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Flutter will spend more on FanDuel and prediction markets despite a sharp Q2 profit decline, weaker US sportsbook revenue and a lowered 2026 forecast. Dan Taylor will lead that strategy when he replaces Peter Jackson as Flutter CEO on October 1.
Good to Know
- Flutter Q2 revenue rose 3% to $4.33 billion, but adjusted EBITDA fell 45% to $508 million.
- FanDuel Predicts could generate about $50 million from market-making services in 2026.
- Peter Jackson will remain an adviser through December after Dan Taylor takes control.
Flutter Accepts Lower Profit to Fund FanDuel
Flutter has chosen customer growth over short-term earnings as it works to repair sportsbook performance and build FanDuel Predicts before the NFL season.
The group cut the midpoint of its 2026 revenue forecast by $395 million to about $17.9 billion. It also lowered adjusted EBITDA guidance by $210 million to roughly $2.66 billion. US guidance now includes $7.4 billion in revenue and $760 million in adjusted EBITDA.
“We recognize that this weighs on near-term earnings, but we’re convinced it’s the right thing to do to maximize long-term shareholder value,” Jackson said.
Flutter reported a $296 million net loss for Q2, compared with $37 million in net income one year earlier. Group revenue reached $4.33 billion, while adjusted EBITDA dropped from $919 million to $508 million. Higher UK gaming taxes, World Cup marketing, historical tax costs and weaker US sports results all affected profit.
FanDuel generated $1.68 billion across sports betting and iGaming, down 6%. Sportsbook revenue fell 15%, while iGaming revenue rose 14% to $577 million. Betting handle increased 2%, and average monthly US players grew 8%.
Customer-friendly football and basketball results reduced sportsbook hold. However, Same Game Parlays supported a 14% structural gross revenue margin during the FIFA World Cup. Sales and marketing costs climbed as FanDuel spent more on promotions, retention and FanDuel Predicts.
“I am encouraged by the progress we have made in the U.S., delivering continued sequential improvement in key sportsbook metrics alongside sustained iGaming growth,” Jackson said.
FanDuel retained a 39% US online sports betting share and a 27% iGaming share during the quarter, according to Flutter.
FanDuel Predicts Adds a Second Revenue Route
Flutter no longer views prediction markets only as a consumer product. The company plans to use FanDuel pricing, trading and risk systems to provide liquidity across prediction platforms.
Management expects market-making services to produce about $50 million in 2026 revenue. Rob Coldrake said Flutter sees an advantage in pricing complex markets and contracts linked to several outcomes.
“Our ambition here … is to establish a leading position in this space by leveraging the pricing and risk management and the trading capabilities that we’ve got developed over the years with our sportsbook,” Coldrake said, “and we feel that we’ve got a real advantage in pricing complex and correlated markets.”
Sports and entertainment contracts on FanDuel Predicts will use Crypto.com infrastructure, while CME Group will continue to provide financial contracts. FanDuel plans to place sportsbook and prediction products inside one national app before the NFL season. Crypto.com already added wider sports, entertainment and combination contracts to FanDuel Predicts in June.
Prediction markets also give FanDuel access to customers in states such as California and Texas, where regulated online sports betting remains unavailable. Flutter said overlap with existing sportsbook activity stays in the low single digits.
“We continue to see prediction markets as incremental to sports betting and iGaming, growing the overall market by capturing new demand,” Jackson said.
FanDuel now competes with Kalshi, Polymarket, DraftKings and Fanatics in event contracts. Federal regulation remains unsettled as state gaming authorities and prediction market operators continue to dispute whether sports contracts fall under federal derivatives law or state gambling rules.
Dan Taylor Takes Control in October
Jackson will leave the CEO post on September 30 after nearly nine years. Taylor, currently Flutter president and CEO of Flutter International, will take over the next day. Jackson will support the transition as an adviser through the end of 2026.
“After nearly nine years as CEO, I believe this is the right point in Flutter’s journey for me to hand over the leadership of the business to Dan,” Jackson said.
Taylor led an international division that produced more than $9 billion in 2025 revenue and over $2.2 billion in adjusted EBITDA. He also oversaw Flutter operations in markets including Italy and Brazil and helped shape the current FanDuel sportsbook improvement plan.
“I’m delighted to take on the role of Group Chief Executive Officer at such an important time for Flutter,” Taylor said. “Our priority will be to keep delivering for our colleagues, customers and shareholders, while building on the momentum we’ve created across the business.”
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