Flutter cuts profit forecast to $2.9B amid unfavourable sporting results, announces Nevada exit

Flutter Entertainment cut its full-year profit outlook on Wednesday after a prolonged run of customer-friendly sports results hit margins. Meanwhile, its U.S. unit FanDuel and rival DraftKings both agreed to abandon licensing efforts in Nevada as they shift focus toward launching prediction markets across the United States.

The world’s largest online betting group lowered its 2025 core profit forecast to $2.9 billion, down from $3.3 billion, citing increased payouts from a long winning streak by gamblers. The company posted third-quarter adjusted EBITDA of $478 million, up 6% from a year earlier and above the $459 million consensus forecast, though its full-year outlook for 24% earnings growth remains below analysts’ expectations for roughly $3.2 billion.

Chief Executive Peter Jackson said Flutter retained “complete conviction” in how it calculates odds despite the unfavourable run of sporting results, which intensified in the first six weeks of the current quarter.

Flutter also confirmed it will enter the federally regulated prediction markets sector next month with the launch of FanDuel Predicts, developed in partnership with CME Group. The new app will allow users to trade event contracts tied to outcomes in sports, entertainment, politics, and financial markets. Flutter said the investment needed to scale the business would “aggressively” reduce profit by $40–50 million in the fourth quarter and $200–300 million next year.

Sports-related event contracts will be offered only in states where online sports betting is illegal, Flutter said, adding that it expects prediction markets to accelerate sports betting legalisation as states seek new tax revenue. The company described the sector as a “significant growth opportunity.”

Separately, both FanDuel and DraftKings have agreed to surrender their Nevada licensing approvals and withdraw pending applications after state regulators deemed prediction markets “incompatible” with Nevada’s gaming structure.

Nevada Gaming Control Board Chairman Mike Dreitzer said it had become clear to regulators that Flutter’s FanDuel and DraftKings intended to engage in “unlawful activities related to sports event contracts.”

FanDuel, which previously held a limited Nevada licence through a partnership with Boyd Gaming, terminated after Boyd sold its 5% stake back to the company for $1.76 billion, said its business priorities no longer aligned with the state.

“Our views of the current opportunity for prediction markets outside of regulated states are unfortunately in direct opposition to Nevada's priorities for its licensed operators. As a result, we are making the difficult decision to voluntarily surrender our license,” spokesperson Alex Pitcocchelli said.

DraftKings, meanwhile, is preparing its own national prediction markets platform. The company has applied to join the National Futures Association and has acquired Railbird, which it plans to relaunch as DraftKings Predictions.

“As part of our ongoing commitment to regulatory compliance, we have withdrawn our inactive application in Nevada,” Chief Compliance Officer Jen Aguiar said. “We remain dedicated to working collaboratively with regulators to uphold the highest standards of integrity in our operations.”

DraftKings CEO Jason Robins said prediction markets have grown rapidly because “big states such as Texas and California have not legalized sports betting.” The company said its Las Vegas office, which employs more than 1,000 people, will not be affected by the licensing withdrawal.

Flutter’s Jackson said the group’s partnership with CME left it “very well-placed irrespective of which path we end up following” as the regulatory outlook for event contracts continues to evolve.