FanDuel, the key US property of Flutter Entertainment (OTCPK:PDYPY), could see revenue rise by 450 to 500%, according to company management.
Speaking at a capital markets presentation on Wednesday, CEO Amy Howe said that the segment could reach $15B in annual revenue as more states legalize gambling and the online gaming market matures. She added that this could mean a five-fold increase in revenues from present levels. At present, the FanDuel operation dominates the US online sports betting industry with a 42% market share. Key competitors DraftKings (DKNG) and BetMGM from MGM Resorts (MGM) are estimated to hold a combined 39% market share.
In its November trading update the company noted that revenue rose 82% from Q3 2021 to £598M ($700M) in 2022, driven by a rapid increase in traffic during the NFL season. Further, the company was able to reach customers in six additional states that were unavailable in the prior year quarter.
“Customer economics remained compelling, despite the anticipated step up in competition at the start of the NFL season,” the company said. “We continued to apply a disciplined approach to investment with expected payback periods in September remaining within 18 months.”
The company plans to be profitable on an annual basis in 2023.
Read more on the recent rejection of gambling propositions in California.