Frontiers in Business, Economics and Management
ISSN: 2766-824X | Vol. 18, No. 3, 2025
47
Flutter Entertainment's Competitive Analysis
Haonan Zhang *
Business School, York St John University, York, YO31 7EX, UK
* Corresponding author: Haonan Zhang (Email: david.zhang6218@gmail.com)
Abstract: This report provides a comprehensive competitive analysis of Flutter Entertainment plc, an international sports
betting company headquartered in Ireland. Flutter Entertainment operates in over 100 countries worldwide, boasting well-known
brands such as Sisal, FanDuel, Betfair, and Paddy Power. The report is structured into four main parts. Firstly, it outlines the
company profile and status of Flutter Entertainment, highlighting its strong financial position and significant global presence.
Secondly, it conducts a contextual analysis, examining internal strengths such as its portfolio of recognizable brands, global
reach, and dedication to innovation, as well as external factors like market competition, regulatory changes, and technological
advancements. The third part delves into Flutter's marketing communication strategy, discussing its use of advertising, online
and social media, publicity, and corporate social responsibility (CSR) to engage with customers and build its reputation. Lastly,
the report includes a peer analysis comparing Flutter Entertainment's financial performance with its top four competitors,
emphasizing Flutter's position as a market leader. Despite facing fierce competition and regulatory challenges, Flutter
Entertainment has demonstrated successful business strategies, including market expansion and product innovation, contributing
to its long-term viability and success in the highly competitive online gaming industry.
Keywords: Flutter Entertainment, Online Lottery Industry, Competitive Analysis.
1. Executive Summary
Flutter Entertainment plc's mission statement is to be the
world's leading sports betting and gaming company,
delivering the best customer experience [1]. This mission
reflects Flutter Entertainment's customer-centric strategy.
Since its inception, Flutter Entertainment has been known
around its strong portfolio of brands, global reach, and
commitment to innovation. The company has taken several
steps to lead in the industry, such as getting celebrities to
advertise the brand, promoting the strength of the strong
brand on social media, and exceptional PR campaigns. In
2023, Flutter Entertainment became the number one
performer in the gaming industry [2].
Flutter Entertainment has taken a good approach to both
business and sustainability, and has made efforts in corporate
social responsibility, but has still attracted public and
academic criticism of the betting industry, including
addictiveness, harm to mental health, etc.
As a result, there remains a great deal of controversy
surrounding the strategic issues surrounding the development
of Flutter Entertainment. The purpose of this report is to
provide a comparative analysis of Flutter Entertainment's
business strategy. The report will analyse the company using
SWOT, Porter's Five Forces and the two most important
factors of PESTLE. In the pursuit of reliability and
authenticity of the report, the report combines a variety of
academic and official sources from the United States, the
United Kingdom, and Europe. Combined with the
authoritative data site - IBIS, it concludes that if Flutter
Entertainment wants to continue to be a top brand in the
industry, it needs to continue to focus on strategies such as
customer experience and sustainability while building a
successful business.
2. Introduction
The convenience of online gambling has been a major
growth factor for the gaming industry in recent years [2, 3].
The global online gambling market is expected to reach $65.2
billion by the end of 2023 [4]. Gambling and betting are a
form of entertainment that has existed for thousands of years
[5]. In 2016, Flutter Entertainment plc was formally
established through mergers and acquisitions of other gaming
companies. Along with the growth of the internet and superior
marketing communication strategies, the company has
catapulted to become a leader in the betting industry.
Therefore, a competitive analysis of Flutter Entertainment is
a very important topic.
However, the dangers of the gaming industry to consumers
are also an issue that needs to be taken seriously. On the one
hand, it may cause consumers to develop a behavioural
addiction, on the other hand, it can lead to mental illness,
suicide, homelessness, relationship difficulties and crime [6].
The purpose of this report is to provide a competitive
analysis of Flutter Entertainment. The report will be divided
into four parts, the first part will focus on the company profile
and status of Flutter Entertainment. The second part will
provide a contextual analysis of Flutter Entertainment. In
addition, the report will examine Flutter Entertainment's
existing marketing communication strategies. Finally, the
report will be peer analysed in relation to other competitors.
