FanDuel owner to launch prediction market as competition heats up

By Jules Rimmer

After Kalshi's entry into sports betting last month, Flutter is responding by moving onto its competitor's patch

Flutter's CEO believes his company is well-positioned to fight off competition in sports betting while being able to expand into prediction markets.

A previous version misstated the name of the analyst commenting on the results.

The parent company of FanDuel late Wednesday announced a foray into prediction markets alongside a profit warning.

Flutter enjoyed a 17% increase in revenues and a 6% increase in adjusted earnings before interest, taxes, depreciation and amortization for the three months ending September, described by Chief Executive Peter Jackson as a "solid quarter ...with continued momentum in the U.S. and international businesses."

U.S. investors, who have seen Flutter's (FLUT) (UK:FLTR) New York-listed shares decline by 9% this year, will be intrigued to watch the company's proposal to launch prediction market betting in December, in those U.S. states without regulated sports betting.

They will no doubt recall that at the start of October both Flutter and its main U.S. competitor, DraftKings (DKNG) , suffered double-digit share price falls when prediction markets operator Kalshi launched its offering of sports parlays.

Competition in the sector is clearly heating up although Flutter believes the growth opportunities and potential market are big enough to accommodate emergent players.

Growth in various types of U.S. sports betting is robust

Now, though, Flutter is treading on the turf of Kalshi and Polymarket and Jackson is bullish about its prospects as he discussed the launch of what will be called FanDuel Predicts.

He says it "unlocks an immediate growth opportunity by allowing us to offer a compelling sports product to the vast majority of the U.S. adult population in states that do not currently have access to sports betting."

He added a range of "financial and cultural markets" also will be offered.

While guiding lower for the fourth quarter owing to a period of unfavorable sports results, and warning the U.K. chancellor of job cuts in the betting sector if she were to increase gambling taxes in her November budget, Jackson struck a markedly upbeat tone in the earnings call Wednesday.

He noted strong operational momentum especially in the crucial U.S. market. JPMorgan analyst, Estelle Weingrod, who has an overweight recommendation on the stock, pointed out that while consensus estimates might be shaved by 2% to 10%, he thinks the company is "well-set for the future, leveraging on scale and product innovation."

Sentiment on the stock among analysts is almost universally positive. Of the three dozen analysts contributing recommendations to FactSet, there is one solitary underweight call, while the mean target price is $325.29 for the U.S.-listed stock, almost 40% above present levels. In pre-market trading Thursday, Flutter shares were down 2.5% at $228.

-Jules Rimmer

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11-13-25 0533ET