Paddy Power owner Flutter 'happy with retail in UK and Ireland' as it taps US online gambling surge

Paddy Power-owner Flutter, which also owns Betfair and FanDuel, said it retained its lead in online gambling in the US despite rivals stepping up their challenges in the rapidly deregulating market. 

Group revenues, which are also generated from the UK and Ireland, Australia, and other regions, climbed 32% to £1.48bn (€1.7bn) in the first three months, helped by a strong performance by FanDuel in the US. The opening up of the US to gambling is continuing apace and is helping to drive the huge stock market shares growth for Flutter and its rivals, as online wagering boomed during the Covid global lockdowns. 

The US accounted for a fifth of all revenues in the quarter and has helped propel Flutter shares 65% higher in the past year to a market value of €31.8bn. The shares fell by over 1% in the latest session but are still 7.5% higher since the start of the year. 

CFO Jonathan Hill told reporters a decision over a proposed shares sale in FanDuel has yet to be taken but any proceeds would be used to add to "firepower" to fight off challengers in the US, and possibly help to fund acquisitions elsewhere too. Flutter is waiting for an arbitration decision over a dispute with Rupert Murdoch's Fox involving FanDuel.

Asked whether the Covid crisis would accelerate the closure of shops in Britain and Ireland, Mr Hill said he expected that across the industry retail outlets in Britain will likely continue to shrink, but added "from our perspective, we are extremely happy with our retail business both in the UK and in Ireland". 

Gambling firms are facing an increasing threat as the UK government reviews legislation and the UK's Gambling Commission seeks tougher measures on betting firms to protect customers. Mr Hill said Flutter will trial measures for the UK government, while in Ireland, he said it supported the setting up of a new regulator.