Matt Tripp: Flutter correct to pursue single-brand strategy in Australia

Flutter Entertainment’s decision to pursue a single-brand strategy in Australia’s sports betting market was the right one, according to bookmaker and investor Matt Tripp.

Speaking exclusively to EGR, the former BetEasy CEO suggested there were “significant synergies” to be gained by running with a single brand, as Flutter selected to do after dropping BetEasy in favour of Sportsbet.

“In terms of labour and in terms of marketing expense, a whole host of efficiencies have been gained and, at the end of the day, the Sportsbet brand was growing significantly and grew disproportionately during Covid-19,” Tripp told EGR.

“I’m sure that’ll come back down in calendar year 2021, but I think it remains to be seen how much it comes down and whether or not it was the right decision in four or five years’ time.

“I can see why they did it and, in any event, there’s always an opportunity to launch another brand down the track if they see fit, albeit starting from a lower base,” he added.

Flutter wound down the BetEasy brand from April 2020 in advance of its takeover of The Stars Group (TSG), citing the impact of the Covid-19 pandemic on its Australian sports betting operations.

All BetEasy customers were migrated to the Sportsbet brand over the second half of the year.

The move represented a significant backtrack from Flutter, which previously suggested it would look to pursue a dual-brand strategy in the country.

In the months since, Australia has proven a very successful market for Flutter, after 2020 revenue rose by 59% on a constant currency basis.

Despite understanding the synergies of a single-brand strategy, Tripp suggested there was still potential in the BetEasy business, predominantly as an alternative to the Sportsbet brand.

“There was quite solid equity in the BetEasy brand, there’d been a lot of work going into it,” Tripp explained.

“It was a well-established brand but at the end of the day, I’m not in the driver’s seat. They are, and they made the decision in the best interests of Flutter and Sportsbet and as a stance I think it’s been the correct one,” he added.

Tripp departed as BetEasy CEO following the Flutter acquisition but has remained an important player in Australian sports betting, having made a A$25m investment in ASX-listed supplier BetMakers.

In addition, media reports have suggested Tripp could front a private-equity backed bid for Tabcorp’s highly coveted media and wagering division, which is currently the subject of a takeover bid by Entain.

Tripp told EGR he was watching developments with interest, as opposed to being an active party in the bidding process.

Reflecting on his departure from BetEasy, Tripp explained: “For me, everyone won out of the deal. I know Covid has boosted all these businesses significantly, but they ended up with a business that was the fastest-growing scale operator in the country.

“They were taking significant market share from all operators at the time. I was really satisfied and really happy with the way it played out in terms of what I was paid.

“In terms of the way the relationship finished with those guys, I think everyone walked away with their heads held high. You can’t look back, you must look forward. I’ve no regrets at all,” Tripp added.