2.1. Company Profile
Flutter Entertainment plc is an international sports betting
company based in Ireland. It is listed on the London Stock
Exchange and is a constituent of the FTSE 100 [7]. The
company operates in more than 100 countries around the
world, including brands such as Sisal, Italy's largest online
operator, and PokerStars, the world's largest poker site [1].
Actively communicating the four key enablers to ensure the
success of the business puts sustainability at the centre of
everything the business does, as shown in Figure 1 [1].
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Figure 1. Flutter Entertainment plc’s Strategies
Source: (Flutter, 2023) [1]
This has also resulted in Flutter being in a strong financial
position since founded. With the growth of the Internet, the
total profits have now risen to $9,373 million, and Figure 2
shows the profitability by region [1].
Figure 2. Divisional Revenue Split in 2022
Source: (Flutter, 2023) [1]
Additionally, the US is the largest profitable market, with
data from IBIS (2022) showing Flutter as the number 1
competitor in the market with $1.6 billion in online gambling
revenue in the US, accounting for 15.1% of total industry
revenue [8]. However, for the long-term positive development
of the business, it is necessary to conduct a context analysis
for several factors.
3. Context Analysis
Fill and Turnbull (2016) define context analysis as "the
process of examining the internal and external factors that
influence a marketing communication campaign." [9] It helps
ensure that the campaign is aligned with the company's
overall goals and objectives and is relevant to the target
audience. Context analysis can be divided into internal
analysis and external analysis. Internal analysis involves
examining the company’s brand identity, strengths and
weaknesses, and competitive landscape. External analysis
involves examining the company's market environment,
economic conditions, and social and cultural trends.
3.1. Internal Analysis
According to Hill, Schilling and Jones (2017), SWOT
analysis is an important tool for strategic planners as it helps
organisations to identify key factors that may affect their
success [10]. Organisations need to recognise internal
strengths (S) and mitigate their weaknesses (W) to help the
organisation improve its performance and achieve its goals.
3.1.1. Strengths
Flutter Entertainment's strength lies in its portfolio of some
of the most recognisable and powerful brands in the online
gaming industry, such as FanDuel, Betfair and Paddy Power,
which have a strong reputation for reliability, credibility, and
innovation [1]. This has therefore resulted in the company
having a strong financial performance and steadily growing
revenues and profits over the years. This gives the company
the financial strength to invest in new growth initiatives and
weather any economic downturn.
Secondly, Flutter has a significant global presence as it
operates in over 100 countries worldwide [1]. This enables the
company to meet the needs of a wide range of customers and
capitalise on growth opportunities in new markets.
Furthermore, Munting (1996) argues that the UK and the US
have long been the largest and most important gaming
markets in the world [11]. As shown in Figure 3, the company
has a leading position in the two most important markets,
which gives the company a strong competitive advantage.
Finally, the company has always been dedicated to
innovation, consistently creating new goods and services to
satisfy the needs of its clients. For example, the Positive
Impact programme always strives to ensure a positive impact
on customers, colleagues, and the communities in which the
company operates (Flutter, 2023). Additionally, Kotler and
Keller (2021) argue that designing integrated marketing in the
digital age can generate significant traffic and revenue for
companies [12]. The company was one of the first to launch
a mobile sports betting app in the United States.
3.1.2. Weakness
Although mentioned above Flutter Entertainment derives
most of its revenue from the US and UK markets. However,
if these two markets are negatively impacted, it could have a
significant impact on the company's financial performance.
As a result, the company's earnings are too dependent on a
single market. In addition, the brand's commitment to
innovation and meeting customer needs comes at a high
financial cost, which can affect the company's profits in a
short period of time. Therefore, Flutter must realise these
weaknesses and continue to invest in its strengths to maintain
its position as an industry leader.
3.2. Market Analysis
The Porter's Five Forces framework is an important tool for
market analysis, Johnson, Scholes and Whittington (2009)
argue that the framework can help to assess an organisation's
attractiveness or likelihood of profitability [13].
