The parent company of FanDuel, Flutter Entertainment, revealed exact figures for its dominance among North Carolina sportsbooks during a second-quarter earnings report call.
With 59% of the market in the Tar Heel State, FanDuel is outpacing the North Carolina online sports betting market by an even larger margin than the 50% estimated by research firm Eilers & Krejcik Gaming recently.
The Flutter earnings report included several high points for the nation’s leading mobile betting operator as articulated by CEO Peter Jackson.
“It was a very strong quarter for the group and ahead of market expectations. We delivered [average monthly player] growth of 17% and revenue growth of 20%, reflecting excellent execution against our strategic priorities and positive sports results. We have outperformed in our major markets, U.S. sports and iGaming, the U.K., Ireland and Italy, providing great momentum for the second half of the year. In the U.S., FanDuel had an exceptional quarter with nearly 40% share of the entire U.S. sports betting and iGaming market.”
No surcharge for FanDuel in North Carolina
Two weeks ago, DraftKings announced it would impose a gaming tax surcharge on customers in high-tax states.
Since then, it has been the hottest topic in the sports betting world with speculation about which other operators would follow suit.
Jackson quelled all rumors in stating, “we have no plans to introduce a surcharge for winners,” during the call. Later that day, DraftKings itself reversed course and nixed the surcharge rollout.
Flutter’s solution to mitigating the loss of potential revenue in high-tax states is by “moderating levels of generosity” and “reducing local marketing.” While North Carolina’s 18% tax rate means it wouldn’t have incurred a betting surcharge, “generosity” in the form of promotional spending by operators has steadily decreased since online sports betting launched in March.
NC promo spending by operators as a percentage of total wagering revenue
Since launch, promo spending has steadily declined, which is to be expected. Here are the percentages of promo spending to total wagering revenue for the first five months of online sports betting:
- March: 30.73%
- April: 12.27%
- May: 5.89%
- June: 4.13%
- July: 3.64%
Total wagering revenue has also dropped every month since launch but is expected to pick back up with the onset of football season in September.
FanDuel’s comments suggest that football promos during the upcoming season might be fewer and of smaller dollar values. They also suggest that North Carolinians could see fewer ads on local TV and along roadsides.
Other FanDuel highlights
Flutter’s second-quarter sales and profits beat analysts’ expectations. In the extended trading after announcing its second-quarter earnings, its stock rose by as high as 11%.
Other second-quarter highlights for the U.S. market:
- Average monthly players increased by 27% compared to the second quarter of 2023
- Sales rose to $1.53 billion; a year-on-year rise of 39%.
- An extension of its top position in the U.S. sports betting and iGaming market.
The factors that drove this growth included product improvements, expanded MLB prop betting, and increases in professional basketball betting including a four-fold increase in WNBA bet count.
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