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SEGMENTS AND DISAGGREGATION OF REVENUE
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENTS AND DISAGGREGATION OF REVENUE SEGMENTS AND DISAGGREGATION OF REVENUE
The Group has four reportable segments:
•U.S.
•UK & Ireland;
•International; and
•Australia
U.S.
The U.S. segment offers sports betting, casino, DFS and horse racing wagering products to players across various states in the United States, mainly online but with sports betting services also provided through a small number of retail outlets and certain online products in the province of Ontario in Canada. The U.S. division consists of the following brands: FanDuel and TVG. Effective January 1, 2024, subsequent to our decision to close the sports betting platform FOX Bet, we reorganized how the PokerStars (U.S.) business is managed which resulted in a change in operating segment composition. As of the end of fiscal 2024, FanDuel online sportsbook was available in 23 states, FanDuel online casino was available in 5 states, FanDuel paid DFS offering was available in 44 states, FanDuel or TVG online horse racing product was available in 32 states, FanDuel free-to-play products were available in all 50 states.
UK & Ireland
The UK & Ireland (“UKI”) segment offers sports betting (sportsbook), iGaming products (games, casino, bingo and poker) and other products (exchange betting) through the Sky Betting & Gaming, Paddy Power, Betfair and tombola brands. Although the UKI brands mostly operate online, this division also included our 563 Paddy Power betting shops in the United Kingdom and Ireland as of December 31, 2024.
International
The International segment includes operations in over 100 global markets and offers sports betting, casino, poker, rummy and lottery, mainly online. Sisal, the leading iGaming operator in Italy, is the largest brand in the International division following its acquisition in August 2022. The International division also includes PokerStars, Betfair International, Adjarabet, Junglee Games and most recently MaxBet. In January 2024, we acquired an initial 51% controlling stake in MaxBet, a leading omni-channel sports betting and gaming operator in Serbia. In addition, effective January 1, 2024, subsequent to our decision to close the sports betting platform FOX Bet, we reorganized how the PokerStars (U.S.) business is managed which resulted in a change in operating segment composition. From January 1, 2024, PokerStars (U.S.) is included in the International segment as opposed to the U.S. segment. The Group continues to diversify internationally and is taking its online offering into regulated markets with a strong gambling culture and a competitive tax framework under which the Group has the ability to offer a broad betting and iGaming product range.
Australia
The Australia segment offers online sports betting products through the Sportsbet brand, which operates exclusively in Australia and offers a wide range of betting products and experiences across local and global horse racing, sports, entertainment and major events.
The Group's chief operating decision makers (“CODMs”) are the Group's Chief Executive Officer and Chief Financial Officer. The CODMs use Adjusted EBITDA to allocate resources for each operating segment predominantly in the annual budget and forecasting process.The CODMs evaluate performance based on the Adjusted EBITDA of each operating segment by comparing actual results to previously forecasted financial information on a monthly basis. Adjusted EBITDA of each segment is defined as net income (loss) before income tax expense, other (expense) income net, interest expense net, depreciation and amortization, transaction fees and associated costs, restructuring and integration costs, legal settlements, gaming taxes expenses, impairment of property and equity and intangible assets and share-based compensation charge.
Beginning January 1, 2024, the Group revised its definition of Adjusted EBITDA, which is the segment measurement used to evaluate performance and allocate resources. The definition of Adjusted EBITDA now excludes share-based compensation as management believes inclusion of share-based compensation can obscure underlying business trends as share-based compensation could vary widely among companies due to differing plans that result in companies using share-based compensation awards differently, both in type and quantity of awards granted.
Segment results for the year ended December 31, 2023 and 2022, have been revised to reflect the change in operating segment measurement and change in operating segment composition.
The Group manages its assets on a total company basis, not by operating segment. Therefore, the CODMs do not regularly review any asset information by operating segment and accordingly, the Group does not report asset information by operating segment.
The following tables present the Group’s segment information:
Year ended December 31,
($ in millions)202420232022
Revenue
U.S.
Sportsbook$4,013 $3,072 $2,100 
iGaming1,524 1,045 687 
Other261 287 316 
U.S. segment revenue5,798 4,404 3,103 
UKI
Sportsbook1,691 1,463 1,323 
iGaming1,741 1,404 1,189 
Other166 180 152 
UKI segment revenue3,598 3,047 2,664 
International
Sportsbook730 603 335 
iGaming2,389 2,172 1,696 
Other138 117 107 
International segment revenue3,257 2,892 2,138 
Australia
Sportsbook1,395 1,447 1,558 
Australia segment revenue1,395 1,447 1,558 
Total reportable segment revenue$14,048 $11,790 $9,463 
iGaming revenue includes iGaming, Poker and Lottery.
The information below summarizes revenue by geographical market for the year ended December 31, 2024, 2023 and 2022:
Year ended December 31,
($ in millions)202420232022
U.S.$5,729 $4,391 $3,176 
UK3,279 2,740 2,397 
Ireland304 305 283 
Australia1,397 1,447 1,558 
Italy1,484 1,352 690 
Rest of the world1,855 1,555 1,359 
Total revenue$14,048 $11,790 $9,463 
The following table shows the reconciliation of reportable segment Adjusted EBITDA to income (loss) before income taxes for the year ended December 31, 2024, 2023 and 2022:
 Year ended December 31,
($ in millions)202420232022
U.S.$507 $232 $(175)
UKI1,117 911 776 
International653 562 328 
Australia295 357 485 
Reportable segment adjusted EBITDA 2,572 2,062 1,414 
Unallocated corporate overhead1
(215)(187)(126)
Depreciation and amortization(1,097)(1,285)(1,075)
Share-based compensation expense(202)(190)(181)
Legal settlements2
— — 44 
Transaction fees and associated costs3
(54)(92)(43)
Restructuring and integration costs4
(135)(132)(121)
Other (expense) income, net(434)(157)5 
Interest expense, net(419)(385)(212)
Impairment— (725)— 
Income (loss) before income taxes$16 $(1,091)$(295)

1Unallocated corporate overhead includes shared technology, research and development, sales and marketing and general and administrative expenses that are not allocated to specific segments.
