Morningstar Expert Lauds Flutter Entertainment in Recent Analysis

The solid market share within the online sports betting (OSB) vertical in the US belonging to industry leaders FanDuel and DraftKings is unquestionable. The duopoly is estimated to hold between 70% and 80% of the OSB sector, leaving little room for competition.

But while the two companies stay at the helm of betting in the US, a newly released report highlighted the flexibility and strength of FanDuel’s parent and global gaming, betting and entertainment giant, Flutter Entertainment.

The recognition came from Morningstar, the leading research firm that provides insights enabling investors to make informed decisions. Dan Wasiolek, an analyst expert with Morningstar, pointed to Flutter’s strong presence in important markets across the globe in addition to the dominance of its brand FanDuel in the United States.

In the expert’s words, the global gaming and entertainment company leverages extensive knowledge and experience which enabled it to develop products that capture a significant market share. Wasiolek highlighted Flutter’s strong presence in the United Kingdom and Ireland, explaining that the company holds an estimated 29% and 46% of the online gaming revenue respectively.

This is undoubtedly an achievement, considering that the aforementioned markets are mature enough. At the same time, Wasiolek pointed to Flutter’s share in Australia which is approximately 12% and positions the company among the top operators in the country.

The Morningstar expert pointed to the integration of Flutter’s parlay features into Sisal in Italy. While this move helped with market share it also reaffirmed the company’s strength, considering that the market in Italy is the second largest on the Old Continent falling behind only to the UK. “The company’s UK and Australian segments still see over 20% EBITDA margins, despite stringent regulation and industry maturation in these regions,” added Wasiolek.

Flutter Grows from Strength to Strength

Focusing on the financial aspect of Flutter’s performance, the Morningstar expert gave the company an estimate of $250 per share, which is approximately an 18% premium to the price of $210.93 as of the market close on Tuesday.

The expert gave FanDuel’s parent company a four-star rating. This rating signifies once again Flutter’s strength considering the maximum that can be achieved is five stars.

According to Wasiolek, the development of FanDuel’s daily fantasy sports product back in 2009 enabled the brand to gain a strategic advantage after the 2018 decision of the Supreme Court that paved the way for the expansion of sports betting. He pointed to the result of that strategic move which enabled Flutter to hold approximately 40% of the “digital revenue share in the US.”