Flutter Execs FanDuel Predicts Making Strides, Customers ‘Look a Lot Like Our Sportsbook Customers

In incremental fashion, Flutter Entertainment’s (NYSE: FLUT) U.S. prediction market efforts are starting to bear fruit, potentially setting up that business to be a contributor to long-term growth. FanDuel Predicts is making progress, say Flutter execs. (Image: PR Newswire) In a Friday conversation with Barclays analyst Brandt Montour, Flutter CEO Dan Taylor and CFO Rob Coldrake flagged progress for the FanDuel Predicts prediction markets platform with both executives highlighting benefits by way of the intersection of event contracts and the company’s One App – a super app concept that brings all of the gaming company’s offerings under one umbrella in the states where it’s able to do so. “We’ve got that sports-driven experience with the One App, and we’ve got real momentum going since the start of the NFL season with the volumes and the actives nearly tripling in October versus what we had in July,” said Coldrake. The Flutter financial boss also mentioned benefits accruing by way of FanDuel Predicts’ partnership with Crypto.com, noting that “we’ve almost got 5x as many markets now that we’ve plugged in with Crypto.” FanDuel Predicts: Room to Grow, Discipline Required As is the case with some of its rivals, Flutter rattled investors this year with ambitious prediction market spending plans. The importance of prudence and validating those expenditures isn’t lost on the Flutter executives. Coldrake acknowledges that FanDuel Predicts’ volume is currently low compared to rival event contract purveyors, but that situation could shift for the better now that FanDuel’s product is improving. He adds that cost discipline is front-and-center for the company. “We need to remain disciplined around our investment on that. You could torch a lot of dollars quite quickly in this space if you don’t remain disciplined,” said the CFO. “So we’re very thoughtful about where we deploy our investment and where it works hardest for us and how that’s going to ultimately make us win in this space in the medium to long term, which I’d say we’re very confident about.” Taylor points out that there are some “challenging economics” around prediction market generosity, also known as promotional spending, but that may evolve into a positive at a time when FanDuel is spending big to protect and expand its core sportsbook turf. Familiar Faces? The fate of sports event contracts, the derivatives accounting for the bulk of prediction market volume, could hang in the balance next year, but FanDuel could be well-positioned either way. “We’re acquiring customers that look a lot like our sportsbook customers,” said Taylor with regards to FanDuel Predicts clientele. That echoes the refrain voiced by some competitors who have noted prediction market traders are as dedicated, if not more so, than sports bettors and the payback periods with event contract traders are often shorter than those associated with consumers who solely focus on sports betting. The post Flutter Execs FanDuel Predicts Making Strides, Customers ‘Look a Lot Like Our Sportsbook Customers appeared first on Casino.org.