Peter Jackson, the CEO of Flutter, has announced that he will step down from his position at the world's largest online gambling company by the end of September 2023. His exit comes just ahead of the 2026-27 NBA season and follows closely after another significant departure within the company, that of former FanDuel CEO Amy Howe. These leadership changes, which seemed unlikely a year ago when FanDuel was leading the charge for sports bettors, highlight the evolving challenges in the sports betting industry.
During a second-quarter earnings call, Jackson revealed his decision to leave after nine years at the helm. His announcement arrives amid increasing pressure on sportsbooks due to the rapid rise of prediction markets. Flutter has been comparatively slow to adapt, despite offering event contracts through FanDuel Predicts. Currently, it lags behind firms that operate internal market-making exchanges. Notably, US prediction markets, buoyed by the recent World Cup, experienced around $50 billion in trading volume, with Kalshi capturing roughly 83% of the market share.
As Jackson departs, Dan Taylor will take over as CEO on October 1, inheriting immediate challenges. Flutter has lowered its full-year US adjusted EBITDA guidance by 22% due to uncertainties surrounding prediction market revenues. The company recorded $6 million in revenue related to prediction markets in the second quarter and projects $50 million in total for the year. Nonetheless, it anticipates incurring over $200 million in expenses related to this category as competition intensifies.
In a statement, Taylor expressed optimism about leading Flutter forward, emphasizing innovation and growth.
In another noteworthy development, Flutter is shifting all its sports and novelty contracts from CME Group Inc. to Crypto.com. Despite this transition, CME Group still maintains a 51% ownership stake in FanDuel Predicts, allowing customers to access CME financial derivatives.
Interestingly, Flutter has not moved forward with launching its own market-making exchange. Jackson suggested that careful consideration is needed regarding the complexities involved.
On the investment front, Michael Burry, known for his role in the book and film "The Big Short," announced that he more than doubled his stake in Flutter. He acquired shares at an average cost of $90 each and referred to the purchase as a "fat pitch."
After a disappointing earnings guidance led to a slump of about 10%, Flutter's stock dropped to an intraday low of $89.71, representing a five-year low. The stock managed to bounce back slightly, closing at $94.46, an increase of 1.6%. Burry attributed the decline in sports betting stocks to the growing activity in prediction markets, highlighting Kalshi's impressive annualized trading volume.
Susquehanna International Group's senior research analyst, Joe Stauff, noted that the decline in shares indicates concerns regarding customer retention, heightened competition as the football season approaches, and that FanDuel is lagging behind DraftKings in developing a prediction market offering.
Despite these challenges, Flutter's international revenue saw a 10% year-over-year growth, particularly with a strong quarter in Italy. Jackson mentioned that in various markets such as the UK, Italy, and Brazil where the Betfair Exchange competes with other sportsbooks, Flutter’s exchange maintains a relatively small market share.
Stauff pointed out that Flutter's strong international presence could help the company make necessary adjustments. Flutter reported a 30% growth in average monthly players in June, which is a key industry metric.
In an August 5 report, Stauff remarked that the leadership change shows Flutter's acknowledgment of its missteps with FanDuel. He listed tangible progress in FanDuel’s recovery, the replacement of Jackson, and a solid international portfolio as reasons for maintaining a positive outlook on Flutter, although he adjusted the price target from $121 to $115.
Macquarie analyst Chad Beynon also revised his target for Flutter from $190 to $160, citing updated estimates and a lowered valuation multiple. He commented on Flutter’s diversified brand portfolio and its capacity to capitalize on global trends in online gambling and legislation.
As for market competition, by Thursday evening, the major US sportsbooks—FanDuel, DraftKings, BetMGM, and Caesars—had all released their second-quarter earnings. DraftKings maintained its fiscal year 2026 revenue guidance between $6.5 billion and $6.9 billion. The company reported a sports revenue of $1.99 billion for the three-month period ending May 31, marking a 5.7% increase from the previous year. Over 600,000 customers had engaged with DraftKings' prediction segment since the start of 2026, according to CEO Jason Robins, who expressed confidence in their strategy for forthcoming NFL seasons.
DraftKings shares closed at around $22, down 1.4% in after-hours trading, and have fallen by about 35% year-to-date. In contrast, Flutter's shares have plummeted over 65% since their peak closing price of $308.60 on August 28, 2025. Flutter’s market capitalization has dropped significantly from approximately $53 billion to just over $16 billion by the end of Thursday's trading session.
