Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioFlutter released its Q3 earnings on Wednesday, while announcing the launch of FanDuel Predicts amid a decline in revenue from US sports betting.
The company reported total revenue growth of 17% from the same quarter last year, reaching $3.79 billion. This was primarily driven by iGaming, which increased 10% across the company. FanDuel showed a 44% increase in revenue generated from the segment.
However, sports betting revenue dropped by 6%. The company cited customer-friendly results and the impact of the strong European Football Championships last year as reasons for the decline.
CEO Peter Jackson commented, “Flutter delivered a solid third quarter, with continued momentum in both our US and International businesses.
“We are the clear number one operator in the US, and we will continue to build on that position to drive future profitability. Our strategic investments, including the launch of FanDuel Predicts and recent International acquisitions, position us exceptionally well to capture new opportunities and deliver sustainable, profitable growth.”
Prediction Markets Can Profit Regardless of Sports Outcomes
The dependence on sporting results for profit from sports betting can be offset by the launch of FanDuel Predicts next month. The launch follows FanDuel’s partnership with CME, a futures commission merchant licensed by the Commodity Futures Trading Commission (CFTC).
Initially, the company stated that it would not offer sports markets, but this stance changed recently. And while announcing the Q3 results, Flutter announced the imminent launch of sports prediction markets.
The new venture will offer users in states that have not yet legalized sports betting, such as Texas, California, and Florida, the chance to trade on major sporting events, including the NFL, MLB, NHL, and NBA.
FanDuel CEO Amy Howe stated, “We can’t wait to bring FanDuel’s proven approach to product innovation into this dynamic sector. Our partnership with CME Group allows us to leverage their deep market expertise built over decades while delivering the seamless, accessible and trusted experience our customers expect.”
It also offers a revenue stream that is not dependent on sporting results, with the platform taking a commission percentage of trades made by users on the app.
FanDuel Withdraws Nevada License
It will, however, harm the business as well and has already forced the company to withdraw its sports betting license from Nevada. With several other states challenging the legal status of sports prediction markets, FanDuel may be forced to take similar measures elsewhere.
The company stated that it will not make the app available on tribal lands or in states that already have legalized sports betting. That may not be enough for some states, with Arizona, Michigan, Ohio, and Illinois all warning that dabbling in prediction markets will put betting licenses at risk.
Investors, however, have been bullish about the potential of prediction markets. Kalshi and Polymarket have seen their stock prices soar amid the explosion of sports event contracts this year, which essentially offer legal sports betting across all 50 states.
Flutter’s stock, meanwhile, dropped from 22,910 GBX ($301) in August to 16,385 GBX ($221) at the start of this month. The decline is attributed to the potential loss of market share to prediction market platforms, as well as looming tax increases in the UK. The price recovered slightly last week and is now at 17,935 GBX.
The company does not expect FanDuel Predicts to generate immediate profit and stated that the launch of the new segment could reduce core profit by up to $50 million in Q4 and $300 million in 2026.
Losses Increase as India Passes Ban on Real-Money Gaming
Flutter’s international segment generated 22% more revenue last year, with the acquisitions of Snai in Italy and Betnacional in the newly regulated Brazilian market contributing.
However, the company was hit by regulatory changes in India. The country passed a bill prohibiting real-money gaming, which led to Flutter ceasing operations of its venture, Junglee.
The company paid $237 million to acquire a 95% stake in Junglee. In this quarter’s earnings, Flutter recognized a $556 million non-cash impairment charge to write down the carrying value of Junglee and associated intangible assets.
The impairment resulted in a net loss of $789 million for the quarter, representing an increase of $675 million from the $114 million loss reported last year. Revenue generated in the Asia Pacific region also fell 12%, from $413 million to $363 million, due to the new regulations.
Jackson ended a letter to shareholders by stating that he is “confident that our US market leadership, and the diversification of our International business will position us well for the rest of the year and into 2026. We have a strong platform for executing our capital allocation strategy, with a continued focus on creating long-term shareholder value.”
.
