Flutter Entertainment PLC (FLUT) Business Profile

What it does

Flutter Entertainment operates sports betting and online gaming businesses for consumers. Its brands include FanDuel in the United States, Paddy Power and Sky Betting & Gaming in the United Kingdom and Ireland, Sportsbet in Australia, and Sisal and Snai in Italy. Flutter was originally incorporated in Ireland in 1958. Its global operational headquarters are in New York, and its registered office is in Dublin. Dan Taylor is chief executive officer.

Customers can place fixed-odds bets on sports, play online casino games and poker, buy lottery tickets, or participate in products such as fantasy sports and betting exchanges, depending on the jurisdiction. In fixed-odds betting, Flutter sets the odds before the event; a winning customer receives a payout based on those odds. In online casino games, customers generally play against the house, while poker players compete with one another.

Most of Flutter’s business is online, but it also operates betting shops. Its U.S. operations include FanDuel and TVG, which offers horse racing wagering. Flutter also offers prediction-market contracts, through which customers trade on the outcome of events. FanDuel Predicts was launched in partnership with CME Group, and the product has since been integrated with crypto.com and the FanDuel 1 app.

Flutter organizes its financial reporting into U.S. and International segments. The International segment covers approximately 100 global markets and includes sports betting, casino, poker and lottery operations.

How it makes money

Flutter earns money when customers place bets and play games, as well as from commissions and services. In its sportsbook, it sets fixed odds to include a theoretical spread, then pays customers whose bets win. Sports results and promotions affect how much revenue it retains. In casino-style gaming, revenue generally consists of bets placed less payouts on winning bets, a measure known as hold.

In poker and other player-to-player games, Flutter generally earns a rake or commission rather than taking the risk of the game’s outcome. Its lottery business receives commissions under fixed-term concession agreements. Betting exchanges, fantasy sports and prediction markets also generate commissions on bets or contracts. Flutter additionally sells pricing and risk-management services to other businesses in the sector.

For fiscal 2025, sportsbook accounted for 53% of revenue, iGaming for 44%, and other products for 3%. Revenue depends on customers returning to wager or play; Flutter uses advertising, promotions, loyalty programs and cross-promotion between products to acquire and retain them. For example, FanDuel embeds some casino games in its sportsbook app where permitted.

The U.S. segment primarily serves customers online through FanDuel and TVG. International includes online and retail betting, gaming and lottery businesses across multiple regions. Flutter’s available products depend on local regulation.

For fiscal 2025, total revenue was $16,383 million; in Q3 2026, group revenue grew 2% year over year. Flutter’s Q3 2026 adjusted EBITDA declined 25%, reflecting investments in Alberta and prediction markets, alongside higher UK gaming taxes partly mitigated by cost actions.

Customers and how it sells

Flutter serves individual sports bettors and gaming players through websites, mobile apps and retail shops. It also provides business-to-business pricing and risk-management services. The company recorded 15.9 million Average Monthly Players for fiscal 2025, a measure of online players who had a bet settled or contributed to a game rake or tournament fee. The measure excludes retail activity and can include some duplication across brands or segments.

Online businesses generated 88% of group revenue in fiscal 2025. Flutter also had 1,127 retail shops, mainly in the United Kingdom, Ireland, Italy and Serbia. Its UK and Ireland brands include Paddy Power, Betfair, Sky Betting & Gaming and tombola; in Brazil, its brands included Betfair and Betnacional.

The U.S. segment generated $6,967 million, or 43% of revenue, in fiscal 2025, while International generated $9,416 million, or 57%. As of December 31, 2025, FanDuel’s online sportsbook was available in 25 states or territories and its online casino in 5 states. The U.S. segment also serves customers in Ontario, Canada.

Flutter said a provisional government measure banned online sports betting and iGaming in Brazil in 2026. It restructured the business around Betnacional as its sole Brazilian brand and is prepared to resume operations if the market returns.

Suppliers and costs

Flutter is primarily a service business. Its gaming offering combines content from third parties with games developed in-house, and it licenses some third-party intellectual property. It also owns key software and customer-profile intellectual property used in its betting and gaming operations. Flutter works with payment processors and uses media, affiliate and sports partnerships to reach customers.

