Peter Jackson said prediction markets have a free run in states where regulated online sports betting does not exist, but that Flutter is seeing very limited cannibalization in states that already permit internet sports wagering. He pointed to California and Texas as places where online sports wagering is not legal and said some data points show high sports event contract volume there, underlining why the unregulated states matter so much.
Jackson said the competitive picture changes sharply once regulated sportsbook operators are in play. In those states, he argued, FanDuel’s sportsbook has the better offer because it can give customers a wider range of betting markets and more promotional generosity, while prediction exchanges cannot match that breadth.
FanDuel Predicts is the main vehicle for Flutter’s push into the sector. The company’s press release said the platform expanded through a partnership with Crypto.com and OG Prediction Markets, adding sports, entertainment and combination event contracts. It also said customers in states where FanDuel does not offer sports betting can trade on sports and entertainment outcomes, and that FanDuel will stop offering sports event contracts as new states legalize online sports betting.
The app now gives Flutter a way to reach customers in states where it cannot offer its core sportsbook, while also letting it broaden the range of markets available on the prediction side. The same release said contracts are listed by CME Group and Crypto.com exchanges and are regulated by the CFTC.
Jackson said Flutter is also building a market-making business around prediction platforms, which he framed as a way to directly monetise the pricing capabilities the company has developed in sports betting. Covers reported that he expects the regulatory fight to reach the Supreme Court, and that Flutter wants customer access in large states without legal sportsbooks while remaining well placed if the legal environment narrows prediction markets’ advantage.
That strategy is coming with heavy spending. Covers reported that Rob Coldrake said the market-making arm is already profitable and scaling rapidly, and that Flutter expects about $50 million of market-making revenue in 2026. The company also expects extensive adjusted EBITDA losses from prediction-market investment this year and more than $200 million in category expenses, while second-quarter revenue fell 6% year over year to $1.68 billion and U.S. adjusted EBITDA dropped 70% to $119 million. Flutter said it will spend $270 million in the second half of this year on U.S. sportsbook growth.
