By 2027, FanDuel projects to hit $63 billion in revenue, 50% larger than their previous estimate

On Wednesday, FanDuel’s parent company Flutter had its Investor’s Day. At the gathering, FanDuel announced they will aim for a 16% hold in the sports betting market by 2030. Flutter noted they project to hit $63 million in revenue by 2027. Fifty percent larger than their previous estimate. 

During Investor’s Day, FanDuel explained their interest in expanding their market-leading position in the United States. With the revenue guidance they provided for 2027, they project a midpoint of $21 billion and adjusted EBITDA of more than $5 billion. Flutter is also purchasing a $5 billion share repurchase program. Finally, with the news on Wednesday, Flutter’s stock rose 5,3% to an all-time high of $240.36 by the afternoon.

What control does FanDuel already have on the sports betting market?

As it currently stands, FanDuel holds 38% of the combined revenue share in the U.S. sports betting and iGaming market. Through eight months in 2024, FanDuel has a 46% market share for sports betting revenue. The next closest company has a 32% market share. Additionally, they lead the market in the share of iGaming revenue at 25%. That’s up from the 17% they saw in 2022. 

Flutter CEO Peter Jackson noted that the company’s market share opportunity is relatively small despite being the global leader in the sports betting atmosphere. Over the last four years, FanDuel has grown its gaming revenue from 7% to 12%. DraftKings was the only other sports betting market to see an increase. All other U.S. markets saw a decline.

Parlays and flexibility keep customers coming back to FanDuel

FanDuel’s two most popular sports in the United States are the NBA and the NFL. Parlays account for 70% of the bets placed on professional basketball and professional football. With so many parlay bets coming in, the odds at which customers are winning their bets have shifted. Since 2019, the average FanDuel bet’s odds are up 260%. 

Flutter announced they expect FanDuel’s existing state revenue to grow from 15% to 17%. That would give them roughly $9.7 billion in revenue by 2027. Over the last three years, FanDuel increased its number of betting markets in major U.S. sports by 36%. Since 2019, it’s grown a whopping 470%.