Paddy Power owner takes a punt on Minister making changes to new betting laws

Paddy Power owner Flutter Entertainment hopes likely changes to proposed new gambling laws will tackle potential problems highlighted in several quarters.

Broadcasters and the horse racing industry fear provisions in the Government’s Gambling Regulation Bill, banning betting ads on TV before 9pm, will damage coverage of the sport here, hitting revenues and viability, while bookies want clarity on how the law will regulate inducements.

Flutter chief executive Peter Jackson noted on Thursday that James Browne, the Minister of State promoting the Bill, planned some amendments to the legislation, which is still before the Oireachtas. “We’re hopeful that the Minister is going to provide the clarity needed,” he added.

Mr Jackson was speaking after Flutter said revenues rose 24 per cent last year to £9.5 billion (€11 billion), with the US contributing £3.6 billion, despite a run of punter-friendly National Football League results that cost $343 million (€315 million).

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Flutter’s main US subsidiary, FanDuel, paid out large sums on high-profile football games in the closing months of last year. These included a Dallas Cowboys v Seattle Seahawks clash on November 30th, on which customers won $82 million, and a New York Jets v Cleveland Browns game on December 28th, which earned punters $42 million.

Each featured seven different touchdown scorers. Results such as those favour customers who include different predictions for games in single bets, dubbed “parlays” in the US, according to Flutter’s chief financial officer Paul Edgecliffe-Johnson. He added that these results were relatively unusual.

However, Irish and British horse racing results went the group’s way in December, with favourites, the runners most fancied by punters, winning just one third of contests.

That included 12/1 outsider Hewick, trained in Ireland by John Hanlon, winning the King George at Kempton, one of the festive season’s biggest races.

Mr Jackson said the underlying momentum in the business remains strong going into 2024.

Outside the US, now its biggest division, Flutter traded in line with expectations, with Ireland and Britain growing 19 per cent in the final quarter and 15 per cent over the year.

[ Flutter propels Iseq into green as global shares advance ]

International, meanwhile, saw revenue rise 36 per cent to £2.3 billion in 2023. Only Australia saw a decline in revenue, falling 8 per cent over the course of the year to £1.1 million.

Flutter will leave the Irish Stock Exchange as it lists in New York at the end of the month, but it plans to remain on the London market.

The group flagged this last year, saying it had encountered technical difficulties that hindered it from keeping its Dublin listing.

On Thursday, Mr Jackson stressed that the group would remain “incorporated, headquartered and tax resident” in the Republic.

The Wall Street move is an important step for Flutter, the chief executive said.

“This is a pivotal moment for the group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets,” he said.

“I am looking forward to 2024 and further building on the momentum within the group to continue delivering growth.”

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