Transcript

What do we make of these numbers from Flutter Entertainment, the parent company of FanDuel? After the close, this online sports book report of what I call a mixed quarter with soft revenue thanks to some adverse gambling outcomes, but also higher than expected earnings. At the same time, Flutter announced that it's moving into the predictions market much like we heard from Draft Kings last week. Their platform, FanDuel Predicts is launching next month in partnership with the CME Group. Now does that change the equation for an industry that's had a tough year? Earlier tonight, I got a chance to check in with Peter Jackson. Be a Flutter entertainment. Take a look. Mr. Jackson, welcome back to Man MONEY. Jim, great to see you again. Thank you for having me on the show. Well, I'm absolutely thrilled you're here because we have a long standing relationship with you from the days when I know you're fascinated by mad money. I am so happy for all your success this quarter. Despite what you call a competitive dynamics that allowed customers where customers got generosity from your competitors, you still managed to beat the bottom line. How are you able to do that? But we're really pleased with Q3. It was a very solid quarter for us. You know, revenues for the group were up 17% including our recent acquisitions in Italy and Brazil. In the US market, you know, revenues up 9%, really driven by Eye Gaming which is up 44% year over year, which is just terrific. Look, we also announced today we're very excited to be launching prediction markets next month and not, you know, we got off to a great start in Q4 as well. You know, we're very, very bullish and. Confidence about the future. Now let's talk about the prediction sparking, which is marking like kindly, I am fascinated by, but I was always hoping someone would actually have a partner from our world, not just a partner from say, Vegas. You've got this CME my regarded as the foremost arbiter of this kind of activity as your partner, which to me legitimizes something that I felt frankly is a little bit odd that I was a little sheepish to be involved in. But we, we've been operating in this space for a long time, right? We have the Betfair exchange in the UK, in Italy and another number of other markets around the world. We run for 20 years. So we've got lots of experience. But when I met Terry in January this year, I knew we could hit it off and form an exciting partnership. And you know, we're really pleased to announce today that Fangel predicts will be live in December. So our customers in the half of America who can't currently access the FanDuel sports book can now access the the sports product and use, you know, what's going to be the best products. Have available in prediction markets. Now you do not have to have any of the traditional gaming licenses in the in say Florida, Texas and California in order to be able to bet on games, correct? Well, you're absolutely right. So prediction markets are, you know, regulated by the CFTC. And in our partnership with CME, we're going to be able to make these products, the sports product available in all the states where FanDuel does not have a sports betting license. So if you sat there in California today watching the FanDuel ads on TV, you're going to better download the FanDuel predicts our application in December and start using the sports product. So you know, we're very excited about it. I think it's going to be huge. It's going to equal the rest. Look, those three states equal the rest of the country. I do wanna know. So I've been in Britain and been fascinated by the queries about what people bet on. But did they get tired after a while or do you think you can keep them fresh? Because I I did feel they got stale over there. The Betfair exchange, which is something we've had for for a long period of time, it's not in the same ballpark as a full-fledged sports betting platform. There's a much richer set of content you can find through parlays. You can have generosity available. But look, if you're saying California today, you can't have any of that at the moment. So FanDuel predicts is going to be a great product if from a sports perspective, you're better based on all of the major leagues will have soccer there for the World Cup next year as well and then across the whole of America. It's gonna be the financial markets which you'll be familiar with from CME that all of our FanDuel customers will be able to have a go on as well. Now will there be separate pages, let's say I go to the to my Flutter page, Well, I also have predictions right on the same page. It's going to be a separate app to start with. So Fangel are going to launch the Fangel Predicts app, which will be a separate standalone app. There's complexity around sort of commingling of of balances and stuff at the moment. So you know, we'll launch that product in December. So if you're sad in California, you better download it, access the, you know, the FanDuel sports product straight away. If you sat here in New York like I am today, you'll be able to actually access the financial markets, but we're not going to have the sports product available in any of the states where you can access the FanDuel sports betting. OK, because. I like to toggle back between say the FanDuel page and with the same bank. But I know there seems to be that some wall which says you gotta have separate banks or separate pages because it's just so much quicker. But you'll have that. You you have to have that right now for California. It's not gonna be the same same account or bank. That that's that's right so in in California, you'll download the FanDuel predicts app and you'll be able to access, you know, from December, all of our sports product together with the financial markets and the other novelty markets will make available. OK, right at the end of your letter, you mentioned something I know that there's Betty and cricket where they bet on everything they better on every pitch they bet on every bean they there's so much fun. It's just crazy because it makes the game so much more interesting. But I see that outside performance in the quarter you had the the enactment of the promotion and regulation of online gaming act in. Forced Jungly and other operators to immediately cease real money work. There are Can we not do that anymore? Look in, in India, you know, we, we were very disappointed that we have this, you know, this came out of the the blue and you know, our, our business there offered rummy, right. So we were not doing sports betting in, in India, it's illegal, but we're, you know, we're one of the biggest rummy operators in the market. They came out with this new rule. So we had to shut down our real money operation a lot. Fortunately, we're very diversified business. We've got a lot of operations, number one positions in many markets around the world. And so the businesses got very strong foundations. It just shows the importance of. Thailand diversification. Alright, fantastic. And one last thing, I know that the predictions market, I think you can revolutionize. I think cause you're so big, you've got the huge market share. Are people allowed to suggest things to you that we want to bet on? But to start with, we're gonna have, you know, you know, a range of of of products available. We'll launch this of combo bets in, you know, early next year. And we're, you know, we're convinced we'll have the right ingredients to win in prediction markets in America. We can leverage our expertise. We come out of Betfair, we've got our fantastic brand and of course, I think we've got the best partner with CME. So we're going to have a winning proposition. We're going to put a lot of money behind it in a disciplined way, but we will win in America like we have done in sports betting and I gaming. Don't laugh, but what I really want more than anything. But I happen to love them. I do them. Can we get predictions? Parlays? But these are these are some of the combos which, you know, we believe will be able to have available on the platform, you know, next year. So, you know, watch out for this and, you know, you'll be able to bet you're better, you know, take take a contract out and your beloved Eagles. And let's see, you know, even when you're in California. Well, you've read my mind. I was in California last weekend, shut down for what I knew was going to be a very important game. Well, anyway, you know me and I know you and I love your company. And it's just a terrific thing that you're doing. It's gonna be a very big splash. I want to thank Peter. In Action CEO, Flutter Entertainment. Thank you, Peter. Thanks for coming back. I really love it. Yeah, thanks for having me. Great question, man. Buddy, we're back after the break.