FanDuel Owner Flutter Cuts U.S. Profit Forecast After Bettors’ Hot Streak

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Flutter Entertainment, the parent company of U.S. sports betting giant FanDuel, has cut its full-year U.S. profit forecast by $180 million following a streak of bettor-friendly outcomes during major sports events like March Madness. The company now expects U.S. core profit to reach $1.13 billion, down from earlier guidance, though still marking 123% year-on-year growth.

Bookmakers typically see lower margins when favorites win, and Flutter cited an “unprecedented run” of such outcomes that impacted earnings for a second consecutive quarter. A similar effect occurred during last year’s NFL season.

“We remain confident in our business and convictions,” said CEO Peter Jackson, noting no signs of weakening demand despite a recent drop in U.S. consumer confidence.

Financial Highlights:

  • U.S. core profit forecast: $1.13B (down $180M)

  • Group-wide EBITDA forecast: $3.18B (up from $3.16B, aided by FX and acquisitions)

  • Q1 EBITDA: $616M (+20% YoY), but below $658M analyst expectations

  • Positive $100M foreign exchange impact and $120M in acquisition gains helped offset some of the sports betting losses

Resilience Despite Economic Uncertainty

Jackson emphasized that gambling activity tends to be resilient in downturns, referencing stability in Flutter’s other brands like Paddy Power (UK) and Sportsbet (Australia) during prior economic shocks.

“We’re not seeing any impact,” Jackson told Reuters, referring to consumer pullback.

The company also said revenue margins are expected to normalize over time, citing historical swings in sports outcomes, such as fluctuations in Premier League soccer.

Despite the short-term volatility, FanDuel remains the U.S. market leader, and Flutter’s long-term outlook remains bullish.