Flutter Entertainment's brand FanDuel announced that it will launch a prediction market service in states where sports betting has not yet been legalized in the US, following a similar move by competitor DraftKings. CEO Peter Jackson noted that this strategy aims to tap into new user groups while addressing regulatory adjustments in places like Nevada. Although revenue slightly declined in the third quarter, FanDuel maintains a leading market share in the US, with the prediction market seen as key to future growth.
Market Expansion Plans and Regulatory Background
Recently, FanDuel announced plans to offer sports event contract trading in 11 states where sports betting is not yet legalized, starting next month. These states cover a large population in the US. Nevada's regulatory body has agreed to let the company give up its gambling license due to its foray into the prediction market. Jackson emphasized that FanDuel must balance its interests with regulatory requirements and hinted that California and Texas will be key markets.
Financial Performance and Market Share
As of September 30, Flutter's revenue was $3.79 billion, a 5% decrease year-over-year, missing analyst expectations mainly due to favorable gambling outcomes for users at the start of the NFL season. However, adjusted earnings per share of $1.64 far exceeded expectations. FanDuel holds a 38% share in the US sports betting market, with its net revenue share slightly rising to 41%. The company predicts that by 2030, the US gambling industry will reach $63 billion.
Investment Layout and Risk Factors
With the launch of the prediction market, Flutter expects EBITDA costs of $40 million to $50 million in the fourth quarter and plans to invest $200 million to $300 million by 2026. Increased overseas expenditures, including repurchasing FanDuel shares and investments in Brazil and Italy, led to a 43% decline in free cash flow. Regulatory changes in India forced its subsidiary Junglee to shut down its real-money gaming business, posing additional challenges.
Future Outlook and Market Reaction
FanDuel Predicts will initially not offer parlay betting, with pre-packaged products expected to launch in early 2026. Flutter has lowered its EBITDA forecast for 2025 to $2.8 billion to $3.1 billion, with revenue expectations reduced to $16.4 billion to $17.3 billion. The stock price fell 3.4% in pre-market trading, with analysts believing that the prediction market could become a profit driver by 2027, but current market focus is on regulatory and execution risks.
————
This article is from "PASA-Global iGaming Leader" gambling news channel:https://t.me/pasa_news
Original gambling depth channel:https://t.me/gamblingdeep
Free data report: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
