Flutter Entertainment, owner of Paddy Power and FanDuel, has projected modest profit growth for 2026, falling short of analyst expectations due to weaker engagement in its US operations and missed opportunities in customer promotions.
The global betting giant reported a 21% rise in core profit for 2025, but it now expects growth of just 4% this year, bringing core profit to $2.97 billion. Analysts polled by LSEG SmartEstimate had forecast $3.5 billion. Following the announcement, Flutter’s shares dropped more than 9% in after-hours trading on Wall Street.
The company attributed the slowdown to reduced levels of US customer activity in the fourth quarter and early 2026. Flutter said its FanDuel platform, which holds a 41% share of the US market, faced lower engagement after previously taking higher amounts from American football bettors during a run of favourable results.
While bookmakers generally profit when favourites lose, Flutter said the absence of high-profile names during the latter stages of the NFL season led to lower betting interest during the playoffs. CEO Peter Jackson acknowledged the company had not executed its promotions and bonus strategy effectively, describing it as a shortfall in maintaining customer engagement.
Jackson said FanDuel aims to improve how it rewards customers in time for the 2026/27 NFL season, including the launch of a loyalty programme in the second quarter. The company also plans to boost investment in its newly launched prediction markets platform, FanDuel Predicts, in partnership with derivatives exchange CME Group.
The prediction markets platform, which allows users to wager on the probability of events ranging from sports to entertainment and politics, has seen growing popularity in the United States. FanDuel Predicts now offers non-sports markets across all 50 states and sports markets in 18 states, including California, Texas, and Florida, where sports betting remains illegal.
Flutter expects the increased investment in the prediction markets business to reduce 2026 core profit by up to $300 million, at the upper end of the company’s previous guidance. Jackson described the expansion as a long-term strategic move aimed at broadening the company’s revenue streams and positioning FanDuel as a leader in the emerging market.
The company’s cautionary outlook reflects broader challenges in the US gambling sector, where competition is intensifying, and consumer interest can fluctuate sharply with sporting events. Flutter’s focus on customer engagement, loyalty programmes, and diversified offerings is intended to offset these headwinds and sustain growth in the coming years.
Despite the short-term profit slowdown, Flutter’s dominance in the US betting market and its expanding prediction markets platform could provide new avenues for growth as the company seeks to balance traditional sports betting with innovative wagering products.
