Everybody Loses is the title of Danny Funt‘s book about the rise of legal gambling in the US. He told CasinoBeats in an interview earlier this year that he chose the title when he realized how many operators are struggling to turn a profit.
And the industry results this week demonstrated just that. DraftKings, Flutter, and PENN Entertainment all reported losses from online gambling.
Flutter reported a loss of almost $300 million, DraftKings lost $25.7 million, and PENN’s interactive segment was down $9.5 million.
Flutter Replaces CEO as US Growth Stalls
With the company suffering its biggest losses in years, Flutter has moved to replace CEO Peter Jackson. Jackson follows FanDuel CEO Amy Howe, who left her role after a disappointing Q1.
“It’s no secret that FanDuel has underperformed, but looking forward, we’ve got to get the right team in place to support the business,” Jackson said in May. The right team will not include the 50-year-old Brit, who will be replaced by Dan Taylor, chief executive of Flutter’s international division, on October 1.
“Our priority will be to keep delivering for our colleagues, customers, and shareholders, while building on the momentum we’ve created across the business,” said Taylor in a press release. “The opportunities ahead are significant – both those we see in the market today and those we will create ourselves in the future.”
FanDuel’s momentum continues to go in the wrong direction since Howe was replaced by Christian Genetski. Flutter’s US adjusted EBITDA fell from $400 million to $119 million this quarter.
Higher UK taxes and heavy World Cup marketing spending also affected the company’s figures, as did costs related to the acquisitions of the global brands Snai in Italy and Betnacional in Brazil.
Despite the losses, the overall adjusted EBITDA of $508 million beat analyst predictions of $484.5 million by about 5%. Nevertheless, the company’s stock price fell by around 11% as shareholders appeared concerned about the swing from a $37 million profit in Q2 last year to large losses this quarter.
Following the results, the company cut its 2026 revenue target from $18.3 billion to $17.91 billion. The cut was entirely focused on the US side of the business, with international targets remaining unchanged.
DraftKings Also Suffers Losses
FanDuel’s main rival in the US market, DraftKings, also suffered losses this quarter. The company reported revenue of $1.44 billion, a decrease of $69 million, or 5%, from $ 1.51 billion in the same period in 2025.
This led to a net loss of $25.7 million, down from a profit of $63.8 million in Q2 last year. The company blamed customer-friendly sports results and new customer promotions for the decline.
Unlike Flutter, it maintained its guidance of $6.5 billion to $6.9 billion and adjusted EBITDA of $700 million to $900 million. CEO Jason Robins will also remain at the helm and was upbeat about the company’s future despite the disappointing results.
“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users, and engagement,” said Robins in a press release.
Betting on Prediction Markets
Robins reiterated the company’s focus on prediction markets with its Super App now live nationwide. The company recently integrated Predictions into the app and is aiming for a major push in the vertical ahead of the new football season.
“The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position, and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond,” Robins said.
The company is already facing a lawsuit alleging that its prediction product is a sports betting product and violates California gambling laws.
Flutter also emphasized its focus on prediction markets going forward, although unlike DraftKings, which has launched its own independent product, the company is offering the markets through partnerships with Crypto.com and OG.
FanDuel Predicts launched custom combos for the World Cup, and the company said it is targeting a significant share of combo liquidity provision for the new NFL season.
Combos, or parlays, are increasingly becoming one of the main drivers of volume for prediction markets. At Kalshi, parlays accounted for $13.5 billion of volume in the last 30 days, just behind individual sports markets at $16.5 billion.
PENN Stock Up but Still Losing Money Online
Like DraftKings and FanDuel, Penn also reported a loss from its online gambling division. It has suffered large losses in its interactive segment for years, with failed ventures, including Barstool Sports and, more recently, ESPN Bet.
The main focus is now on theScore Bet, which will lead the company’s efforts in both the US and Canada. The platform launched in Alberta this quarter, as did FanDuel and DraftKings.
The interactive segment recorded an adjusted EBITDA loss of $9.5 million, an improvement over the $62 million loss in Q2 2025. Overall, the company reported a profit of $32.6 million, reversing a loss of $18.3 million in the second quarter last year.
“Our Interactive segment remains on track to deliver upon our previously stated goals, supported by growth in U.S. iCasino and Canada,” said CEO Jay Snowden in a press release. “Adjusted EBITDA improved by $52.5 million year-over-year, reflecting disciplined execution of our strategy to drive profitability. The encouraging trends in our Retail and Interactive operating segments have continued through July.”
With results more positive than DraftKings and FanDuel, Penn’s share price rose from $16 earlier in the week to over $20. It is up over 35% for the year as the company recovers from the disappointments of failed online gambling investments. Unlike FanDuel and DraftKings, the casino operator has no plans to launch into prediction markets.
