Prediction markets are becoming a much bigger part of FanDuel’s future than many people expected a few months ago. Flutter Entertainment spent a large portion of its latest earnings discussion discussing FanDuel Predicts, market-making, and long-term expansion plans tied directly to event-based contracts. From where we sit, this was one of the clearest signs yet that major sportsbook companies are no longer just watching prediction markets from the sidelines.
What stood out most is that Flutter is still willing to spend aggressively here, even though FanDuel Predicts barely generated meaningful revenue in the first quarter. That tells you the company believes the bigger opportunity is still ahead rather than right in front of them today.
Flutter is Playing a Long Game
FanDuel Predicts is still in a relatively early phase, though Flutter clearly sees it as more than a side project. The company confirmed it still expects roughly $300 million in investment losses tied to prediction markets during 2026 while continuing to ramp up the product. That sounds aggressive at first glance, especially considering executives described first-quarter revenue as “immaterial.”
At the same time, Flutter is framing prediction markets less as a short-term money maker and more as a customer-acquisition tool. The company believes these products can help FanDuel reach users in states where traditional online sportsbooks are still unavailable. That strategy already shows up in the rollout itself. FanDuel Predicts currently offers sports event contracts in states without legal online sportsbooks while routing sportsbook users in regulated states back into FanDuel’s traditional platform.
The NFL and World Cup are the real targets
Flutter executives made it pretty obvious that the current version of FanDuel Predicts is more of a testing ground than the finished product. The company repeatedly pointed toward the NFL season and the upcoming World Cup as the major milestones for a broader push later this year. CEO Peter Jackson described the first quarter as mostly focused on testing promotions, customer acquisition, and product functionality.
Flutter said March Madness produced encouraging app download numbers after experimenting with signup offers and sports-focused contract expansion. The larger rollout appears to be scheduled for the second half of the year, once the company feels more comfortable with the overall experience. That timing matters because football season remains the biggest window for customer acquisition in U.S. sports.
Market Making Could Change the Economics
One of the more interesting parts of the earnings call was Flutter openly discussing market-making. The company revealed it had already begun testing market-making services on another prediction market platform and plans to launch its own market-making system in the coming months. That matters because it changes how FanDuel participates in these markets.
Instead of simply acting as a platform connecting users, Flutter could also directly provide liquidity and help shape pricing around combo-style contracts. Executives repeatedly mentioned combo products as a major focus moving forward. From a business perspective, that is important because Flutter believes market making is where a much larger share of long-term profitability exists.
Leadership Changes Add Another Layer
The timing becomes even more interesting because this push to the prediction market is happening during a leadership transition. FanDuel CEO Amy Howe recently exited the company, with Christian Genetski stepping into a larger leadership role.
Genetski has already been one of FanDuel’s more public voices around prediction markets, especially when discussing regulatory clarity and expansion plans. That could signal Flutter wants prediction markets more tightly integrated into FanDuel’s broader long-term strategy rather than operating as a separate experimental product.
The Trade Handle Prediction Markets Take
Flutter’s earnings call showed just how seriously major operators are treating prediction markets. FanDuel Predicts may not be generating major revenue yet, though the company is clearly building toward something much larger around sports and national expansion. The most interesting part is probably the market-making angle.
That suggests Flutter is thinking beyond simple event contracts and toward a much deeper exchange-style ecosystem. At the same time, the legal uncertainty still hanging over sports-related prediction markets remains a massive variable. The next few months could end up shaping whether FanDuel Predicts becomes a niche side product or a major pillar of FanDuel’s future business.