Flutter Entertainment has announced its FanDuel Predicts product will go live with sports event contracts in states without legalised sports betting in December, as Q3 revenue shot up 17%.

FanDuel Predicts, the JV powered by Flutter’s partnership with derivatives marketplace CME Group, will launch next month, with bosses noting a $45m investment cost on the P&L in Q4.

These costs could rise to $200m to $300m in 2026, with the majority arising in H2, the New York-listed firm added.

The product will only have sports event contracts in non-regulated sports betting states, such as California and Texas. FanDuel Predicts will also not be available on tribal lands.

Management said the launch would allow it to access a “significant incremental addressable market” and lay the foundations for a customer ecosystem should states regulate sports betting.

Financial and cultural markets will also be made available and offered across “virtually all states”.

Peter Jackson, Flutter CEO, said: “We believe prediction markets present a very significant incremental growth opportunity for FanDuel, and that their evolution will also accelerate the path to state-regulated sports betting and igaming.”

The comments echoed those of DraftKings CEO, Jason Robins who, when discussing the launch of DraftKings Predictions last week, said the growth of sports events contracts nationally may “motivate more states to legalise online sports betting and igaming”.

Both Flutter and DraftKings have relinquished their licences in Nevada in pursuit of prediction markets.

On the financial front, Flutter noted group revenue jumped 17% from $3.2bn to $3.8bn, with the acquisitions of Snaitech and Betnacional playing a key role.

The company noted that “excellent organic igaming growth” was able to offset customer-friendly sports results during the quarter as well.

Adjusted EBITDA was up 6% from $450m to $478m, although net losses widened from $114m to $789m.

This was due to the $205m payment made to Boyd Gaming to acquire the remaining 5% of FanDuel and a non-cash impairment charge of $556m related to India, where its Junglee Games brand was impacted by the decision to ban real-money gaming.

Flutter added it faces a $70m hit to revenue and a $30m hit to EBITDA due to India, with revenue loss rising to $250m in 2026 and $310m in 2027.

The US

Looking at the US, revenue increased 9% to $1.4bn, driven by a 44% leap in igaming revenue to $530m.

The operator has a GGR market share of 27%, while igaming average monthly players rose 30%.

There was a 5% decline in sports betting revenue to $783m as sports betting margin declined by 80 basis points.

Adverse sports betting results had a $45m hit to revenue during the quarter, the company noted, along with increased competitor intensity around promotions.

However, Q4 sports results are due to have a $205m revenue impact and a $150m adjusted EBITDA impact.

Flutter stated that it remains the number one US sports betting operator with a 38% GGR share and a 41% NGR share.

Average monthly players across sports and igaming were up 8% to 3.5 million, with pre-2022 states growing by 11%.

The US arm reported adjusted EBITDA of $51m, down from $58m last year.

International outlook

On the international side of the business, revenue was up 21% to $2.4bn, mainly driven by the acquisition of Snaitech in Italy and Betnacional in Brazil.

International revenue excluding those M&A deals was up just 3%.

Sports betting revenue rose 11% to $982m, but was down 6% excluding Snaitech and Betnacional.

Online casino revenue rose 31% when including the two assets, up to $1.4bn, and was up 10% without them.

Adjusted EBITDA for the division rose 10% to $505m.

The UK and Ireland continued to lead the division, although revenue was up just 1% to $853m, including a 7% downturn in sports betting revenue.

This was due to comparisons to Euro 2024, although igaming growth of 7% helped offset the issue, management added.

Southern Europe and Africa revenue was up 101% to $743m, powered by Snaitech in Italy. Turkey was also cited as a key growth market, up 65%.

Brazil experienced a 412% surge in revenue thanks to the addition of Betnacional to $87m.

APAC revenue was down 12%, impacted by India and continued headwinds in Australia.

Central and Eastern Europe (+14%) and other regions (+4%), were the other two segments in the international division.

Guidance reduced

Flutter said its full-year 2025 revenue and adjusted EBITDA guidance would be cut by $570m and $380m, respectively.

That gives the operator new midpoint guidance of $16.7bn for revenue and $2.9bn for adjusted EBITDA.

The downgrade was due to multiple factors, including customer-friendly sports betting results, planned investment into the sportsbook and FanDuel Predicts, as well as reductions in India.

Jackson concluded: “As I think about the remainder of the year, I am excited to expand our portfolio in the US to include FanDuel Predicts, harnessing the significant opportunity for FanDuel in this space.

“I am also confident that our US market leadership, and the diversification of our International business will position us well for the rest of the year and into 2026.

“We have a strong platform for executing our capital allocation strategy, with a continued focus on creating long-term shareholder value.”

Flutter’s share price dipped by 0.29% after the announcement, closing at $231.19.

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