As the dust settles on the U.S. election, prediction markets have captured attention far beyond traditional wagering circles. Polymarket handled over $3.6 billion on wagers on the election outcome, accurately predicting not only the President but also the results in every swing state. Historically, many exchanges have struggled to sustain activity beyond major headline events, limiting their capacity to provide consistently actionable insights. Today, a new wave of platforms are looking to overcome these challenges.

In the world of wagering, few names carry as much weight as Flutter Entertainment. Before Flutter, there was Paddy Power. Under Patrick Kennedy, Paddy Power became a major player in global wagering. A pivotal move was the acquisition of Australian operator Sportsbet, which set the blueprint for future international success. In 2016, Breon Corcoran led a £5.7B merger, creating Paddy Power Betfair, which laid the foundation for Flutter’s future dominance. In 2018, Peter Jackson took over as CEO, with the 2019 rebrand to Flutter Entertainment signalling ambitions far beyond a name change. Today, the ‘Flutter Edge’ - a combination of scale, product, technology, and expertise - continues to position the company as the dominant force in global wagering.

Data hasn't always been as central to sport and wagering as it is today. Michael Lewis’s book Moneyball, popularised data’s role in sport. As the internet grew, companies like Sportradar and Genius Sports emerged. Today, data companies drive everything from broadcasts and advertising to fantasy sports, wagering and league operations. AI and machine learning continue to unlock new opportunities for fan engagement, especially in the wagering industry. Racing & Sports, with whom Waterhouse VC has entered into a strategic partnership, is now poised to lead the transformation of racing.

Becoming the dominant force early in an industry can lead to significant competitive advantages, brand recognition, and customer loyalty. In the UK, Ladbrokes and William Hill emerged as the market leaders amongst a wide field of operators. By 1999, at the dawn of the internet era, there were 8,500 UK betting shops. The internet changed the way people ‘shop’ for bets, leading to a steady decline in high street betting shops. In their place, technology-lead operators like Flutter and Bet365 emerged.  

The fund started on 19 August 2019 and is approaching its 5 year anniversary. The fund returned +53.3% for the 2024 financial year and generated a positive return in 8 of the last 12 months. Two businesses in particular, Project Tennis and Saintly, contributed significantly to the fund's performance. As the fund matures, deal flow has accelerated, particularly in professional betting syndicates.

Online crypto operators such as Sportsbet.io and Stake.com are recording extraordinary turnover and leading innovation in both marketing and payments. More recently, launched in 2023, Shuffle has rapidly expanded and already facilitated more than US$6 billion of bets.

Tabcorp has 805,000 active digital customers and over 4000 venues. The company has an overall Australian wagering market share of 34.6% and digital market share of 24.5%. In March, Tabcorp announced that Adam Rytenskild had resigned as CEO and managing director. A well-experienced industry leader with a history of product innovation, effective marketing and cost management could stimulate Tabcorp’s growth.

Sweepstakes casinos operate without real-money bets. Instead, they utilise a "freemium" approach. VGW is the dominant sweepstakes operator, with more than 90% market share, primarily through its Chumba Casino brand. VGW was founded by Laurence Escalante in 2010 and now has more than 1300 staff globally, with around 220 in Perth, Australia.

Waterhouse VC asked the leading iGaming companies to share their experiences and strategies for acquiring their first customers, providing valuable insights for new businesses in the industry.

In every industry, there are prominent figures who stand out, and the wagering industry is no exception. This month, we shine a spotlight on three distinct leaders in the industry: Tim Heath, a crypto wagering pioneer; Peter Jackson, the CEO of Flutter Entertainment (listed on the FTSE100); and David Walsh, renowned as one of the world’s largest professional horse racing gamblers.