3.2.1. The threat of new entrants
In the case of the Threat of new entrants, as the industry is
heavily regulated by the policies of various countries, a
company must obtain a licence from the state to register as a
gaming company. To obtain such a licence, potential entrants
must face barriers to entry in the form of security measures to
be implemented and background checks on key employees of
the prospective company (Martin, 2018). Flutter is therefore
unlikely to be threatened by new competitors due to this factor
[14].
3.2.2. Competitive rivalry
However, this does not mean that the bookmaker industry
is not a competitive market. As shown in Figure 3, Flutter
faces competition from several other large, well-established
companies. Although the company holds the highest market
share, competition is still fierce today and these competitors
may have more resources or experience in certain markets. In
addition, it also faces existing competitors from other retail
shops set up around the globe, in addition to several rivals
from online gambling sites in the United States.
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Figure 3. Online Gambling Services in the US - Companies and
their Maket Share (2022)
Source: (IBIS World, 2022) [8]
Secondly, the intense competition has also resulted in very
high bargaining power for customers in the industry as there
are many bookmakers offering very similar odds. With the
expansion of internet gambling, this power has been further
reinforced because potential clients may now browse
hundreds of various gaming websites and choose the one with
the greatest odds.
3.3. External Analysis
3.3.1. Political Factors
In terms of external environments, as stated by Bley and
Eriksson (2022), political factors in the PESTEL analysis are
arguably the most influential of all factors when analysing the
online gambling industry [3]. Firstly, political factors are
complex, as Flutter is a multinational company with operating
units in several countries and customers in even more
countries. This therefore means that Flutter is to some extent
bound and regulated by the local government in the political
environment.
For example, new regulations set by the UK government in
2022 may include staking restrictions, and deposit restrictions
[3]. This will have a direct impact on the profitability of all
companies in the sector. Flutter has imposed a £500 per month
spending limit on people under 25, which has resulted in a 94%
cut in the number of high-spending gamblers using its brand
to place bets [15]. However, based on the company's 2022
revenues this does not mean that this new legislation has hit
Flutter hard. A very important reason for this is that the brand
has subsequently started to move into the low-spend gaming
sector.
Additionally, the UK government is currently preaching
gambling reform in the digital age [6]. Regulation may
become stricter thus negatively affecting the company's
profits. However, Thomas, McKee and Daube (2023) argue
that the government's real aim is to collect more tax from the
industry rather than trying to crack down on it. Even so,
Flutter may suffer from shrinking profits as it is forced to pay
higher taxes [16].
3.3.2. Technical Factors
The second most important external factor influencing
Flutter is technology. As Perez Liston (2017) states, the
gaming industry and the world have witnessed revolutionary
developments in technology since the beginning of the 21st
century, with online gambling representing the biggest shift
in gambling culture in the last decade [17].
The development of Flutter websites has been very
successful, especially smartphone apps. The company's
rapidly expanding online business generated 79% of the
company's revenue profit in 2011, while the smartphone
business's revenue climbed by an astounding 255% during
2010 [14]. Because consumers' time is more valuable than
ever and many members of the "new generation" of users find
it challenging to find the time to visit conventional brick-and-
mortar betting shops, Flutter has been able to meet the needs
of its customers thanks to advancements made to its website
and, more importantly, its mobile betting features.
4. Marketing Communication Strategy
Kotler and Keller (2021) define marketing communication
as the way in which organisations attempt to inform, persuade,
and remind consumers about the products and brands they sell,
and as a means by which organisations open a dialogue and
build relationships with consumers, including advertising,
online and social media, mobile communications, direct
marketing, events and experiences, word-of-mouth, publicity
and public relations, person-to-person sales, and packaging
[12]. Daszkiewicz and Pukas (2016) argue that marketing
communications can combine these modes to provide clarity,
consistency, and maximum communication impact [18].
4.1. Advertising
Firstly, Flutter Entertainment's television adverts often
feature celebrities and athletes [1]. As stated by Kotler and
Keller (2021), celebrity endorsements help to draw consumer
attention to the brand, enhance brand awareness and attract
new customers [12]. However, this comes with some risks as
well. On one hand, celebrities may demand higher fees when
renewing their contracts. On the other hand, celebrities may
be caught up in scandals that can have a negative impact on
the brand.
