Flutter Entertainment is sending a signal as tall as its new 23rd-floor FanDuel offices in a Manhattan skyscraper and as permanent as its May 31 effective date for its primary stock listing: The online gambling giant is committed to its US investment. That will have an immediate impact on New York and FanDuel Casino.
Dublin-headquartered Flutter (Flutter Entertainment 25,35 +0,08%) nixed its secondary Irish ticker and established one on the NYSE on Jan. 29.
Flutter CEO Peter Jackson said in the Q1 2024 earnings report released on May 14:
On May 1, shareholders voted to move our primary listing to the US. We believe a US primary listing is the natural home for the Group, and we look forward to this becoming effective on May 31. With a greater proportion of the Group’s future profits expected to be generated in the US, we have moved our operational headquarters to New York reflecting the importance of the US sports betting and iGaming market to our business.
Despite the “to be generated” portion of Jackson’s statement, the NYSE ticker FLUT saw its price increase nearly 14% from May 1 to May 15.
Shareholders seem to have the same faith in the US investment as the 23,009-employee company that calls itself “the world’s leading online sports betting and iGaming operator.”
Welcome to New York. We’ve Been Waiting for You
State Sen. Joseph P. Addabbo Jr. was happy to hear the news, he told Bonus on May 15.
Addabbo, D-Woodhaven, said he always likes to see when “an entity incorporates itself more” and invests more in New York:
It’s always a good thing. I hope they advocate, as well, about iGaming.
Addabbo sponsored a 2024 online casino, poker, and iLottery bill that legislators are unlikely to approve by the June 6 adjournment.
However, New York launched online sports betting on Jan. 8, 2022, and its sportsbooks make the state the No. 1 revenue-generating marketplace in the nation. FanDuel Sportsbook holds the largest market share in New York.
The Senate Racing, Gaming, and Wagering Committee chairman believes legal New York online casino revenue will far outpace sports. Bonus found that happens each month in states with iGaming and sportsbooks, generally in a 70% to 30% split.
Addabbo told Bonus on May 15 that he hopes FanDuel will advocate for iGaming legalization in any talks with Gov. Kathleen C. Hochul. She hasn’t yet embraced the form of legal gambling expansion. However, the retail casino workers union was the loudest iGaming bill opponent.
FanDuel Address: One Madison Avenue
Flutter’s corporate face is about to change.
On April 9, SL Green Realty Corporation announced FanDuel “signed a new 35,898-square-foot, 12-year lease on the entire 23rd floor” of One Madison Avenue in Manhattan.
On May 15, Bonus saw FanDuel advertising 62 jobs in New York, including several for online casino leadership roles. The positions generally paid six figures.
New York-headquartered FanDuel also has US offices in Atlanta, Los Angeles, Orlando, and Jersey City, NJ.
In Cherry Hill, NJ, Flutter houses its online poker brand, PokerStars.
However, even as Flutter moves its headquarters to New York, Flutter CFO Paul Edgecliffe-Johnson told the Business Post on May 14 that the company promised to “remain incorporated and tax resident” in Ireland.
It’s unclear what will happen to Flutter’s 165,233-square-foot location in Dublin.
Also, a personnel shift may alter what Flutter said in its 2023 annual report:
The United States comprises 13.1% of our total headcount. UKI [the UK and Ireland] comprises 36.7% of our total headcount.
In 2023, more than 3,000 workers filled the Dublin offices.
Speaking of real estate, it’s not the first time SL Green made a bet on a gambling company. SL Green and Caesars Entertainment (Caesars Entertainment 36,87 -0,59%) alerted the media to the idea of teaming up to create Caesars Palace Times Square. However, that downstate retail casino licensing process is stalled. Addabbo told Bonus on May 15 that he and legislators are working to unstick the process.
FanDuel Casino’s Bet on iGaming
On May 14, FanDuel Casino officially became the US leader in iGaming market share. That’s an honor first held by BetMGM, then DraftKings (DraftKings 35,11 -1,74%).
According to the earnings report, FanDuel Casino held 27% of market share. While that pales in comparison to FanDuel Sportsbook’s 52% of US sports betting market share, it’s a 49% increase over Q1 2023.
Flutter touted it as a success to build on.
The 2023 Flutter annual report said:
We believe that Flutter is well-positioned to drive future growth due to the following: Access to significant market opportunity: The US market is expected to continue to experience significant growth as additional US states are expected to legalize sports betting and iGaming,
In Fiscal Year 2021, Flutter’s US businesses generated $1.9 billion in revenue. In Fiscal Year 2023, that grew 134% to $4.5 billion.
Flutter’s report continues:
The US division is our fastest-growing and our largest division.
States of iGaming
The iGaming portion of that is FanDuel Casino, which operates in:
- Connecticut (as Mohegan Sun Casino)
- Michigan
- New Jersey
- Pennsylvania
- West Virginia
As well as PokerStars, live in:
- Michigan
- New Jersey
- Pennsylvania
The other iGaming states have special circumstances. Nevada only allows online poker. Delaware and Rhode Island have monopoly marketplaces.
Flutter’s 2023 report said:
Our ability to achieve growth in our online betting and iGaming business, particularly with respect to our US business, which is critical to our long-term ambitions, will depend, in large part, upon expansion of online betting and iGaming into new jurisdictions, the terms of regulations relating to online betting and iGaming and our ability to obtain required licenses. Certain jurisdictions in which laws currently prohibit or restrict online betting and iGaming or the marketing of those services, or protect monopoly providers of betting and iGaming services, may implement changes to open their markets through the adoption of competitive licensing and regulatory frameworks.
FanDuel Casino Marketing
According to the Flutter earnings report’s comments on US brands:
In iGaming, we continue to deliver on our strategy. Our focus on direct casino players and best-in-class customer experiences is generating results. We have gained exclusive online access to one of retail casinos’ most popular slot titles and launched the first in a series of online versions, which immediately became our most played game. We expect further slots-based innovation and exclusive content to drive our leadership in iGaming.
In Q1 2024, online slots generated 73% more revenue than in Q1 2023.
FanDuel found women comprise the majority of slots players. So, it’s no coincidence that the FanDuel Casino marketing campaign launched in 2022 attempted to speak to women.
Flutter’s 2023 annual report said of its marketing efforts:
We also rely on successful cross-promotion across our product offerings and consequently have developed ways to minimize friction between our offerings. For example, our FanDuel Sportsbook app features an embedded iGaming offering in states where iGaming is permissible so players can play a subset of casino games without leaving the sportsbook app. Aside from traditional marketing channels, we also enter into select media, sports and entertainment partnerships that support and accelerate our long-term strategic initiatives. Where possible, we will enter into exclusive relationships to further align interests. We have also historically partnered with athletes and celebrities that share our values in order to promote our brand. For example, in the United States, we have strategically partnered with some of the leading news, sports and entertainment companies, including Turner Sports and the Bleacher Report website.
Along those lines, FanDuel Casino partnered with former NFL player Rob “Gronk” Gronkowski.
On Thursday, May 16, from 6 to 7 p.m. ET, Gronk will play roulette with New Jersey FanDuel Casino live dealer bettors.
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