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FanDuel

fanduel.com

Founded Year

2009

Stage

Acq - P2P | Acquired

Total Raised

$417.5M

Valuation

$0000 

Revenue

$0000 

About FanDuel

FanDuel s a daily fantasy sports game that provides fantasy sports leagues that last just one day. It enables consumers to draft fantasy sports teams at any time in head-to-head or multi-player contests. Players pay an entry fee for each contest and vie for cash payouts awarded to the player whose team generates the most fantasy points. Headquartered in New York with offices in Edinburgh, FanDuel hosts fantasy football, baseball, hockey, and basketball contests.On December 3rd, 2020, Flutter Entertainment acquired a majority stake in FanDuel.2B.

Headquarters Location

300 Park Avenue South 14th Floor

New York, New York, 10003,

United States

800-475-2250

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Research containing FanDuel

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CB Insights Intelligence Analysts have mentioned FanDuel in 2 CB Insights research briefs, most recently on Feb 10, 2021.

FanDuel Patents

FanDuel has filed 1 patent.

patents chart

Application Date

Grant Date

Title

Related Topics

Status

6/30/2015

3/2/2021

Fantasy sports, Diagrams, Clusters of differentiation, Stochastic processes, Quantum mechanics

Grant

Application Date

6/30/2015

Grant Date

3/2/2021

Title

Related Topics

Fantasy sports, Diagrams, Clusters of differentiation, Stochastic processes, Quantum mechanics

