The US gambling market is on track to experience unprecedented growth, with projections indicating it will surpass $60 billion by 2030, according to Flutter Entertainment, the parent company of FanDuel. Flutter’s stock recently soared by 8% following the announcement of a $5 billion share repurchase program, signaling the company’s confidence in the future of the gambling industry in North America. These growth forecasts represent a 60% increase from previous estimates, reflecting the company’s bullish outlook on the expansion of online gambling in the United States.
Flutter’s Ambitious Projections for the US Market
Flutter’s updated forecast predicts that the North American gambling market will reach a $70 billion total addressable market by 2030. Of this, an estimated $63 billion will come from the US online gambling sector alone. This is a significant increase from the $40 billion the company had projected just two years ago. Flutter CEO Peter Jackson expressed confidence in these numbers, citing FanDuel’s dominant position in both sports betting and iGaming as key drivers of growth. “We are the No. 1 business here in America with FanDuel, No. 1 in sports, and No. 1 in iGaming,” said Jackson, highlighting the company’s leadership in the US market.
Flutter’s Global Outlook and US Strategy
Globally, Flutter Entertainment estimates that the total gambling market will grow to $368 billion by 2030, underscoring the importance of both domestic and international markets for the company. Despite strong growth in the US, Flutter continues to maintain a significant global footprint, with nearly 60% of its revenue coming from markets outside of the United States. This international diversification plays a crucial role in the company’s overall strategy, as evidenced by the company’s latest acquisitions.
Strategic Acquisitions and Growth in Europe
Recently, Flutter announced the acquisition of Playtech Plc’s Italian gambling business for $2.6 billion, further solidifying its position as the leading player in the Italian market. According to Jackson, this acquisition was a strategic move aimed at ensuring Flutter’s dominance in Italy. “We know that when we’re No. 1 in the market, we capture more of the profit pool than other players do,” Jackson explained, emphasizing the financial advantages of being the top operator in key markets. This move aligns with Flutter’s broader global growth strategy as the company continues to expand its influence beyond the United States.
US Market Potential: Key States Yet to Legalize
Despite its current success, FanDuel only operates in 26 states, leaving significant room for growth as key states like California and Texas have yet to legalize online sports betting. Jackson remains optimistic that more states will eventually join the fold, potentially unlocking access to around 80% of the American gambling market. With 50% of the US population already living in states where sports betting is legal, the opportunity for expansion into additional states could significantly boost Flutter’s US revenue. FanDuel alone is expected to generate $2.4 billion in EBITDA by 2027, a steep increase from the $65 million reported in 2023.
Future Revenue Projections and Market Share
Looking ahead, Flutter forecasts a 14% annual revenue growth through 2027, nearly doubling its 2023 revenue of $11.79 billion to reach $21 billion. This substantial growth is driven not only by the company’s strong presence in the US sports betting market but also by its strategic acquisitions and global expansion efforts. As online gambling continues to gain traction in the US and other key markets, Flutter is positioning itself to capture a significant share of the growing market.
Conclusion: A Promising Future for US Online Gambling
The future of the US gambling industry looks incredibly promising, with Flutter Entertainment leading the charge. By capitalizing on its leadership in sports betting and iGaming, along with strategic global acquisitions, the company is well-positioned to dominate both the US and international markets. As more states move towards legalizing online gambling, the industry is expected to experience sustained growth, providing opportunities for both investors and consumers alike.
