Flutter is the majority owner of Fanduel, one of the biggest betting brands in the US.

Unfavourable NFL results in the US were offset by horse races going Flutter’s way in the UK, where December was one of the worst months on record for favourites winning. The company also benefited from the result of the King George VI chase at Kempton Park on Boxing Day, which was won by a horse called Hewick, a relative outsider at 12-1 that was bought for just €850 (£729).

Flutter is set to list on the New York Stock Exchange on Jan 29. The company, which is currently listed in London and on Euronext in Dublin, will shed its Irish listing in the process.

Peter Jackson, chief executive at Flutter, said: “While sports results were very customer friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024. We are very excited that the addition of a US Flutter listing is now just days away.

“This is a pivotal moment for the group as we make Flutter more accessible to Us-based investors and gain access to deeper capital markets.”

Across the industry, US gambling revenues have now grown for 11 consecutive quarters in a row.

The third quarter of 2023 was the second-highest grossing quarter for the industry of all time with revenues of $16.2bn, according to the American Gaming Association.

12pc The surge in shares in Flutter as investors cheered a 19pc rise in US revenues over the three months to Dec 31