Flutter Entertainment has reported a 13 per cent rise in average monthly players in the third quarter of 2021, with total revenue growing 12 per cent at constant currency.
Harry Barnick, senior analyst at Third Bridge, said: "Consolidation is on everyone's lips following DraftKings' abandoned takeover of Entain. Investors will be wondering what part Flutter could play in the global M&A landscape.
"The US market continues to be a strategic growth area for Flutter with success in this market looking pivotal to the future of the company.
"As regulation opens up on a state-by-state basis, Flutter will be singularly focused on picking up licences and growing market share in the US.
"Our experts say customer acquisition costs in the US continue to pose a challenge. The land grab is in full swing as Flutter and its competitors spend big to win share in this growing market. As the market matures, demonstrating profitability to investors will become increasingly important.
"In Flutter's home market, increased scrutiny into online regulation poses a threat to top-line and profitability - and Investors are anxiously waiting to hear what could be in store for the sector.
"Affordability checks and bet-per-spin limits are the headline factors that could damage revenue and profit in the long term."
