Flutter Entertainment

Last updated

Flutter Entertainment plc
Company type Public
LSE:  FLTR
FTSE 100 Component
NYSE:  FLUT
ISIN IE00BWT6H894
Industry Gambling
Founded2016
Headquarters Dublin, Ireland
Key people
RevenueIncrease2.svg £11,790 million (2023) [1]
Decrease2.svg £(549) million (2023) [1]
Decrease2.svg £(1,211) million (2023) [1]
Website flutter.com

Flutter Entertainment plc, formerly Paddy Power Betfair plc, is an international sports betting and gambling company. It is listed on the London Stock Exchange, and is a constituent of the FTSE 100 Index, as well as having a secondary listing on the New York Stock Exchange. It owns brands such as Betfair, FanDuel, Paddy Power, PokerStars, Sky Betting & Gaming, and Sportsbet.

Contents

History

Paddy Power and British rival Betfair agreed terms for a merger on 8 September 2015. The business is owned 52% by the former Paddy Power shareholders and 48% by the former Betfair shareholders. [2] The merger was completed on 2 February 2016. [3] On 5 April 2016, it was announced that 650 jobs in the United Kingdom and the Republic of Ireland would be lost at the company. [4]

On 18 October 2016, the company paid out $1.1M to those who bet on Hillary Clinton in the presidential election in the United States, citing a certainty of Clinton's victory. Trump won. [5] In May 2017, it acquired daily fantasy sports operator Draft. [6] In August 2017, it was announced that Peter Jackson, CEO of Worldpay UK, would succeed Breon Corcoran as CEO of Paddy Power Betfair. [7]

In March 2018, the company announced that it would be implementing an electronic self exclusion process through its in-shop app. The new system will replace the current paper based process, and will be implemented across the United Kingdom. [8]

In May 2018, Paddy Power Betfair announced its intent to acquire FanDuel, one of the two leading daily fantasy sports operators in the United States. The deal was part of an effort to bolster the company's assets in the United States, following the overturning of a federal prohibition on sports betting. [9] As part of the acquisition, the company paid $158 million and merged its existing operations in the United States into FanDuel to form FanDuel Group. [10] It holds a 61% controlling stake, with the option to increase its stake to 80% after three years and 100% after five. [11] [12]

In October 2018, Paddy Power Betfair was fined £2.2 million by the Gambling Commission for failing to protect customers showing signs of problem gambling, and for failing to carry out adequate anti money-laundering checks. [13]

In February 2019, the company announced the acquisition of a 51% controlling stake in adjarabet, a business operating in the Georgian gambling industry with an option to acquire the remaining 49% after three years. [14]

On 6 March 2019, Paddy Power Betfair announced that it would rebrand as Flutter Entertainment, pending shareholder approval at the company's annual general meeting in May. Flutter was originally the name of a betting exchange acquired by Betfair in December 2001. The company argued that the changing in name was meant to reflect the growing number of consumer brands in its portfolio. [15]

On 2 October 2019, Flutter Entertainment announced its acquisition of Canadian gambling operator The Stars Group for US$6.95 billion, creating the world's largest online gambling company based on revenues. As part of the purchase, media company Fox Corporation (who held a minority stake in The Stars Group) took a 2.6% minority stake in Flutter Entertainment, and will have the option to acquire an 18.5% stake in FanDuel Group in July 2021. [16] [17] [18] On 3 December 2020, Flutter announced that it would purchase an additional stake in FanDuel Group from Fastball Holdings for $4.1 billion in a cash-and-stock deal, increasing its stake to 95%. [19] [18]

In April 2021, amid discussion of a FanDuel Group initial public offering, Fox sued Flutter over its option to acquire a stake in FanDuel, stating that Fox's purchase price should be at a $11.2 billion valuation, the same as Flutter's purchase price of FanDuel in December 2020, rather than based on Flutter's valuation of fair market value as of July 2021. [20]

In July 2021, Flutter offloaded the odds comparison website Oddschecker to Bruin Capital for £155m. [21]

In December 2021, Flutter Entertainment announced it would be acquiring Italy's leading online games provider Sisal Gaming, for €1.913bn/£1.62bn. The transaction is expected to complete during the second quarter of 2022. [22]

In January 2022, Flutter acquired the online bingo company Tombola. [23]

In November 2022, an arbitrator ruled that Fox Corporation had an option to acquire an 18.6% stake in FanDuel for $3.7 billion, based on a valuation of $20 billion, with the price increasing by 5% for each year of the 10-year option. [24] [25]

In July 2023, the company announced that Fox Bet will shut down by the end of August 2023. [26]

In September 2023, it was announced Flutter had acquired an initial 51% stake in Novi Sad-headquartered omni-channel sports betting and gaming operator, MaxBet for €141 million in cash. [27]

