Even amidst a crippling tax environment, Flutter is eyeing further investments in the UK market as it continues to make strides in online casino.
Speaking at a recent fireside chat with Morgan Stanley, the group’s Chief Executive Officer and Executive Director, Peter Jackson, remained unwavering in his commitment to the UK market as he anticipates ‘very good returns’.
He revealed that they are now looking to ‘invest even more into the UK market’, as he detailed that the operator has increasing headroom in gaming compared to sports.
“We think we’ve got some really good opportunities to dial that out with some of the content that we have,” stated Jackson.
The group had previously ‘laid out top-level plans for mitigation’ against the tax rises, providing optimism that there is a ‘long tail’ of iGaming business in the UK that has ‘much inferior economics to us’.
He estimates this sector holds 30% of market share, as Jackson stated: “We’ll see some of the longer-tail operators struggle post the tax changes, but I don’t think they’re going to take action before they start seeing their new tax bill landing and the impact that has on the business.”
A new tax climate shifts the whole landscape for iGaming businesses in the UK, potentially opening the door to a myriad of mergers and acquisitions as market consolidation accelerates.
Gearing up for the World Cup
Whilst it emphasised a strong focus on online casino, also on the horizon for Flutter is the FIFA World Cup, which will provide a key opportunity to make market gains both in the US and elsewhere.
The group has continued to point to the strong performance of its international division through growth in countries like Italy and Brazil – both nations that are likely to embrace the tournament.
In Brazil, Rob Coldrake, Flutter’s Chief Financial Officer, hailed the acquisition of Betnacional and predicted its Brazilian business will go from ‘strength to strength’, fuelled by interest in the World Cup.
Meanwhile, in the US, the upcoming release of FanDuel Predicts will allow the company to supplement its online sports betting presence in states like California, further growing its opportunity for growth during the tournament.
“[Football] is actually, I think, the fourth biggest sport we have here in the US, so it’s clearly something which is really resonating with consumers in the market,” said Jackson.
“The way that we typically think about something like the World Cup is that it’s fantastic for customer acquisition. It’s a great way of introducing our product, putting it in front of the people.
“And of course, the brilliant thing this year is that even in states like California, where we haven’t got regulated online sports betting, it’s all incremental for us through FanDuel Predicts.”
