Flutter CEO Peter Jackson To Step Down; A Look At Q2 And What’s Next For FanDuel
Gambling news roundup: Conservative groups sue over Wisconsin sports betting law; Novig sues New York; Maryland pushes Preakness back one week
Flutter Entertainment — the parent company of FanDuel — reported its Q2 earnings on Wednesday, but the biggest news was a change at the top.
Flutter CEO Peter Jackson will step down from the role on Sept. 30. Dan Taylor, president of Flutter and CEO of Flutter International, will succeed him as CEO. The move comes after FanDuel CEO Amy Howe stepped aside earlier this year.
Jackson has been at the helm since January 2018, overseeing FanDuel’s rise to become the top sports betting operator in the US during the expansion of legal online gambling.
The leadership changes come as Flutter adapts to a US landscape where the expansion of online sports betting and online casino has slowed considerably, while prediction markets have emerged as both a competitive threat and a potential growth opportunity. The announcement also came alongside lower US results and a sizable reduction to Flutter’s 2026 guidance.
Quotes on Jackson’s departure and Taylor’s ascension:
John Bryant, Chair of the Board, said: “The Board is pleased to appoint Dan as Flutter’s next Group Chief Executive Officer. He has an outstanding track record of delivering results, building high-performing teams and leading complex international businesses. Dan’s breadth of experience and responsibilities across the Group, combined with his deep understanding of the industry, give us every confidence that he is the right person to lead Flutter into its next phase of growth.
“On behalf of the Board, I would also like to thank Peter for his significant contribution to the business. Under his leadership, Flutter has transformed from Paddy Power Betfair into the world’s leading online sports betting and iGaming operator. He has led its growth into a truly global business, built a portfolio of market-leading brands and strengthened the capabilities that underpin its success. Peter leaves Flutter with gold medal positions around the world and exceptionally well positioned for the future.”
Dan Taylor said: “I’m delighted to take on the role of Group Chief Executive Officer at such an important time for Flutter. Our priority will be to keep delivering for our colleagues, customers and shareholders, while building on the momentum we’ve created across the business. The opportunities ahead are significant - both those we see in the market today and those we will create ourselves in the future. I look forward to leading the business as we continue to innovate, grow and build on the strengths that make Flutter unique.”
Meanwhile, Flutter reported its Q2 results. Flutter shares were down about 10% in intraday trading following the guidance reduction.
Flutter’s quarter was mixed (including better than expected on some fronts), but the company is sacrificing near-term FanDuel revenue and profitability to rebuild customer momentum. At the same time, its clearest revenue opportunity in prediction markets in the short term appears to be market-making rather than FanDuel Predicts itself.
Some highlights, mostly focused on the US:
Core business
Flutter reduced guidance for both the overall business and the US.
Previous guidance for 2026 put US revenue at almost $7.8 billion; the guidance range is now $7.125B-$7.675B.
Most of the revenue-guidance reduction is tied to Flutter’s decision to invest more heavily in FanDuel. The company expects the investment to reduce 2026 revenue by approximately $385 million and adjusted EBITDA by $270 million. Flutter lowered the midpoint of its US revenue outlook by $395 million and its US adjusted EBITDA outlook by $210 million.
Flutter said Q2 revenue and adjusted EBITDA exceeded its guidance, and both measures also came in ahead of analyst consensus.
US revenue of $1.68 billion was down six percent (sportsbook -15%, iGaming +14%), which included an “adverse 6 percentage-point growth impact from sports results year-over-year,” per Flutter.
US handle increased just 2% to $11.96 billion, from $11.70 billion a year earlier.
US adjusted EBITDA fell 70% to $119 million, while the segment’s adjusted EBITDA margin dropped from 22.3% to 7.1%.
Per the release: “FanDuel’s U.S. Sportsbook Improvement Plan is showing encouraging signs of progress, with AMPs, handle and revenue (excluding unfavourable sports results) all improving sequentially. This early progress has given Flutter the confidence to increase investment to extend FanDuel’s market leadership position into 2027 and beyond.”
Prediction markets
Flutter says all sports and novelty contracts will move to Crypto.com, while CME will continue providing financial markets. That represents a significant expansion of the relationship announced in June.
