FanDuel was largely responsible for a rosy Q4 earnings call by parent company Flutter Entertainment, and the report suggests the best is yet to come for the US gaming industry leader.
Still No. 1
FanDuel is the Batman to DraftKings’ Robin in the US mobile sports betting market, and a recent Q4 earnings call by its parent company, Flutter Entertainment, shows the brand continues to build momentum off an impressive 2024.
According to the report, FanDuel posted $5.7 billion in revenue last year, an increase of over 38% from 2023, and $507 million in adjusted EBITDA, a rise of 89% from the previous year. And its claim as America’s No. 1 mobile sportsbook remains, as it controlled 43% of the market revenue and was also tops in the iGaming category with 26% of the revenue from the domestic online casino gaming sector.
FanDuel’s Bright Future
The outlook for 2025 is also encouraging as the brand is expected to generate somewhere in the neighborhood of $7.72 billion, which would result in a 33% year-over-year increase.
Adjusted EBITDA is anticipated to be between $1.28 billion and $1.52 billion in 2025, and if the midpoint of $1.4 billion is achieved, it would signal an increase of 176% from last year. “We feel like we’ve got a good strategy this year, and we’re very much tracking toward those long-term results,” CEO Peter Jackson said during Flutter’s earnings call.
Despite a tumultuous NFL season that saw an unprecedented run of favorites winning and covering, FanDuel reported a 14.5% hold and is targeting a 16% hold by 2030. The Q4 report also shows the company’s handle increased by 12% during the final quarter. “We don’t obsess about handle; we’re quite happy with where it’s trending,” CFO Rob Coldrake said. “We’ve kicked it up this year.”
“Now Your Way” a Hit
Parlays are the cash cows of every sportsbook, and bettors enjoy them due to their low-risk/high-reward margins. FanDuel rolled out their newest betting product, “Now Your Way,” during the Super Bowl, which allows customers to adjust player prop lines in single-game parlays.
Since its inception, 25% of FanDuel’s customers have used the tool in parlays with more than 10 legs. The company has yet to fully market the product, preferring to take its time and present it on a large scale that will be easy for recreational bettors to understand and navigate.
“We’ve got to get the merchandising right from the customer’s perspective,” Jackson stated. “The user experience of having a massively overwhelming array of products could be challenging, and I think the team is doing a brilliant job. We’re really excited to see where we can take this product.”
Another avenue FanDuel and some of its competitors are considering is the political betting market, which has been a contentious battle between the Commodity Futures Trading Commission and financial exchange companies like Kalshi.
“We are monitoring the situation closely. … It could be an interesting opportunity, but I think it’s worth recognizing that the products themselves lack the richness of a true sportsbook offering,” Jackson said.
