Flutter CEO says FanDuel Predicts has become competitive product
Dan Taylor told investors FanDuel's prediction markets offering was initially weak but has improved sharply after a switch to Crypto.com and new market-making infrastructure.
Flutter Entertainment chief executive Dan Taylor told investors on 4 November that FanDuel's prediction markets product was substandard when he took charge of the US business in spring, but said it has since become genuinely competitive.
Taylor made the comments on Flutter's third-quarter earnings call, his first as chief executive since replacing Peter Jackson. He said the product "was not competitive" when he arrived at FanDuel, but that "the team have made tremendous progress on the product in the last few months, and the results we're seeing are very good," according to SBC Americas.
The turnaround has involved switching FanDuel's sports event contracts supplier away from CME Group, its FanDuel Predicts joint-venture partner, to Crypto.com. FanDuel has also expanded parlay-style combo markets and folded the predictions product into its all-in-one app.
Flutter's earnings release said FanDuel Predicts recorded 140,000 active users in October and generated $119m in volume during the third quarter, up 102% on the second quarter. Monthly volume in October was 271% higher than in July.
Taylor said prediction markets represent "a very meaningful incremental opportunity for FanDuel," adding that the company must build a strong position while retaining flexibility as regulation evolves. He said the product is "now genuinely competitive," though he added there remains more work to do.
A Flutter spokesperson confirmed to SBC Americas that Christian Genetski will become FanDuel's permanent chief executive, having initially stepped in on an interim basis after Amy Howe's departure.
Taylor and chief financial officer Rob Coldrake also highlighted FanDuel's acquisition of its own registered Futures Commission Merchant, which removes its dependence on the CME partnership and opens the door to listing event contracts from other designated contract markets, including Kalshi or Polymarket.
Coldrake told the call that Flutter is "linking up with more exchanges," and believes the group has "a right to win in this space" given its pricing expertise and liquidity. Taylor described market making as being "at the heart of Flutter's capabilities," noting the company now trades across multiple exchanges and sports, with complex parlay pricing as a differentiator.
Flutter's financial guidance points to roughly $50m in revenue and $40m in EBITDA from market making in 2026, with Taylor framing it as a near-term revenue and profit generator while business-to-consumer growth builds over the longer term.
Taylor acknowledged the economics of prediction markets remain difficult to calibrate. He said FanDuel is acquiring event-contract customers more cheaply than sportsbook customers, but significant financial and legal uncertainty persists across the sector.
He also said rising marketing spend from rival prediction market operators is pushing up Flutter's own media costs, a pressure he expects to ease. "That will, I think, be a temporary position," he said, describing it as a reflection of the market's current uncertainty rather than a lasting trend.
Coldrake said Flutter intends to keep investing in prediction markets "at similar or higher levels, given the early momentum we are seeing," while Taylor said the approach reflects a balance between operating at scale in targeted states and navigating ongoing regulatory uncertainty.
The comments came as Flutter reported modest FanDuel revenue growth alongside a sharp decline in US EBITDA, even as the company's share price rose on the day of the announcement.