In January 2024, Flutter moved its secondary stock listing from Euronext Dublin to the New York Stock Exchange. [28]

Operations

The new business maintains separate brands in the United Kingdom, Ireland and Italy. [2] It operates across four divisions; Online, Retail, Australia and the United States. [29] The online division comprises Paddy Power and Betfair in the United Kingdom and Ireland. Betfair also operates an online betting exchange. [30]

The retail division operates over six hundred betting shops in the United Kingdom and Ireland. [31] In Australia, they own Sportsbet. [32] The division in the United States includes FanDuel and TVG, a pari-mutuel online betting network, which is active in thirty five states. The US division also included Fox Bet (a partnership with Fox Corporation, which is branded with and cross-promoted by its Fox Sports division), [33] but Fox Bet will shut down by the end of August 2023. [26] In New Jersey, the company has an online casino and a horse racing betting exchange. [34] In the U.S., FanDuel operates FanDuel TV, formerly known as TVG Network, which focuses on coverage of horse racing, and studio coverage of mainstream sports from the perspective of betting. [35]

Sky Betting and Gaming, Paddy Power and Betfair are regulated in the United Kingdom by the Gambling Commission. [36]

The Board is chaired by Gary McGann, appointed in 2015. [37] Other non-executive Board members include Andrew Higginson, Zillah Byng-Thorne, Atif Rafiq, Nancy Cruickshank, Richard Flint, Mary Turner, Alfred F. Hurley, David Lazzarato, Nancy Dubuc, and Holly Keller Koeppel. [37]

In India, it is the majority owner of the skill gaming provider Junglee Games. [38]

Related Research Articles

Betfair is a British gambling company founded in 2000. It operates the world's largest online betting exchange. Its product offering also includes sports betting, online casino, online poker, and online bingo. Business operations are led from its headquarters in Leeds, alongside satellite offices in Ceuta, Dublin, London, and Malta. In February 2016, Betfair merged with Paddy Power to create Flutter Entertainment.

Paddy Power is an Irish gambling company founded in 1988. Its product offering includes sports betting, online casino, online poker, and online bingo. Business operations are led from its headquarters in Dublin, alongside a satellite office in Malta. In February 2016, Paddy Power merged with Betfair to create Flutter Entertainment.

<span class="mw-page-title-main">Fox Sports (United States)</span> Sports programming division of the Fox Corporation

Fox Sports, also referred to as Fox Sports Media Group and stylized in all caps, is the sports programming division of the Fox Corporation that is responsible for sports broadcasts carried by the Fox broadcast network, Fox Sports 1 (FS1), Fox Sports 2 (FS2), and the Fox Sports Radio network.

<span class="mw-page-title-main">William Hill (bookmaker)</span> Bookmakers in the United Kingdom

William Hill is a British gambling company founded in 1934. Its product offering includes sports betting, online casino, online poker, and online bingo. Business operations are led from its headquarters in London. The company was previously listed on the London Stock Exchange until it was acquired by Caesars Entertainment in April 2021. In July 2022, William Hill was subsequently acquired by 888 Holdings for £2.2 billion.

<span class="mw-page-title-main">PokerStars</span> Online poker cardroom

PokerStars is an online poker cardroom. It is the largest real money online poker site in the world, controlling over two-thirds of the total online poker market, and can be accessed through downloadable poker clients for Windows, macOS, Android and iOS.

<span class="mw-page-title-main">FanDuel TV</span> American horse racing company and TV network

FanDuel TV is an American sports betting-oriented digital cable and satellite television network owned by FanDuel Group, the U.S. subsidiary of Irish bookmaker Flutter Entertainment. It primarily airs live coverage of U.S. and international horse racing as well as studio shows focused on mainstream sports.

Playtech plc is a gambling software development company founded in 1999. The company provides software for online casinos, online poker rooms, online bingo games, online sports betting, scratch games, mobile gaming, live dealer games and fixed-odds arcade games online. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Andrew Black is a British entrepreneur who, together with Edward Wray, a gambling entrepreneur, founded Betfair, the world's first and largest bet exchange. He is now a noted angel investor in technology businesses in the UK and further afield, and is a keen race horse owner and professional bridge player.

<span class="mw-page-title-main">Sky Betting & Gaming</span> British-based gambling company

Sky Betting & Gaming is a British-based gambling company, owned by Flutter Entertainment, with headquarters in Leeds, West Yorkshire and offices in Sheffield & Solihull. Sky Betting & Gaming consists of five core brands: Sky Bet, Sky Vegas, Sky Casino, Sky Poker and Sky Bingo.

