FanDuel strengthened its grip on the US sports betting market in Q1 2025, growing revenue and profitability despite a rough March Madness for operators.
Parent company Flutter Entertainment reported earnings Wednesday, highlighting FanDuel’s gains, sports betting margin expansion, and product development as management addressed the rapidly changing industry.
FanDuel reported $1.67 billion in Q1 revenue, up 18% year over year, including a 15% increase in sportsbook revenue. Adjusted EBITDA soared to $161 million, up 519%, as EBITDA margin expanded 7.9 percentage points to 9.7%. Executives cited lower costs, better promo management and the maturing mix of states where legal betting has launched.
Flutter was down 1.7% to $238.01 in early after-hours trading Wednesday.
FanDuel margins up despite March Madness
FanDuel held a 48% share of US sportsbook net gaming revenue in the quarter and 43% of sports betting gross gaming revenue, retaining its lead over DraftKings and other operators. Average monthly players (AMPs) rose 8% to 14.9 million.
FanDuel’s iGaming business also posted strong growth in Q1, with revenue up 32% year over year.
Sports betting hold rose to 14.1%, driven by FanDuel’s proprietary pricing technology and greater same-game parlay penetration, which rose 2.6 percentage points across NFL and NBA markets. That came despite adverse sports outcomes, especially during March Madness, where an unusually high number of favorites won.
Revenue grew 9% in pre-2024 states, while handle rose 5%. Promotional spend fell to 4.4% of handle, down from 4.9%, as FanDuel lapped its 2024 North Carolina launch.
“We are really excited about our next-generation pricing capability,” Flutter CEO Peter Jackson said in a letter to shareholders. “Through a highly intuitive customer interface, enabled by new revolutionary pricing technology, customers will be able to choose from an almost infinite number of outcomes across the most relevant and immersive betting markets.”
Flutter could enter predictions ‘quite quickly’
Flutter executives also addressed the growing conversation about sports-related prediction markets in the US. Jackson confirmed that some Betfair employees — Flutter’s global betting exchange — are now advising FanDuel on how to approach the emerging space.
“We do operate the world’s largest sports betting exchange, so we know this space well,” Jackson said. “It tells us that you have to be quite thoughtful about how exciting the exchange product can be when you have a fully fledged sportsbook available.”
While Flutter is not yet ready to share specific plans, Jackson noted that the company has multiple pathways to enter the market “quite quickly” if regulatory clarity arrives. He did not rule out registering Betfair with the Commodity Futures Trading Commission.
FanDuel lowers 2025 EBITDA forecast
FanDuel maintained its 2025 revenue outlook at $7.4 billion, despite a ~$280 million Q1 revenue hit from customer-friendly sports results. However, the company lowered its adjusted EBITDA forecast from $1.31 billion to $1.13 billion, attributing the revision to those same Q1 outcomes.
Upcoming launches in Missouri (Q4 2025) and Alberta (early 2026) are expected to cost $40 million in revenue and $90 million in adjusted EBITDA this year, unchanged from prior forecasts.
Flutter projects 28% revenue growth and 123% EBITDA growth for FanDuel this year. Management continues to target 22.5% revenue growth and 5.4 percentage points of margin expansion just for existing states.
