Peter Jackson, CEO of Flutter Entertainment, has announced his departure from the company effective late September, marking the end of his nine-year tenure. His exit comes as the online gambling giant prepares for the 2026-27 NBA season without two of its key leaders from the previous year's Opening Night. This announcement was made during Flutter's second-quarter earnings call, where Jackson indicated that sportsbooks are facing mounting pressure from the rapid growth of prediction markets. Jackson's departure is closely timed with the recent exit of former FanDuel CEO Amy Howe, illustrating a significant leadership shift for a company that was once at the forefront of sports betting.
Despite Flutter offering sports event contracts via FanDuel Predicts, it has fallen significantly behind competitors with their own market-making exchanges. The recent World Cup in North America was indicative of the soaring interest in prediction markets, which saw an estimated trading volume of $50 billion tied to event contracts. Notably, in June, Kalshi captured about 83% of the notional volume within this market, leaving FanDuel Predicts lagging behind.
With Dan Taylor set to succeed Jackson on October 1, he faces immediate challenges as Flutter recently revised its full-year US adjusted EBITDA guidance downward by 22% due to uncertainties surrounding prediction market revenues. The company reported $6 million in revenue from prediction markets during the second quarter and is projecting $50 million for the year. Nonetheless, Flutter anticipates spending upwards of $200 million in this highly competitive market.
Taylor expressed his eagerness to lead Flutter amidst these changing dynamics, stating, "I look forward to leading the business as we continue to innovate, grow and build on the strengths that make Flutter unique."
In conjunction with the leadership change, Flutter also announced that FanDuel Predicts will transition all of its sports and novelty contracts from CME Group Inc. to Crypto.com. Even after this shift, CME Group possesses a 51% stake in FanDuel Predicts, and customers will still have access to CME financial derivatives. Notably, Flutter seems reluctant to establish its own market-making exchange. Jackson pointed out the need for careful consideration in positioning Butter in this complex market, advocating for restraint as he prepares to exit.
In a separate development, hedge fund manager Michael Burry disclosed on his Substack blog that he has significantly increased his stake in Flutter, acquiring shares at an average price of $90 each. Burry, known for his role in the narrative of "The Big Short," characterized the purchase as a “fat pitch.” Amid this backdrop, Flutter shares took a hit, diving nearly 10% on the disappointing guidance, already reaching an intraday low of $89.71, the lowest price seen in five years. However, they bounced back to close at $94.46, a 1.6% increase on Thursday. Burry attributed the downward trend of sports betting stocks to the explosive activity in prediction markets, highlighting Kalshi’s impressive $39.7 billion in annualized trading volume.
Joe Stauff, senior research analyst at Susquehanna International Group, observed that Flutter's decline may reflect skepticism concerning customer retention, concerns over heightened competition for online sports betting this upcoming fall, and indications that FanDuel is lagging about 9 to 12 months behind DraftKings in the development of a prediction market offering.
Yet, Flutter's outlook isn’t entirely bleak. International revenue grew by 10% year-over-year, with strong performance noted in Italy. In markets where the Betfair Exchange operates alongside other sportsbooks—such as the UK, Italy, and Brazil—Flutter has maintained a relatively small market share, according to Jackson.
Stauff pointed out Flutter's international stability as a potential avenue for recovery, noting a 30% increase in average monthly users in June, a crucial performance metric in the sector. His August 5 note suggested Flutter's leadership change signifies recognition of FanDuel's prior oversights. He noted that tangible improvements in FanDuel operations, the swift leadership transition, and the strength of Flutter’s international portfolio support his firm’s favorable outlook, despite adjusting the price target down from $121 to $115 a share.
Macquarie analyst Chad Beynon likewise revised his target down from $190 to $160, based on altered financial projections and a lowered valuation multiple, asserting that Flutter's diverse portfolio of brands positions it as a key player to capitalize on global trends in online gambling and legalization.
As earnings season progresses, the leading sportsbooks in the US—FanDuel, DraftKings, BetMGM, and Caesars—shared their second-quarter results. DraftKings, which reported earnings on Thursday, reiterated its revenue guidance for fiscal year 2026 in the range of $6.5 billion to $6.9 billion. Notably, DraftKings defined its quarterly sports revenue as encompassing online and retail sportsbook revenues as well as prediction markets for the first time. The company reported $1.99 billion in sports revenue for the quarter ending May 31, representing a 5.7% increase from the same period last year. Since the beginning of 2026, more than 600,000 customers have participated in DraftKings’ predictions segment. CEO Jason Robins emphasized the rapid growth of their predictions segment, suggesting confidence in their strategy for success this coming NFL season.
At the close of Thursday's trading, DraftKings was priced around $22 a share, marking a 1.4% decrease in after-hours trading. While DraftKings has experienced a 35% decline in stock price year-to-date, Flutter’s situation remains more precarious with its stock plummeting more than 65% from its record-high closing price of $308.60 on August 28, 2025. The company’s market capitalization, previously hovering around $53 billion, dropped to just above $16 billion by the end of Thursday’s trading session.
