Shares of Flutter Entertainment (OTC:PDYPY) got a boost Monday, rising two percent in midday trading after the company’s FanDuel unit was selected as the official betting operator of the PGA Tour.
The financial terms of the deal weren’t disclosed. But it’s a multi-year content and marketing arrangement, whereby FanDuel Sportsbook gains US rights to use the PGA Tour logos and avenues to advertise within Tour media and partner platforms. The sportsbook operator can also use PGA video content to create pre- and post-match programming aimed at bettors.
The PGA TOUR and FanDuel will also offer odds-based content to fans via TOUR Digital Platforms like PGATOUR.COM and the PGA TOUR app, according to a statement.
News of the arrangement with the PGA Tour, the world’s highest-level golf tour, comes just days after FanDuel confirmed it launched a mobile wagering app in Illinois, and that it plans to open a retail sportsbook in that fast-growing market.
Giddy for Golf
In years past, golf traditionally resides in the “other” category when it comes to sports wagering — a group of sports including hockey, NASCAR, tennis, and others that are well behind football, basketball and baseball as a percentage of sports betting handles.
However, data confirm golf wagering has plenty of tailwinds, and operators are looking to capitalize on that momentum. On nine of the past 12 Sundays, golf notched “the highest single event handle on FanDuel Sportsbook,” and in New Jersey — one of the states where FanDuel is operational — the 2020 golf handle already surpassed 2019’s mark, despite a 13-week layoff because of the coronavirus sports shutdown.
What’s even more impressive about the increasing interest in golf betting is that the aforementioned 12-week span that delivered nine record handles included just one major championship, just two FedEx Cup playoff events, and a limited number of tournaments in which either Tiger Woods or Phil Mickelson, two of the most popular golfers on tour, competed.
Implications for Investors
Bettors’ appetite for golf and the benefits of the FanDuel/PGA relationship will be tested over the near-term, as the FedEx playoffs roll along with the Tour Championship later this week in Atlanta. Woods won’t be participating, as his FedEx season ended Sunday at the BMW Championship.
Another marquee event for the new betting partnership arrives in November with the rescheduled Masters, which is the only other major to be played this year. The US Open and Open Championship were canceled by the pandemic.
For Flutter investors, there are also implications to consider. Analysts have long said the company’s exposure to the rapidly growing US sports betting market isn’t adequately reflected in the operator’s share price.
The aforementioned agreement with the PGA and the imminent start of the 2020 NFL season could provide a jolt to Flutter stock as more clients embrace FanDuel. In addition to Illinois, the company’s mobile betting platform is available in Colorado, Indiana, New Jersey, Pennsylvania, and West Virginia.