FanDuel is the First US Sportbook to Turn a Profit

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FanDuel is the first US sportsbook to report profitability during a single quarter, according to numbers released Friday by parent company Flutter Entertainment.

FanDuel closed Q2 2022 with $22 million in earnings before interest, taxes, depreciation and amortization from its sports betting and iGaming operations, Flutter said. The company expects FanDuel to be profitable in all of 2023.

Its chief competitors — DraftKings, Caesars and BetMGM — all reported smaller losses year over year for Q2, but they have yet to turn a profit.

Sports betting operators have cut back massive marketing and promotional costs recently, as no new states launched in Q2 2022.

Marketing as a percentage of revenue reduced by 6% due to maturing business in existing states and “disciplined investment”, Flutter said.

Flutter told investors to anticipate $300 million in losses to round out 2022, ahead of potential new market launches in Kansas, Ohio, Massachusetts and Maryland.

"We are particularly pleased with momentum in the US where we extended our leadership in online sports betting, with FanDuel claiming a 51% share of the market and number one position in 13 of 15 states, helping contribute to positive earnings in Q2," Flutter Entertainment CEO Peter Jackson said in a statement.

FanDuel’s chunk of Flutter’s total revenue increased from less than 10% in Q2 2019 to over 33% in Q2 2022, he added.

FanDuel, like competitor DraftKings, continues to reap the benefits from having an existing presence in the U.S., prior to legal sports betting, as a daily fantasy sports operator .

Its converted over 60% of its fantasy sports players in New York, New Jersey, Pennsylvania, Indiana, Iowa and West Virginia to sports betting, according to the release.

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