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Flutter Lowers Profit Outlook as FanDuel Predicts Launch Adds Near-Term Costs

Heavy customer wins combined with planned spending on a new event-contracts venture are squeezing near-term earnings.

Overview

  • Flutter now guides full-year core profit of about $2.9 billion after a prolonged run of punter wins, including roughly $170 million in higher payouts since early October.
  • FanDuel and CME Group will launch the FanDuel Predicts app next month to offer event contracts on outcomes such as elections and financial markets.
  • Management plans aggressive investment in the new business, projecting a $40–50 million hit to group core profit in the fourth quarter and a further $200–300 million next year.
  • Sporting-event contracts on FanDuel Predicts will be available only in states without legal online sports betting, with offerings withdrawn as states legalise.
  • Flutter shares in London fell as much as 4% after the update, and CEO Peter Jackson warned that potential UK tax increases could threaten jobs and drive customers to the black market.