World Cup to Drive Billions in Betting Volume

• World Cup knockout rounds are seeing very positive viewership, engagement, and storytelling, leading to record betting volumes.
• Global betting markets are country-specific (state-specific in the US), with mature markets like the UK, Italy, Spain, France, and Australia leading.
• Sports betting operators profit when outcomes are mixed (not just favorites winning); customers often side with favorites.
• Prediction markets (e.g., Kalshi, Polymarket) are gaining traction, allowing betting on various events, including economic data, and are governed by the CFTC.
• Flutter (FLUT) is highlighted as a 'best buy' due to its current valuation being less than FanDuel's acquisition price, despite its strong global market position.

The World Cup is driving record engagement and betting volumes globally, fueling the 'gamification' of markets. While some sports betting stocks have underperformed, the overall market is robust, with new prediction markets emerging. Macquarie recommends Flutter (FLUT) as a strong buy due to its undervaluation and global market position.