FanDuel signs market access deal with St. Louis CITY SC for Missouri launch

NEW YORK - FanDuel announced Friday a market access agreement with St. Louis CITY SC ahead of the upcoming launch of mobile sports betting in Missouri.

The partnership will make Missouri the 25th state or territory where FanDuel offers mobile sports betting services, according to the company’s press release statement.

"Missouri is home to some of the most passionate sports fans in the country, and we are thrilled to partner with St. Louis CITY SC to introduce our product to the Show Me State," said Mike Raffensperger, President, Sports at FanDuel.

The agreement comes as Missouri prepares to join other states that have legalized mobile sports betting. FanDuel currently operates in multiple states including New York, Pennsylvania, Illinois, and Michigan, among others.

FanDuel Group, a subsidiary of Flutter Entertainment (NYSE:FLUT), offers sports betting through its FanDuel Sportsbook platform, along with other gaming products including FanDuel Casino and FanDuel Racing. The parent company has shown robust performance, with revenue growing 15.6% over the last twelve months to $14.9 billion. According to InvestingPro data, Flutter maintains a strong financial health score and analysts expect continued sales growth this year.

The company did not disclose financial terms of the agreement or specify the exact launch date for its Missouri operations.

St. Louis CITY SC, which competes in Major League Soccer, will serve as FanDuel’s market access partner in the state, though specific details about how the partnership will function were not included in the announcement.

In other recent news, Flutter Entertainment has reported impressive second-quarter earnings, with revenue reaching $4.19 billion, marking a 16% increase year-over-year. The company’s EBITDA also saw a significant rise of 25% to $919 million, surpassing consensus estimates by 14%. Following these results, several financial firms have adjusted their price targets for Flutter Entertainment. Macquarie increased its target to $340, maintaining an Outperform rating, while Benchmark raised its target to $365, keeping a Buy rating. UBS also upped its target to $360, citing strong U.S. results, and Stifel adjusted its target to $356, noting a favorable U.S. sports outcome. Bernstein SocGen Group set its price target at $340, highlighting FanDuel as a key growth driver. These developments underscore the positive reception of Flutter’s financial performance among analysts.

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