Flutter to move FanDuel Sportsbook onto Paddy Power Betfair’s platform in H2
Platform will operate API-based integration to allow all the London-listed giant’s brands to maintain their own wallets and account systems
Flutter Entertainment is planning to migrate its US business, including FanDuel, Fox Bet and PokerStars, onto its proprietary Paddy Power Betfair (PPB) sports betting platform at some point in the second half of 2020.
Speaking during this morning’s H1 earnings report, Flutter CEO Peter Jackson said the operator has introduced an API-based integration into its platform to allow different brands to maintain their own accounts and wallet systems, while benefitting from the group’s resources.
“We picked the PPB sports betting platform because it allows us to achieve these aims and has proven capabilities for multiple jurisdictions and innovative product developments,” Jackson told analysts.
Flutter announced earlier this year it would extend its betting platform deal with Scientific Games to its US business.
Jackson confirmed that the Sci Games OpenBet component was a “very small” aspect of the operator’s bet-matching capability and would continue to form part of the overall platform.
“OpenBet is not a particularly important part of our platform and nor has it ever acted as a brake in our ability to innovate,” Jackson said.
“In the US market the important pieces to own are the account and wallet and, of course, the sports betting platform because that will allow us to innovate for customers in that market,” he added.
FanDuel will continue to use IGT to power its retail betting terminals.
On its dual-brand strategy to operate both FanDuel and Fox Bet in the US, Jackson said the firm was reviewing all its divisions to determine its “go-to-market” strategies for each sportsbook.
“We like the fact that Fox Bet has access to the Super 6 products with a tight integration to do with Fox Sports – we thinks that’s a good way of acquiring customers on a national basis that can be then cross-sold into sports in a similar way to Sky Bet in in the UK market,” Jackson said.
“It typically will be more of a recreational or super casual-type of customer than possibly FanDuel’s core bettors focus.”
The US business is expected to lose up to £160m ($212m) in 2020, in H1 losses reached $26.5m on a lack of professional sports during the Covid-19 lockdown and launching in new states.
During the lockdown FanDuel saw customer engagement increase 75% on the previous year, with betting volume back to 80% of its historic level in July.
Flutter’s US igaming business, which includes Betfair casino, FanDuel casino and PokerStars, was the biggest winner of the period, having established an overall market share of 27% in New Jersey and Pennsylvania during H1.
FanDuel parent FLTR reports interims tomorrow. In 2Q20, we est. that 59% of FanDuel's U.S. online sports betting and online casino GGR was derived from NJ. We further est. that 76% of its U.S. online sports betting and online casino GGR was attributable to online casino. pic.twitter.com/IiStRM1n6y
— Chris Krafcik (@CKrafcik) August 26, 2020
By comparison, the operator’s report put competing firms Rush Street Interactive and Roar Digital at 14% and 12% consecutively.
FanDuel’s betting app is expected to go live in Illinois in the next few days, a week after the state suspended its in-person registration requirements.