Peter Jackson, the CEO of Flutter Entertainment, announced on Wednesday that he will step down from his position at the end of September. His departure, following nine years in the role, leaves the company without two of its top executives as it heads into the 2026-27 NBA season. Just months earlier, former FanDuel CEO Amy Howe also exited the company. These leadership changes come at a time when Flutter, the leading online gambling operator, faces increasing competition from emerging prediction markets.
Flutter’s FanDuel Predicts has not kept pace with rivals that operate internal market-making exchanges. Predictions markets have seen significant growth, particularly during the recent North American World Cup, leading to an estimated $50 billion in trading volume for event contracts. Meanwhile, Kalshi, a key player in the prediction market landscape, commanded about 83% of the notional volume share by June, leaving FanDuel Predicts trailing behind.
As Jackson prepares to hand over the leadership reins to Dan Taylor on October 1, he leaves behind pressing challenges. Flutter recently lowered its US adjusted EBITDA guidance by 22%, attributing some of this uncertainty to prediction market revenues. While the second quarter earnings reflected $6 million in prediction market-related revenue, the company has projected a total of $50 million from this segment in the current fiscal year; however, they also expect to incur over $200 million in related expenses amidst a competitive surge in the prediction market space.
"I look forward to leading the business as we continue to innovate, grow and build on the strengths that make Flutter unique," Taylor stated following the announcement.
In addition to the leadership changes, Flutter disclosed plans to move all sports and novelty contracts from CME Group Inc. to Crypto.com. CME Holdings maintains a 51% stake in FanDuel Predicts, where clients will still be able to access CME financial derivatives. Interestingly, Flutter has been cautious about establishing its own market-making exchange, with Jackson suggesting that a thoughtful approach is essential given the complexities involved.
On a different note, hedge fund manager Michael Burry revealed in his Substack blog that he has significantly increased his stake in Flutter, purchasing shares at an average price of $90. Burry, known for his role in the financial crisis depicted in "The Big Short," criticized the market’s downturn among sports betting stocks, attributing the decline to the rapid rise of prediction markets, singling out Kalshi's impressive $39.7 billion in annual trading volume.
Analysts have expressed concern regarding Flutter’s future performance. Joe Stauff from Susquehanna International Group noted potential issues with customer retention and heightened competition in the upcoming football season. He indicated that FanDuel might be lagging approximately 9-12 months behind DraftKings in developing its prediction market service.
Despite these challenges, Flutter's international revenues showed a 10% yearly increase, particularly benefitting from a strong quarter in Italy. In markets such as the UK, Italy, and Brazil, where the Betfair Exchange operates alongside other sportsbooks, Flutter’s market share has remained relatively small. Stauff believes this strong international presence provides a chance for Flutter to improve its position.
In a research note dated August 5, Stauff mentioned that the replacement of Jackson indicates Flutter's awareness of FanDuel’s previous missteps. Acknowledging the company’s steady international performance, he affirmed Susquehanna maintains a positive outlook on Flutter, although he adjusted the price target from $121 to $115.
Meanwhile, analyst Chad Beynon from Macquarie lowered his estimate from $190 to $160, noting Flutter's success in building a diverse portfolio through its acquisition strategy that positions it well within the trends of online gambling and legalization.
As of Thursday evening, the top four American sportsbooks—FanDuel, DraftKings, BetMGM, and Caesars—announced their second-quarter earnings. DraftKings maintained its revenue guidance for the fiscal year 2026 at between $6.5 billion and $6.9 billion, citing a 5.7% growth in sports revenue to $1.99 billion for the quarter ending May 31. DraftKings also reported that its predictions segment has attracted over 600,000 customers since January 2026.
Despite DraftKings experiencing a year-to-date decrease of around 35%, Flutter’s decline has been steeper. The stock has plummeted more than 65% since it reached a record high of $308.60 on August 28, 2025, closing Thursday’s session with a market capitalization of just over $16 billion, down from a peak of roughly $53 billion.