Daily fantasy sports (DFS) are a subset of fantasy sport games. As with traditional fantasy sports games, players compete against others by building a team of professional athletes from a particular league or competition while remaining under a salary cap, and earn points based on the actual statistical performance of the players in real-world competitions. Daily fantasy sports are an accelerated variant of traditional fantasy sports that are conducted over short-term periods, such as a week or single day of competition, as opposed to those that are played across an entire season. Daily fantasy sports are typically structured in the form of paid competitions typically referred to as a "contest"; winners receive a share of a pre-determined pot funded by their entry fees. A portion of entry fee payments go to the provider as rake revenue.

OpenBet is a provider of sportsbook technology, content and services, which is owned by Endeavor Group Holdings, Inc as of 2021.

FanDuel Group is an American gambling company that offers sportsbook, daily fantasy sports, horse racing, and online casino. The company operates sportsbooks in a number of states including New Jersey, Pennsylvania, Indiana and West Virginia, as well as an online horse race betting platform, and a daily fantasy sports service.

<span class="mw-page-title-main">Sportsbet</span> Australian online bookmaker (founded 1993)

Sportsbet is an online gambling company owned by Flutter Entertainment, primarily targeting the Australian market. Sportsbet is licensed as a corporate bookmaker in the Northern Territory under the Racing and Betting Act 1993 (NT).

<span class="mw-page-title-main">The Stars Group</span> Canadian gaming and online gambling company

The Stars Group Inc. was a Canadian gaming and online gambling company headquartered in Toronto, Ontario, Canada. Its shares were traded on Nasdaq and the Toronto Stock Exchange. It primarily operated poker, casino, and sports betting products under the PokerStars, Full Tilt Poker, BetStars, and Fox Bet brands.

Breon Thomas Corcoran is an Irish businessman, the CEO of IG Group and a non-executive director of Tilney Investment Management Services and Bestinvest, both part of the Tilney Group. He was CEO of Paddy Power Betfair from February 2016 to January 2018 and CEO of WorldRemit from October 2018 to August 2022.

<span class="mw-page-title-main">DraftKings</span> Daily fantasy sports content provider

DraftKings is an American daily fantasy sports contest and sports betting company. The company allows users to enter daily and weekly fantasy sports–related contests and win money based on individual player performances in five major American sports, Premier League and UEFA Champions League football, NASCAR auto racing, Canadian Football League, the XFL, mixed martial arts (MMA), Boxing, Tennis, All Elite Wrestling (AEW), and WWE.

<span class="mw-page-title-main">Acquisition of 21st Century Fox by Disney</span> Business acquisition held from 2017 to 2019

The acquisition of 21st Century Fox by The Walt Disney Company was announced on December 14, 2017, and was completed on March 20, 2019. Among other key assets, the acquisition included the 20th Century Fox film and television studios, U.S. cable channels such as FX, Fox Networks Group, a 73% stake in National Geographic Partners, Indian television broadcaster Star India, and a 30% stake in Hulu. One day before the acquisition, 21st Century Fox spun off the Fox Broadcasting Company, Fox Television Stations, Fox News Channel, Fox Business, Fox Sports 1 and 2, Fox Deportes, and the Big Ten Network into the newly formed Fox Corporation. Other 21st Century Fox assets such as the Fox Sports Networks and Sky were divested and sold off to Sinclair and Comcast, respectively.

<span class="mw-page-title-main">Fox Corporation</span> American mass media company, successor to 21st Century Fox

Fox Corporation is an American multinational mass media company headquartered at 1211 Avenue of the Americas in Midtown Manhattan. Incorporated in Delaware, it was formed on March 20, 2019, as a result of the acquisition of 21st Century Fox by The Walt Disney Company, which was closed on March 20, 2019. The company is controlled by the Murdoch family via a family trust with 39.6% ownership share, and by Rupert Murdoch himself to the effect of almost 40%.

