FanDuel: The Scottish Startup That Became a $31 Billion American Sports Betting Business

FanDuel Started in Scotland. So How Did It Become an American Sports Betting Giant?

FanDuel is a sports betting and online gaming brand owned by Flutter Entertainment. Its predecessor was founded in Edinburgh in 2007; the FanDuel fantasy sports platform launched in July 2009. It entered regulated U.S. online sports betting in 2018.

Those dates tell you more about the company than a glossy sportsbook advertisement. FanDuel did not start as a betting app. It built a daily fantasy sports audience, went head-to-head with DraftKings, and then moved into a new market after a landmark U.S. Supreme Court ruling.

At BSweeps, we have traced the business through company disclosures, court decisions, the Federal Trade Commission, and Flutter’s financial filings. The result is a company profile—not a claim that we tested FanDuel’s app, placed bets, or verified customer withdrawals.

Before FanDuel, There Was Hubdub

In 2007, Nigel Eccles, Lesley Eccles, Tom Griffiths, Rob Jones, and Chris Stafford started Hubdub, a website built around predictions about current events. The founding team eventually turned toward fantasy sports in the United States.

Think about how most fantasy leagues worked at the time: you selected a roster, followed an entire season, and waited months for the final standings. FanDuel shortened that cycle. A fantasy contest could be settled over a day or a smaller set of games, giving participants a different rhythm from season-long leagues.

FanDuel launched in July 2009 and established its New York headquarters in 2011. The company's Scottish roots and its U.S. expansion are also discussed in the New York Court of Appeals' Eccles v. Shamrock Capital Advisors decision.

Why FanDuel and DraftKings Nearly Became One Company

By the middle of the 2010s, FanDuel and DraftKings were competing aggressively for the same paid daily fantasy sports audience. Advertising and customer acquisition became expensive enough that the two companies explored combining.

They agreed to a proposed merger in 2016. In June 2017, the Federal Trade Commission challenged it, alleging the combined business would control more than 90% of the U.S. paid daily fantasy sports market measured by entry fees.

On July 13, 2017, the companies abandoned the deal. The FTC’s percentage described its allegation about the proposed combined company, not FanDuel’s standalone share and not today’s sportsbook market.

That failed merger is central to FanDuel's story: two brands that almost became one went on to compete in an even larger regulated betting market.

The 2018 Court Decision That Opened a New Business

On May 14, 2018, the U.S. Supreme Court decided Murphy v. NCAA, invalidating the federal restriction that had prevented most states from authorizing sports betting. The ruling did not legalize sports wagering nationwide. It returned the decision to individual states.

FanDuel launched its online sportsbook in New Jersey in September 2018. Unlike a startup entering the market from scratch, FanDuel already had a recognized sports brand and experience operating digital fantasy contests.

The move was not merely a new app feature. Fantasy sports contests and conventional sports wagers have different rules, products, and regulatory requirements. FanDuel was entering a separate industry while keeping the audience that had made its name familiar.

Who Owns FanDuel—and What Did the $31 Billion Valuation Mean?

Flutter Entertainment plc owns FanDuel. The ownership relationship began when Paddy Power Betfair, later renamed Flutter, acquired a controlling interest in 2018.

On July 10, 2025, Flutter announced an agreement to buy Boyd Gaming’s remaining 5% stake and amend their commercial relationship. The equity purchase was valued at approximately $1.55 billion, with an additional $205 million attributed to the commercial arrangement—a combined consideration of approximately $1.755 billion.

Flutter said the equity component implied a FanDuel valuation of about $31 billion. The transaction closed on July 31, 2025. The revised Boyd relationship was extended through 2038.

There is a distinction that matters here: dividing the entire $1.755 billion by 5% would misstate the equity valuation because that amount included a separate commercial component.

Does FOX own FanDuel?

Flutter has disclosed a FOX option to acquire an 18.6% FanDuel equity interest, subject to contractual requirements, with an expiration in December 2030. An option is not the same as an exercised ownership stake. Flutter’s 2025 Boyd transaction brought its then-current ownership to 100%.

Can investors buy FanDuel shares?

FanDuel is not separately listed. Flutter trades on the New York Stock Exchange under FLUT. Flutter shareholders own an interest in the parent group, which also includes businesses beyond FanDuel.

The Founders Built It. Who Leads FanDuel Now?

The founders who launched Hubdub and FanDuel are different from the executives managing the company today.

In May 2026, Flutter announced Amy Howe's departure as FanDuel CEO. Christian Genetski, FanDuel's President, assumed responsibility for leading the business. His prior work as Chief Legal Officer is particularly relevant because legal and regulatory questions shaped both fantasy sports and the sportsbook expansion.

FanDuel’s published leadership information also identifies David Jennings as Chief Financial Officer and Andrew Sheh as Chief Technology Officer. At the parent level, Dan Taylor succeeded Peter Jackson as Flutter CEO in October 2026.

Leadership can change; the company's official leadership page is the appropriate reference for later updates.

What Does FanDuel Actually Operate?

These products do not share one nationwide authorization. A person may be eligible for one FanDuel product and ineligible for another at the same physical location.

The League Partnerships That Made FanDuel Hard to Ignore

FanDuel’s visibility is not just a result of its advertising. Its official history lists relationships with major U.S. sports organizations, including a WNBA fantasy partnership in 2017, an NHL betting partnership in 2018, and official betting partnerships involving the NFL, NBA, and MLB in subsequent years.

Those relationships can support brand recognition and commercial reach. They do not replace state gaming licenses or guarantee that FanDuel can operate every product wherever a league has fans.

