Flutter, owner of Paddy Power and Sky Betting and Gaming, has said that its three-year-old US business has twice the number of customers as its longstanding Australian brands after posting record growth in the first quarter.
FanDuel and Fox Bet, Flutter’s two US betting companies, benefited from enthusiastic uptake from American gamblers during this year’s Super Bowl competition and its entry into two states where gambling had not been previously allowed.
Revenues in the three months to the end of March rose 135 per cent to £288m, while average monthly users increased 132 per cent to 1.6m, the group said on Thursday.
Growth in the US has outpaced many analyst expectations thanks to the rate at which states have introduced sports betting legislation since it was permitted on a federal level in 2018. Flutter has had a presence in Australia since 1993.
“As restrictions begin to ease and retail reopens across a number of markets, we remain confident that our diversified business leaves us well placed to deliver sustainable growth,” said Peter Jackson, Flutter’s chief executive, in a statement.
The group confirmed it was considering plans to list a small stake in FanDuel, its main US betting brand. It said that if it did it would not involve its other US assets, including Fox Bet that it operates with Rupert Murdoch’s Fox Corporation.
Flutter is in the middle of an arbitration dispute with Fox over the value of its option to buy a stake in FanDuel this July.
Overall Flutter said that revenues in the first quarter were up 32 per cent to £1.48bn thanks to the growth of its online and sports betting brands.
It said it faced tougher comparatives in its gaming division coming into the second quarter due to the rise in online gaming activity as sports shut down during the first wave of the pandemic last year.