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.
The US is a massive growth opportunity for Playtech and they have US experience having been active in the US prior to the bans on online gambling there in 2006. Land-based casinos, state-sponsored lotteries and media companies are among the companies looking to ride the recent online betting boom as gambling is legalised across the country.
China is the largest video gaming market in the world. Of China’s 900 million internet users, over 640 million play video games. Naturally, it’s the biggest esports market, with a third of the world’s audience and revenue. 260 million are even happy to take a back seat and watch the professionals play, via live-streaming services. At the centre of this huge and bustling metaverse is a company called Tencent.
