Flutter Contemplates Increasing Presence in Nevada, Potentially Collaborating with FanDuel
Flutter Entertainment Seeks Expansion in Nevada, Faces Brick-and-Mortar Requirements
In a potential move to expand its operations, Flutter Entertainment is evaluating the possibility of expanding FanDuel in Nevada. However, the company faces certain challenges due to the state's regulatory landscape.
According to reports, Flutter Entertainment's private counsel, Erica Okerberg, spoke to the Nevada Gaming Board about the company's potential expansion with FanDuel. At the time of the discussion, Flutter/FanDuel had not entered into any transaction or agreement with the prediction market platform, Kalshi, which has recently won a legal reprieve in Nevada. The potential deal with FanDuel could be affected by the uncertainties surrounding Kalshi's status.
Nevada's regulatory landscape mandates that bettors must visit a casino physically to create mobile betting accounts. Remote online registration is not allowed. All sports betting, including mobile bets, must occur within Nevada state lines, which also applies to geolocation enforcement. FanDuel currently operates through a limited partnership, providing branding and odds for the Boyd Gaming Fremont Hotel & Casino, but this does not equate to full mobile app access statewide.
To satisfy the in-person registration rule, Flutter would need to own a brick-and-mortar venue or partner with a licensed casino. Historically, Flutter Entertainment has preferred not to own physical venues, which complicates their standalone brand expansion in Nevada. The brick-and-mortar sector is experiencing declining revenue, which could present a challenge in acquiring a casino.
In conclusion, for Flutter to expand FanDuel’s standalone operations in Nevada as a full mobile sportsbook, it must either acquire or establish a brick-and-mortar casino license to satisfy the in-person registration rule, or partner more deeply with an existing Nevada casino licensee that can legally onboard users onsite. Without fulfilling the in-person sign-up criterion via a physical licensed property, FanDuel cannot fully launch or expand its standalone mobile sports betting brand in Nevada.
Mark Irwin, Flutter's group finance director, has welcomed the company's leadership position in the United States. If there were any change in Flutter/FanDuel's position regarding Kalshi, Okerberg mentioned that they would communicate it to the Gaming Control Board. FanDuel is focused on ensuring a sustainable business practice that positions it as the #1 sportsbook in the United States.
[1] Source: Nevada Gaming Control Board regulations [2] Source: Flutter Entertainment's potential expansion plans [5] Source: Nevada's mobile sports betting regulations
- To bypass the brick-and-mortar requirements in Nevada and expand FanDuel's mobile sportsbook, Flutter Entertainment may need to seek a deeper partnership with a licensed casino or establish a physical venue.
- The potential deal between Flutter Entertainment and Kalshi could impact the company's plans for expanding sports betting services, including sportsbook and casino offerings, in Nevada.
