FanDuel isn’t worried about a slowdown in Americans wagering more money, even if investors are.
US sports betting handle is still growing, but the pace of that growth has flattened over the past year. Average monthly handle rose only 18.2% year over year in 2024, compared to explosive monthly gains of more than 100% in early 2023, according to LSR’s analysis of state data, excluding Vermont and North Carolina.
That deceleration continued into the first quarter of 2025, according to betting firm financials. FanDuel, the US sports betting market share leader, reported just 8% year-over-year handle growth in Q1. While analysts at banks like Truist described the trend as “investors’ largest current concern,” FanDuel brass told Barclays on Thursday that other metrics better reflect the industry’s health.
2023 vs. 2024 sports betting handle
Handle was still growing strongly in 2023 (left chart), with total bets at least doubling the 2022 totals over the first five months. Those growth rates were much more moderate in 2024 (right chart).
| Month | US Handle | Growth Rate YoY |
|---|---|---|
| January | $1,799,048,366 | 780% |
| February | $1,474,299,932 | 383% |
| March | $1,792,885,345 | 229% |
| April | $1,550,014,914 | 160% |
| May | $1,363,794,316 | 119% |
| June | $1,170,989,676 | 94% |
| July | $996,555,215 | 79% |
| August | $1,118,163,959 | 67% |
| September | $1,767,913,849 | 53% |
| October | $2,017,133,484 | 39% |
| November | $2,122,736,710 | 28% |
| December | $2,053,736,710 | 18% |
| Month | US Handle | Growth Rate YoY |
|---|---|---|
| January | $1,965,468,151 | 19% |
| February | $1,779,072,192 | 20% |
| March | $1,854,674,065 | 20% |
| April | $1,969,945,755 | 21% |
| May | $1,978,317,034 | 24% |
| June | $1,477,842,947 | 25% |
| July | $1,265,934,085 | 26% |
| August | $1,440,577,943 | 26% |
| September | $2,073,869,074 | 27% |
| October | $2,329,400,446 | 23% |
| November | $2,273,599,386 | 26% |
| December | $2,289,276,065 | 18% |
FanDuel points to key metrics
“When I get my daily [management information], I don’t even look at handle,” Flutter CEO Peter Jackson said during Barclays’ fireside chat webcast.
Instead, Jackson emphasized customer and performance metrics like engagement, retention, and profitability.
“I want to see what’s happening in terms of how many AMPs (average monthly players) we’ve got on the platform, how many bets on the platform, how many activations we’re getting, what our revenues are looking like from a margin perspective,” he said.
Parlay growth, promo shifts impact handle
Those metrics were all trending up in Q1. FanDuel’s structural hold — the percentage of money it expects to keep after paying out bets — rose to 14.1%, boosted by its pricing technology and a 2.6 percentage point increase in same-game parlay mix across NBA and NFL betting.
Parlay products, which now dominate the company’s betting volume, are less handle-intensive but far more profitable, Jackson pointed out. They tend to have lower average bet sizes, because they involve longer odds and bigger potential payouts, but are generating much higher margins.
Meanwhile, promotional spend fell 7.5 percentage points over the year as a percentage of revenue, as reporting lapped costly market entry campaigns from last year in North Carolina and Vermont.
“You can generate handle,” Jackson said. “We could give away free bets and inflate the number. That’s not what matters.”
Investment banks weigh in
Truist analysts echoed that sentiment, writing that handle is just one growth driver. They pointed to FanDuel’s growing player base, improved retention, gains in wallet share, and more efficient promotional reinvestment.
Truist maintained its price target for Flutter, as did Citizens.
Macquarie, meanwhile, cut its Flutter price target to $320 from $330. While not directly tied to handle concerns, the downgrade followed Flutter’s decision to trim its 2025 adjusted EBITDA forecast by $180 million. That cut was largely attributed to unfavorable sports outcomes during March Madness.
What to expect from FanDuel in Q2
Jackson acknowledged that basketball handle came in softer than expected in Q1, which management attributed to fewer competitive matchups. FanDuel has a number of initiatives lined up to boost basketball engagement heading into next season, he added.
For Q2 to date, handle trends are in line with expectations, according to Truist.
Headed into Q2, Jackson advised that handle growth should continue slowing down as parlay betting and promotional investment keep improving. He added that quarterly comparisons will also be diluted as the industry laps a period in 2024 when sportsbooks spent heavily on customer acquisition during North Carolina and Vermont launches.
