Online sports betting giant Flutter reported second-quarter earnings that beat Wall Street expectations Thursday.
The company reported adjusted earnings of $2.95 per share versus an estimated $2.08, according to a survey of analysts by LSEG. Revenue came in slightly higher than expectations at $4.19 billion against consensus expectations of $4.13 billion.
Flutter owns the dominant U.S. sportsbook FanDuel, and FanDuel’s holding a winning hand.
Its U.S. revenue for the quarter of $1.79 billion came in slightly higher than expectations, and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, was nearly $100 million higher than analyst consensus.
June was especially good for FanDuel in terms of sports outcomes. It delivered the highest gross revenue margin on record of 16.3%
Flutter also raised its full-year guidance, citing the effect of U.S. sports results and tax changes, among other things.
Despite the beats, in an exclusive interview with CNBC, CEO Peter Jackson said state taxes could have a real effect, potentially sending gamblers to offshore, illegal sportsbooks.
“If you look at Illinois,” Jackson said, “We’re very disappointed what they’ve done now. We think the taxes that they brought in will have a really, sort of, negative impact on the very recreational, super casual users.”
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