- FanDuel Predicts recorded $119 million in quarterly trading volume, up 102% from the previous quarter.
- Flutter plans further investment in prediction markets while pausing share buybacks and cutting costs.
- Its $1.148 billion net loss included an $873 million non-cash impairment related to Brazil.
Betfair and FanDuel owner Flutter Entertainment is pressing ahead with its Crypto.com-linked prediction-market expansion despite reporting a billion-dollar quarterly loss.
FanDuel Predicts’ trading volume more than doubled during the third quarter, although Flutter said its revenue remained “not material.”
FanDuel Prediction Trading Reaches $119 Million
In its Nov. 4 earnings release, Flutter reported $119 million in FanDuel Predicts trading volume, up 102% from the previous quarter.
In his letter to shareholders, Flutter CEO Dan Taylor identified prediction markets as a priority despite the group’s wider financial pressures.
“Prediction markets represent a significant incremental growth area.”
Taylor linked improvements in FanDuel’s offering directly to its Crypto.com relationship:
“The nationwide launch of our FanDuel One App and the transition of all sports contracts to Crypto.com, means we believe we now have a much more competitive sports offering that customers like and are increasingly engaging with.”
The strategy also involves establishing relationships with customers in states where FanDuel does not operate a conventional sportsbook.
Taylor said the company must use its brand to “acquire customers and build a meaningful database in non-sportsbook states.”
However, he acknowledged that investment decisions depend partly on how regulation develops.
“Our priority is to build a strong position now, investing with discipline and maintaining flexibility to adapt quickly as regulation develops.”
Where Crypto.com Fits Into FanDuel’s Expansion
The crypto connection concerns the infrastructure supporting event contracts.
FanDuel announced its expanded Crypto.com partnership in June, adding sports, entertainment and combination contracts through the company’s CFTC-regulated exchange and clearinghouse.
Those products expanded the existing offering, which included CME Group contracts.
In its August financial update, Flutter said it had agreed with CME to move all FanDuel Predicts sports and novelty contracts to Crypto.com while retaining access to CME’s financial markets.
Flutter also outlined a customer acquisition strategy in which it would reach people in states before conventional online sports betting is regulated there.
Flutter Wants Customers — and a Market-Making Business
Flutter is pursuing two opportunities in prediction markets.
Alongside its consumer platform, it supplies market-making services, posting prices and providing liquidity so other participants can trade.
During the earnings call, CEO Dan Taylor said that activity helps fund customer acquisition for prediction-market customers.
CFO Rob Coldrake reiterated expectations for around $50 million in market-making revenue and $40 million in adjusted EBITDA during 2026.
Those forecasts focus on Flutter’s market-making business, rather than revenue from the FanDuel Predicts consumer platform.
Taylor nevertheless maintained that conventional sportsbooks remain competitive:
“I believe sportsbooks offer a superior proposition versus prediction markets.”
He described customer acquisition through FanDuel Predicts as a longer-term undertaking, saying:
“We need to build, leverage the brand for the long-term franchise.”
Brazil Write-Down Drives Billion-Dollar Loss
Flutter’s quarterly net loss reached $1.148 billion, compared with $789 million a year earlier.
The results included an $873 million non-cash impairment related to Brazil following difficult trading conditions and the country’s prohibition on fixed-odds sports betting and online gaming.
Flutter decided to close Betfair’s Brazilian operation and concentrate on Betnacional if the market returns.
Separately, its UK and Ireland restructuring proposals put up to 1,400 roles at risk across the division and supporting overseas operations.
Flutter has also paused share repurchases while prioritizing investment and debt reduction.
However, Coldrake said prediction-market investment could continue at similar or higher levels in 2027, leaving management with the challenge of demonstrating that growing participation can deliver returns.
