There’s no debate that 2023 has been a great year for FanDuel in Michigan.
Its production in Michigan helped FanDuel’s parent company, Flutter, report $668 million in Q3 revenue on Thursday.
FanDuel is Michigan’s largest-growing online casino
Flutter reported 52% revenue growth in its online casino product, which boosts it to 23% of the market share in the US.
In 2023, FanDuel Casino Michigan has produced $281.5 million in revenue through nine months. That’s a 56.8% increase from the $179.6 million it was at at this point in 2022.
With over $100 million grown in 2023, FanDuel has seen the biggest overall increase in revenue of all Michigan online casinos.
“A lot of the growth that we’ve been seeing is actually coming from the direct-to-casino space. I think the team has done a brilliant job for where we are,” said Flutter CEO Peter Jackson during the Q3 investor call. “We’re delivering better results are anticipated, and we’ve got lots of exciting things still to come in in casino, which we know will enable us to take further share.”
FanDuel has added a lot to its gaming inventory over the year, especially in the jackpot category. As of November 1, FanDuel offers 775 slots and 145 jackpot games in Michigan.
Lifetime, 65% of FanDuel’s revenue from online gambling in Michigan has come from online casinos. A recent PlayMichigan report found that, by percentage, FanDuel ranks next to last of Michigan’s 15 operators. But, that is because FanDuel is one of the most successful online sports betting operators in the state and nation.
FanDuel is the top operator by lifetime Michigan online sportsbook revenue.
Flutter boasts FanDuel’s net gross sports betting revenue
There has been national debate over who is the country’s sports betting king — DraftKings or Fanduel.
While DraftKings may have a claim to the top national revenue market share, Flutter pointed out that FanDuel is well ahead when it comes to net gaming revenue. And being the first to full-year profitability will be another point in FD’s favor.
FanDuel has 47% of the national NGR market share, putting it clearly in the driver’s seat for that metric.
“NGR really is the right metric to look at, because that does take account of generosity coming through. So, 47% NGR for us, which is up 5% year over year,” Flutter CFO Paul Edgecliffe-Johnson said. “It’s good that now we’ve got nine states that are publishing that, and we are encouraging the rest of the states to do the same because I think that’s really the metric that matters.”
Gross gaming revenue doesn’t take into account the promotional losses that operators are able to claim, while NGR, or adjusted gross revenue, factors that in.
When factoring in the bonus losses, FanDuel comes in with $91 million in NGR, while DraftKings falls back to $29.9 million.
FanDuel’s NGR is a 32.2% decline from its GGR. DraftKings, on the other hand, has a 50.8% decline from GGR to NGR.
FanDuel’s strong NGR number speaks to its high hold, which is 13.4% online in Michigan for the year.
FanDuel projecting full-year profitability
With the success FanDuel is experiencing in Michigan and throughout the country, Flutter stated it anticipates FanDuel to be the first sports betting operator to reach full-year profitability.
FanDuel is seeing average monthly player growth of 38%, which is allowing it to capitalize on the NFL season.
That, combined with the hold it retains through it being a leader in parlay betting, has Flutter projecting an adjusted EBITDA of $180 million for 2023 off a $4.7 billion revenue approximation.
Lifetime, FanDuel is number one in Michigan online sports betting with revenue of $391 million. FanDuel is second in online casino revenue ($725 million) behind only BetMGM ($1.5 billion). FanDuel is also second behind BetMGM in total online gambling revenue ($1.12 billion).
LEARN MORE ABOUT MI ONLINE CASINOS: