Flutter names new CEO as it cuts guidance and ramps up US spending amid prediction-market pressure

Flutter said chief executive Peter Jackson will step down in October and be replaced by Dan Taylor, head of the company’s international business, as the gambling group lowers full-year guidance and increases US spending on bonuses, promotions and loyalty programs.

The company said the added investment is meant to help it compete with prediction markets, but it will weigh on “near-term profitability.” Flutter cut the midpoint of its full-year revenue guidance by $395 million to $17.9 billion and lowered the midpoint of EBITDA guidance by $210 million to $2.66 billion. Shares fell more than 7% in early New York trading, according to the Financial Times.

Guidance cut comes despite quarterly revenue beat

For the three months to June, Flutter reported revenue of $4.33 billion, up from $4.19 billion a year earlier and above analyst expectations. But average monthly players fell 11% to 14.3 million.

Flutter also said early third-quarter trading was ahead of expectations, helped by strong engagement during the knockout stages of the World Cup. Players wagered more than $3 billion during the tournament.

FanDuel Predicts and market-making remain part of the US plan

Flutter said FanDuel holds 39% of the US sports betting market. It also said progress growing FanDuel Predicts has been “slower than planned.”

According to the report, Flutter began offering prediction wagers through a partnership with CME Group in December. The company also said it is moving sports wagers to Crypto.com to offer a prediction-market version of accumulators, or parlays.

Flutter expects $50 million in revenue from market making in 2026 and said it has “world-class pricing and risk management capabilities.”

For players and industry watchers, the key near-term takeaway is that Flutter is still spending to defend and expand its US position, even at the cost of lower profitability guidance. The next major milestone is October, when Taylor is due to take over as chief executive. As always, if you choose to gamble, do so responsibly.

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Source: As reported by ft.com.