CEO Peter Jackson has overseen Flutter’s rapid expansion.
International sports betting operator Flutter has warned of a hit to revenues and profits after U.S. gamblers enjoyed a string of winning bets on American football games.
The New York-listed owner of FanDuel, Paddy Power and Betfair said late on Tuesday that this year’s NFL season has so far been the “most customer friendly since the launch of online sports betting, with the highest rate of favorites winning in nearly 20 years.”
Flutter’s “period of very unfavorable U.S. sports results” will reduce the company’s gross gaming revenue (GGR)–the difference between the total amount wagered by gamblers and the total winnings paid out–by about $438 million.
As a result, Flutter said its revenue will fall by about $390 million and adjusted earnings before interest, tax, depreciation and amortization will be $260 million lower for the period covering November 12 to December 31.
For the year, Flutter expects its U.S. revenue to be $370 million lower than the previous guidance midpoint at $5.78 billion.
Outside of the U.S., Flutter has been enjoying more favorable sports results, particularly in the English Premier League. The group raised its estimated full-year revenue and adjusted Ebitda figures for the U.K. and Ireland by about 1% and 2%, respectively.
Flutter is scheduled to release its fourth-quarter earnings on March 4.
The group said in September last year that it was expecting to more than double its core profit by 2027, with almost half of it coming from the booming U.S. sports gambling market.
Flutter predicts that the total U.S. market will grow to $63 billion by 2030, up more than 50% from its previous forecast in 2022.
Flutter has been the leading player in the U.S. since acquiring a majority stake in FanDuel for $158 million, a week after a federal ban on sports betting was lifted in May 2018. Two years later, it spent a further $4.2 billion to expand its stake in FanDuel to 95% from 58%.
In May, the Dublin-based group moved its primary listing to New York from London so it could gain access to the world’s deepest and most liquid capital markets.
And it continues to expand internationally by making further acquisitions. Last year, it bolstered its portfolio of brands with NSX and Snai, which expanded Flutter’s reach in the “attractive markets” of Brazil and Italy.