Opinions
Jim Cramer - Mad Money
Flutter Entertainment
FLTR-L
BUY
Jul 09, 2025
Stock price when the opinion was issued
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International sports betting & gaming business (Poker Stars etc.).
$12 billion in revenues.
Total market for sports betting and gaming is growing.
Market share difficult to gain.
Challenging business model with uncertain regulation.
Consumer protection regulation & money laundering also a concern.
Would not recommend investing.
Shares have tumbled. Last week, they reported a good quarter though a light full-year forecast, because consumer confidence has slid due to tariffs. They have 43% market share in the US. They grew revenue in the US by 32% with 19% total revenue growth. They manage costs. There's room to grow with states like California and Texas still barring sports betting which is popular because it's a cheap form of entertainment, he thinks.
Good question whether consumers would spend less for online gaming during a slowdown. Probably, but he feels demand is somewhat inelastic. Share price up and down, lots of volatility. Dropped below 200-day, but now picked back up. 200-week MA moving higher. Doesn't look bad from technical perspective.
Valuation not cheap, but you're buying it for the growth rate, which is 33% going forward. Online gaming is a growing industry. Higher beta, so a very small position only in your portfolio.
A new law means that professional bettors will pay taxes on their winnings (but don't get a full tax deduction on losses). However, this could discourage bettors. However, since mid-June when the legislation was unveiled the shares of DKNG and FLUT have been rallying. Major sports books already discourage bettors who win too often. Also, the books cater to VIPs, those who bet a lot but don't win as much as the big winners. There's a chance this bill may not pass or could be amended. The two stocks hold a duopoly in sports betting, and more states are legalizing sports betting, so he remain bullish in them.