The Numbers Behind FanDuel’s Growth—and What They Do Not Prove

Flutter’s annual reports publish a U.S. segment that includes FanDuel and related operations. Those figures offer the clearest public measure of the American business, but they should not be mislabeled as a separate audited FanDuel-only income statement.

Revenue increased approximately 58% from 2023 to 2025. Adjusted EBITDA also increased substantially, although adjusted EBITDA is not the same as net income.

In 2025, Flutter reported approximately $4.633 billion in U.S. sportsbook revenue, $2.095 billion in iGaming revenue, and $239 million in other revenue. It reported FanDuel’s iGaming GGR share at approximately 27% in its operating states.

GGR is not betting handle. Gross gaming revenue reflects wagers less winnings paid out, subject to the company’s definitions. The total amount staked by customers is a different measure.

Source: Flutter FY2025 Form 10-K.

Why FanDuel’s Q2 2026 Results Were Not All Good News

A market leader can still have a difficult quarter. In Q2 2026, Flutter reported U.S. revenue of $1.683 billion, down 6% year over year. Sportsbook revenue declined 15%, while iGaming revenue increased 14%.

Flutter reported FanDuel sportsbook GGR share of approximately 39% and iGaming share of approximately 27% on the relevant basis. The company identified unfavorable sporting results as a factor affecting sportsbook performance.

That is the financial reality behind a sportsbook: if more game outcomes favor bettors, the operator may retain less revenue even with a large customer base. Casino and sportsbook performance can move in different directions.

Source: Flutter Q2 2026 earnings release.

Where FanDuel Is Available in the United States

There is no single U.S. license authorizing every FanDuel product in all 50 states. State gaming regulators decide whether online sports betting and online casino gaming may operate within their jurisdictions. Fantasy sports, racing, and prediction markets can follow different legal frameworks.

Flutter’s FY2025 filing described online sportsbook operations across a broad group of U.S. jurisdictions and online casino operations in a smaller set of states. It identified Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia among FanDuel Casino’s U.S. state markets.

That is a dated disclosure, not a live October 2026 availability checker. Physical location, age, verification, license status, and product-specific restrictions matter. Some reported sportsbook arrangements may be retail-only rather than online.

The Legal Disputes That Belong in Any Serious FanDuel History

2017: The FTC stops the proposed DraftKings merger

The FTC challenged the proposed transaction on competition grounds. The companies abandoned the merger. That challenge is not a criminal conviction and should not be described as one.

2017: Massachusetts consumer protection settlement

Massachusetts announced settlements under which FanDuel and DraftKings each agreed to pay $1.3 million to resolve allegations relating to pre-regulation daily fantasy sports conduct. The combined settlement was $2.6 million.

2018 transaction: Dispute involving early shareholders

The Paddy Power Betfair transaction led to litigation over the treatment of different share classes. In 2024, the New York Court of Appeals addressed whether claims involving fiduciary duties under Scots law could proceed. A ruling allowing allegations to move forward is not a final finding that every allegation was proven.

These episodes matter because they complicate a simplistic success story. FanDuel grew, but its growth took place alongside competition-law scrutiny, consumer-protection issues, and disagreements over who benefited from the acquisition.

How FanDuel Compares With DraftKings, BetMGM, Caesars, and Fanatics

DraftKings is FanDuel’s closest historical comparison because both brands rose through paid daily fantasy sports. BetMGM competes across sportsbook and iGaming. Caesars connects digital betting with a land-based casino and loyalty business. Fanatics brings an existing sports commerce audience to its sportsbook.

FanDuel’s market share supports its position as a major U.S. operator. It does not prove that FanDuel always offers the best odds, promotions, app performance, or support. Those are separate claims that require current product-specific evidence.

BSweeps’ Assessment: What Actually Made FanDuel Successful?

FanDuel’s development makes the most sense as a sequence, not a miracle-growth story.

1. It established a sports audience before widespread online sportsbook legalization. The 2009 fantasy platform created brand familiarity.
2. It endured a difficult competitive period. The DraftKings rivalry and blocked merger show how concentrated and contested paid fantasy sports became.
3. It entered sports betting at a pivotal moment. The 2018 Supreme Court ruling allowed states to create regulated markets, and FanDuel launched in New Jersey that year.
4. It gained a well-capitalized parent. Flutter supplied an international gaming structure and expanded its ownership over time.
5. It expanded across related products. Sportsbook, casino, fantasy, racing, television and newer products broadened the brand.

Those are evidence-based explanations of the company’s development, not a claim that we can isolate the exact dollar value of every strategy.

FanDuel’s size is real, but so are its operating risks: high marketing spending, sporting-result volatility, changing state taxes, regulatory restrictions, and competition.

FanDuel Questions Readers Commonly Ask

Sources, Methodology, and Editorial Disclosure

Research date: October 23, 2026. BSweeps prepared this company profile using publicly available primary records. The article does not claim first-hand account testing, wagering, support conversations, or payout verification.

Financial figures are attributed to Flutter’s U.S. segment when they are not independently disclosed as FanDuel-only figures. Market-share percentages are presented with their reporting basis. Historical operating footprints are not represented as current live availability.

1. FanDuel — Our Story
2. FanDuel — Leadership
3. Flutter — FY2025 Form 10-K
4. Flutter — Q2 2026 Results
5. Flutter — Boyd ownership agreement
6. FTC — FanDuel / DraftKings matter
7. Massachusetts AG — 2017 settlements
8. New York Court of Appeals — Eccles v. Shamrock