Customer acquisition and retention are material expenses. Flutter spent $3,678 million on sales and marketing globally in fiscal 2025, including advertising and promotional activity, and invested $991 million in technology research and development. Gaming taxes and payment-processing costs also affect its cost of sales. In the U.S., gaming-tax increases affected fiscal 2025 costs, and Flutter said prediction-market operators’ spending had begun to raise its media costs in 2026.

Flutter expects an additional £500 million in gross operating-cost and capital-expenditure savings by 2029 from simplifying its operating model. This program is in addition to existing international cost-transformation and UK gaming-tax mitigation programs.

Competitive position

Flutter competes for sports bettors and online gaming customers through its brands, product features, odds, promotions and marketing. No individual competing operators are named. Flutter said U.S. iGaming revenue growth in Q3 2026 was affected by competition and moderating market growth, while increased spending by prediction-market operators was putting pressure on media costs.

In fiscal 2025, FanDuel had an approximately 41% share of online sports betting gross gaming revenue in states where its sportsbook was live, and approximately 27% of iGaming gross gaming revenue in states where its casino was live. In Alberta, Flutter said FanDuel reached 20% plus gaming market share within its first quarter after launch.

Flutter uses proprietary technology, pricing and risk-management capabilities across its brands. It also owns key intellectual property in its software and customer profiles, and works with media organizations, sports leagues and teams on marketing. Its poker business benefits from player liquidity: more players can support a wider range and greater volume of games and tournaments.

Our reading: Scale, brand recognition and shared technology offer meaningful competitive advantages, but continued marketing and product investment is needed to defend them. Our reading: Poker liquidity can reinforce the offering, although that advantage applies specifically to player-to-player games rather than all of Flutter’s products.

Growth opportunities

Flutter’s growth strategy includes attracting and retaining more players, developing products and expanding in regulated markets. The company expects additional U.S. states to legalize sports betting and iGaming over time, and plans to take its online offering into international markets with gambling cultures and tax frameworks that support a broad product range.

The company also uses acquisitions to add local brands. In fiscal 2025, it acquired Snai in Italy and a 56% interest in NSX, the Brazilian operator of Betnacional. It also acquired the remaining 5% non-controlling interest in FanDuel, bringing its holding to 100%, subject to the Fox Option. Flutter said Snai was migrated onto the Sisal platform in the summer of 2026 and that its market share subsequently rose above its pre-migration level.

Prediction markets are another area of investment. Flutter has integrated FanDuel Predicts with crypto.com and its FanDuel 1 app, and uses its sports-pricing capabilities to act as a market maker across exchanges. The company said prediction-market trading volumes almost trebled in October compared with July. It expects investment in prediction markets to continue at similar or higher levels.

Internationally, Flutter is targeting 5% to 10% annual growth and expects its cost programs to help protect adjusted EBITDA margins through regulatory and tax changes. These are company targets and expectations, not guaranteed outcomes.

Structural risks

• Regulation and licensing: Betting and gaming are heavily regulated, and rules differ across jurisdictions. Adverse changes or failure to obtain or renew approvals could affect Flutter’s operations. Brazil’s provisional ban led the company to restructure its local business.
• Taxes and customer acquisition: Higher gaming taxes affect costs, while competition for customers can require spending on promotions and marketing. Flutter said prediction-market operators’ spending was increasing media costs, and expects elevated U.S. marketing intensity to continue into 2027.
• Sports outcomes and seasonality: Betting revenue depends on the sporting calendar and results. Flutter said unfavorable sports results in the U.S. and internationally contributed to its reduced 2026 guidance. Jackpot timing can also affect gaming results.
• Technology and data: Flutter depends on its technology platforms and information systems. Disruptions, security breaches or failure to implement new systems could affect service. Privacy and data-protection obligations may also restrict data use or increase costs.
• Debt and acquisitions: Acquisitions increased long-term debt, and integrating acquired operations and systems can be difficult. Flutter had $12,266 million of outstanding long-term debt at December 31, 2025; it has paused its share repurchase program while prioritizing investment and deleveraging.
• Financial controls: Flutter previously identified deficiencies in internal control over financial reporting that constituted material weaknesses.

Bottom line

Our reading

Flutter combines consumer betting brands with shared technology, pricing and marketing capabilities, earning revenue from wagers, gaming and commissions across a range of markets. Our reading: Its scale and geographic reach support investment in products and new opportunities, but returns remain exposed to sports results, competition, taxes and regulatory changes. Its debt and spending commitments make cash generation and execution on cost savings important alongside growth.