Flutter expects its prediction-market market-making operation to generate approximately $50 million in both revenue and adjusted EBITDA benefit during 2026.
From CEO Peter Jackson
From Flutter’s release and letter to shareholders (emphasis added):
The quality of our portfolio was evidenced once again in Q2 as we delivered another encouraging quarter relative to our expectations. Group revenue increased by 3%, supported by M&A, strong iGaming growth globally and excellent customer engagement during the FIFA World Cup with our diversified brand portfolio engaging around 10.5 million customers.
In the US, we made good progress against our strategic priorities, and FanDuel maintained its #1 position in sportsbook and iGaming. The momentum we are seeing gives us confidence to increase investment in the second half to further strengthen our proposition and market leadership. …
Adjusting for the year-over-year impact of sports results and marquee events, underlying sportsbook performance was broadly in line with expectations, with AMPs, handle and revenue excluding sports results all improving sequentially. This reflected good progress in delivering our sportsbook improvement plan as we strengthen our proposition and address the operational challenges which contributed to FanDuel exiting 2025 with a smaller customer base. We expanded our new sportsbook loyalty program, with 70% of our customer base now having access to this more consistent loyalty proposition by the end of the quarter, driving a step up in generosity perception and player frequency with over 80% of customers surveyed stating it has improved their FanDuel experience. Our best-in- market injury protection feature, BetProtect+, proved very popular during the NBA finals, while we enhanced our soccer offering ahead of the FIFA World Cup, leveraging the Flutter Edge to offer unique and market-leading products, including SuperSub.
While this sequential improvement in underlying trends is encouraging, our H1 performance also reflected a continuation of the market-wide trends observed since Q4 2025, when a long sequence of customer-losing weeks resulted in high levels of customer churn. As a result, underlying market growth remained subdued during H1. While we firmly believe market growth will ultimately return to higher levels, with more compelling content driving stronger customer engagement, our forecasts prudently assume market growth rates in H2 will be broadly consistent with the mid-single digit growth seen in H1.
The US leadership team changes implemented in H1 are designed to ensure we are positioned to deliver improved performance through a more competitive customer-led proposition. Crucially, the encouraging signs we now see in our performance give us the confidence to increase investment in customer acquisition and retention.
While this proactive action will result in a reduction in near-term profitability, investing behind customer momentum is an approach that has consistently served us well. Our momentum, and the current market dynamics, mean now is the right time to move from a focus on margin growth, to prioritizing AMP growth and customer value. This will position us well to reaffirm our leadership in the US market and capture further share into 2027. …
We view prediction markets as a very attractive opportunity, incremental to sports betting and iGaming, one which is growing the overall market by capturing new demand. We continue to see a limited cannibalization impact on our existing customer base in regulated sportsbook states. We believe FanDuel’s operational execution and outperformance, both in recent state launches and during key marquee events, reaffirms both the strong demand for traditional sports betting products when sports content is compelling, and the enduring strength of both the FanDuel proposition and brand. However, we will continue to closely monitor the implications of the growth in prediction markets on the broader online sports-betting market.
Our prediction market offering, FanDuel Predicts, allows us to acquire customers ahead of sports betting regulation in new states, delivering incremental economics in the meantime. While operational progress in H1 has been slower than planned, we are gaining traction. The integration of the Crypto.com exchange expanded our sports offering ahead of the FIFA World Cup and has significantly enhanced our product proposition. In coordination with CME, we have agreed that all FanDuel Predicts sports and novelties contracts will now be moved to Crypto.com, while continuing to provide our customers access to CME’s financial markets. This new exchange arrangement will ensure we can deliver new products at pace ahead of the NFL season start. Our “One App” offering will also enable us to leverage FanDuel’s nationwide brand equity, driving both accelerated penetration and marketing efficiencies.
Our world-class pricing and risk management capabilities put us in a strong position to capture a large portion of the economics within the Prediction Market ecosystem. We believe we are uniquely positioned to provide liquidity for combination markets across prediction market platforms, with an offering that can scale rapidly and at low incremental investment. It is very early days, but we already expect to generate approximately $50m of revenue from market-making this year, demonstrating both the good progress made so far, and the potential opportunity that exists in market-making. We will continue to build out this capability in the second half of the year.
