Flutter Entertainment plc

What they do

Flutter offers sportsbook (sports betting), iGaming (online casino, poker, bingo), exchange betting, daily fantasy sports, and prediction markets across approximately 100 countries. Key brands include FanDuel in the U.S., Sky Betting & Gaming in the UK, Sportsbet in Australia, and PokerStars globally. The company generates revenue through player stakes, net gaming revenue, and fees from its products.

Revenue drivers

• U.S. Segment (FanDuel) — The largest growth driver, contributing $6,967 million in fiscal 2025 revenue (43% of total). Revenue comes from sportsbook, iGaming, daily fantasy sports, horse racing, and the newer FanDuel Predicts prediction market.
• International Segment — Generated $9,416 million in fiscal 2025 revenue (57% of total), covering UK & Ireland, Australia, Italy, and other markets. Includes brands like Sky Betting & Gaming, Sportsbet, Paddy Power, Betfair, PokerStars, Sisal, Snai, and Betnacional.
• Prediction Markets (FanDuel Predicts) — Launched in December 2025 with CME Group, expanded nationwide in Q1 2026. Management views this as a significant incremental growth opportunity, targeting entertainment-first customers and states without legal sports betting.

Recent performance

For Q2 2026 (three months ended June 30, 2026), Flutter reported revenue of $4,326 million, up 3% year-over-year, but a net loss of $296 million versus a $37 million profit in Q2 2025. Adjusted EBITDA was $508 million, down 45% from $919 million, with adjusted EBITDA margin falling from 21.9% to 11.7%. The U.S. segment revenue declined 6% due to adverse sports results and prediction market investment, while International revenue grew 10% helped by M&A. Average monthly players (AMPs) fell 11% overall, including a 17 percentage-point impact from the closure of India operations.

Strategy

Flutter's strategy is to 'Win in the U.S.' by extending FanDuel's sportsbook lead (39% GGR market share), cementing FanDuel Casino as the #1 iGaming brand, and scaling prediction markets. In the rest of world, the company aims to consolidate gold-medal positions in core markets, grow through organic investment and M&A (recent acquisitions: Snai in Italy, NSX/Betnacional in Brazil, full ownership of FanDuel), and enhance earnings through diversification and cost efficiencies. A new cost transformation program targets $500 million in gross savings by 2029 to offset inflation, tax increases, and fund growth investments.

Risks

• Economic downturn sensitivity — Unfavorable economic conditions could reduce disposable income and customer spending on betting and iGaming, while inflation has already increased labor and operating costs.
• Regulatory and legal changes — The company operates in numerous jurisdictions with evolving regulations; recent examples include UK gaming tax increases and India operations closure; further changes could constrain revenue or raise costs.
• Sports outcome variability — Sportsbook revenue is volatile due to the inherent uncertainty of sporting results; Q2 2026 U.S. revenue faced a 6 percentage-point negative impact from adverse sports outcomes year-over-year.
• Prediction market risks — Rapid growth of prediction markets may attract regulatory scrutiny, and cannibalization of existing sportsbook customers (though currently seen as limited) could affect returns on investment.

Outlook

Management expects long-term growth from U.S. state-level legalization of sports betting and iGaming, and from expanding prediction markets nationwide. The company plans proactive sportsbook investment in the second half of 2026 to extend FanDuel's leading position. Flutter's leverage ratio increased to 4.3x as of June 30, 2026 (from 3.7x at December 2025), reflecting M&A debt, but the cost transformation program is expected to improve margins over several years.