FanDuel’s sports betting arm saw revenue drop 15% year over year in the second quarter of 2026, as bettor-friendly outcomes tied to the FIFA World Cup and the New York Knicks’ NBA Finals win cut into the operator’s profits. Parent company Flutter Entertainment disclosed the figures in its Q2 earnings release, which also detailed the sportsbook and iGaming leader’s combined revenue for the period.
FanDuel and Flutter reported that overall U.S. revenue reached $1.683 billion for the quarter ending June 30, down 6% from a year earlier. Sports betting revenue alone declined 15%, while iGaming revenue climbed 14% to $577 million, a divide that highlights how the online casino side of the business is picking up the slack left by softer sportsbook results.
FanDuel remained the top operator in both categories, holding 39% of the U.S. sports betting market and 27% of iGaming, according to the earnings release. Average monthly players increased 8% during the quarter, suggesting engagement stayed strong even as sportsbook payouts worked against the company. Flutter’s outgoing chief executive, Peter Jackson, said the decline stemmed largely from favorable outcomes for bettors rather than any drop in customer activity.
Unfavorable sports betting net revenue came in around $21 million for the quarter, a sharp swing from a favorable $90 million posted in the same period last year. Flutter attributed the shift to the timing of sports results tied to changes in how the company handles promotional generosity. Adjusted EBITDA for the U.S. business was $119 million, ahead of market expectations but still 70% below Q2 2025 figures.
Sales and marketing expenses rose 61% year over year, a jump the company linked to its prediction market platform investments and to customer acquisition efforts during the World Cup. FanDuel also reported a 14% increase in structural revenue margin, which it credited to strong Same Game Parlay adoption throughout the tournament.
Jackson said the sportsbook improvement plan initiated after a rocky end to 2025 is showing results. Excluding the impact of sports outcomes, he noted that average monthly players, handle and revenue all improved sequentially during the quarter, pointing to progress on the operational issues that had shrunk FanDuel’s customer base heading into this year.
The earnings release also confirmed a leadership change at the top of Flutter. Jackson will step down as chief executive at the end of September, handing the role to Dan Taylor, currently president of Flutter and head of its international division, effective October 1. Jackson is expected to remain in an advisory capacity through the rest of the year to help with the transition during the NFL season, historically the busiest stretch for sportsbook operators.
Flutter’s broader results showed group revenue up 3% year over year to roughly $4.3 billion, aided by international growth and World Cup engagement, even as adjusted EBITDA across the company fell 45% amid higher taxes and marketing spend. FanDuel’s own prediction markets product, FanDuel Predicts, contributed revenue the company described as “not material” during the quarter but remains part of its longer-term strategy.
The results arrive during a difficult stretch for Flutter’s stock, which has fallen more than half its value over the first seven months of 2026 amid investor concerns about competition from prediction market platforms and questions about FanDuel’s near-term profitability. Despite the pressure, Flutter maintained that FanDuel’s market position remains intact heading into the fall, when football season typically drives the bulk of annual sportsbook activity.
Flutter also used the earnings release to outline a new cost transformation initiative aimed at generating $500 million in gross savings by 2029, which the company said would help offset inflation, known tax increases in markets like the United Kingdom, and continued investment in FanDuel’s U.S. sportsbook and iGaming operations.
