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New Flutter CEO bets on FanDuel promotions to win customers as profits suffer
Flutter’s new chief executive, Dan Taylor, is betting that product changes and more generous rewards will turn rising FanDuel engagement into stronger profits. The strategy comes as Flutter’s third-quarter revenue and adjusted earnings missed analyst expectations, and its shares have fallen more than 60% this year.
FanDuel’s US sportsbook monthly players rose 9% and bet counts increased 15% in the quarter, but sportsbook revenue grew only 4% as promotional spending rose. Flutter reported revenue of $3.87 billion, up 2%, and adjusted EBITDA of $360 million, down about 25%; an $873 million non-cash impairment, mainly related to Brazil, contributed to a net loss of $1.15 billion. The company lowered its 2026 revenue midpoint by $300 million to $17.61 billion and its adjusted EBITDA outlook by $160 million to nearly $2.5 billion, while putting buybacks on hold as it pays down debt.
In short
- FanDuel engagement rose, while higher promotions weighed on sportsbook revenue.
- Flutter cut its 2026 forecasts after a weak quarter and Brazil impairment.
- Buybacks are paused while the company reduces debt.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
More generous promotions and product improvements could help FanDuel convert rising player numbers and betting activity into lasting loyalty and future revenue. Investing now may be reasonable if stronger engagement builds market share and gives the company a better base for profits once promotional spending eases.
The case against
The strategy risks spending more to attract activity that is not translating into comparable revenue growth, while earnings and forecasts are already weakening. With debt to reduce and buybacks paused, investors may reasonably favour tighter costs and clearer evidence that promotions generate durable, profitable customers.
Explained simply
Flutter is a global betting and gaming company, and FanDuel is its US sports betting and online gaming brand. Dan Taylor, who has recently become Flutter’s chief executive, is responsible for deciding how the company attracts customers and turns their activity into earnings.
Sportsbooks compete for customers with features and rewards, including promotional offers that can encourage people to place bets. These offers can bring in more players and betting activity, but they also cost money, so higher engagement does not automatically mean higher profits.
Flutter operates in several countries, and its results depend on both customer activity and costs across its markets. Investors watch its revenue, earnings and debt as signs of how well the business is performing and how much it can spend on growth or return to shareholders.