Flutter Entertainment (FLUT): A Strategic Bet on Gaming’s Future in Coleman’s Portfolio

Chase Coleman’s investment firm, Tiger Global Management, has long been a bellwether for identifying undervalued opportunities in tech-driven industries. Among its top holdings as of April 2025, Flutter Entertainment (FLUT) stands out as a prime example of Coleman’s knack for spotting companies with structural growth advantages. With a stake valued at $872.89 million, Flutter ranks eighth in Tiger Global’s portfolio, signaling confidence in its ability to deliver a 34.74% upside potential over the coming years. But what makes this UK-based gaming giant a standout in a portfolio increasingly tilted toward AI stocks? The answer lies in its dominance of regulated markets, relentless innovation, and a playbook designed to capitalize on global trends in sports betting and iGaming.

The US Market Engine: Growth at 51% YoY

Flutter’s U.S. division, led by its flagship brand FanDuel, has been the primary growth driver. In Q3 2024, U.S. revenue surged 51% year-over-year to $1.67 billion, accounting for half of Flutter’s total revenue. FanDuel’s 35% share of U.S. gross gaming revenue (GGR) underscores its leadership, a position bolstered by strategic product launches like the “Your Way” betting experience. This feature allows users to customize stakes and payouts, driving a 700 basis point increase in parlay betting penetration—a high-margin segment. The introduction of animated scoreboards and player prop markets further deepened user engagement, ensuring FanDuel remains a go-to platform for sports enthusiasts.

Global Expansion and Strategic Acquisitions

While the U.S. is the growth epicenter, Flutter’s international footprint is equally compelling. In Italy, the acquisition of Snaitech in 2023 transformed Flutter into the nation’s second-largest retail betting operator with a 19% market share. Sisal, Flutter’s Italian division, leveraged Serie A Same Game Parlay (SGP) betting to gain 200 basis points in market share in 2024, illustrating how localized innovations can fuel dominance. Similarly, the purchase of NSX in Brazil positions Flutter to capitalize on Latin America’s nascent iGaming market, which is projected to grow at a 12% CAGR through 2028. These moves align with Coleman’s preference for companies that blend organic growth with disciplined M&A strategies.

Financial Fortitude and Analyst Sentiment

Flutter’s balance sheet backs its ambitions. A $350 million share repurchase program announced in early 2025 signals management’s confidence in the stock’s undervaluation. Despite a recent 6% price target reduction by BTIG analyst Clark Lampen (to $289 from $323), the “Buy” rating was reaffirmed, citing strong execution in B2B sportsbook partnerships and iGaming. The analyst highlighted that concerns around March Madness revenue volatility had been resolved, with Q1 2025 results showing resilience in key markets.

Why Coleman’s Call on FLUT Still Rings True

Coleman’s portfolio is no stranger to long-term bets—even amid shorter-term AI euphoria. While Tiger Global has prioritized AI stocks for their faster return profiles, Flutter’s fundamentals remain irrefutable. Its regulated market dominance, diversified revenue streams, and a management team adept at scaling acquisitions give it a moat few rivals can match. The 34.74% upside potential embedded in Tiger Global’s rankings is supported by concrete data: a 27% revenue growth in 2024, expanding market shares in core regions, and a $350 million buyback that could boost shareholder returns.

Even as competitors like DraftKings (DKNG) and William Hill vie for market share, Flutter’s tech-driven product innovation and scale—backed by 97 institutional holders—position it as a leader in an industry expected to hit $28 billion in U.S. sports betting revenue by 2027. For Coleman, who views volatility as an entry point rather than a risk, this is a bet on structural tailwinds in gaming—a sector that’s only just begun to leverage the data and personalization tools of the digital age.

Conclusion: A Gaming Titan with Legs

Flutter Entertainment (FLUT) isn’t just a holding in Chase Coleman’s portfolio—it’s a testament to his ability to identify companies with sustainable, high-margin growth. With a robust revenue engine in the U.S., a global expansion playbook validated by acquisitions like Snaitech and NSX, and a financial strategy aimed at returning capital to investors, FLUT’s 34.74% upside potential is grounded in execution, not speculation. Even as AI stocks command headlines, the $872.89 million stake in FLUT reflects a disciplined focus on sectors where regulation and innovation align to create long-term winners. For investors willing to look beyond the next quarter, Coleman’s bet on Flutter represents a rare opportunity to ride a wave of growth in one of the world’s fastest-evolving industries.