Flutter Entertainment PLC
Company Double Materiality Analysis
This one-page analysis examines a company’s products, services and operational practices and whether they positively contribute or detract from sustainability goals. Our analysis relies on quantitative indicators, leading industry frameworks and covers topics most relevant to the company’s industry.
Flutter Entertainment PLC
Ticker: FLTR LN
ISIN: IE00BWT6H894
Market Cap: GBP 24.67 billion
GICS Sector: Consumer Discretionary
SICS Industry: Casinos & Gaming
Country: UK
SMS theme: Leaving No Person Behind
SMS sub-theme: Social Cohesion
Contribution to theme: Negative
Company Description
Flutter Entertainment Plc operates in online betting and gaming. It has PPB Online, Australia, PPB Retail and U.S. The PPB Online segment has Paddy Power, Betfair, and Adjarabet. The Australia segment focuses on sports betting using the internet. The PPB Retail segment covers sports betting and gaming machine in the United Kingdom. The U.S. segment consists of sports betting, daily fantasy sports, and gaming services.
Revenue exposure by country/region: USA (33.7%), UK (25.1%) and Australia (16.4%).
How it detracts from the sub-theme objectives
Flutter Entertainment, as a major player in the gambling sector, can exacerbate social tensions and inequalities by contributing to addiction, financial strain, and crime, which undermines the goal of promoting inclusive social progress and cohesion in an increasingly polarized world.
Operational Performance
(Laggard, Aligned or Leader)
Material Topics for Casinos & Gaming: energy management, responsible gaming, controls on money laundering. Â
Assessment: Laggard
Company implemented a range of measures to protect players, including age verification, deposit limits, self-exclusion, and game-time reminders. They also have dedicated responsible gaming teams who monitor player activity and provide support to those who need it. Company has a code of conduct for advertising and marketing.
Energy consumed is not disclosed.
Commitment to strict compliance with AML and CFT laws and regulations in all operating jurisdictions to prevent money laundering, terrorism financing, tax evasion, and maintain financial system integrity.
Controversies: Paid a $300 mln fine in 2021 for providing illegal gambling services to Kentucky residents. It entered into a 4m settlement with the US government for Russian payments. Many controversies have erupted around deceptive marketing practices, failure to protect vulnerable customers, and inadequate responsible gambling. In 2018, they were the victims of a data breach which exposed the personal data of over 6 million customers.
Product/Service Impact
(Negative, Neutral or Positive)
Assessment: Negative
Flutter’s products, centered around sports betting and gambling can often lead to addiction, financial hardship, and strained relationships, causing negative social impacts.
The accessibility of online gambling platforms can make it easier for vulnerable individuals to develop gambling problems, contributing to addiction-related issues that affect not only individuals but also society at large.
While marketed as entertainment, some argue that Flutter's products, including fantasy sports, may not significantly contribute to the betterment of society.
SDG Alignment:
