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SportsTranscript
00:00Let's dive into a very big day for Flutter, FanDuel, Investor Day.
00:07We get to learn a little bit more about their company.
00:09So once again, thanks for coming on.
00:12What have you learned?
00:14Yeah, thanks, Craig.
00:15Listen, Flutter had their Investor Day on Wednesday and investors
00:20seemed to love what they heard.
00:22FanDuel came out swinging with what it expects for the U.S.
00:27It significantly increased what they think the total available
00:31market is going to be by 2030.
00:34Previously, they had said $23 billion for sports betting and $18 billion for iGaming.
00:40They bumped that up to almost $40 billion for sports betting and $24 billion for iGaming.
00:47So basically what FanDuel and what Flutter is telling us is that over the last two
00:53years, between when they made that last announcement and now, they just did not
00:57expect for the kind of growth that they're seeing right now.
01:01One of the things that they said is that they're trying to get to a 16% hold by
01:082030 as well, and it's easy to see how that's going to happen, right?
01:13We've already seen it bump up and bump up.
01:15They're at about a 12% gross margin right now compared to 7% back in 2020.
01:23The good part about that for bettors, though, obviously, you don't want to hear that
01:26the hold is getting higher.
01:27That means you're getting less money.
01:29But they plan on using about 4% of that percentage point.
01:35So the net would be 12% hold, the money that they actually keep, but they're going
01:40to be giving back more to the customers as well, retaining customers and bringing in
01:45customers because they've seen that not only are new customers doing better than
01:50expected, but the older customers are putting more money into the FanDuel system
01:56than expected as well.
01:58And we can see why in one area, Craig, we talk a lot about parlays whenever I come
02:04on, and when you look at the 23, 24 NBA and NFL seasons, 70% of the action for
02:12FanDuel involved a parlay.
02:15That's just incredible to me.
02:1825% of it came from live action bets, and more than 50% now are based on player
02:28narratives, these prop bets that everybody is revamping their sportsbook for to get in
02:35an upfront and center place.
02:36So you can go and, you know, some of the sportsbooks have it so you can search a
02:41name directly and just get all the available props for your players.
02:44So it's interesting to see that this is the way it's going.
02:49And the 70% in parlays, I never would have guessed that high, Craig.
02:52That is incredible to me.
02:55And they say that 88% of bettors believe that sports betting makes games more fun to
03:00watch.
03:02I'm surprised by 88% as well, because, you know, 88% aren't winning out there.
03:07So that was surprising to me, too.
03:10But look, I've seen industry pushback on some of these numbers, too, that, you know,
03:16the market just may not get as big as they're saying.
03:19But that doesn't really matter to the everyday bettor, right, Craig?
03:23The point is, is that these sportsbooks are seeing more business than they expected
03:28to.
03:29They, even with the states not expanding sports betting and iGaming like they
03:35thought it would, with it slowing down a little bit, they still expect more growth,
03:40even if it only comes from those existing players.
03:43So really impressive 150-page PowerPoint that FanDuel put together, that Flutter put
03:51together, their parent company.
03:53That's linked to on our website.
03:54I would encourage anybody to go ahead and read through that.
03:57But, yeah, FanDuel, they're a leader in sports betting.
04:00They're now a leader in iGaming, and they don't show any sign of slowing down.