FanDuel owner Flutter weighs up acquisition of PENN Entertainment
FanDuel parent company Flutter Entertainment is considering a buyout of PENN Entertainment.
The potential deal would reverberate around the online casino landscape in Michigan, giving Flutter a powerful presence in the Wolverine State. Speculation is building that a potential buyout is in the offing, but there has been no concrete news or official confirmation from Flutter that a move is underway.
Previously, Boyd Gaming was said to be considering the same takeover and there were even reports of a joint bid by Flutter and Boyd, supported by the 5% holding of the latter in the former, to acquire PENN and its holdings.
Crucially, owning PENN would mean having control of Hollywood Online Casino in Michigan and its destiny. Flutter could retain the business as it is now, or choose a rebranding. This decision is flexible, as Michigan’s Lawful Internet Gaming Act allows a company licensed by the Michigan Gaming Control Board to operate two online casino brands. Either way, it would give the company a brick-and-mortar presence in the state. Flutter has had its FanDuel Casino online enterprise live and available in Michigan since 2021.
The above rule is already utilized by DraftKings, which operates the Golden Nugget Online Casino platform, while Caesars Entertainment is said to have another launch planned for later this year, to accompany its Caesars Palace app.
A market leader in Michigan
If Flutter goes ahead with the takeover bid, it would present an opportunity to boost the ESPN Bet brand which is currently available in MI, or to launch the dormant Betfair brand in the state.
With FanDuel, Flutter has the benefit of being a market leader in this Great Lakes State. It has been ranked as the second-top online casino by revenue generated while in March and April this year, it surpassed BetMGM as the leader in bets taken.
Overall, FanDuel Casino is said to control 26% of the Michigan iGaming market with the potential takeover primed as a catalyst for further growth in a market projected to collect over $2 billion in bets across all of 2024.
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