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Flutter is pursuing prediction markets through both FanDuel Predicts and a separate market making operation, giving the company two ways to earn from the sector while courts decide how federal and state rules apply.
Good to Know
Flutter sees FanDuel Predicts primarily as a way to build customer relationships outside legal sports betting states. If states such as California or Texas later approve online sportsbooks, Flutter could introduce those users to FanDuel Sportsbook.
At the same time, Flutter is selling its pricing expertise to other prediction platforms. The company started market making during Q2 and later integrated with the CFTC regulated Crypto.com infrastructure. Flutter expects the operation to generate about $50 million in revenue during 2026.
Departing CEO Peter Jackson said during an Oppenheimer fireside chat that either regulatory outcome can work for Flutter.
“I’ve always stated that I think whatever happens, the outcomes are either good or great for us,” Jackson said.
A court outcome favoring prediction markets would keep FanDuel available in large states without regulated online sports betting. However, tighter state control could reduce the regulatory difference between prediction exchanges and sportsbooks, an outcome Jackson believes would favor the established FanDuel betting operation.
Flutter also plans further FanDuel Predicts upgrades. Its Q2 roadmap includes deeper sports liquidity through Crypto.com and a second version of the unified app using FanDuel Sportsbook technology. The company expects that rollout to start around the NFL season, with further improvements planned through Q4.
Combination contracts already represented more than 10% of FanDuel Predicts volume following their June launch, according to Flutter. The company has added customizable combinations across MLB, WNBA and tennis after using them during the World Cup.
Jackson also sees direct value in selling Flutter pricing capabilities rather than keeping them exclusively within FanDuel.
“I’d rather directly monetize it,” Jackson said. “I think we can make very good returns on it.”
Legal uncertainty remains central to the strategy. Prediction markets operate federally through CFTC regulated exchanges, while several state gaming regulators argue that sports event contracts amount to sports wagering subject to state law.
“What we would like to see is clarity,” Jackson said. “Whatever happens, I think we’re very well positioned.”