4.2. Online and Social Media
Therefore, Flutter also uses digital advertising to target
specific audiences. For example, Flutter may target sports
fans with adverts for sports betting products on social media.
In addition. Flutter also has a robust social media presence for
sharing news and promotions and interacting with customers.
4.3. Publicity and Public Relations
Jones, Hillier and Comfort (2009) argue that corporate
social responsibility can improve an organisation's financial
performance and profitability, reduce operating costs, create
closer links with customers and better understand their needs,
amongst a range of other positive impacts [19]. As shown in
Figure 1 above, Flutter reports a wider commitment to CSR
by emphasising customers, communities, workplaces, and
strategic plans for sustainability in its website
communications. This is in line with Jones, Hillier and
Comfort’s (2009) basic framework for reviewing CSR
commitments and agendas. As a result, such publicity has
helped Flutter to maintain an excellent reputation in the long
term [19]. However, Thomas, McKee and Daube (2023)
argue that such publicity and Public Relations are likely to
downplay the harms of gambling and even normalise
gambling among children and young people [20]. Despite the
known harms of gambling, Flutter actively pays taxes to the
government for research, education, and treatment. In
addition, it also provides numerous employment
opportunities for society. In particular, the company does not
have a selfish profit-oriented approach as suggested by
Friedmann (2016), Flutter actively fulfils its corporate social
responsibility to give back to society [21].
Overall, Flutter has a well-defined communication strategy
that is focused on achieving its business objectives.
9.1%
50
4.4. Segmentation
Kotler and Keller (2021) claim that segmentation consists
of a group of consumers with similar needs or characteristics
[12]. Common types of segmentation include demographic,
geographic, behavioural, and psychographic characteristics.
Thus, in relation to demographics, and in response to UK
policy regulations, Flutter categorises young people under the
age of 25 as low spenders by age and restricts their
consumption. Different services are offered to each group by
different incomes, for example, free trials or small games for
low-income groups to attract a few consumers. Classify
middle- and high-income groups as gold, platinum and
diamond customers and offer different benefits and
personalised services to improve customer experience and
loyalty. Segmenting the audience by region into UK, US,
Australia, and international regions for different operations
[1].
Based on psychological characteristics such as consumers'
interests, values, and lifestyles, they are subdivided into
sports, casino games, poker, lottery, and other games.
According to the behaviour of each customer, such as
gambling habits are subdivided into occasional gamblers,
frequent gamblers, and high rollers, to provide differentiated
services for each subdivided group to meet the needs of
various consumers.
4.5. Targeting
Positioning is the process of identifying customers for
whom the company will optimise its offerings [12]. Firstly,
flutter targets sports fans by sponsoring sporting events and
placing advertisements on sports websites and apps. Casino
players are targeted by partnering with casinos and offering
exclusive promotions to casino players. Target high rollers by
offering VIP programmes and personal account managers.
Target occasional gamblers by offering free bets and other
incentives to encourage them to try new products and services.
Finally, Flutter runs campaigns that target specific segments
of its audience. For example, the company may target sports
fans with information about its sports betting offerings or
casino players with information about its casino games [1].
4.6. Positioning Elements
Designing a company's products and brand to hold a
specific place in the target market is known as positioning.
The objective is to establish the brand in consumers' minds to
maximise any potential advantages for the business [12].
According to Flutter (2023), the company positions itself as a
provider of high-quality, affordable online gaming and sports
betting products [1]. The company's strong brand portfolio,
global reach and commitment to innovation justify its high
pricing.
Flutter's main competitors are other large, well-established
online gaming companies such as Bet365 and William Hill
[4]. These companies offer similar products and services to
Flutter but may have slightly different price positioning.
Figure 4 gathers information on each competitor and draws it
in conjunction with the researcher's understanding of the
online gambling market. Additionally, Flutter faces
competition from smaller, less recognisable online gambling
companies such as 888 Holdings and Kindred Group. These
companies may be less expensive than Flutter, but they may
not have the same brand recognition or global reach.