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Gambling news roundup
🏛️ Legislative and regulatory updates
Wisconsin Institute for Law & Liberty: WILL sues to stop unconstitutional online sports gambling law (WisPolitics): The Wisconsin Institute for Law & Liberty (WILL), representing two taxpayer associations, filed a lawsuit challenging Wisconsin Act 247, the new law that legalizes statewide mobile sports betting through Wisconsin’s tribal gaming system. This new sports gambling monopoly violates the Wisconsin Constitution, which voters amended in 1993 to prohibit the Wisconsin Legislature from “authoriz[ing] gambling in any form” beyond certain narrow exceptions. The lawsuit also challenges Governor Tony Evers’ plan to negotiate new tribal gaming agreements to implement the law, and argues that the law violates the Equal Protection Doctrine by granting a benefit based on race.”
National Tribal Leaders To Senate Committee: Here’s How To Protect Indian Gaming (InGame): Sen. Brian Schatz of Hawaii, the committee’s vice chair, said that prediction offerings are eviscerating the budgets of Indian Country, “and what is about to happen to Indian Country’s revenue pales in comparison to what we would be able to replace it with.”
Arizona Division of Problem Gambling Expands Access to Financial Counseling for Problem Gambling (press release): The Arizona Department of Gaming’s Division of Problem Gambling (Division) announced today that Arizonans enrolled in the state’s gambling voluntary self-exclusion program are now eligible for no-cost financial counseling through GamFin, a state-contracted provider.
“Financial harm is one of the most significant problem gambling impacts felt today,” said Elise Mikkelsen, Division Director. “Broadening access to financial counseling strengthens Arizona’s continuum of care by ensuring more individuals have the tools, support, and guidance they need to rebuild as they continue in recovery.”
Under the program, each client works with a financial counselor equipped to support individuals affected by problem gambling in a confidential, non-judgmental setting, and is scheduled for an initial virtual session to identify immediate financial priorities and establish long-term goals. In subsequent sessions, counselors provide personalized guidance on an array of financial concerns – budgeting, debt management, rebuilding damaged credit, and developing long-term financial stability. Because participants may enter the program shortly after choosing to voluntarily self-exclude, financial counseling provides timely, evidence-based support that builds on their commitment to end participation in gambling.
🔮 Prediction markets
Latest newsletter and roundup at The Event Horizon:
American Gaming Association statement in response to the Utah court ruling affirming the state’s authority to regulate sports betting and prediction markets:
“A Utah judge’s final decision reaffirms that the authority to regulate gambling rests with the state. We agree with Attorney General Brown and 43 other state attorneys general that sports gambling is sports gambling – the so-called “prediction markets” can’t rebrand it and offer it outside the law. The AGA applauds Governor Cox and Attorney General Brown for upholding Utah’s laws and protecting its residents.” - AGA Spokesperson
Day After Launching Regulated Prediction Market, Novig Sues New York in Federal Court (Sports Betting Dime): “Counsel for Novig today sued New York Attorney General Letitia James and members of the New York State Gaming Commission, making a motion for a preliminary injunction to prohibit the state from taking action against its sports event contract markets.”
Genius Sports and Kalshi strike official data and integrity partnership (Kalshi blog): Genius Sports Limited (“Genius Sports”) (NYSE:GENI), a global leader in real-time sports data, today announced an agreement with Kalshi to provide the next-generation financial exchange with official data, marketing, media and integrity services.
Having established the market for official sports data across a variety of regulated industries, Genius Sports will provide Kalshi with the highest quality, real-time data across its full soccer portfolio. This includes the English Premier League, Serie A, Liga MX, Argentine Primera División, French Ligue 1 and more.
By using verified official data as a consistent source of truth to settle sports prediction market contracts, the agreement is designed to enhance transparency while reducing reliance on unofficial or delayed data sources.
To further strengthen market transparency and safeguard the integrity of sports, Kalshi will participate in Genius Sports’ established information-sharing processes, restricting certain market types and enhancing visibility.
