4 min. reading time
The first chart shows the number of Active Monthly Users of the biggest traditional online betting platforms.
$FLTR (+1,2 %) is the leader with over 15 milion users and clearly growing faster than the competitors.
MUA is the best metric to use to see fidelization to the platform and users market share.
This incredible gap between Flutter and other brands is not by accident.
Flutter intentionally decided to become a serial acquirer in the gambling sector by buyng the best, biggest and fastest growing companies in every nation around the world.
In every market they operate they are ranked number 1 in number of users or revenue.
$ENT (-1 %) tried to operate a similar approach but failed.
In every market Entain operates is ranked second or third after Flutter or $DKNG (-0,46 %) both in terms of users or revenue.
However the highest margins in this sector are not made by sportsbetting, but by casinò games.
Casinò games are the most profitable games in the sector and that's why $BETS B (+0,36 %) is the betting company with the highest margins.
Flutter startegy is simple, they wanna become the go-to platform for sports betting and then invintng their users to the casinò games which are more profitable.....and guess what?
They are the best in doing that, in the recent Earning Report the company showed a +31% increase YoY in the casinò games.
- Flutter vs Prediction markets
This chart show the annual transaction volume that transit through every platform and it speaks for itself.
However if we wanna be intelectually honest we have to look at this metric per user and it shows that Flutter is actually the last in this group of peers, but why?
First of all Flutter has a lot of "free users"; these are users who play free games and pools in the USA and this type of users dilute the chart.
Flutter is the only company that allow users in the USA to play with no money involevd (like a free mobile gaming app) and the reason why they are doing that it's to capture the more adverse risk users and converting them into paying users later (and this strategy is working well).
FanDuel (owned by Flutter) has over 40% market share in the USA and keeps gaining market share from traditional operator like MGM and Entain.
Sometimes in business you have to take 1 step back to take 3 steps forward.
Polymarket and Kalshi have a lot of institutional investors who are using these political bets as an hedge.
That's increase a lot the revenue per user; however it causes a higher concentration risk for Polymarket and Kalshi.
Flutter doesn't have these type of risks and that's why $FLTR (+1,2 %) business model is more sustainable, diverisifed and legal than any other competitor in the world.