View the full Brand Finance Gambling 25 2023 report here
US-based brand, FanDuel, saw a 259% brand value growth, soaring to fourth position in the annual Brand Finance Gambling 25 2023 ranking with a brand value of USD3.4 billion. This makes it the fastest growing brand in the ranking, and highest new entrant. It is also the fastest growing American brand across all economic sectors, not just gambling.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest Gambling brands are included in the annual Brand Finance Gambling 25 2023 ranking. This ranking is not a valuation of the companies as a whole, but rather an estimation of the value of the intangible assets related to the brand.
Parent company and gambling powerhouse, Flutter, which also owns brands such as Sportsbet (brand value up 135% to USD1 billion), has made substantial investments in the US gambling sector since 2018. This strategic move has fuelled significant success for FanDuel, with an impressive year-on-year growth with no signs of deceleration.
Henry Farr, Associate Director of Brand Finance, commented:
“FanDuel is thriving in the expanding US online gambling market, ignited by the 2018 repeal of restrictive gambling regulations in select states, with more states since following suit. By tapping into the sportsbook, daily fantasy sports, horse racing, and online casino markets, as well as forging partnerships with many of the best-known franchises and leagues across US sports, FanDuel is riding a wave of brand growth in the US gambling industry, with its meteoric rise in brand value showing little signs of slowing down.”
Fellow US brands such as Wynn Resorts (brand value up 36% to USD3.5 billion), MGM (brand value up 17% to USD2.2 billion), and Harrah’s (brand value up 45% to USD1.9 billion) have also seized the opportunity to expand their reach and offerings. With the relaxation of regulations in select states and the broader acceptance of online gambling, US gambling brands have successfully connected with a broader audience of enthusiasts, through strategic investments, innovative technologies, and enticing partnerships.
As a result, the US now accounts for nine brands in the ranking with a collective brand value of USD20.2 billion, up 44% year-on-year. This makes it more than double the value of the next largest contribution by a country in the ranking, the UK, with a collective brand value of USD8.4 billion.
UK brand Bet365 (brand value down 1% to USD4 billion) has overtaken Malaysia’s Genting (brand value down 19% to 3.6 billion) to become the world’s most valuable Gambling brand. Genting’s brand value fall can primarily be attributed to lower forecasts and a fall in brand strength in 2023.
While Bet365 has faced challenges with rising administrative and staffing expenses, its gaming operations have experienced significant success. Additionally, the brand's expansion into Argentina, Canada, the Netherlands, and Colorado (U.S.) has helped propelled it to the top of the gambling ranking.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors.
Singapore’s Marina Bay Sands had the biggest brand strength increase, rising 4 places to the top of the ranking for brand strength, with a Brand Strength Index score of 87 out of 100 and AAA ranking. The brand scored particularly well in Familiarity and Consideration metrics and capitalises on its resort’s position as a world-renowned landmark on the Singapore skyline.
View the full Brand Finance Gambling 25 2023 report here
ENDS
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
