Flutter Entertainment is intensifying its efforts in the prediction markets sector, even as it faces challenges with short-term earnings. The company is shifting its FanDuel Predicts sports and novelty contracts to the Crypto.com exchange, while simultaneously increasing investments in new products, market-making operations, and creating a unified platform ahead of the NFL season.
Despite reporting lower profitability for the second quarter and adjusting its EBITDA outlook downward, Flutter sees prediction markets as a promising long-term growth avenue that will complement traditional sports betting rather than replace it. This strategic move comes alongside the announcement of a leadership change, with CEO Peter Jackson set to leave his position at the end of September.
The integration with Crypto.com is a key component of Flutter's strategy to enhance its FanDuel Predicts offerings before the football season kicks off. Customers will still have access to CME's financial markets through this arrangement, which executives believe will facilitate quicker launches of new products and enhance the overall customer experience.
Additionally, the company is working on a comprehensive app that will merge its sports betting and prediction market platforms into one unified experience.
Executives have reassured investors that they view prediction markets as a long-term growth opportunity that can broaden the market without undermining traditional online sports betting. CEO Jackson emphasized that Flutter considers prediction markets to be “complementary” to regulated sportsbooks and noted that there has been minimal cannibalization among existing sportsbook customers.
FanDuel Predicts has also been made available to consumers in states like California and Texas, where sports betting has not yet been legalized. Jackson stated, “We continue to see prediction markets as incremental to sports betting and iGaming, expanding the overall market by attracting new demand.”
In addition to its partnership with Crypto.com, Flutter is exploring a second revenue stream from market-making services. The company is leveraging its extensive experience in sportsbook pricing and risk management to establish itself as a market maker in prediction markets, anticipating around $50 million in market-making revenue by 2026.
CFO Rob Coldrake expressed optimism about the increasing trading volumes, which have bolstered management's confidence in the potential of market-making as a significant long-term, high-margin business. He stated, “Our ambition here is to establish a leading position in this space by utilizing the pricing and risk management capabilities we've developed over the years with our sportsbook.”
The migration to Crypto.com and the broader development of prediction markets come at a time when Flutter is grappling with financial pressures due to heightened investments and what executives describe as a “more challenging” operating environment. Overall corporate revenue increased by 3% year-over-year, yet adjusted EBITDA plummeted by 45% as the company dealt with increased UK gaming taxes while investing more in prediction markets and World Cup marketing.
Flutter reported a net loss of $296 million, contrasting sharply with a net income of $37 million from the previous year. The company also lowered its adjusted EBITDA guidance by $210 million, marking a reduction of over 7%.
Flutter's US operations, which have been its primary growth driver in recent years, experienced a 6% revenue decline from Q2 2025, with “customer-friendly sports outcomes” impacting sportsbook hold despite robust engagement during the NBA Finals and World Cup. Year-over-year adjusted EBITDA in the US fell by approximately 44%.
Jackson noted that Flutter has historically created shareholder value by investing during periods of short-term earnings pressure, citing previous investments in FanDuel as an example of a strategy that ultimately yielded positive results. He concluded, “We recognize that this weighs on near-term earnings, but we’re convinced it’s the right thing to do to maximize long-term shareholder value.”