FanDuel strengthened its position as the US market leader in sports betting and iGaming in 2024, growing revenue and profitability despite a historically unfavorable NFL season.
FanDuel parent Flutter Entertainment reported earnings on Tuesday, highlighting the app’s continued expansion, increased customer engagement and plans for new state launches. The platform reported $5.7 billion in 2024 revenue, a 38% year-over-year increase, and $507 million in adjusted EBITDA, up 89% from 2023.
Shares of FLUT rose slightly to $268 immediately after its investor call.
FanDuel closed the year as the top US operator in both sports betting and iGaming, holding a 43% share of online sports gaming revenue and 26% of online casino revenue. With new product innovations and expansion plans underway, the company aims for further growth in 2025.
FanDuel outlook for 2025
FanDuel projects full-year revenue from existing states to fall between $7.47 billion and $7.97 billion, with a midpoint estimate of $7.72 billion, representing a 33% year-over-year increase.
Adjusted EBITDA for 2025 is expected to range from $1.28 billion to $1.52 billion, with a midpoint of $1.4 billion, which would mark a 176% increase from 2024.
Navigating a difficult NFL season
Q4 revenue reached $1.61 billion, a 14% increase, driven by a 15% rise in average monthly players. Sportsbook revenue grew 8%, while iGaming surged 43%.
Despite a historic run of favorites winning in NFL betting — which had a $643 million impact on gaming revenue — FanDuel maintained a record 14.5% hold on sports betting in Q4. Flutter has set a long-term 16% hold target by 2030 but has not provided a target for 2025.
“We feel like we’ve got a good strategy this year, and we’re very much tracking toward those long-term results,” CEO Peter Jackson said on Flutter’s earnings call.
FanDuel handle, margin growth
Sports betting handle grew 12% in Q4, a moderation that management attributed to customer migration to lower-handle products, fewer state launches compared to the prior year, and unfavorable sports results.
“We don’t obsess about handle; we’re quite happy with where it’s trending,” CFO Rob Coldrake said. “We’ve kicked it up this year.”
Growth in same-game parlays contributed to a 1 percentage point growth in structural sportsbook revenue margin. Promotional spending decreased 0.2 percentage points year over year to 4%.
‘Now Your Way’
FanDuel saw record engagement for Super Bowl 59 in February 2025, with 3 million active customers placing 17.7 million bets and wagering $470 million on game day.
Jackson noted that one in 20 customers used “Now Your Way” during the Super Bowl, with 90% of bets placed utilizing customization options unavailable in standard markets.
Following the successful rollout of FanDuel’s “Now Your Way” betting product with the NFL, the company plans to expand it to the NBA. The product allows for deeper SGP customization, including adjustable player prop lines and narrative-driven player performance charts.
Since its launch, 25% of “Now Your Way” customers have placed parlays with more than 10 legs.
FanDuel has yet to aggressively market the product, according to Jackson. “We’ve got to get the merchandising right from the customer’s perspective,” he said. “The user experience of having a massively overwhelming array of products could be challenging, and I think the team is doing a brilliant job. We’re really excited to see where we can take this product.”
FanDuel brass talks prediction markets
Asked about FanDuel’s interest in the emerging market for nontraditional sports betting on platforms like Kalshi and PredictIt, Jackson noted that the industry is still awaiting regulatory clarity from the Commodities and Futures Trading Commission.
“We are monitoring the situation closely. … It could be an interesting opportunity, but I think it’s worth recognizing that the products themselves lack the richness of a true sportsbook offering,” Jackson said.
Expansion and state launches
FanDuel plans to launch in Missouri in late October or November and in Alberta, Canada, in early 2026. These expansions are expected to impact revenue by $40 million and adjusted EBITDA by $90 million.
“We’ve been very pleased with the way we’ve been able to hit the market and would expect to continue seeing good opportunities to acquire customers,” Jackson said.
In states where FanDuel launched in 2022 or earlier, sports betting revenue was down 7%, while iGaming revenue increased 40%, leading to a 9% overall revenue increase in those markets. Management again cited industry-wide headwinds for sportsbooks.
Regulatory and tax considerations
Jackson also addressed potential sports betting tax increases in states such as Ohio, Illinois, and Maryland, where lawmakers have proposed changes.
“We are working closely with advisors and regulators to ensure the impact on the regulated market is understood,” he said, adding that FanDuel is well-positioned to mitigate any potential headwinds from tax changes.
FanDuel had forecasted a $50 million impact from Illinois’ tax increase in 2024, which management said played out as expected.