References

  1. 1 2 3 "Preliminary Results 2023" (PDF). Flutter Entertainment. Retrieved 26 March 2024.
  2. 1 2 "Paddy Power and Betfair merger agreed". The Guardian . Retrieved 29 January 2016.
  3. ↑ Michael Cogley (2 February 2016). "Paddy Power Betfair begins trading after €8bn merger is completed". Irish Independent . Retrieved 21 September 2018.
  4. ↑ Bill Wilson (5 April 2016). "Paddy Power Betfair to cut 650 jobs in UK and Ireland". BBC News Online . Retrieved 5 April 2016.
  5. ↑ "Betting website pays out $1 million because it's certain Clinton beats Trump". CNN. 18 October 2016. Retrieved 9 November 2016.
  6. ↑ Bradley Gerrard (10 May 2017). "Paddy Power Betfair enters fantasy land on back of US sports acquisition". The Daily Telegraph. Retrieved 17 June 2017.
  7. ↑ Jon Yeomans; Bradley Gerrard (7 August 2017). "Paddy Power Betfair takes a punt on Worldpay boss as new CEO". The Daily Telegraph. Retrieved 7 August 2017.
  8. ↑ Caroline Watson (26 March 2018). "Paddy Power launches electronic self-exclusion process for all UK shops". Gambling Insider. Retrieved 28 March 2018.
  9. ↑ "Paddy Power Betfair buys fantasy sports site Fan Duel". BBC. 23 May 2018. Retrieved 3 December 2018.
  10. ↑ "FanDuel Acquired by Paddy Power Betfair". Variety. 23 May 2018. Retrieved 21 October 2019.
  11. ↑ Janko Roettgers (23 May 2018). "FanDuel Acquired by Paddy Power Betfair". Variety . Retrieved 9 July 2018.
  12. ↑ Evan Grossman. "How FanDuel and DraftKings are taking aim at the world of sports gambling: 'The whole marketplace is going to evolve'". New York Daily News . Retrieved 9 July 2018.
  13. ↑ A. Monaghan (16 October 2018). "Paddy Power Betfair fined £2.2m for failing to stop bets with stolen money". The Guardian. Retrieved 17 October 2018.
  14. ↑ "Paddy Power Betfair buys €116m stake in Georgian company". The Irish Times. 1 February 2019. Retrieved 26 February 2019.
  15. ↑ Barber, Bill. "Paddy Power Betfair group to change name to Flutter Entertainment | Horse Racing News | Racing Post". Racing Post . Retrieved 6 March 2019.
  16. ↑ Ziady, Hanna (2 October 2019). "Online betting merger brings Paddy Power and PokerStars together". CNN. Retrieved 2 October 2019.
  17. ↑ Walker, Katherine Sayre and Ian (2 October 2019). "FanDuel Owner Buys PokerStars in $6 Billion Deal". The Wall Street Journal. Retrieved 2 October 2019.
  18. 1 2 Duprey, Rich (3 December 2020). "Flutter Entertainment Ups Stake in FanDuel to 95%". The Motley Fool. Retrieved 10 December 2020.
  19. ↑ Goldstein, Steve. "Flutter Entertainment strikes $4.2 billion deal to control most of FanDuel". MarketWatch. Retrieved 10 December 2020.
  20. ↑ Sherman, Alex (6 April 2021). "Fox files lawsuit against Flutter over FanDuel ownership stake as IPO looms". CNBC. Retrieved 5 September 2021.
  21. ↑ "Flutter Offloads Oddschecker For £155m". EGR Global. 11 January 2022. Retrieved 5 February 2024.
  22. ↑ "Flutter Entertainment to acquire Sisal Gaming". CVC. 23 December 2021. Retrieved 23 March 2022.
  23. ↑ "Flutter completes Tombola acquisition". InterGame. 11 January 2022. Retrieved 11 January 2022.
  24. ↑ "Arbitrator affirms Fox holds 10-year option to buy stake in FanDuel, but must pay full price". Reuters. 6 November 2022. Retrieved 8 November 2022.
  25. ↑ Thomas, Ian. "Fox wins right to buy a stake in FanDuel, but not at the price it wanted". CNBC. Retrieved 8 November 2022.
  26. 1 2 "Fox to Shutter Fox Bet Gambling Business". Hollywood Reporter. 31 July 2023. Retrieved 31 July 2023.
  27. ↑ "Flutter eyes Balkan expansion with acquisition of Serbia's MaxBet". Reuters. 27 September 2023. Retrieved 27 September 2023.
  28. ↑ "Flutter to list in New York in January". Reuters. Retrieved 31 January 2024.
  29. ↑ "Divisions". Paddy Power Betfair. Retrieved 12 June 2017.
  30. ↑ Kate Palmer (4 May 2016). "Paddy Power's Betfair merger pays off with £11m profit boost". The Daily Telegraph . Retrieved 12 June 2017.
  31. ↑ "Paddy Power opens its 600th outlet". RTÉ News. 1 March 2016. Retrieved 10 June 2016.
  32. ↑ Shane Anderson. "Huge Sportsbet result for Paddy Power". RACING.COM. Retrieved 17 June 2017.
  33. ↑ "Fox Sports, Stars Group to offer sports betting in deal". Las Vegas Sun. 8 May 2019. Retrieved 22 May 2019.
  34. ↑ Barry O'Halloran (8 March 2016). "Paddy Power Betfair to launch in US with betting exchange". The Irish Times . Retrieved 17 June 2017.
  35. ↑ Steinberg, Brian (25 August 2022). "FanDuel Readies Launch of Cable Network Focused on Sports Betting". Variety . Retrieved 26 August 2022.
  36. ↑ "Find licensees". Gambling Commission . Archived from the original on 21 September 2018. Retrieved 24 February 2018.
  37. 1 2 "Board of Directors". Flutter. Retrieved 10 December 2021.
  38. ↑ "Flutter acquires additional 32.5% stake in India's Junglee Games, total stake at 84.8%". Preview Tech. Retrieved 8 September 2023.
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