Nigel Eccles has long been at the forefront of innovation in the wagering sector. His betting journey began in 2000 and exchanges would be the early focus of his career. After a period away from the industry, Eccles would setup FanDuel in 2009, revolutionising fantasy sports before its $4.2B acquisition by Flutter. Eccles stepped away from FanDuel in 2017 to return to early-stage startups, and has since co-founded five businesses. Today, he is driving the convergence of wagering and crypto through ventures like BetDEX and BetHog.
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 Waterhouse VC Fund’s investment in Playtech has come to a bittersweet end, with a takeover offer from Aristocrat Leisure pending shareholder approval. We were excited to be shareholders as they executed on their opportunities for growth in the US, but the fund will now crystallise a gain of 190% on the investment.
Personality based marketing is something we are familiar with at TomWaterhouse.com. It's much easier to love, or hate, a real person rather than a faceless corporation. This strategy has been similarly employed by Dave Portnoy, “El Presidente” of Barstool Sports to grow a huge audience. Now, after being acquired by Penn National Gaming, Barstool is converting these fans into online betting customers and revenue very successfully.
Speaking exclusively to SBC News, Waterhouse discussed his extensive experience within the wagering and gaming industry, before highlighting ways in which Waterhouse VC is helping businesses ‘dominate their niche’ and explaining why he’s most excited about the continued growth of the US market and the emergence of gambling in the Metaverse.
We believe Flutter Entertainment is the highest quality global wagering operator, with a compelling valuation and long runway for international growth. Their U.S. brand FanDuel has strengthened market share, which is critical in an industry where marketing costs and taxes will put pressure on the smaller operators.
