DraftKings and Flutter lose millions due to lucky players: March Madness played against bookmakers
The American betting market, which has been growing in recent years, suddenly failed. The biggest players — DraftKings and Flutter (owner of FanDuel) — sharply revised their financial expectations for the year, citing an "abnormally good" period for players. And it's not about violations or some kind of fraud - on the contrary, it was the predictability of sports results that became the problem.
According to the head of Flutter, Peter Jackson, the NCAA March Madness tournament dealt a real blow to the bookmakers' margin. This year, all the favorites won in the Sweet 16 and Elite 8 rounds - this happened only once in the history of the tournament. For bettors, this was a golden moment: bets made on obvious winners played en masse, leaving bookmakers in the red.
Against this background, DraftKings revised its full-year revenue forecast downward by $200 million, now expecting $6.4 billion. Flutter, on the other hand, lowered expectations by $180 million, now forecasting $1.13 billion.
This was an alarming signal on the other hand: for the first time in a long time, the market was shown that explosive growth is not infinite. Regulations are tightening, competition is growing, and players are becoming smarter and more careful. All this together forces operators to reduce appetites and adjust strategies.
FlameKiller1 Cool selection! Thanks to the author, I was just looking for something to ride on the weekend.
Hellworkers So much for "consumer care". As soon as they are strangled with taxes, everyone will really go to left-wing offices.
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They change the forecasts there, but I can't deduce
That's perfect! Let them know that they will not always be in the black. Players are also not butterfly machines.
I wish it was always so that the favorites won. Otherwise, usually, on the contrary, everything is turned upside down
Nothing new.
In fact, this is a common risk for them. It's just that March Madness turned out to be too linear. And this is rare, but accurate.