Flutter Reveals Substantial Market Growth in Recent Report

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00:00Let's dive into a very big day for Flutter, FanDuel, Investor Day.

00:07We get to learn a little bit more about their company.

00:09So once again, thanks for coming on.

00:12What have you learned?

00:14Yeah, thanks, Craig.

00:15Listen, Flutter had their Investor Day on Wednesday and investors

00:20seemed to love what they heard.

00:22FanDuel came out swinging with what it expects for the U.S.

00:27It significantly increased what they think the total available

00:31market is going to be by 2030.

00:34Previously, they had said $23 billion for sports betting and $18 billion for iGaming.

00:40They bumped that up to almost $40 billion for sports betting and $24 billion for iGaming.

00:47So basically what FanDuel and what Flutter is telling us is that over the last two

00:53years, between when they made that last announcement and now, they just did not

00:57expect for the kind of growth that they're seeing right now.

01:01One of the things that they said is that they're trying to get to a 16% hold by

01:082030 as well, and it's easy to see how that's going to happen, right?

01:13We've already seen it bump up and bump up.

01:15They're at about a 12% gross margin right now compared to 7% back in 2020.

01:23The good part about that for bettors, though, obviously, you don't want to hear that

01:26the hold is getting higher.

01:27That means you're getting less money.

01:29But they plan on using about 4% of that percentage point.

01:35So the net would be 12% hold, the money that they actually keep, but they're going

01:40to be giving back more to the customers as well, retaining customers and bringing in

01:45customers because they've seen that not only are new customers doing better than

01:50expected, but the older customers are putting more money into the FanDuel system

01:56than expected as well.

01:58And we can see why in one area, Craig, we talk a lot about parlays whenever I come

02:04on, and when you look at the 23, 24 NBA and NFL seasons, 70% of the action for

02:12FanDuel involved a parlay.

02:15That's just incredible to me.

02:1825% of it came from live action bets, and more than 50% now are based on player

02:28narratives, these prop bets that everybody is revamping their sportsbook for to get in

02:35an upfront and center place.

02:36So you can go and, you know, some of the sportsbooks have it so you can search a

02:41name directly and just get all the available props for your players.

02:44So it's interesting to see that this is the way it's going.

02:49And the 70% in parlays, I never would have guessed that high, Craig.

02:52That is incredible to me.

02:55And they say that 88% of bettors believe that sports betting makes games more fun to

03:00watch.

03:02I'm surprised by 88% as well, because, you know, 88% aren't winning out there.

03:07So that was surprising to me, too.

03:10But look, I've seen industry pushback on some of these numbers, too, that, you know,

03:16the market just may not get as big as they're saying.

03:19But that doesn't really matter to the everyday bettor, right, Craig?

03:23The point is, is that these sportsbooks are seeing more business than they expected

03:28to.

03:29They, even with the states not expanding sports betting and iGaming like they

03:35thought it would, with it slowing down a little bit, they still expect more growth,

03:40even if it only comes from those existing players.

03:43So really impressive 150-page PowerPoint that FanDuel put together, that Flutter put

03:51together, their parent company.

03:53That's linked to on our website.

03:54I would encourage anybody to go ahead and read through that.

03:57But, yeah, FanDuel, they're a leader in sports betting.

04:00They're now a leader in iGaming, and they don't show any sign of slowing down.

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