Flutter Entertainment, the parent company of Paddy Power and Betfair, has issued a warning about reduced sales and profits after US bettors scored big wins.
The NFL season has proven to be exceptionally "customer-friendly" since the advent of online sports betting, with the highest rate of favorites winning in nearly 20 years.
Bookmakers typically face significant losses when favorites prevail, as the majority of bets are placed on them.
On December 30, Flutter experienced its worst single-day loss of the NFL season, losing €70m when the Detroit Lions defeated the San Francisco 49ers.
Overall, from the start of the season to the end of December, 184 out of 256 games were won by favorites.
As a result, Flutter expects its revenues to drop by approximately €373m and earnings by €249m for the period between November 12 and December 31.
For 2024, the company forecasts US revenues will be about €354m lower than the previous guidance of €5.49bn, while US earnings are expected to fall by €195m from the earlier projection of €483m.
Despite these challenges, Flutter’s shares rose by 0.4% in London, bolstered by reports of “good momentum” in the UK and Ireland.
Photo: Jahmyr Gibbs #26 of the Detroit Lions scores a rushing touchdown past Talanoa Hufanga #29 of the San Francisco 49ers during the fourth quarter at Levi's Stadium on December 30, 2024 in Santa Clara, California. (Photo by Ezra Shaw/Getty Images)
