In the recent earnings call, FanDuel Predicts received significant attention alongside the departure of outgoing CEO Peter Jackson and ongoing challenges in sports betting. CFO Rob Coldrake admitted that the launch of FanDuel's prediction markets product has not progressed as quickly as anticipated. He indicated that Flutter, which will be under new CEO Dan Taylor's leadership, will evaluate the status of the Predicts product by year-end to decide on further investments leading into 2027.
Despite the slow rollout, Flutter executives sounded optimistic during a recent fireside chat. They mentioned expectations of generating around $50 million in revenue from their market-making activities by year’s end and confirmed a shift of all sports and novelty event contracts to Crypto.com, parting ways with joint-venture partner CME Group.
"The product rollout has been slightly slower than we would have liked, and we’ve encountered some challenges along the way," said Coldrake. He expressed confidence that the transition to Crypto.com would enhance their competitive positioning moving forward. The CFO noted that they have recently seen a significant uptick in transaction volumes.
Flutter has reportedly experienced rapid profitability in its market-making efforts. Coldrake stated, "We think this is where the majority of the economics will sit within the prediction market ecosystem moving forward. We’re focused on capturing as much of that share as possible."
Evaluating FanDuel Predicts' share in the prediction markets is complex. Data from Eilers & Krejcik Gaming (EKG) indicated that Kalshi leads the market, while Bloomberg reported that FanDuel Predicts was trailing behind Kalshi, Polymarket, and PrizePicks in app downloads as of April.
An EKG representative informed SBC Americas that FanDuel currently holds a low single-digit share of the prediction market activity but anticipates a significant increase in market share for FanDuel and other platforms in the latter half of the year.
When asked about Flutter's market share targets, Jackson responded, "Large, more than we have now." Coldrake added that Flutter believes its expertise in parlay betting and core sportsbook operations could enable them to capture a significant share of the prediction market.
The Flutter leadership outlined that while prediction markets represent an opportunity for growth, they see it as incremental. They plan to make the most of the current landscape while awaiting potential changes from the Supreme Court regarding sports event contracts.
"We’re focused on two things—acquiring customers in unregulated states and monetizing market-making effectively," noted Jackson. He explained that in states where regulated online sports betting (OSB) is absent, prediction markets face little competition other than illegal bookmaking, while regulated states favor traditional sportsbook offerings.
In terms of investment, Jackson is optimistic that enhancing FanDuel will yield returns for the parent company, despite challenges including disappointing performance, a declining stock price, and an upcoming leadership change. Flutter indicated it would dedicate around $270 million in additional EBITDA to its U.S. operations in the coming months, aiming to enhance rewards and promotions while fostering cross-sell opportunities across its platforms.
"It was a straightforward decision for us to make," Jackson explained, emphasizing the company’s commitment to maintaining its leadership position in online sports betting. "We want to ensure that by the end of 2026, we have a larger business with a stronger future trajectory."
Flutter reported its earnings on August 5, the same day Jackson announced his impending departure as CEO on September 30, having led the company for nearly nine years. The company’s U.S. revenue dropped by 6% to $1.68 billion, with adjusted segment EBITDA plunging 70% to $119 million. FanDuel's U.S. sportsbook revenue also fell by 15% to $1.04 billion. Overall, Flutter recorded a net loss of $296 million globally, compared to a profit of $37 million in Q2 2025.
Following the earnings announcement, Flutter’s stock price hit a low of $92.9 but has since recovered to $99.7, down 52% since January 1, 2026, and 67% from a high of $308 on August 28, 2022.
Jackson noted that Flutter faced difficulties in late 2022 due to "market-wide slowdowns" relating to poor NFL operator results, which contributed to a loss of market share in Q4.
According to Flutter’s earnings release, FanDuel claims the position of the leading online sportsbook and casino in the U.S. with 39% and 27% market share in gross gaming revenue, respectively. Data from EKG estimated its sports betting share at about 35% as of April.
Coldrake mentioned that various improvements, including a sportsbook enhancement plan, a new unified loyalty program, customer re-engagement strategies, and effective cross-selling during the FIFA World Cup, have put the company back on a path to recovery.
"This is about focusing on the long-term U.S. opportunity, which we believe is substantial," Coldrake said in reference to the investment into FanDuel. He expressed optimism that Flutter could achieve a boost of approximately $200 million in EBITDA by year-end.
In relation to FanDuel Casino, which saw a revenue increase of 14% in Q2, Coldrake confirmed that it has solidified its status as the top entity in U.S. iGaming. The executives anticipate that at least one additional state might legalize online casinos next year, citing Virginia as a potential candidate.
