Flutter doubles down on prediction markets despite investor worries about growth
Flutter Entertainment is leaning harder into prediction markets, even as some investors question how much upside the move will really deliver.
In its fourth quarter earnings letter to shareholders, the parent company of FanDuel made clear that it plans to step up spending on its new prediction markets product this year. The company said: “We believe this new product enables us to harness a significant and incremental expansion of the US addressable market ahead of further state regulation – a space where our scale and experience give us a natural advantage It expects an increase in prediction markets investment with adjusted EBITDA loss expected to be toward the top of previously guided range of $200 million to $300 million. In other words, profits will take a near-term hit as Flutter builds out the business.
Flutter essentially confirms an affiliated prediction market trading arm is on the way. pic.twitter.com/2W3DfFIDwd
— Dan Bernstein (@dan_bernstein_) February 26, 2026Management framed that spending as deliberate. The company is positioning prediction markets as a long range growth driver, not a side experiment, and appears willing to absorb short term dilution to establish a foothold.
Why Flutter sees upside with prediction markets, not erosionOne of the biggest concerns hanging over the sector is whether prediction markets will siphon activity away from traditional online sportsbooks. If customers shift dollars from sports betting into event contracts, the net effect could be less exciting than the headline growth suggests.
Flutter chief executive Peter Jackson sought to tamp down that narrative. “We have not identified any evidence of any meaningful impact,” he said, referring to fears that prediction markets are eating into FanDuel’s sportsbook business.
"We undertook a comprehensive review of potential cannibalization from prediction markets and we have not identified any evidence of any meaningful impact." — Peter Jackson, Flutter CEO.
4Q25 Earnings Releasehttps://t.co/ylsgOyuLvV pic.twitter.com/0SvY0crzJ0
