FanDuel Eyeing Nevada, But No Plans in Place

• Flutter execs tell Nevada regulators they’re monitoring the state…
• …But no firm plans are in place
• Operator also discussed Kalshi speculation

Flutter Entertainment (NYSE: FLUT) executives say their employer remains interested in bringing the popular FanDuel sports betting mobile application to Nevada, but the company does not yet have firm plans in place to do so.

The comments were made at the Wednesday meeting of the Nevada Gaming Control Board (NGCB), rehashing an issue that’s long been on the minds of Nevada bettors and the sportsbooks currently doing business in the state.

The company is always evaluating opportunities on whether expansion across Nevada might be appropriate,” said Flutter’s private counsel Erica Okerberg in response to a question from an NGCB commissioner.

Currently, FanDuel’s consumer-facing Nevada footprint is limited to providing branding and odds to the sportsbook at Boyd Gaming’s (NYSE: BYD) Fremont Hotel Casino in downtown Las Vegas. Last week, Flutter wrapped up the $1.758 billion acquisition of the 5% of FanDuel it didn’t previously own from Boyd.

How DraftKings, FanDuel Can Enter Nevada

FanDuel and DraftKings (NASDAQ: DKNG) have a US sports betting duopoly — a status the operators achieved without access to Nevada.

That issue could be solved via acquisition, but it’s not clear if either company would shed its asset-lite ways simply to gain entry into Nevada.

Over the years, there’s been talk FanDuel could leverage its relationship with Boyd to get into Nevada and DraftKings could do the same with Golden Nugget, but that could require financial investment in brick-and-mortar casinos and it’s not known if that’s of interest to any of the companies in question. Golden Nugget pulled the plug on its Nevada mobile betting app in 2022.

Flutter Faces Kalshi Questions

In June, reports surfaced that Flutter was holding discussions with prediction markets operator Kalshi — a company that’s in the midst of a legal battle with Nevada, among other states. Not surprisingly, that rumor was a point of emphasis at Wednesday’s NGCB meeting.

Board member George Assad told Flutter executives Kalshi is operating in Nevada without a license, appearing unconvinced the Commodities Futures Trading Commission (CFTC) — Kalshi’s federal regulator — can preempt state guidelines.

“It may go to the Supreme Court and in that case, I think we will prevail,” Assad said. “Commodities are rice, corn, wheat, silver, gold, platinum, and pork futures. Whether Duke will win the NCAA Tournament is not a commodity.”