Flutter Q1: FanDuel Leadership Shakeup Amid Sportsbook Pressure and Prediction Market Expansion

Flutter Entertainment’s Q1 earnings release was highlighted by the announcement that FanDuel CEO Amy Howe is leaving the company. FanDuel President Christian Genetski will replace her as Flutter restructures its U.S. management team amid sportsbook pressure and expanding prediction market ambitions.

Other changes include Flutter International CEO Dan Taylor being promoted to a newly created role of President of Flutter Entertainment. He will oversee FanDuel and his current international responsibilities.

Group CEO Peter Jackson said the restructuring is intended to keep the company “as agile, focused, and well-positioned as possible.”

He said:

These changes will sharpen our focus on the US sportsbook, strengthen the connection between our U.S. and international divisions, and fully leverage the group’s expertise, capital, and strategic ambition.”

Jackson later told analysts that “now is the right time for us to put in place new leadership in the business.” He emphasized that there is “no change in our strategy or posture of the business.”

Flutter emphasized its leadership position in U.S. online sports betting and iGaming, with 39% and 27% market share, respectively. Still, executives acknowledged sportsbook softness following “customer-friendly” NFL results late last year.

Q1 Results Show Sportsbook Growth Lagging iGaming

Flutter reported Q1 2026 group revenue of $4.3 billion, up 17% year-over-year. Adjusted EBITDA grew 2% to $631 million.

U.S. revenue was $1.76 billion, up 6%. However, sportsbook revenue grew just 1% YoY to $1.14 billion, compared to 19% increase for iGaming, which reported $564 million in revenue. U.S. adjusted EBITDA fell 26% to $119 million. Flutter partly attributed the decline to investment in prediction markets and new-state launch costs.

Executives repeatedly emphasized during the call that FanDuel’s sportsbook business entered 2026 under pressure after ending last year with fewer active customers than expected. During Q1, average monthly players declined by 6%, while sportsbook handle fell 9%.

Jackson said:

Overall sportsbook performance was adversely impacted by NFL trends observed in Q4 [as] persistently high gross revenue margins negatively impacted customer activity, leaving us with a smaller player base as we enter 2026.”

Flutter said it has responded with what leadership described as a “sportsbook improvement plan.” It centers on loyalty mechanics, promotional adjustments, and product enhancements ahead of the NFL season. The plan, according to the company, is already driving encouraging signs of recovery.

Among the initiatives highlighted during the quarter were:

• Expanded same-game parlay functionality
• The rollout of FanDuel’s sportsbook loyalty program
• “BetProtect+” wager insurance products
• Additional World Cup-related soccer features planned later this year

Jackson said:

Underlying trends across our headline KPIs have been positive with AMPs, handle, and structural revenue margin all improving through the quarter.”

Prediction Markets Continue Expanding Despite Legal Uncertainty

While sportsbook performance was central to management’s messaging, Flutter also emphasized that it views prediction markets as “an attractive incremental customer acquisition opportunity.”

FanDuel Predicts expanded nationwide during Q1 for financial, economic, and commodities contracts. Meanwhile, sports-event contracts are now available in 18 non-sportsbook states, including California, Texas, and Florida.

Flutter also launched its “One App” in April, which allows users to access either sports betting or prediction markets, depending on their state’s availability.

Leadership also disclosed that Flutter expects to launch its market-making platform in the coming months. Jackson said Flutter’s “world-class proprietary pricing capabilities” could help drive its market-making ambitions, particularly around Combo products.

At the same time, leadership acknowledged the increasingly uncertain legal environment surrounding sports-event contracts. Jackson said Flutter expects to operate in uncertainty “until we get through and understand ultimately what the Supreme Court say[s].”

Flutter reiterated during the quarter that prediction market investment losses are still expected to remain toward the upper end of its previously disclosed $250 million – $300 million adjusted EBITDA range.

CFO Rob Coldrake said the company expects to increase spending in prediction markets in Q2 compared to Q1, primarily around the FIFA World Cup. In Q3, the company also expects higher spending tied to the NFL season.

Still, he emphasized that the company “will remain very disciplined in terms of our investment around prediction markets and … invest more if [it sees] opportunities to do so.”

Prediction Markets Not Impacting Sportsbook

Despite the company’s investment in FanDuel Predicts, Flutter maintained that prediction markets are currently having only a modest impact on FanDuel’s sportsbook business.

Jackson said:

We continue to see limited cannibalization impacts on prediction market operators and our sportsbook growth.”

Leadership argued the limited impact reflects differences in product propositions and customer demographics, including age profiles. Also, it said that prediction market users skew toward lower-value, entertainment-focused cohorts, making them distinct from FanDuel’s sportsbook customer base.

The comments reinforced Flutter’s broader position that prediction markets represent a complementary long-term acquisition opportunity rather than a direct replacement for regulated sportsbook betting.

Flutter also suggested prediction markets may be introducing new recreational users into the broader sports wagering ecosystem, particularly entertainment-focused customers who may not otherwise engage with traditional sportsbooks.

Even amid the leadership transition and sportsbook pressure, executives repeatedly emphasized that Flutter intends to continue investing in both its sportsbook and prediction market businesses.

Full-Year Outlook and Financial Guidance

Beyond the operational changes and the investment in prediction markets, Flutter also revised its 2026 financial outlook.

Flutter lowered its full-year 2026 guidance following Q1, citing unfavorable sports results and additional launch costs tied to the Arkansas launch. The company said prediction market revenue is not currently included in guidance as it awaits additional operating data, but PokerStars’ transition into FanDuel is included.

Flutter now expects:

• Full-year revenue of approximately $18.3 billion (down from $18.4 billion)
• Adjusted EBITDA of approximately $2.87 billion at midpoint guidance (down from $2.97 billion)

The new outlook represents 12% YoY revenue growth and a 1% YoY increase in adjusted EBITDA.

During Q1, Flutter’s net income declined 38% YoY to $209 million. Diluted earnings per share fell 22% to $1.23, while adjusted earnings per share declined 23% to $1.22. Leadership attributed the profitability decline to higher interest expense tied to acquisitions, increased depreciation and amortization, investment in prediction markets, and new-state launch costs.

The company also highlighted continued shareholder returns, noting that through May 1, it has already returned $190 million to shareholders through its ongoing buyback program.

From a balance sheet perspective, Flutter ended Q1 with leverage of 3.7x and said it still expects leverage to decline by the end of 2026.