Peter Jackson: “Nevada is Protecting Its Interests”

This strategic pivot led to the surrender of its gaming license in Nevada. Despite a $789 million net loss primarily from a goodwill writedown in India and a market access fee payment to Boyd, the parent company of FanDuel affirmed its position as the leading US operator. The overall group revenue grew by 17% year-over-year.

FanDuel Predicts Unlocks New Markets

Flutter CEO Peter Jackson detailed the upcoming launch of a new product, FanDuel Predicts. The application, set to debut in December 2025 through a joint venture with the CME Group, aims to offer a compelling sports product in jurisdictions that have not yet legalized sports betting. This move immediately expands the potential user base for FanDuel across the US.

Jackson stated, “FanDuel Predicts unlocks an immediate growth opportunity by allowing us to offer a compelling sports product to the vast majority of the US adult population in states that do not currently have access to sports betting.”

The new app will also offer financial and cultural prediction markets in nearly all US states. It is designed to quickly acquire new users into the FanDuel system before state-level sports betting regulation might occur.

The product launch strategy involves close work with state regulators and tribal authorities to ensure a compliant, tailored approach for each jurisdiction.

Significant Investment in Prediction Strategy

The company outlined a substantial investment dedicated to building the new prediction market business. CFO Rob Coldrake estimated the incremental costs to adjusted EBITDA would be $40 million to $50 million in the fourth quarter of 2025.

This cost is expected to increase to between $200 million and $300 million throughout 2026. This spending reflects the company’s intent to secure a dominant position in this emerging market.

Jackson confirmed the company’s commitment to the new venture, stating, “Our investment will therefore be meaningful, while maintaining the disciplined approach that has served us so well since the inception of sports betting in the US.” The company anticipates introducing a Same Game Parlay (SGP) feature for the Predicts app early in the next year.

Nevada License Surrendered

The expansion into prediction markets directly influenced FanDuel’s decision to exit the Nevada market. During the call’s Q&A session, Peter Jackson confirmed the company’s choice to relinquish its gaming license in the state. This action aligns with a strategy to prioritize the significantly larger opportunity presented by the prediction market space.

Jackson explained, “We had a license in Nevada, but we didn’t have any retail or B2C operations there.” He added that while they were “sad to have to surrender the license,” this choice was necessary as both the state and the company protect their specific interests. The exit clears a regulatory path for the new FanDuel Predicts application.

Sportsbook Performance and Market Leadership

Despite the strategic shift, FanDuel reaffirmed its standing as the clear market leader for US sportsbook and iGaming operations. However, the third quarter saw some short-term challenges. Sportsbook revenue fell 5% year-over-year, impacted by customer-friendly NFL sports results in September and October. This effect was temporary, and performance improved significantly at the start of the fourth quarter.

Jackson acknowledged the market volatility, stating that while the results were impacted by competitor promotions early in the NFL season, FanDuel maintains “complete conviction in our pricing.” He emphasized the value of state-regulated betting as the most important long-term opportunity in the US.

In contrast to the sports betting dip, the iGaming segment performed strongly, with revenue increasing 44% year-over-year. This growth was driven by new content and platform improvements.