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📣 Industry news
Kambi Group plc partners with Station Casinos in Nevada (press release): Kambi Group plc (“Kambi”), the home of premium sports betting solutions, has entered a long-term arrangement with Station Casinos LLC (“Station Casinos”) to provide its Turnkey Sportsbook and player account management platform (PAM) solution to one of Nevada’s premier gaming, hospitality and entertainment operators.
The 10-year agreement will enable Kambi to enter Nevada and its world-renowned gambling hub Las Vegas for the first time, having secured its Nevada licence in 2025. The partnership is expected to have a mid-single-digit-million euros financial impact for Kambi from 2027 onwards.
Bet365 launches, Jackpot365 in Michigan (press release): Bet365 customers in Michigan can now enhance their sports betting and casino experience with Jackpot365. Some highlights of the feature include:
Seamless integration: The multi-tier progressive jackpot feature is integrated directly within a betslip or casino game, allowing customers to enhance their experience without interrupting their regular betting or casino activity.
Low stakes, high rewards: Players can opt in when placing a bet for a chance to win one of four progressive jackpots without changing the outcome of their original bet, opening new opportunities for exclusive wins.
Payout opportunities: Since its UK launch in December 2025 through the end of this year’s World Cup, Jackpot365 has paid out over $70 million in jackpot prizes across over 160,000 jackpot wins. In US markets, Jackpot365 has awarded over $7 million in payouts across 14,700 jackpot wins, showcasing the feature’s strong early success as it expands.
St8 expands Pragmatic Play partnership across Ontario and Alberta (press release): Casino games aggregation platform and full-service technology provider St8 has expanded its partnership with Pragmatic Play, extending the distribution of the supplier’s award-winning portfolio across the regulated Canadian markets of Ontario and Alberta.
Through the extended agreement, operators connected to St8’s next-generation aggregation platform will benefit from seamless access to Pragmatic Play’s extensive collection of casino content via a single API integration, further strengthening St8’s premium offering across two of North America’s most significant regulated jurisdictions.
Q2 2026: Super Group posts record quarter as World Cup boosts results (Next.io): “Betway and Spin owner Super Group posted record revenue, profit and player numbers for the second quarter of 2026, as strong trading around the FIFA World Cup prompted the group to raise its full-year guidance. Super Group reported revenue of $684m for the quarter, up 18% on the $579m posted in the same period last year.”
Q2 2026: Light & Wonder braces for UK tax impact amid iGaming growth (Next.io): “For the three months to 30 June, group revenue hit $828m, up 2% year-on-year. The supplier also saw consolidated adjusted EBITDA rise 9% to $383m, while net profit was 26% higher at $120m.”
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📖 Other things you should know/read
Maryland moves back Preakness date, seeking to attract Kentucky Derby winners (The Athletic): “The Preakness Stakes, in a bid to maintain its relevance amid the changing landscape of thoroughbred racing, will move its traditional date back eight days, Maryland Gov. Wes Moore announced Wednesday. The schedule shift is aimed at ensuring the Kentucky Derby winner is in the field in Baltimore for the second leg of racing’s Triple Crown.”
Why State-Regulated Sports Betting Still Makes Sense to Circa’s Derek Stevens (Covers): “With Circa's unique … low-hold model, we've got to have the right regulatory environment in place,” Stevens told Covers in an interview Tuesday. “We have to be able to cut a type of deal that makes sense."
Brazilian news outlets say they’re rejecting sports betting ads to preserve independence (LatAm Journalism Review): “More than 60 Brazilian news organizations have jointly agreed not to accept advertising money from the country’s rapidly expanding online sports betting industry, saying that accepting it would compromise their ability to scrutinize a sector fueling a national epidemic.”
Two Kinds Of Bettors: Those Who Use AI, And Those Who Lose (InGame): “I’ve been using it to build out top-down models for prediction markets and sports betting,” said Justin Herzig, best ball champ and founder of PredictQ.market, a tool to help people find the sharp sides in prediction markets. “The beauty here is what used to take weeks for a research project, I can now have an idea and test it in hours.”
Trial Date For Rigged Poker Case Defendants Moved To Late November (Casino Reports): “A federal judge in New York issued an order Monday to continue the start of the trial in the rigged poker case involving former Portland Trail Blazers coach Chauncey Billups from Nov. 2 to Nov. 30.”