FanDuel Owner Flutter Entertainment Takes $370 Million Hit as Result of Bettor-Friendly NFL Season

A slew of winning favorites late in the NFL season has impacted FanDuel's bottom line significantly.

Jan 8, 2025 • 09:38 ET • 4 min read

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Leading online sports betting and iGaming operator Flutter Entertainment has taken a real hit as a result of a recent set of "customer-friendly" NFL scores. 

FanDuel's owner revealed that a period of what it termed "very unfavorable US sports results" has offset continued strong US player momentum, meaning a drop in expected revenue for 2024 in the region of $370 million. 

Previously, the company had predicted revenue in the region of $6.05 billion to $6.25 billion. But a sustained spell of games in which favorites took the win every time has meant a revised estimate of approximately $5.78 billion for the operator. 

The adjustment to FanDuel's financial outlook for 2024 is thought to have been driven primarily by NFL parlay and Same Game Parlay outcomes. 

November and December saw the highest rate of favorites winning in almost 20 years. Sportsbooks have not seen such bettor-friendly results since sports betting began, and many will have been negatively impacted by the turn of events. 

Flutter Estimates $438m Adverse Gross Gaming Revenue Impact

For Flutter Entertainment, the results of the NFL season to date have generated an estimated adverse gross gaming revenue (GGR) impact of $438 million. The results also meant an adjusted EBITDA of approximately $260 million for the period November 12 to December 31. 

Flutter's adjusted EBITDA is estimated to be approximately $205 million lower than the previous guidance midpoint at approximately $505 million. Its previous guidance was between $670 million and $750 million. 

While recent results certainly haven't been in Flutter's favor, the company stated that the "transitory nature of these results has no impact on the underlying assumptions and guidance expectations communicated at our Investor Day in September." 

Its statement went on to add that Flutter Entertainment remains "confident in the growth drivers and long-term growth trajectory set out at the Investor Day." 

In Q3, US business represented approximately 38% of sales for Flutter Entertainment. Along with FanDuel, the company owns gaming brands Paddy Power, Betfair, TVG, and Sky Betting & Gaming.

Luckily for Flutter, the customer-friendly results seen in the NFL haven't proven to be a worldwide phenomenon. The company's UK and Ireland sportsbooks enjoyed far more favorable results, with English Premier League outcomes driving revenue and adjusted EBITDA that exceeded previous forecasts by 1% and 2%, respectively.

FanDuel won't be the only sportsbook taking a hit 

We already know that bettors tend to spend far more betting on favorites, so it's unlikely that any sportsbook will have escaped a revenue drop given this season's unusual NFL results.

The coming days will show exactly what the customer-friendly results have meant for sportsbooks, as other companies begin to reveal the hit that their revenue has taken since the close of Q3.

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