Flutter Entertainment Plc is a company that has not been around for such a long period of time in its current form but was created by the merger of two large brands with a lot of history behind them. It was in September 2015 that the company was created, thanks to the merger of Paddy Power and Betfair. And due to Paddy Power shareholders possesses 52% of the business, the company became known initially as Paddy Power Betfair plc. It was in 2019 that it went through a rebrand to its current name, which occurred a few months prior to it taking over control of The Stars Group. Today, Flutter is the parent company for some of the world’s largest betting and gaming brands.
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An In-Depth Look at Flutter
The formation of Flutter came about when a deal was entered into between the Irish bookmaker Paddy Power and one of its British rivals in Betfair. Terms for the merger of the companies were agreed to on September 8, 2015, with the deal finalising on February 2 of the following year. It wasn’t long before an announcement was made that 650 jobs in both the United Kingdom and Ireland would be lost at what was then known as Paddy Power Betfair Plc.
Back in October of 2016, a massive payout of $1.1 million was handed over to those punters who wagered on Hillary Clinton securing the presidential election in the USA. Trump, of course, won that election.
Flutter has its headquarters in Dublin, Ireland, which has been the case ever since the merger was agreed upon between Paddy Power and Betfair. Stepping up to the plate of CEO in mid-2017 was Peter Jackson, who also served as the CEO of Worldpay UK, and he succeeded Breon Corcoran in his position with Flutter.
For Flutter, it has the aim of bringing entertainment to life for millions of avid gamblers, but also providing a safe and responsible way of doing that. Sustainability is also high up on the company’s agenda, and the company constantly explores new spaces and markets to expand its reach even further.
While achieving successful progression and delivering on its goals of 2018, Flutter went through a sort of refresh of its primary aims in 2021. Currently, this strategy aims to see it deliver and defend its prime positions in existing businesses, whilst also cultivating an innovative mindset as a way of capitalising on any potential opportunities coming around in the future. Those new priorities have been set out across four pillars of focus – Grow, Invest, Build and Future.
Acquisitions by Flutter
After the two powerhouse gambling companies united to create Flutter (which it rebranded to in March of 2019), it set about trying to expand to even greater lengths. This resulted in it acquiring a number of other brands, bringing them under its umbrella, as well as crafting some of its own online operations alongside. These are some of the takeovers that Flutter Entertainment has partaken in over the years:
- 2017 – Acquisition of the U.S.-based daily fantasy sports (DFS) operator known as DRAFT in a deal worth $48 million. The influx of money from Flutter aimed to assist in growing the brand’s product beyond the 35 American states that it operated in at the time.
- 2018 – Takeover of FanDuel, which served as one of the two leading DFS operators in the USA. The deal was part of a large effort to increase company assets in the U.S., and as part of the acquisition, Flutter paid $158 million, merging its existing operations there into FanDuel to create the FanDuel Group.
- 2019 – In February, the company announced that it had acquired a 51% controlling stake in adjarabet. An option to acquire the remaining 49% of the Georgian business providing gambling products was made available after three years.
- 2019 – Flutter, following its rebranding, announced it was acquiring the Canadian gambling brand The Stars Group for $6.95 billion. With this takeover, the world’s largest online gambling company was created, based on revenues. As part of the deal, the Fox Corporation took a 2.6% minority stake in Flutter, with an extra option to acquire another 18.5% stake a few months later.
- 2021 – In December, Flutter announced its acquisition of the leading online games provider in Italy, Sisal Gaming. The deal cost Flutter €1.913 billion, and it is expected to complete in the second quarter of 2022.
- 2022 – As of January, Flutter acquired the online bingo brand known as Tombola for £402 million. Through this, the company gets to diversify its product offerings and add an engaged, sustainable player base.
Flutter, through its acquisitions of other brands and launches of its own products, is responsible for a number of brands. As part of the takeovers that it has been involved in, Flutter is now also the owner of Sky Betting and Gaming, a highly popular brand in the United Kingdom. Sportsbet is also under the Flutter banner, and due to its acquisition of The Stars Group, so is the online poker platform PokerStars.
It is also the case the Flutter is responsible for Junglee Games – a pioneer in the Indian online gaming space, as well as the fastest-growing skill games company based in Southeast Asia.
Not only that, but the company owns the TVG Network, which serves as an online horse and greyhound racing betting business as well as an American sports-oriented digital cable and satellite television network. Sporting Life also comes under the ownership of Flutter, providing horse racing tips and results, football scores, greyhound racing insights and so on.
The complete selection of brands that Flutter has acquired or launched are as follows:
- FanDuel
- Sky Bet
- Pokerstars
- Full Tilt Poker
- TVG Network
- Sporting Life
- Sportsbet
- Paddy Power
- Betfair
- Adjarabet
- Sisal Gaming
- Junglee Games
- Fox Bet
- Tombola Bingo
- Timeform
Any Fines or Sanctions?
Flutter may have excelled in various areas, but it is also the case that it has been on the receiving end of one or two fines over its years of activity. Here are details of some of those penalties imposed upon the company:
- 2018 – Paddy Power Betfair brand Sky Vegas fined £2.2 million by the UK Gambling Commission for failing to protect its customers showing signs of problem gambling and failing to utilise effective anti-money-laundering protocol.
- 2020 – Flutter fined by Kentucky Supreme Court via it’s the Stars Group brand, concerning a case brought about in 2010 which was presided over in 2015. A penalty amount of $870 million imposed on the company, but out-of-court settlement of $300 million paid.
- 2021 – Sportsbet fined A$135,000 by the Liquor and Gaming New South Wales body for displaying advertisements with an inducement to bet and marketing to players who had opted out of receiving email communications.
Financial Statistics
Flutter is one of the world’s largest parent companies of gambling services. Take a look at some of the facts and figures relating to its financial status at the moment.
- Total revenue for year to 2021 of £6 billion, up 17.7% year-on-year.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of £1 billion, a decline of 18% year-on-year.
- An average of 7.6 million monthly players on brands owned by Flutter, serving an increase of 23% year-on-year.
- Most recent share price in Flutter – £9,148 on May 25, 2022, up by 0.51%.
Office Locations for Flutter
The head office for Flutter can be found in Dublin, Ireland, at Belfield Office Park, which is where it has been based ever since it started operating as a combination between Paddy Power and Betfair. It also has an office located in London, on the Waterfront at Hammersmith Embankment.