Peter Jackson Flutter CEO praised the firm’s gaming momentum in the UK market as all four of its UK brands posted growth in excess of 20% in its Q2 accounts.
Updating investors, Jackson revealed that off the back of a significant amount of M&A in the US market, there are a myriad of markets that are regulated or soon-to-be regulated that Flutter ‘isn’t yet present in with a podium or gold medal position, where they have a great track record of acquiring businesses in those markets and applying the Flutter edge and seeing a step up in performance’.
Setting out ambitions for growth in the future, he revealed that ‘If necessary we will go beyond our leverage targets to do a deal’.
Unsurprisingly, one of the markets Flutter is most excited about is Brazil. Jackson emphasised that the firm is ‘reasonably well-placed for growth in the region with Betfair and Pokerstars. However, he underlined that they are ambitious and are aiming for podium positions.
Jackson didn’t rule out M&A in Brazil, as he detailed that Flutter is currently identifying the best strategy for success in the region.
The group has also brought its igaming product in-house in the US market, in a strategy that Jackson stated wasn’t a cost-play, but one which will enrich the firm in its ability to deploy its own in-house content in the US market and drive significant benefits and initiatives.
Furthermore, Pokerstars also continues to provide the firm with significant opportunities across the US as the landscape for poker continues to evolve.
“When you look at it globally, poker is breaking down into different segments from a liquidity perspective. We are in a strong position in some of those local markets because of the strength of the local hero brands that they have.”
Rob Coldrake, the company’s CFO, also emphasised that in Q1 Flutter saw poker progressing very well and later in the year, leadership expects to roll out the platform in Italy, demonstrating Flutter’s agility and quickness.
There was also renewed optimism from Coldrake for Pokerstars continuing to experience green shoots in the US, as he lauded changes to poker loyalty and offset changes that has led to them being really happy with the way they are trending on poker.
Jackson also pondered the impact of the latest steps by PokerStars’s largest competitor, GG Poker, acquiring the WSOP.
He said: “GG Poker operates in a lot of markets that we wouldn’t be prepared to operate in. So I think there’s some interesting questions there for some of those people involved.”
Lastly, graduated tax and the consequences it could have on the elevating offshore gambling engagement was also on the CEO’s agenda.
He stated: “There is a happy-medium for tax rate that enables operators to maximise market growth, provides the best experience for customers and over time maximises revenue for states and most states have taken a sensible approach. I do think though that implementing a graduated tax rate punishes those who have invested the most and is wrong.
“It will drive customers to offshore operators or to sweepstakes. Our experience is that moderating levels of generosity or reducing local marketing is the best response. We have no plans to introduce a surcharge for winners.”
