Flutter Debates Whether to Expand in Nevada with FanDuel

Flutter Entertainment has commented on potentially expanding to Nevada with its flagship sports betting brand – FanDuel, ahead of the company’s second-quarter earnings call. The company has similarly commented on recent rumors that it is negotiating a deal with Kalshi.

Flutter Addresses Kalshi Rumors and Ponders FanDuel Growth

Speaking to the Nevada Gaming Board on Wednesday, Flutter’s private counsel, Erica Okerberg, explained that there were media reports at the time when Nevada’s gaming regulators targeted Kalshi that the company (Flutter/FanDuel) had not entered into any transaction or agreement with the prediction market platform.

“Like other gaming operators, they continue to monitor the litigation and regulatory matters. If there were any change in that position, we would speak with the Gaming Control Board about it,” Okerberg.

Kalshi has won a legal reprieve in Nevada, but a potential deal with a company such as FanDuel could fall through because of the uncertainties surrounding the prediction market’s status.

Put another way, there is no clear guidance on whether a cease-and-desist letter can stop Kalshi from running operations in the Silver State, with the recent legal win a reprieve, and not a final decision.

As to whether Flutter would be expanding through FanDuel in Nevada, it’s important to note that FanDuel currently provides both branding and oddsmaking at the Fremont Hotel & Casino, a Boyd Gaming property, and it also provides informational services for Boyd Gaming.

Okerberg has confirmed that Flutter is currently evaluating whether expansion may happen next.

Brick-and-mortar Presence Required for Standalone Brand Presence

However, there is a rub. FanDuel would need to own a brick-and-mortar venue, which it does not. In other words,  Flutter would have to buy a casino, which would be a major investment at a time of declining revenue for the brick-and-mortar sector and not fully aligned with the company’s current strategy.

Mark Irwin, Flutter’s group finance director, has welcomed the company’s leadership position in the United States.

Irwin added that FanDuel is focused on ensuring that it continues to develop a sustainable business practice that withstands the test of time and that continues to position the brand as the #1 sportsbook in the United States.