Flutter: This NFL Season Has Big Gifts For Sports Betting Sites

Core Insights - Flutter Entertainment and DraftKings dominate the US sports betting market, controlling between 68% and 72% of the sector, with FanDuel leading at 35% market share and DraftKings at 32% [4][6][5] - The sports betting industry is characterized by low margins and high competition, leading to significant promotional spending, but efforts to reduce these costs are underway to improve profitability [5][6] - Flutter Entertainment has turned profitable in 2023, moving from a loss of $711 million to a profit of at least $85 million, while DraftKings is also expected to achieve profitability [6][5] Market Dynamics - The total revenue for the US sports betting sector is projected to reach $11.4 billion in 2023, with Flutter and DraftKings expected to generate approximately $3.85 billion to $4 billion combined [6][5] - The average daily users for the two leading companies are estimated to be between 1.8 million to 2 million, with expectations to double by 2029 [6][5] - The NFL season is anticipated to drive significant revenue growth, with heightened interest in matchups and player storylines expected to increase betting volumes [10][11] Financial Performance - Flutter's stock price has seen significant fluctuations, starting the year at $164 and reaching $218, with a low of $88 due to market concerns over tax increases in Illinois [8][12] - The intrinsic value of DraftKings is estimated at $40, indicating it is roughly 13% undervalued, while Flutter is favored for its stability and global presence despite a higher trading price [6][5] - FanDuel's performance has been a major contributor to Flutter's revenue gains, accounting for 37% of the parent company's revenue [6]