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00:00All right, let's dive in, let's talk about the success that the parent company of FanDuel
00:07named Flutter is having all-time high in terms of finances here in quarter three.
00:12Tell us more.
00:13Yeah, this is a really interesting story that kind of ties into everything that's been going
00:18on lately in the NFL, the biggest sport that people bet on in the United States.
00:23The Eagles won last night on primetime and covered the spread, which is kind of what
00:27we've seen all season with favorites winning at this crazy unprecedented streak.
00:33Favorites actually won three games or covered three games last year or last week.
00:37But before that, there was this run of favorites covering at about 63% and then obviously winning
00:44outright as well.
00:45So then you translate that to how the actual businesses that take money on these games
00:51have been doing, and they've been hit really hard.
00:54Teasers said they had the most customer-friendly week in history.
00:59DraftKings said that this five-week run is going to cost them $175 million for the year-end
01:06guidance.
01:07And then you have Flutter, the parent of FanDuel, which says it's only going to impact them
01:11about $30 million.
01:12So usually when a company cuts their guidance and says, we're going to lose more money than
01:16we originally thought, the investors don't like it, they react a certain way.
01:21But because this was an industry-wide problem that FanDuel essentially showed they can weather
01:26better than anyone else, we've seen the reaction from the investment community just be absolutely
01:31booming.
01:32Their stock hit a new high of $268 per share this week, which is just tremendous for this
01:38company that continues to get love from the investment community.
01:43They essentially said, because we take so many parlays, because we have better pricing,
01:48because we essentially squeeze money out of our customers in a more efficient way,
01:53we can offset these industry headwinds in a much better way than our competitors.
01:57So you look at the $30 million they're expected to lose from this unprecedented run versus
02:01$175 million their chief competitor is expected to lose.
02:05It pretty much widens the gap between FanDuel and DraftKings, which have essentially always
02:10been kind of neck and neck.
02:11They operate in different ways.
02:13They have different leadership styles, they kind of perform differently.
02:17They've always kind of been doing the same things, the same parlays, the same marketing,
02:22but to see FanDuel really differentiate itself from DraftKings is really big in this way.
02:29So I'm sure that once we get into NBA season, this will continue to kind of be another thing
02:34you're watching, FanDuel versus DraftKings and how one company tries to kind of get a
02:38leg up on the other company.