FanDuel parent company, Flutter, reported a better-than-expected eight percent year-on-year drop in U.S. revenues for the four weeks after sports shut down March 15 because of the coronavirus pandemic.
While sports revenue fell 46 percent, online gaming rose 200 percent in the period, softening the blow.
However, FanDuel suggested the gaming uptick owes in part to the launch of services in Pennsylvania, according to Legal Sports Report.
For Q1 as a whole, gaming jumped 255 percent to $33 million. The operator’s sports business was also insulated some from the Covid-19 impact by the continuation of horse racing in certain areas across the U.S.
“Our racing coverage is increasingly being televised on U.S. mainstream channels, introducing our TVG product to a new cohort of potential customers,” Flutter said.
By comparison, Flutter saw sports revenues drop 65 percent in its European business, where sports and racing have been called off.
The operator said it acquired 100,000 new U.S. customers since the beginning of the year, bringing total sportsbook base acquired since launch to over 450,000. As a result, FanDuel’s online sportsbook continues to lead the wider market, with an approximate 41 percent market share.
Finally, revenue across the TVG racing and daily fantasy businesses grew 3 percent year-on-year in the quarter.
The merger between Flutter and The Stars Group remains on track to close in the second quarter. Flutter received approval from Irish competition authorities.
“We look forward to completing the transaction upon receipt of outstanding shareholder and regulatory approvals,” said Flutter CEO Peter Jackson.
In related news, Sportsbet will absorb Australian online bookmaker BetEasy as part of the Stars-Flutter merger. According to The Australian, BetEasy will operate under the Sportsbet banner.
“Flutter currently intends to pursue a single brand strategy for its Australian operation. This is subject to ratification once the proposed combination is completed,” a Sportsbet spokesman said. Relying on a single brand strategy also owes to the volatility of both sports competitions around the world and the wider economy as a result of the coronavirus pandemic.
The decision, a change in plans to rely on a dual brand strategy in the Australian sports betting market, requires approval of shareholders from both gambling groups.
