10 Best Sports Betting Stocks to Buy Now

3. Flutter Entertainment plc (NYSE:FLUT)

Number of Hedge Fund Holders: 53

The massive sports betting and gaming company Flutter Entertainment plc (NYSE:FLUT) operates in the US, Australia, the UK, and Ireland. It manages FanDuel, the most well-known online sportsbook in the United States.

Flutter Entertainment plc (NYSE:FLUT) estimated that it commands 47% of the US online sportsbook industry and 23% of the iGaming market as of the second quarter of 2023. In 2023, the quickly increasing US market accounted for approximately 37% of revenues, while the UK, Australia, and several European countries represented more mature operations.

Large worldwide online gambling sites, including Sky Betting & Gaming, Betfair, Sportsbet, and PokerStars, are also run by Flutter.

In 32 states as well as the District of Columbia, the company runs FanDuel-powered online sportsbooks. Leading the U.S. sportsbook industry, FanDuel is responsible for 95% of Flutter’s growth and significant revenue gains, which are bolstered by smart alliances and growing market share.

Flutter Entertainment’s Q2 2024 earnings were enhanced by FanDuel’s 51% share of U.S. net gaming revenue, and the NFL and NBA seasons are expected to fuel additional growth.

Flutter Entertainment CEO Peter Jackson said the following in the Q2 2024 earnings report:

“Our US performance was excellent in new and existing states reflecting our disciplined approach to customer acquisition and our best-in-class product, which offers our sportsbook customers the best pricing in the market. We continue to make improvements to our proprietary product offering which drove the proportion of live betting handle to be more than 400 basis points higher than last year during the NBA playoffs, while we also increased our MLB parlay penetration.”

Following an update to the firm’s outlook, FLUT stock was up 8.2%. It now projects a 3% rise in U.S. revenue to $6.2 billion in 2024. Additionally, a 20% growth in company revenue from 2023 is anticipated.

Even though the more developed markets come with greater regulatory risks, the company’s foreign activities offer consistent cash flows to support large-scale US investments. Flutter is poised for long-term growth in the fast-growing online gaming industry due to its transition to trading on the NYSE, which has increased its penetration into the US investor pools and international reach.