Figure 4. Perceptual Positioning Map for Flutter Entertainment
Source: (Research and Markets, 2023) [4]
As such, Flutter Entertainment is well-positioned with its
business goals and objectives. The company is committed to
attracting and retaining high-value customers who are willing
to pay a premium for high-quality products and services.
5. Peer Analysis
To accurately show the revenues of Flutter, as well as its
four largest competitors, in 2023, this article collects data
from the IBIS (2023) release [2]. As Table 1 shows, Flutter
Entertainment is the largest online gambling company by
revenue, operating profit, and net profit. It is also the most
profitable online gambling company, ahead of Entain.
Table 1. Flutter Entertainment's financial performance compared to
its top 4 peers
Company
Revenue
(USD bn)
Operating
Profit (USD bn)
Net Profit
(USD bn)
Flutter
Entertainment
26.2 7.6 4.8
Entain 24.6 8.4 5.6
Kindred Group 16.4 5.6 3.8
888 Holdings 13.5 3.8 2.8
Playtech 12.5 3.8 2.8
Source: (IBIS, 2023) [2]
However, Flutter Entertainment's net income was lower
than Entain's. It is therefore necessary to further analyse the
factors affecting Flutter Entertainment's financial
performance.
Firstly, the online gambling market is growing rapidly,
driven by the increasing popularity of mobile gambling and
the legalisation of online gambling in new markets. This
growth has benefited Flutter, the leader in the online gambling
market. Second, Flutter has been expanding into new markets
in recent years, continuing to explore other international
markets such as Canada in addition to the United States,
United Kingdom, and Australia. The market expansion has
helped the company to increase its revenue and market share.
In addition, the company has been investing in new products
and services such as sports betting and eSports betting. This
investment has aided the business in both gaining new clients
and keeping current ones. Finally, fierce competitors may put
pressure on Flutter's profits and market share. However, as the
positioning map mentions, Flutter's quality is far superior,
reaping the rewards of customer satisfaction to achieve the
highest profitability while paying a high cost that other
companies don't. This may also be one of the reasons why
51
Flutter's net profit is lower than Entain's.
Flutter has made several key business decisions in recent
years, starting with the merger of Paddy Power and Betfair in
2015. As Kotler and Keller (2021) mention the benefits of
direct investment, this merger has helped Flutter to reduce
costs, increase efficiencies, and expand its range of products
and services [12]. Several sportsbooks were also acquired,
including FanDuel and Fox Bet. The decision to acquire
FanDuel in 2019 also signalled an entry into the U.S. market,
which is one of the largest and fastest-growing online
gambling markets in the world. Such an action could expose
the company to risks such as large investments exposed to
currency freezes or devaluations, market contraction or
government expropriation [22]. However, the facts of recent
years point to great success for the company, and these
business decisions have helped Flutter solidify its position as
a leader in the online gambling industry.
6. Conclusion
Flutter Entertainment's range of marketing strategies is
undoubtedly a highly successful model. Furthermore, based
on the available evidence, it is reasonable to conclude that
Flutter Entertainment has developed its own unique strengths
through strategies such as advertising, promoting its positive
image through online mediums such as social media, and
positive impact programmes. The company has been able to
differentiate itself from its competitors through a variety of
methods such as segmentation, positioning and targeting.
Although the company's net profit is not the highest in the
industry, Flutter Entertainment is investing more of its costs
into sustainability, customer experience, and employee
benefits, which will strengthen its position as a leader in the
industry.
Even so, business decisions related to innovative
technology and efficient management practices still need to
be made if Flutter Entertainment is to continue to benefit from
long-term growth. The most important thing is to be
consumer-based and responsive to local government policies.
While these initiatives largely increase the company's
financial outlay, they also ensure Flutter Entertainment's
long-term viability and success in the highly competitive
online gaming industry. Otherwise, Flutter Entertainment's
position may eventually come under threat as other brands
become more concerned about sustainability and learn from
their strategies. However, for now, Flutter Entertainment
remains the strongest brand in the online gaming industry.
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