Global gambling giant Flutter, the parent company of Australia’s biggest bookmaker Sportsbet, has put out a bullish forecast over the next three years targeting $21 billion in group revenue for 2027, which would represent a compound annual growth rate of 14 per cent.
While growth in the Australian market has plateaued over the past two years, Flutter is making giant strides in the recently regulated American market through its flagship Fanduel brand and in the rest of the world through recent key acquisitions in Italy and Brazil.
The North American gaming and wagering market is now expected to be worth $70 billion by 2027, 1.5 times the previous market estimate, fuelling confidence from Flutter CEO Peter Jackson.
However, Flutter also sees massive opportunities globally, with the regulated wagering market outside of the United States and Canada expected to be approximately $298 million by 2030.
“I am very excited about Flutter’s strong trajectory and how well positioned we are to capitalise on a global regulated addressable market of nearly $370 billion,” Jackson said.
“With our unmatched scale, diversification, and our global differentiator, The Flutter Edge, we have clear sustainable global advantages that will continue to drive sustainable growth and power our financial model with operating leverage building over time.
“This will provide us with significant optionality for capital allocation, allowing us to be an “And” business with the capacity to invest for organic growth, and engage in value creative M&A, and also return a significant amount of capital to shareholders.”
Warwick Barr
Significantly, Flutter also confirmed that it would seek a major share repurchase over that period.
“Our intention to deliver up to $5 billion of share repurchases over the next three to four years reflects our confidence in Flutter’s future,” Jackson said.
The announcement was made during an annual investor day for the company.
Exactly what that aggressive strategy means for the Sportsbet business, which holds around 45 per cent of the Australian market, is uncertain.
Warwick Barr
Flutter reported a 10 per cent revenue decline for Australia’s biggest corporate bookmaker during the second quarter of 2024, with increased taxation and product fees dragging on the business, while there are concerns over the impact of possible advertising bans.
But Jackson said in August that there were positive signs for Sportsbet with average monthly players (AMPs) increasing 5 per cent year-on-year.
