FanDuel, owned by Flutter Entertainment, has emerged as the undisputed market leader, capturing 43 percent of the U.S. online sports betting market. Flutter, which began as a regional Irish bookmaker, is now the world’s largest online sports betting and iGaming operator, valued at around $50 billion.
Flutter Entertainment’s Strategic Growth and NYSE Surge
After moving its primary listing to the New York Stock Exchange (NYSE) in May 2024, Flutter’s stock ($FLUT) has surged 47 percent in just 16 months, outperforming both the S&P 500’s 27 percent gain and competitors like DraftKings and BetMGM.
This growth is driven by Flutter’s ability to scale operations, expand customer acquisition, and innovate products such as Same Game Parlays and YourWay betting, which allow users to build custom wagers. These innovations have become industry standards, boosting user engagement and profitability, Joe Pompliano wrote in Huddle Up newsletter.
Strong Financial Performance and Diversified Revenue Streams
Flutter’s 2024 financial performance underscored its leadership:
Total Revenue: $14.05 billion (up 19 percent)
Net Income: Returned to profitability from 2023 losses
Average Monthly Players: 13.9 million (up 13 percent)
In the U.S. alone, FanDuel generated $5.8 billion in 2024 revenue, led by its sportsbook ($4 billion) and iGaming operations ($1.5 billion). Beyond sports betting, Flutter’s portfolio includes horse racing (FanDuel Racing), media (FanDuel TV), and proprietary B2B gambling technology, giving it a diversified global footprint in 100+ countries.
FanDuel’s Winning Formula: Innovation and Retention
FanDuel’s success goes far beyond first-mover advantage. Its flywheel of innovation — combining pricing accuracy, data analytics, and R&D investment — keeps it ahead of rivals. Flutter invested $820 million in R&D in 2024, leveraging data from 4 billion bets annually and a global team of 1,500 pricing specialists to optimize odds and margins.
FanDuel’s gross revenue margin reached 16.3 percent in June 2025, its best-ever performance, while its Q2 2025 margin rose to 13.6 percent, making it one of only two U.S. sportsbooks consistently above 10 percent. High-margin products and personalized offers have resulted in an impressive 91 percent retention rate among top players.
iGaming: Flutter’s Next Big Profit Engine
While sports betting remains Flutter’s foundation, iGaming has become a major growth driver. iGaming revenue jumped 31 percent to $1.775 billion in Q2 2025, accounting for 42 percent of total revenue.
Unlike sports betting, iGaming delivers stable, higher-margin revenue, allowing Flutter to offset volatility and boost profitability. As the U.S. market matures, cross-selling iGaming to FanDuel’s sportsbook users is expected to further enhance customer lifetime value.
Regulatory Tailwinds and Market Expansion Ahead
The repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 transformed the U.S. sports betting landscape, creating one of the fastest-growing entertainment markets in the country. The American Gaming Association estimates that Americans will wager $30 billion during the 2025 NFL season, and 22 percent of adults — including nearly half of all men aged 18–49 — now have active sportsbook accounts.
Flutter’s future growth potential remains strong, as major states such as California, Texas, and Georgia are yet to legalize online sports betting. Continued state-level legalization and the crackdown on illegal betting platforms are expected to push more users into regulated markets.
Additionally, emerging formats like micro-betting, live betting, and custom odds are expanding the addressable market, while FanDuel’s partnership with CME Group hints at future integration between financial and sports prediction markets.
The Bottom Line: Flutter’s Flywheel Fuels Sustainable Growth
Flutter Entertainment’s winning combination of innovation, scale, and diversification has made it the global leader in online betting. Its FanDuel brand dominates the U.S., while international operations drive steady earnings growth. With more states poised to legalize betting and iGaming adoption rising, Flutter’s long-term growth trajectory remains exceptionally strong.
Rajani Baburajan
