Flutter Shares Fall To New Low As Brazil Halts Operations

Flutter Entertainment's share price dropped to an all-time low on Tuesday, according to Legal Sports Report, after Brazilian authorities imposed a provisional ban on online betting. The stock fell by more than 7% between Friday's close and Monday's opening, and continued to slide through the start of the week.

The company's valuation has now fallen by roughly three quarters from the peak it reached above $313 in August 2025, a period when FanDuel's grip on the US sports betting market made Flutter one of Wall Street's favoured gambling stocks.

The timing is awkward. Chief executive Peter Jackson leaves the company on Wednesday, just as Flutter works to stem a string of setbacks across its biggest international markets while pouring money into reviving FanDuel's US business.

Brazil's provisional ban forced Flutter to suspend both betting and online casino operations ahead of an October 6 deadline. The company has said it expects to forgo around $70 million in revenue and $20 million in adjusted EBITDA should the shutdown extend through the rest of 2026.

Flutter said in a statement quoted by Legal Sports Report that it was "extremely disappointed by this development and is reviewing all available options, including the potential to appeal." It added that it "continues to engage constructively with the Brazilian authorities on sensible, effective regulation to protect customers from the risks of the unregulated market."

The Brazilian exposure is significant: Flutter paid approximately $350 million last year for a 56% stake in local operator NSX Group.

India has delivered a separate blow. A summer ban on real-money online games is expected to cost Flutter roughly $250 million in revenue this year and a further $310 million in 2027. The company shut down paid operations at its Indian gaming business, Junglee, in August, having previously invested $237 million in it.

FanDuel's domestic performance has also softened. It held a leading 39% share of US sportsbook gross gaming revenue in the second quarter, but sportsbook revenue there fell 15% year over year, and Flutter's US adjusted EBITDA plunged 70% to $119 million.

Flutter has acknowledged that it under-reinvested winnings from last year's favourable NFL results into customer promotions, which drove higher churn and left it with a smaller customer base entering this year. FanDuel chief executive Amy Howe departed in May and was replaced by company president Christian Genetski.

Heading into Week 4 of the NFL season, FanDuel has rolled out more generous promotions and an expanded loyalty programme. Flutter cut its 2026 US adjusted EBITDA guidance by more than 20% in August, earmarking roughly $270 million to rebuild customer momentum, while higher state gambling taxes are expected to add a further $40 million in costs this year.

Prediction markets have compounded the pressure, with monthly betting handle broadly flat or falling year over year as sports event contracts gain popularity. FanDuel Predicts, launched through CME Group in December, has underperformed as Kalshi and Polymarket captured volume, particularly in states that lack legal sportsbooks. Flutter has since widened its tie-up with Crypto.com, shifting its sports contracts onto that company's OG Prediction Markets exchange and planning to invest between $200 million and $300 million in FanDuel Predicts this year, with larger revenue contribution not expected until 2027.

Flutter trimmed its full-year adjusted EBITDA forecast by $210 million in August to $2.655 billion and is now targeting $500 million in annual cost savings by 2029. Wall Street had already pared back expectations before this week's slide, with Wells Fargo, Wedbush and BTIG all cutting price targets in August to levels still well above Tuesday's trading price.

The retrenchment marks a sharp reversal from 2022, when FanDuel held more than 40% of the US betting market and launched its own television network and streaming service. In March, the company said it would shut that network and cut more than 100 jobs, following similar media pullbacks by rivals DraftKings, Penn Entertainment and PointsBet.