Flutter’s 2025 revenue falls short as prediction markets reshape US sports betting landscape

Flutter Entertainment reports full-year 2025 revenue of $16.4 billion, missing forecasts and raising concerns over the impact of prediction markets and regulatory shifts on the future of US sports betting growth.

Flutter Entertainment, the owner of FanDuel, reported full-year 2025 revenue of $16.4 billion, a 17% increase from the prior year, yet the figure fell short of the company’s most recent guidance and analyst expectations, stoking investor concern about headwinds to U.S. sportsbook growth. According to Yogonet, the New York-listed group missed its $16.7 billion forecast and earlier guidance of $17.3 billion. [2],[1]

The company has set 2026 revenue guidance at $18.4 billion, below analysts’ consensus of $19.3 billion, signalling tempered near-term ambitions for the group’s fastest-growing market. GlobeNewswire’s release of Flutter’s full-year results reiterated the lower outlook and the company’s belief that emerging products will reshape the regulatory and competitive landscape in the United States. [2],[7]

Market attention has focused on the rapid ascent of prediction markets such as Kalshi and Polymarket, platforms that let users trade binary event contracts and that some investors see as diverting activity from traditional sportsbooks. Yogonet and GlobeNewswire noted that Flutter itself has described the effect on sportsbook growth as being in the “low single-digit percentage points”, while also arguing that wider adoption of prediction markets could hasten state regulation of online betting. [1],[7]

Peter Jackson, Flutter’s chief executive, sought to play down the competitive threat, saying the company was “never complacent” and outlining plans to boost customer retention via a new FanDuel sportsbook loyalty programme and more personalised offers, which he said would “distinguish our product from prediction markets, where it’s very difficult to offer [promotions]”. Jackson added that Flutter’s own standalone predictions product, launched in December, represented an “incremental opportunity” to reach customers in states where sports betting is prohibited and described prediction markets overall as “a win-win”. Yogonet and company filings carry those remarks. [1],[2]

The build-out of prediction products has come at a measurable cost. Reporting in late 2025, Flutter cut its profit forecast and disclosed significant investment tied to the launch of FanDuel Predicts with partner exchanges, saying the push would reduce group core profit by tens of millions in the fourth quarter and by a further $200–$300 million in 2026. Industry coverage and company statements have set out that the expenditure is intended to establish a national footprint for event contracts across sports, politics and financial markets. [4],[5]

Investors have already punished sector incumbents amid these shifts, with shares of both Flutter and rival DraftKings having lost more than half their market value over the past year. DraftKings’ own 2026 revenue guidance, below analyst forecasts, underscores the wider pressure on U.S. sports-betting operators as they contend with unusual sporting outcomes, higher payouts and the emergence of alternative trading-style markets. Earlier data cited by Forbes showed FanDuel retains substantial market share in U.S. sports betting and iGaming, but the company now faces a more complex competitive and regulatory trajectory. [1],[3],[4]

Source Reference Map Inspired by headline at: [1]

Sources by paragraph: - Paragraph 1: [2], [1] - Paragraph 2: [2], [7] - Paragraph 3: [1], [7] - Paragraph 4: [1], [2] - Paragraph 5: [4], [5] - Paragraph 6: [1], [3], [4]

Source: Noah Wire Services