Flutter weighs FanDuel prediction market spending and profit potential
Deals & M&A1 min read
Flutter Entertainment chief executive Dan Taylor said on its 4 November earnings call that the company expects more clarity in the coming months on the economics of FanDuel Predicts. FanDuel recorded $119 million in trading volume in the third quarter; Flutter expects its market-making operation to generate $50 million in revenue and $40 million in adjusted EBITDA during 2026.
Dan Taylor, Flutter's chief executive, told the third-quarter earnings call on 4 November that the coming months should sharpen the company's view of how its prediction market business makes money. At issue is whether FanDuel Predicts can turn a profit by itself, or can only help recruit customers in states that could later permit online sports betting.
Taylor said acquiring customers in prediction markets costs far less than it does in conventional sports betting. The report said the thinner margins make it harder to estimate what a customer is worth over time and to set a budget for attracting new users. He added that Flutter expects better potential payoffs in states more likely to legalise sportsbooks, as people recruited via FanDuel Predicts could later move over to the sportsbook.
FanDuel first offered prediction market contracts via CME. Taylor conceded that when he examined the product more closely in the spring, it could not compete. Crypto.com contracts arrived in June, all sports contracts shifted to Crypto.com in August, and a combined app for the sportsbook and prediction markets went live in September.
In the third quarter, FanDuel's prediction market trading volume came to $119m. Taylor said October activity was nearly triple the July level. Even so, FanDuel still lags well behind Kalshi and DraftKings on trading activity.