Peter Jackson, the CEO of Flutter, announced he will step down by late September, marking a significant transition for the world's largest online gambling company ahead of the 2026-27 NBA season. Jackson's departure follows closely after the exit of former FanDuel CEO Amy Howe, both of which were unexpected developments just a year ago when FanDuel had a commanding lead in the competitive sports betting market.
During the second-quarter earnings call on Wednesday, Jackson revealed he would leave his post after nearly a decade, as sportsbooks increasingly contend with the rapid growth of prediction markets. Flutter, despite its presence in the sports betting arena through FanDuel Predicts, has struggled to keep pace with competitors like Kalshi, which commands 83% of the market in terms of trading volume for event contracts.
With Jackson's exit and Dan Taylor set to take over as CEO on October 1st, Flutter faces immediate challenges, especially after slashing its full-year US adjusted EBITDA guidance by 22%. Flutter reported $6 million in prediction market-related revenue in Q2 and is projecting $50 million from this segment for the year. However, the company foresees more than $200 million in expenses related to prediction markets amidst heightened competition.
"I look forward to leading the business as we continue to innovate, grow, and build on the strengths that make Flutter unique," Taylor stated.
In addition to the leadership change, Flutter announced a significant shift, moving all sports and novelty contracts from CME Group Inc. to Crypto.com, although CME Group retains a 51% stake in FanDuel Predicts. Flutter's reluctance to develop an internal market-making exchange has been noted, with Jackson advising a cautious approach due to the complexities involved.
On the investor front, hedge fund manager Michael Burry disclosed on his Substack that he has increased his stake in Flutter, buying shares at an average of $90 each. He attributed the drop in share price to a reaction to the rise of prediction markets, which Burry believes is reshaping the gambling landscape.
"We know why this is happening, and why the stocks are falling. Prediction markets have taken the gambling world by storm," Burry wrote, referencing Kalshi’s substantial trading volume.
Joe Stauff, a senior research analyst at Susquehanna International Group, outlined several factors contributing to Flutter’s recent decline: concerns over customer retention, a burgeoning competitive environment this fall, and a belief that FanDuel lags behind DraftKings by approximately 9-12 months in establishing its prediction market offerings.
Despite these setbacks, Flutter's international revenues grew by 10% year-over-year, particularly benefiting from strong performance in Italy. In various regions where the Betfair Exchange operates alongside other sportsbooks, Flutter's exchange market share remains relatively low, suggesting potential for growth.
Stauff remains optimistic about Flutter's prospects, citing the company's international reach and noting a 30% increase in average monthly players in June as positive indicators. He interpreted the leadership change as recognition of FanDuel's previous mistakes and emphasized the importance of immediate action and a strong international portfolio in turning things around.
Analysts, including Macquarie’s Chad Beynon, have adjusted their price targets for Flutter, reflecting revised estimates and shifting valuations. Beynon pointed out that Flutter has built a diverse collection of leading brands through a successful M&A strategy, positioning the company well to capitalize on global trends in online gambling.
Meanwhile, DraftKings maintained its revenue guidance for the fiscal year 2026 and reported sports revenue of $1.99 billion for the period ending May 31, a 5.7% increase compared to the previous year. CEO Jason Robins expressed confidence in their prediction market segment, which has engaged over 600,000 customers since the beginning of 2026.
DraftKings’ stock was trading at around $22 per share, down 1.4% in after-hours trading. In contrast, Flutter has seen a dramatic decline of over 65% from its record closing price of $308.60 in August 2025, with its market capitalization diminishing to just above $16 billion by the close of trading on Thursday.
