Flutter announced Tuesday that its brand, FanDuel, achieved the top spot in online casino gross gaming revenue nationally. It likely would not have been possible if not for its meteoric rise in the Michigan market.
FanDuel Casino Michigan recently passed BetMGM for the online casino crown in the Great Lakes State. For the first time, FanDuel now holds the No. 1 spots in both sports betting and iGaming verticals in Michigan.
As one of only seven states that offer legal online casinos, Michigan has contributed much to FanDuel’s bottom line.
And, the real money is made with online casinos. The operator’s online casino revenue ($57.6 million) in Michigan was three times higher than its revenue from sports betting ($19.2 million) in March.
FanDuel’s Michigan market share mirrors its national average
FanDuel Sportsbook had always been a market leader since sports betting launched not only in Michigan, but nationally, too. However, over the last several months, FanDuel’s iGaming platform has gotten better and better.
In Michigan, FanDuel’s online casino platform surpassed the former market leader, BetMGM, for the first ever in March. BetMGM had led the vertical for 39 straight months. Here’s how the top three shook out in March revenue:
- FanDuel: $57.6 million
- BetMGM: $54.7 million
- DraftKings: $40.2 million
While FanDuel announced a 27% national online casino market share during its Q1 2024 earnings call, the operator almost hit the nail on the head in Michigan, generating 26.8% share among Michigan online casinos.
Flutter CEO touts customer acquisition, product innovation
Flutter CEO, Peter Jackson, credited customer acquisition and product innovation for the success. Total annual monthly players (AMPs) increased 15% year-over-over. He also recognized the growth of his older states, which includes Michigan.
“This includes a 12% year-on-year increase in newly acquired players in pre 2022 states, demonstrating the very strong demand for our FanDuel offering in states that have already been open for a number of years,” Jackson said on the call.
The Michigan Gaming Control Board is expected to release April revenue next week. All eyes are on FD, to see if it can retain the No. 1 spot for a second straight month.
Lifetime, FanDuel has a long way to go to catch BetMGM in Michigan — there is a nearly $750 million gap between the two. Since the online casino market opened in January of 2021, the revenue leaderboard looks like this:
- BetMGM – $1.75 billion
- FanDuel – $998 million
- DraftKings – $911 million
Key reasons for FanDuel’s success in online casino market in Michigan
FanDuel has made numerous investments in the iGaming vertical that has launched itself as the top operator. PlayMichigan detailed its commitment to promotional spending.
FanDuel distributed $5.8 million in promotions in March, the most it had ever spent. The operator had never crossed the $5 million mark before.
Promotional spend has helped FanDuel acquire customers and retain them, which is the name of the game.
Jackson also cited the fact that FanDuel has added more than 100 slots to its library, which is “driving a step-up in cross-sell rates.” He also mentioned a specific slot that has become wildly popular, where the game is available in Michigan.
“In iGaming, we launched more exclusive content, namely the World of Wonka, a very popular title with retail casino customers, which quickly surpassed expectations, becoming the most popular title in our portfolio,” Jackson said.
FanDuel helping drive Flutter’s stock price
FanDuel delivered impressive results in the US market as the No. 1 operator in both sports betting and iGaming.
Flutter operated at a net loss of $177 million in Q1, which is a $66 million improvement from the year prior. It recorded US adjusted EBITDA of $26 million and a $488 million adjusted EBITDA outside the US.
That has translated into a stock price of $211.11, which is up from $174.28 on Jan. 2 to start the year.
