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UK's Biggest Gambling Companies to Report Strong Growth Despite Steadier Trading in Home Market

Strategic Insights

— 1 min read

The UK's leading gambling companies, Flutter Entertainment and Entain, are set to announce robust growth in the first half of 2023, driven by expansion in the US market. Paddy Power owner Flutter Entertainment is expected to report a significant increase in revenues, with analysts predicting a first profit from its fast-growing US operation, led by the FanDuel platform. Meanwhile, Ladbrokes owner Entain is poised to reveal a doubledigit rise in revenues, amid speculation that it could be a takeover target for US joint venture partner MGM.

Key Takeaways:

  • Flutter Entertainment is predicted to report earnings of £770 million for the half-year, with around £55 million coming from the US.
  • Headline revenues grew by 46% over the first quarter, with a 92% jump stateside as its sportsbook business soared.
  • The company's strong performance in the US was driven by the loosening of sports betting rules in some states and its FanDuel platform.
  • Entain investors are awaiting a US update on Thursday, which could include news on its joint venture with MGM.
  • The UK's leading gambling companies are shifting their focus to international markets due to constraints to growth and profitability from gambling reforms announced in April.
  • The reforms will include tighter stake limits for online casinos and stronger affordability checks.

Statistics:

  • £770 million: Predicted earnings for Flutter Entertainment in the first half of 2023.
  • £55 million: Expected contribution from the US to Flutter Entertainment's earnings.
  • 46%: Increase in headline revenues for Flutter Entertainment over the first quarter.
  • 92%: Jump in revenues stateside for Flutter Entertainment over the first quarter.
  • 17%: Lift in the UK and Ireland for Flutter Entertainment at the start of the year.
  • £5 million: Contribution from the US to Zumbox earnings.
  • Thursday: Date of Entain's US update on Thursday.

Sources:

  • "Flutter to deliver strong US growth as it reports interim results", City A.M., 2023,
  • "Entain to reveal US update as MGM speculation mounts", City A.M., 2023,
  • "UK's biggest gambling firms shrug off gloom with US-led bounce", The Times, 2023,
  • "Flutter to unveil results as US growth continues", The Telegraph, 2023,

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