Share 
FanDuel expects football season to help stabilize results after a volatile stretch for parent company Flutter Entertainment, which said it will spend more in the next three months to regain and retain customers as competition intensifies.
Speaking on Flutter’s quarterly earnings call, outgoing CEO Peter Jackson said FanDuel’s underlying metrics remain strong and that the operator is still the U.S. market leader. He acknowledged that the added spending will weigh on near-term earnings, but said Flutter sees it as a long-term investment in its U.S. sports betting and iGaming position.
Flutter says football should help, but competition is rising
Jackson said FanDuel is facing pressure from both rival sportsbooks and prediction market exchanges. Even so, he said the company expects earnings to rebound in the coming months as football returns.
Flutter’s share price had climbed to $307 ahead of last football season before later falling to just under $90, according to the company’s remarks. Jackson, on his final quarterly call before his planned Sept. 30 departure, compared the current strategy to earlier periods in 2019 and 2020 when FanDuel invested aggressively.
The company also pointed to recent engagement data. Jackson said FanDuel saw a 40% year-over-year handle increase during the NBA Finals. He also said the operator engaged 2.3 million bettors during the World Cup, including roughly one-third who had previously gone dormant.
Prediction markets remain a small factor for now
FanDuel said expansion in prediction markets has had only a "low single digits" impact on its business so far. The company also said adoption of FanDuel Predicts has fallen short of expectations.
Flutter executives said they expect a better response once FanDuel launches a One App that combines predictions with its sportsbook and casino products. Rob Coldrake said that rollout should be the main catalyst for higher prediction-market volume.
FanDuel has also shifted its sports predictions plans from its earlier CME Group venture to Crypto.com. Coldrake said the new arrangement should improve the product experience, while offering a deeper menu of sports contracts and more liquidity than the earlier setup.
Jackson said Flutter has moved away from the idea of buying or launching its own exchange. He cited the fast-changing regulatory backdrop, including recent CFTC discussion of rules that could limit cases where exchange owners also act as market makers. FanDuel has previously said it expects about $50 million in market-maker revenue this year.
What players should watch
For bettors, the key developments are whether FanDuel’s heavier football-season spending translates into a stronger product and when the planned One App actually launches. The source did not provide a launch date. The other item to watch is the CFTC’s rulemaking process, which could affect how prediction-market platforms and related market-making operate in the U.S.
—
Source: As reported by Bill King.
