Flutter CEO Says ‘Generosity’ Dragged FanDuel Results, Bullish on Prediction Markets
Posted on: May 12, 2026, 11:37h.
Last updated on: May 12, 2026, 11:37h.
- Flutter CEO Jackson says issues around generosity weighed on FanDuel results
- Doesn’t say if that prompted recent leadership change
- He’s constructive on prediction markets
Flutter Entertainment (NYSE: FLUT) CEO Peter Jackson said issues with FanDuel’s promotional spending weighed on the sportsbook giant’s fourth-quarter, creating a scenario where the operator entered this year with a smaller-than-expected customer, but he stopped short of saying that was the primary reason for a recent leadership at the company.
Jackson made the remarks on a Monday conference call hosted by JPMorgan analyst Daniel Politzer. Last week, Flutter stunned the gaming world when it announced the departure of Amy Howe as chief executive officer of FanDuel, a role she held for nearly five years. There’s unconfirmed speculation that Howe was made a “fall woman” for Flutter’s struggling share price. Jackson didn’t speak to that, but he acknowledged FanDuel needs to get its customer generosity program right.
So we saw very high margins in Q4, which, to some extent, supports our view of where our gross margins can get to, but we didn’t execute well on generosity,” said the Flutter CEO on the JPMorgan call. “So we ended up starting this year with a smaller customer base than anticipated.”
FanDuel launched a rewards program last month and Jackson said there’s been positive response to that effort, adding the operator has the tools needed “for being on the right side of the discussions we have with our customers around generosity.”
Green Shoots for FanDuel
Howe’s departure wasn’t discussed at length during the JPMorgan call. In fact, she wasn’t even mentioned by name, but with the stock down 54.25% year-to-date, Flutter shareholders are looking for answers and signs of positivity.
At FanDuel, there are some encouraging signs. Flutter CFO Rob Coldrake there was evidence of customers returning to FanDuel during the NCAA Tournament (late first quarter/early second) and that momentum has been retained into the NBA playoffs.
“We’re getting some real good engagement behind NBA, which is clearly one of our key sports, actually our top revenue spot when you look at calendar year-end,” said the CFO on the conference call.
Coldrake added Flutter isn’t making “heroic assumptions” around the FanDuel business, but he did signal “gradual improvement” over the course of 2026, noting some generosity and product efforts could stoke a modest improvement in handle by the time this year draws to a close.
Flutter Already Profitable in PM Market Making
On the prediction markets front, FanDuel has only been in the game a few months, but as is the case with one of its sportsbook competitors, the operator is already finding opportunity in market making. Jackson said FanDuel is already profitable in prediction markets market making, noting “we’re probably one of the few people who’s making any money in our prediction markets at the moment.”
Event contracts market making is seen as a natural progression for operators such as FanDuel due to their established competencies in sports trading and it’s one with long-term growth potential, particularly if prediction markets reach the heights some market observers believe are possible.
“And we can leverage a lot of our pricing accuracy capabilities in both areas. So there’s a natural opportunity that the businesses that are best placed like we are and have the highest gross margins ought to be very good in the market-making opportunity position,” said Jackson on the JPMorgan call. “And that’s why we’re leaning in heavily into it, where we can particularly leverage our capabilities around parlays to get into the combo space. And that is an area where we have a lot of expertise.”
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