Looking to focus on core business
Flutter Entertainment is looking at possibly selling the popular odds comparison platform Oddschecker. According to a Sky News report on Friday, investment bank Moelis & Company is advising the gambling group on a potential sale that could be worth about £150m ($208.5m).
Oddschecker has been up and running since 1999, going through numerous owners over the years. It allows bettors to quickly see the best odds offered on specific sporting events by comparing the major sportsbook brands. Flutter took over Oddschecker in 2020 after its merger with The Stars Group. The deal saw rival gambling group Entain Plc remove its brands from the odds comparison platform shortly after.
Entain’s decision to withdraw its brands from Oddschecker also allegedly played a factor
Flutter Entertainment chief executive Peter Jackson is reportedly looking to focus more on the expansion of the group’s core operations. Entain’s decision to withdraw its brands from Oddschecker also allegedly played a factor in the decision to sell the platform.
Flutter has not yet officially commented on the reports of a possible sale.
Making major moves in recent years
Flutter has been doing a lot of strategic planning in recent years as it attempts to further bolster its core business. The potential sale of Oddschecker would be in line with this vision.
One of its most significant moves was its £10bn ($13.93bn) merger with The Stars Group in May 2020. It created the largest online gambling group in the world, bringing major brands like PokerStars and Sky Betting & Gaming under the Flutter umbrella.
The company has also been focusing heavily on building its presence in the burgeoning United States sports betting market. Shortly after the US Supreme Court voted in favor of ending the PASPA federal ban on sports betting in May 2018, Flutter bought a majority stake in FanDuel.
At the time, FanDuel was one of the leading daily fantasy sports operators in the country. It quickly entered the sports betting sector and is now one of the biggest players in the market. FanDuel also now operates online casinos in a number of states across the US.
a 40% market share in the US online sports betting market
Flutter noted in its full-year report for 2020 that it had a 40% market share in the US online sports betting market, as well as a 20% share in the iGaming market in Q4. In all, the group’s US revenue rose 81% last year. It believes the total addressable US market will be more than £14bn ($19.5bn) in 2025.
FanDuel stake sale to Fox or public listing likely
Flutter currently owns 95% of the FanDuel sportsbook brand, having purchased a further 37.2% stake from FastBall in December 2020 for $4.18bn. Casino company Boyd Gaming controls the other 5%.
It appears likely that Flutter will have to sell an 18.6% stake in FanDuel to Fox Corporation. This is due to an option that the media giant received at the time of Flutter’s merger with The Stars Group.
The FanDuel majority owner has also recently been considering the option of spinning off the sportsbook brand and taking it public.