The opening stages of the World Cup have proven costly for major gambling companies as high-scoring performances by star players and victories by popular teams triggered substantial payouts. Leading sportsbooks had anticipated the tournament to be a key opportunity for customer acquisition but faced unexpected financial setbacks during the group phase.
DraftKings, one of the largest US-based online bookmakers, is estimated to have incurred losses as high as $50 million during the initial matches, according to analysis by Bank of America. These losses followed significant investment by betting operators in innovative in-play betting options and promotional campaigns aimed at capitalizing on the tournament’s global popularity and fending off competition from emerging prediction markets such as Polymarket and Kalshi.
Jordan Bender, an analyst at investment bank Citizens, noted that sports betting operators, brokerages, and prediction platforms were collectively investing hundreds of millions of dollars to attract new customers throughout the World Cup. A key factor behind the large payouts was the prevalence of multi-leg bets—otherwise known as accumulators or parlays—that offer substantial winnings if multiple selected outcomes occur. The high-profile betting markets on Lionel Messi, Erling Haaland, and Kylian Mbappé all scoring twice in the same week resulted in unexpected windfalls for bettors and corresponding losses for sportsbooks.
Parlay bets are generally profitable for bookmakers because the odds of all selections winning are low; however, when three star players exceeded expectations, sportsbooks faced elevated liabilities. DraftKings declined to comment specifically on reported losses, though CEO Jason Robins had previously described the World Cup as a strategic focus for growing the company’s customer base.
Sportsbooks typically set odds to include a margin that ensures profitability, especially when favorite teams or star players underperform. Casual bettors often favor their home countries and high-profile scorers, making the performance of teams from large betting markets, such as the United States and England, particularly influential. Bank of America analyst Jolie Hoover identified the US team’s strong showing as a significant source of financial exposure for American sportsbooks.
In the United Kingdom, England’s 4-2 win over Croatia led to a £4.1 million payout by Flutter, owner of Paddy Power, Sky Bet, and FanDuel. However, the company indicated that England’s goalless draw against Ghana helped offset some of these losses. Macquarie analyst Chad Beynon suggested that despite short-term revenue pressures, sportsbooks might still gain long-term benefits through enhanced brand visibility during the tournament.
Flutter’s CEO Peter Jackson reflected on his company’s experience with the 2022 World Cup, acknowledging heavy financial losses after Argentina’s victory over France on penalties in the final. Nevertheless, he emphasized the intangible value of providing entertainment to customers and the potential for sustained business growth beyond immediate bookmakers’ profits.