In spite of being stunted by the abrupt regulatory shift of the Indian market, Flutter’s diversification enabled the operator to enjoy success in a myriad of markets as the firm tapped into M&A success across Europe.
We are breaking down four strategies that the firm has employed to ensure success in markets outside of India, as the company looks to build into 2026.
Confidence in UK stability
As tax rises loom and the environment for the regulated industry becomes increasingly hostile in the UK, a myriad of operators have provided a melancholy outlook for the market. Flutter, however, was somewhat buoyant on building on current UK momentum to navigate forthcoming headwinds in the market.
Peter Jackson emphasised that, amidst ‘much speculation around tax rises in the UK market’, the operator remains ‘engaged with policymakers and expects decisions to be based on economic merit’.
Jackson added that he is hopeful any changes will take into account the industry’s ‘substantial contribution to UK tax revenues and employment’. Ift tax does increase, which appears inevitable at this point, he backed Flutter’s “market-leading position and unmatched scale to mitigate the impact as they have previously demonstrated”.
Whilst the despondency of much of the market hasn’t been replicated by the UK’s biggest operator, it has already put in place measures to significantly mitigate the impact of the new tax framework, especially when it comes to the retail sector, a space that has been singled out as specifically vulnerable to wear the scars of Rachel Reeves’ tax hikes.
Last month, the group announced that it would be closing almost 60 Paddy Power shops across the UK and Ireland.
It noted that the closures are taking place due to costs increasing and market conditions being challenging, following a review of its high street estate.
“In light of increasing cost pressures and challenging market conditions, we can confirm that we will be closing 29 shops across the UK (including one in NI) and 28 in Ireland within the next month,” said a Flutter UKI spokesperson.
“We are continually reviewing our high street estate, but it remains a key part of our offer to customers, and we are seeking to innovate and invest where we can as we adapt to different customer trends and needs.”
Slots diversification driving growth
Whilst overall numbers were weighed down by the drastic decisions in India, there was market growth in other areas for Flutter.
The operator cited diversification of its gaming portfolio for much of this, including in the Brazilian market, where the operator lauded its growing games portfolio as it achieved a major revenue uptick.
This was also the case in Italy, where the integration of Flutter Studios enabled in-house content and boosted overall player retention. The boost wasn’t solely felt online as it also generated an uplift through new gaming machines.
In total, the operator revealed that it added in excess of 500 gaming titles to its proprietary gaming platform. The group’s CEO, however, specifically singled out titles such as Wonka, Samurai and the latest Huff n Puff slots that have been standouts.
Eyeing pole position in prediction markets
Flutter’s focus on prediction markets stole a lot of the main headlines on Thursday off the back of the company’s Q3 results.
The operator is eyeing tapping into prediction markets as a supplement to its core iGaming and Sportsbook offering, as it looks to enhance its position as a market leader.
Jackson emphasised that he believes the firm can thrive in this vertical as a result of their experience operating the Betfair exchange.
He stated: “We believe this new sports opportunity lies solely in these [non-OSB] states, as prediction markets are having a negligible impact in the states where FanDuel sportsbook is already available to customers.
“FanDuel Predicts will also accelerate acquisition of customers into the FanDuel ecosystem ahead of the state regulation of sports betting.
“We are exceptionally well-positioned to harness this growth opportunity. The opportunity to extend the FanDuel footprint into new states is significant and our aspiration is to be the clear market leader.
“In our existing sportsbook and iGaming states, our primary focus will continue to be the state-regulated market and strengthening our leadership position in our core sports betting and iGaming businesses. In the long-term, we firmly believe that state-regulated sports betting and iGaming remain the most valuable long-term opportunity in the U.S.”
Turkish Delight
Amidst a crackdown on the illegal market by President Erdoğan, the regulated Turkish market was singled out as a market in which Flutter has enjoyed significant success.
In total, Turkey delivered 65% year-over-year organic iGaming revenue growth, standing out as one of Flutter’s most successful growth markets during the period.
Central to the growth was the firm’s expanded product portfolio, as it bolsters online engagement amongst Turkish players.
It fuelled a period of momentum in the broader SEA (Southern Europe & Africa) region, where Flutter is enjoying a strong trajectory. The group stated: “Organic iGaming revenue was 31% higher year-over-year and increased by 10% excluding M&A. Organic growth in SEA of 24% was driven by … Turkey growth of 65%, which more than offset the cessation of trading in India.”
