FanDuel Becomes First U.S. Online Operator to Record Profit
In terms of handle, FanDuel sportsbook is consistently on the top in each state it launches. It appears FanDuel’s growth isn’t expected to slow down soon, either.
Flutter Entertainment CEO Peter Jackson claimed on Friday that FanDuel now holds a 51% share of the U.S. online sports betting market. FanDuel was also the first U.S. online operator to post a profit, recording $22 million in earnings in Q2 before taxes, depreciation, interest and amortization.
“Our U.S. performance in the quarter was outstanding and continues to exceed all expectations delivering a profit in the second quarter,” Jackson said recently. “This was achieved despite the fact we’ve been leaning into customer acquisition in the second quarter, acquiring over half a million customers in the quarter.”
According to Jackson, FanDuel ranks first in the sports betting market share in 13 of the 15 states FanDuel operates in. Projected full-year revenue in the U.S. is ahead of expectations from $2.85 billion to $3.1 billion.
No states launched any sports betting markets during Q2, but FanDuel is planning to go live in Kansas during the fourth quarter of 2022.
FanDuel also is expected to be licensed in Nevada and also has launches planned for Maryland and Ohio.
“The increased portion of our revenues coming from our existing customers gives us confidence that we will deliver a proper profit for the full year 2023,” Jackson said.
Jackson expects a full year 2023 EBITDA profit thanks to an “increasingly profitable player base,” because of FanDuel’s leading position in the states where it is live.
In saying that, they are also expanding to different states which means MD bettors will soon avail of their offers through Fanduel Maryland.
During the second quarter, the average number of players increased by 49% year-over-year as they placed more than twice as many wagers as last year.
Jackson’s figures and projections also don’t account for the possibility of California sports betting launching in 2023.
“If California is to launch in 2023, it will be a fantastic opportunity for us to replicate the success we are seeing elsewhere in the U.S., in the equivalent of the world’s fifth largest economy,” Jackson said.
For the first six months of the year, Flutter estimates FanDuel’s cost per player acquisition remained below $300, as more than 80% of its customers played a “higher margin parlay product.
FanDuel has reeled back the bonuses for new players. Previously, users were eligible for a first bet up to $1,000. Now, FanDuel’s welcome promotion is a $100 deposit match up to $250 in bonus bets.
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