FanDuel Operator’s Margins Hit by US State Gambling Tax Hikes

The rollout of new gambling taxes across several US states has pushed margins lower at Flutter Entertainment plc, operator of the FanDuel betting site.

The Irish-American betting company, which also owns the Paddy Power platform, said its cost of sales as a percent of revenues in the US rose from 57.4% to 59.2% in the first three months of the year, mainly because of tax rate increases worth 220 basis points, released according to its 10-Q quarterly filing Wednesday.

“The main movement margin wise year-on-year will be down to tax changes,” Rob Coldrake, CFO of Flutter, told ...