Flutter Entertainment Eyes $17.08 Billion Revenue Milestone as U.S. iGaming and Snai Integration Drive Momentum

Flutter Entertainment has raised its full-year 2025 revenue guidance to a midpoint of $17.08 billion, reflecting accelerating growth in its U.S. iGaming business and the strategic integration of Snai, its newly acquired Italian sports betting and gaming operator. The update, announced alongside strong first-quarter results, underscores the company’s confidence in its ability to capitalize on regulatory tailwinds in the U.S. and Europe, even as it navigates near-term headwinds like foreign exchange fluctuations and volatile sports outcomes.

The Revenue Guidance: A Story of U.S. Dominance and Strategic Acquisitions

Flutter’s revised guidance—up from its prior $15.48 billion to $16.38 billion range—reflects a 22% year-over-year revenue growth outlook, driven by three pillars:

1. U.S. Market Leadership:
2. U.S. revenue grew 18% year-over-year in Q1 to $1.61 billion, with iGaming surging 32% as Average Monthly Players (AMPs) rose 28% to 14.9 million.

3. The U.S. now accounts for 43% of sports betting market share and 48% of net gaming revenue, with strong margins: U.S. adjusted EBITDA jumped to $161 million (a 519% increase from Q1 2024), fueled by operational leverage and cost discipline.

4. Acquisitions Fueling Global Scale:

5. The acquisition of Snai in Italy, completed in April 2025, adds $850 million in annual revenue and $190 million in adjusted EBITDA. Snai’s integration into Flutter’s “Flutter Edge” platform is projected to deliver €70 million in synergies over three years.

6. The pending acquisition of NSX in Brazil (to form “Flutter Brazil”) will contribute $220 million in revenue, though it may report a $70 million EBITDA loss in 2025 due to upfront costs.

7. Foreign Exchange and Sports Headwinds:

8. Adverse currency movements reduced revenue guidance by $360 million, primarily due to a stronger euro and sterling.
9. Unfavorable U.S. sports outcomes, particularly during March Madness, shaved $280 million off revenue and $180 million from EBITDA in the first quarter. Management called these effects “transitory,” citing stronger MLB and playoff momentum.

The U.S. iGaming Growth Engine

The company’s U.S. iGaming segment is a standout performer. Key metrics include:
- Revenue Growth: iGaming revenue rose 32% in Q1, outpacing sportsbook growth (15%), driven by premium game offerings and customer retention strategies.
- Margin Expansion: U.S. net revenue margins improved as promotional spend fell to 4.4% of handle (down 50 basis points year-over-year), while adjusted EBITDA margins hit 9.7%, a 790-basis-point improvement from 2024.
- Market Share: U.S. iGaming gross gaming revenue (GGR) market share reached 27%, with FanDuel and PokerStars US solidifying leadership.

The company also outlined plans to expand into Missouri by Q4 2025 and Alberta, Canada, in early 2026, though these markets are expected to contribute minimally to 2025 revenue.

Snai Integration and International Diversification

Flutter’s acquisition of Snai in Italy and its pending move into Brazil mark a strategic push into high-potential markets. Key details include:
- Snai’s Contribution: Q1 Italian revenue totaled $378 million, with sports revenue up 27% and iGaming flat year-over-year. The integration has already boosted Southern Europe & Africa (SEA) revenue by 14%, supported by a 25% rise in AMPs to 1.8 million.
- Brazil’s Potential: While NSX’s initial EBITDA loss is a near-term drag, Flutter’s CEO, Peter Jackson, emphasized that Brazil is a “strategic priority” with long-term growth potential in Latin America.
- Other Regions: India’s iGaming revenue surged 45%, and Central and Eastern Europe (CEE) grew 15%, offsetting softness in Australia.

Risks and Challenges Ahead

Despite the bullish outlook, risks remain:
- Currency Volatility: A stronger euro and sterling could continue to pressure revenue.
- U.S. Basketball Handle Softness: Q1 saw weaker-than-expected growth in basketball handle, though MLB trends and playoffs are expected to rebound.
- Integration Risks: Successfully merging Snai and NSX’s operations into Flutter’s systems will require execution precision.

Conclusion: A Strong Foundation for Long-Term Growth

Flutter’s revised $17.08 billion revenue guidance reflects a company in a strong position to dominate regulated online gaming markets. With 35% adjusted EBITDA growth projected for 2025, and a leverage ratio of 2.2x within its 2.0x–2.5x target range, the balance sheet remains healthy.

The U.S. iGaming segment’s 32% revenue growth and margin improvements highlight its role as a cash engine, while Snai’s integration and Brazil’s potential open new avenues for growth. Even with near-term headwinds like sports results and forex, the company’s five-year revenue CAGR of 38% suggests it is well-positioned to capitalize on the global shift to regulated online gaming.

Investors should monitor foreign exchange trends, the pace of U.S. state launches, and Snai/NSX integration progress. For now, the data supports the view that Flutter is a best-in-class play in an industry with structural growth tailwinds.