Flutter is the leading online gambling and sports betting operator worldwide, holding a leading position in the large and fast-growing US market. Gambling stocks underperformed in the quarter to end March 2025 due to customer-friendly sports results, concerns about potential competition from prediction markets, and rising fears of a US recession. We believe these concerns to be temporary. In our view, Flutter’s scale and superior product offering are a formidable moat, and ongoing efforts to legalise online betting in multiple markets will provide a structural tailwind for the entire industry for years to come. The US is now Flutter’s largest market – here, margins are still well below normal, and growth is likely to be supported by additional states legalising online betting, underpinning our expectation of more than 20% annual earnings growth for Flutter over the next few years. The stock trades at 26x forward P/E, which we consider attractive given the growth outlook. 


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