FanDuel's U.S. revenue rises 6% to $1.46 billion as Flutter cuts its 2026 outlook

FanDuel's U.S. business brought in $1.455 billion in the third quarter, up 6% from a year ago, parent company Flutter Entertainment reported Wednesday. The company as a whole missed expectations and cut its 2026 revenue target by $300 million, to $17.61 billion at the midpoint.

Flutter's total revenue rose 2% to $3.87 billion. Front Office Sports reported analysts had expected about $4 billion. The company posted a net loss of $1.15 billion, compared with $789 million a year earlier, and adjusted earnings before interest, taxes, depreciation and amortization fell 25% to $360 million.

Where the U.S. money came from

• Sportsbook revenue: $817 million, up 4%.
• Online casino revenue: $572 million, up 8%.
• Other revenue: $66 million, up 20%, mostly from market-making, where Flutter posts buy and sell prices on prediction-market contracts.
• Average monthly players in the U.S.: 3.9 million, up 12%.

Promotions are rising too. FanDuel's promotional spend climbed to 6.0% of the amount bet, up 0.6 percentage points, and the company expects it to stay at that level in the fourth quarter and next year. For customers in legal states, that means bonus offers aren't going away.

Prediction markets

FanDuel Predicts, the company's prediction-market platform, had 66,000 average monthly players in the quarter and $119 million in trading volume, up 102% from the second quarter. October volume was 271% higher than July's. Flutter said the product's revenue was not yet material.

New CEO Dan Taylor, who took over Oct. 1 from Peter Jackson, acknowledged on the earnings call that until recently FanDuel Predicts "was not competitive," Front Office Sports reported. He said it had 140,000 active users in October.

The Brazil hit

The biggest drag came from outside the U.S. A provisional measure issued Sept. 25 in Brazil temporarily banned sports betting and online casino games there, and Flutter recorded $873 million in non-cash impairment charges tied to its Brazil business.