Key points:
- Flutter mentioned it was monitoring developments around futures markets in its Q1 earnings call
- The prediction markets in question are still in an awkward legal area, despite the CFTC moving to drop the case against Kalshi
- Galactic CEO Stuart Stott gave an exclusive comment to Gambling Insider regarding this
In its Flutter Q1 Earnings Call, Peter Jackson CEO discussed how the team was “really pleased with how the scaling of our US business is driving a set change in the earnings profile of the group.”
While revenue increased, which is something Flutter discussed in its published Q1 reports, its call mentioned something that caught the attention of the industry.
Jackson explained that despite recent fluctuations in the US economy, “our business is resilient… Online sports betting and iGaming have strong defensive characteristics over the long term.”
He continued: “We are really excited about our revolutionary outcome-based pricing technology that allows us to price an offer and an almost infinite amount of outcomes across the most relevant and immersive betting markets.
“We are also closely monitoring developments around futures markets and the potential for direct and indirect opportunities for FanDuel to explore.”
In response to this, Stuart Stott, Galactic CEO, reached out to Gambling Insider to discuss this potential launch from Flutter.
Stott said: “We welcome new players and innovation in what is a rapidly growing and dynamic space. As pioneers in the prediction market industry, we’re excited to see the increased momentum and attention this sector is receiving.
“More entrants mean more creativity, more awareness and ultimately, a stronger ecosystem that benefits players, fans, and innovators alike.
“We look forward to seeing how the market evolves and to continuing to lead with cutting-edge technology, transparency and an unwavering focus on delivering exciting, next-generation prediction experiences.”
However, the status of prediction markets is still relatively uncertain.
They have received harsh backlash from others in the industry, including several US gambling commissions, although the courts ruled that prediction markets should be monitored by the Commodity Futures Trading Commission (CFTC).
Good to know: This week, Gambling Insider discussed in its GI Friday newsletter the CFTC potentially dropping the appeal against Kalshi and how this could impact the wider industry.
When directly asked about the prediction markets towards the end of the call, Jackson said the following: “We do operate the world’s largest sports betting exchange, so we know this place well. The Betfair exchange has, for many years, given us very good insights into how this kind of stuff can play out. It tells us you have to be thoughtful about how exciting the exchange product can be when you have a fully fledged sports betting product available to you. So, we’re very thoughtful about it.
“In states where sports betting is allowed, I’m not that confident that this will have a significant impact. But, there are new markets that could become available, the political stuff is what people talk about and other gamified markets as well.
“We’re interested in the potential opportunity and we have brought some of our team who have some experience in building these products and services from the Betfair exchange to help us evaluate these opportunities.
“We’re working through it. Clearly, in states that haven’t regulated… it’s not that dissimilar to the DFS stuff, albeit it, it’s worth remembering that DFS is a really good precursor to the parlay products, while prediction markets aren’t quite so limited.”
While Flutter certainly didn’t say anything too concrete about launching a predictions market in the US or not, this feels like they were testing the waters by mentioning it at all…
