FanDuel is one of the best-known daily fantasy sports providers and bookmakers in the US, with a history spanning over a decade. Founded in 2009, it grew steadily to become the second largest DFS service, second only to DraftKings. The two companies were on the verge of merging in 2016 until the Federal Trade Commission intervened and forced them to terminate the agreement. Two years later, FanDuel was acquired by Paddy Power Betfair which since then has changed its name to Flutter Entertainment.
Who is Flutter Entertainment?
Simply put, Flutter Entertainment is one of the largest gambling groups in the world, listed on the London stock exchange and a constituent of the FTSE 100 index. Under this umbrella, punters will find some of the best-known European gambling brands such as Paddy Power at Betfair. In its quest to expand to the US shores, the group has acquired FanDuel and it is on the verge of acquiring Stars in 2020. This will make them the world’s largest gambling company and by far the biggest player in the US.
American punters are right to be interested in this move, as the newly created company will be an unstoppable force in this country. As several US states are contemplating the legalization of sports betting and online gambling, the arrival of such a juggernaut would crush competition. FanDuel is already the leading force in Pennsylvania and New Jersey, so Flutter Entertainment will use it as a springboard to these key states. Except for Nevada, these two states have the largest gambling markets and an enthusiastic group of punters ready to embrace new betting opportunities.
The US market has the potential of becoming the largest in the world, even without all the states legalizing Internet gambling. Online gaming companies fondly remember the years before UIGEA and the biggest players are ready to return when opportunity presents itself. Flutter Entertainment is going to be in a privileged position, especially with FanDuel and Fox Bet under its belt. These two companies will continue to exist, as their brands are still valuable in the US and they will appeal to veteran punters.
A tall order for US competitors
FanDuel members will enjoy a smooth transition to the new online sports betting services offered by Flutter Entertainment through its subsidiary. Fox Bet will have a smaller impact, but will still help the parent company expand its presence across the US. Regular Americans with a keen eye for sports betting and online gambling in general will likely benefit from this influx of new services and opportunities.
The competition will have a hard time staying afloat and even the biggest players will come under huge pressure. DraftKings, for example, are the runner up in the New Jersey market and they actually have more members nationwide than FanDuel. Other major international gambling groups such as William Hill and bet365 would level the playing field if they decide to enter the US market. Local players like MGM resorts and Caesars could also try tip the scales, but Flutter Entertainment will be a formidable opponent.