Flutter Entertainment’s stock plunges following underwhelming earnings for its subsidiary FanDjsonDel

FanDuel parent company Flutter argued that it still leads in the US sports betting market despite claims made by rival DraftKings. Flutter CEO Peter Jackson stated in an interview with CNBC that they have a billion dollars more in revenue compared to their competitors, firmly establishing their dominance. However, despite this assertion, FanDuel’s revenues fell short of Wall Street expectations in the third quarter, with the company attributing this to a streak of customer wins, foreign currency headwinds, and slowdowns in certain markets.

Flutter’s shares took a hit following the disappointing third-quarter results, but the company restated its full-year adjusted EBITDA guidance. On the other hand, DraftKings issued an improved guidance in its third-quarter earnings report the week before, indicating its expectations for adjusted EBITDA losses and revenue for the full year.

Jackson of Flutter proposed that net gaming revenue should be the primary metric for determining market leadership, rather than gross gaming revenue. FanDuel claims to have 47% market share in net gaming revenue, positioning them at the top ahead of DraftKings. Furthermore, FanDuel is the second-largest player in the online casino space, with impressive year-over-year growth in gaming revenue.

In response, DraftKings CEO Jason Robins proudly spoke of their market position, especially in online betting. Despite their triumph, MGM CEO Bill Hornbuckle argued that MGM has been consistently leading in iGaming and plans to maintain its position.

The battle for dominance in the online betting and gaming market continues, with each company touting its own strengths and making claims to the top spot. The future of this industry will likely be determined by a combination of sports betting, online casinos, and evolving market dynamics.