Status

Grant

Latest FanDuel News

Waterhouse VC: Crunch time in the US

Nov 25, 2022

Waterhouse VC: Crunch time in the US 25th November 2022 | By contenteditor | Reading Time: 6 minutes In his latest column, which goes live first on iGB, Tom Waterhouse of Waterhouse VC scrutinises the gambling stock performance in the US, and the variable of customer acquisition costs. As discussed in our June newsletter , investors in US online wagering operators are growing impatient with the losses recorded for the sake of gaining market share. One reason we focus primarily on suppliers over operators is because operators rely heavily on their customer acquisition cost (CAC). In mature, highly taxed, regulated markets, a handful of operators earn the majority of profits because they have the lowest CAC and the best operational efficiencies. Sportsbet take 2 Flutter’s third quarter results demonstrated FanDuel’s (Flutter’s US brand) clear market leadership. It has a 42% gross gaming revenue (GGR) market share in mobile sports betting and 18% market share in igaming. As shown above, Flutter is the only operator from its peer group to generate positive returns for investors over the past 12 months. It’s also our only portfolio holding in the group. We initially invested in Flutter because of their profitability in mature international markets, scale, marketing expertise and team. FanDuel’s strong position In the US, FanDuel has achieved 19% more app downloads than DraftKings year to date (3.3m vs 2.8m) . It has achieved this with 9% less marketing spend ($727m vs $803m). Product innovation and superior user experience have contributed to 77% year-on-year customer retention (Flutter Entertainment). These strong metrics allow Flutter to guide for US profitability in 2023. FanDuel is consistently achieving 30%+ share of app downloads. It also has 46% market share of sportsbook GGR in its three largest states (New York, New Jersey, Pennsylvania). FanDuel’s App Download Market Share. Source: Taylor Collison. FanDuel’s Year-to-Date Gross Gaming Revenue by State. Source: Flutter Entertainment Plc Flutter effectively leverages its experience gained outside the US to grow FanDuel with a focus on near-term profitability. In 2021, the US represented just 22.5% of Flutter’s overall revenue. As discussed in September , Sportsbet (Flutter’s Australian brand) has 50% online market share and has grown revenue at 36% per annum since 2009. Scale is critical In regulated markets like Australia, wagering taxes typically increase over time. Sportsbet’s cost of sales has grown at 42% per annum since 2009, increasing from 30% of revenue in 2009 to 49% in 2021. Sportsbet’s increasing cost of sales as a proportion of revenue demonstrates the importance of achieving scale in regulated markets. High CAC and large overheads erodes profits when gross margin is just 51%. Despite the increase in taxation in Australia, Sportsbet’s operating leverage and scale benefits resulted in EBITDA margin expansion. It rose from 14% in 2009 to 34% in 2021. Smaller competitors under pressure The profits of Sportsbet’s smaller competitors are pressured by tax increases, contributing to Sportsbet’s market share gains. In Australia, the top three online sportsbook operators have 87% market share. The top three in the UK have 78% market share; in the US, the top three have 81% (Flutter Entertainment). FanDuel’s Cost of Sales as a % of NGR. Source: Flutter Entertainment Plc All three jurisdictions have a cost of sales higher than 30% of revenue. This negatively impacts the competitiveness, and ultimately the market share, of smaller operators. With regard to taxation, the US is following a similar trajectory to Australia and mature European markets. FanDuel’s cost of sales has expanded from 31% in 2019 to 50% expected in 2022. New York launched in January with a 51% tax rate. Don’t count FanDuel out of igaming  In October, total igaming revenue in North America was a record $446m. That’s an increase of +26% year-on-year and +10% month-on-month. Total iGaming Revenue in North America. Source: Taylor Collison Igaming is a significant growth opportunity for FanDuel. The company currently has 18% market share in igaming, lagging third behind BetMGM and DraftKings, which have 29.8% and 22.8% respectively . FanDuel’s sportsbook is its primary customer acquisition channel. Around 41% of sportsbook customers are then cross-sold into igaming within 30 days. The operator will be improving its range of igaming products and developing promotion tools to retain and monetise players. Taking a large slice of a large pie There are many views on the potential revenue of US sports betting at maturity. BetMGM and DraftKings estimate it to be $14.1bn and $22bn respectively, while FanDuel estimates it to be $22.6bn (Flutter Entertainment). At the moment, FanDuel has 42% market share and expects to generate around $2bn of sportsbook revenue this year. If the potential revenue opportunity is $19.5bn (taking the average of the three operators’ estimates) and FanDuel’s market share falls to 30%, FanDuel’s implied online sports betting revenue at maturity is $5.9bn. That’s about 3x higher than this year. If FanDuel’s market share remains at 42%, revenue would be around 4x higher. The upside for FanDuel’s sportsbook business As discussed above, Sportsbet has an EBITDA margin of 34%. Flutter aims for FanDuel to achieve long-term EBITDA margins comparable to their other divisions (including Sportsbet). If FanDuel achieves a mature EBITDA margin of 25%, the sportsbook business alone can generate higher EBITDA than Flutter’s entire business generated in 2021. This excludes any contribution from igaming. FanDuel’s target long-term key operating metrics. Source: Flutter Entertainment Plc Waterhouse VC has been invested in Flutter since September 2019. While our initial investment has appreciated 70% over the past three years, we remain particularly optimistic about the growth profile of the company’s US operations. DISCLAIMER AND IMPORTANT NOTES Please note the above information in relation to 888 Holdings, Bluebet Holdings Ltd, Pointsbet Holdings Ltd, Churchill Downs, Bally’s Corp, Flutter Entertainment Plc, Caesars Entertainment, Entain, Kindred Group, MGM Resorts, Penn National Gaming, Rush Street Interactive, Wynn Resorts and DraftKings Inc is based on publicly available information in relation to the company and should not be considered nor construed as financial product advice. Waterhouse VC has a position in Flutter Entertainment Plc. The information provided in this document is general information only and does not constitute investment or other advice. Readers should consult and rely on professional investment advice specific to their individual circumstances. General Information Only This material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material has been prepared for investors who qualify as wholesale clients under sections 761G of the Corporations Act or to any other person who is not required to be given a regulated disclosure document under the Corporations Act. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by Sandford Capital, Waterhouse VC or any other person. To the maximum extent possible, Sandford Capital, Waterhouse VC or any other person do not accept any liability for any statement in this material. Financial Regulatory Oversight and Administration Waterhouse VC is an Australian Unit Trust denominated in AUD and available to wholesale institutional investors worldwide with a minimum of AUD 1,000,000 or USD / EUR / GBP / JPY / CHF equivalent. This material has been prepared by Waterhouse VC Pty Ltd (ABN 48 635 494 861) (‘Waterhouse VC’, ‘Trustee’, ‘us’ or ‘we’) as the Trustee of the Waterhouse VC Fund (the ‘Fund’). The Trustee is a corporate authorised representative (CAR 1296688) of Sandford Capital Pty Limited (ABN 82 600 590 887) (AFSL 461981) (Sandford Capital) and appoints Sandford Capital as its AFS licensed intermediary under s911A(2)(b) of the Corporations Act 2001 (Cth) to arrange for the offer to issue, vary or dispose of units in the Fund. Performance Past performance of Waterhouse VC is not a reliable indicator of future performance. Waterhouse VC Pty Ltd does not guarantee the performance of any strategy or the return of an investor’s capital or any specific rate of return. No allowance has been made for taxation, where applicable. We encourage you to think of investing as a long-term pursuit. Copyright Copyright © Waterhouse VC Pty Ltd ACN 635 494 861. No part of this message, or its content, may be reproduced in any form without the prior consent of Waterhouse VC. Governing Law These Terms and Conditions of use are governed by and are to be construed in accordance with the laws of New South Wales. By accepting these Terms and Conditions of use, you agree to the non-exclusive jurisdiction of the courts of New South Wales, Australia in respect of any proceedings concerning these Terms and Conditions of use. Topics:

FanDuel Frequently Asked Questions (FAQ)

  • When was FanDuel founded?

    FanDuel was founded in 2009.

  • Where is FanDuel's headquarters?

    FanDuel's headquarters is located at 300 Park Avenue South, New York.

  • What is FanDuel's latest funding round?

    FanDuel's latest funding round is Acq - P2P.

  • How much did FanDuel raise?

    FanDuel raised a total of $417.5M.

  • Who are the investors of FanDuel?

    Investors of FanDuel include Flutter Entertainment, Betfair US, Pentech, Piton Capital, Bullpen Capital and 18 more.

  • Who are FanDuel's competitors?

    Competitors of FanDuel include BetMGM and 8 more.

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ThriveFantasy develops a mobile fantasy sports and esports platform that aims to eliminate countless hours of research done by users to help them focus on a handful of player properties. It focuses on top-tier athletes from each sport while streamlining the drafting process to engage sports fans. The company was founded in 2016 and is based in New York, New York.

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BetMGM

BetMGM sports betting and gaming entertainment company that offers sports betting and online gaming. The company specializes in land-based and online sports betting, major tournament poker, and online gaming businesses. It is based in Jersey City, New Jersey.

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BetMGM

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