2During the year ended December 31, 2022, the settlement of two separate legacy TSG litigation matters in the International and Australian divisions resulted in the release of various legal provisions and an Income Statement credit of $44 million.
3Fees primarily associated with (i) advisory fees related to implementation of internal controls, information system changes and other strategic advisory related to the change in the primary listing of the Group, and transaction costs for Snaitech and NSX for the year ended December 31, 2024; (ii) transaction fees related to the listing of Flutter’s ordinary shares in the U.S. of $86 million for the year ended December 31, 2023; and (iii) Fox Option arbitration proceedings of $30 million and acquisition-related costs in connection with tombola and Sisal of $11 million for the year ended December 31, 2022.
4During the year ended December 31, 2024, costs of $135 million primarily relate to various restructuring and other strategic initiatives to drive synergies. These actions include efforts to consolidate and integrate our technology infrastructure, back-office functions and relocate certain operations to lower cost locations. It also includes business process re-engineering cost, planning and design of target operating models for the Group's enabling functions and discovery and planning related to the Group’s anticipated migration to a new enterprise resource planning system. The costs primarily include severance expenses, advisory fees and temporary staffing costs. The programs are expected to run until 2027. For the years ended December 31, 2023 and 2022, costs primarily related to restructuring and other strategic initiatives to drive increased synergies arising primarily from the acquisitions of TSG and Sisal.
These actions included efforts to consolidate and integrate our technology infrastructure, back-office functions and relocate certain operations to lower cost locations. The costs primarily included severance expenses, advisory fees and temporary staffing costs. Costs also included implementation costs of an enterprise resource planning system that could not be capitalized.
The following table shows the significant segment expense categories that are regularly provided to the CODMs and included in segment profit and loss for the years ended December 31, 2024, 2023 and 2022:
Year ended December 31,
($ in millions)202420232022
U.S.
Revenue$5,798 $4,404 $3,103 
Cost of sales(1)
(3,353)(2,534)(1,787)
Technology, research and development expenses(2)
(270)(196)(108)
Sales & marketing expenses(3)
(1,278)(1,150)(1,142)
General and administrative expenses(4)
(390)(292)(241)
Total U.S. adjusted EBITDA$507 $232 $(175)
UKI
Revenue$3,598 $3,047 $2,664 
Cost of sales(1)
(1,287)(1,113)(978)
Technology, research and development expenses(2)
(162)(155)(135)
Sales & marketing expenses(3)
(700)(591)(542)
General and administrative expenses(4)
(332)(277)(233)
Total UKI adjusted EBITDA$1,117 $911 $776 
International
Revenue$3,257 $2,892 $2,138 
Cost of sales(1)
(1,521)(1,342)(951)
Technology, research and development expenses(2)
(207)(206)(168)
Sales & marketing expenses(3)
(471)(456)(484)
General and administrative expenses(4)
(405)(326)(207)
Total International adjusted EBITDA$653 $562 $328 
Australia
Revenue$1,395 $1,447 $1,558 
Cost of sales(1)
(763)(763)(754)
Technology, research and development expenses(2)
(34)(32)(28)
Sales & marketing expenses(3)
(223)(225)(229)
General and administrative expenses(4)
(80)(70)(62)
Total Australia adjusted EBITDA$295 $357 $485 
(1) Reportable segment cost of sales excludes amortization of certain capitalized development costs, share-based compensation of revenue-associated personnel and restructuring and integration cost directly associated with revenue-generating activities.
(2) Reportable segment technology, research and development expenses excludes share-based compensation for technology developers and product management employees, depreciation and amortization related to computer equipment and software not directly associated with revenue earning activities and restructuring and integration costs.
(3) Reportable segment sales and marketing expenses exclude amortization of trademarks and customer relations, share-based compensation expenses of sales and marketing personnel and restructuring and integration costs.
(4) Reportable segment general and administrative expenses exclude share-based compensation for executive management, finance administration, legal and compliance, and human resources, depreciation and amortization, transaction fees and associated costs and restructuring and integration costs.
The following table shows depreciation and amortization excluding amortization of acquired intangibles and share-based compensation expenses, excluding share-based compensation for the Group's executive management, finance, legal and compliance, and human resources functions by reportable segment that are regularly provided to the CODMs for review for the years ended December 31, 2024, 2023 and 2022:
Year ended December 31,
($ in millions)202420232022
U.S.
Depreciation and amortization excluding amortization of acquired intangible$104 $98 $58 
Share-based compensation expense95 102 82 
Total U.S.$199 $200 $140 
UKI
Depreciation and amortization excluding amortization of acquired intangible$113 $105 $111 
Share-based compensation expense32 23 19 
Total UKI$145 $128 $130 
International
Depreciation and amortization excluding amortization of acquired intangible$222 $208 $120 
Share-based compensation expense31 30 58 
Total International$253 $238 $178 
Australia
Depreciation and amortization excluding amortization of acquired intangible$47 $37 $30 
Share-based compensation expense10 8 8 
Total Australia$57 $45 $38 
The information below summarizes long-lived assets by geographic market as of December 31, 2024 and 2023:
 As of December 31,
($ in millions)20242023
U.S.$123 $126 
UK99 82 
Ireland70 58 
Australia9 8 
Italy93 110 
Rest of the world99 87 
Long-lived assets $493 $471