The chief executive of the world’s largest online betting company said its dominant US market share means it does not need to pass on the cost of tax increases to customers.
“When competitors raise their prices, then the customers come over to us,” Peter Jackson, chief executive of Flutter Entertainment, told the Financial Times. Flutter is the parent company of FanDuel, a US sports betting platform that Flutter says has 51 per cent of market share by net revenue.
DraftKings, FanDuel’s biggest competitor, recently announced a tax surcharge on bets placed in high-tax states, but on Tuesday evening rescinded the policy after Flutter said it would not follow suit.
On Tuesday Flutter reported $3.6bn in revenue for the second quarter, while earning $1.45 per diluted share, profits three times higher than Wall Street analysts had expected.
Shares of the company jumped 11.5 per cent in after hours trading.
https://www.ft.com/content/b7bdd0dc-90c7-4752-b0a2-1090be7bc216
