Flutter Entertainment PLC (LSE:FLTR) is well positioned to address fresh US issues that emerged this week, including higher taxes, potential clampdowns on VIP schemes and prospective bans on college betting, analysts have said.
Responding to media reports that sent shares in the owner of FanDuel and Paddy Power tumbling over 6% in London and New York yesterday, Jefferies said Flutter "sits in a relatively better position" to address these issues than rivals.
First of the three reports was from Wall Street Journal, which said that Senator Richard Blumenthal has sent letters to eight gambling firms urging an end to using player data to target VIP schemes at repeat and potentially problem customers.
“Flutter has always positioned itself as the most responsible online gambling operator and, unlike peers, does not run VIP schemes that bonus staff for encouraging higher customer spend,” Jefferies said.
Responding to calls by the National Collegiate Athletic Association for a ban on college prop betting, Jefferies noted just five states actually allow the practice.
The likelihood that New Jersey could tax gambling firms 30% instead of 15% was also reported.
"Rising taxes are a likely narrative as US markets mature," the brokerage said. "Where taxes have risen elsewhere, operators recapture lost margin in less favourable odds to customers and market share shifts to the larger operators. A rate of 30% would also likely increase the attractiveness of illegal markets."
Flutter rebounded 2.1% to 16,000p in London on Thursday.