Flutter CEO Says Prediction Markets Aren’t Cannibalizing Sports Betting
Posted on: March 5, 2026, 11:35h.
Last updated on: March 5, 2026, 11:35h.
- In states where online sports betting is legal, bettors embrace that form of wagering over prediction markets
- Flutter CEO Jackson highlights Missouri launch as an example
- Says company has “real confidence” it’s not seeing cannibalization
When given a choice between traditional online sports betting (OSB) and prediction markets, it appears bettors will lean into the former over the latter.
Flutter Entertainment (NYSE: FLUT) CEO Peter Jackson made comments to that effect yesterday at the Morgan Stanley Technology, Media & Telecom Conference, noting the FanDuel parent’s data “gives us real confidence that we’re not seeing cannibalization in states where you’ve got regulated OSB.” He highlights the recent launch of sports betting in Missouri as an example of the sports wagering vs. prediction markets rivalry tilting in favor of the former.
I think a great example of that is the recent launch we had in Missouri, where we saw 1 in 20 of the population sign up to FanDuel within the first month of us being live in the state,” said Jackson. “I think good indication of how people would prefer to take a regulated OSB over prediction markets.”
Jackson’s comments jibe with research seen across the industry. For example ARK Investment Management recently noted that in states where DraftKings (NASDAQ: DKNG) — Flutter’s primary US rival — offers OSB, the deposit share of prediction market giant Kalshi is low.
Why Bettors Prefer OSB Over Prediction Markets
Jackson said there are two prominent reasons as to why bettors prefer OSB to prediction markets. One of which is operators’ ability to be more generous with OSB enticements and promotions than the prediction market industry can be.
That is to say FanDuel and its peers, if they see fit, can spend lavishly to attract and retain customers, whereas FanDuel Predicts and other yes/no platforms are somewhat hamstrung on the amount of promotional spending they can engage in.
Then there’s the important point about breadth of product offering. Prediction markets have spread their wings in the sports arena, offering increasingly larger menus, including what amount to be parlays and player props, but the sports betting industry still offers the more extensive suite of options for bettors.
On a somewhat related note, Jackson said FanDuel will be rolling out a loyalty program in the second quarter.
Flutter’s Prediction Market Balancing Act
With the launch of FanDuel Predicts last December, Flutter is a player in the US prediction markets spacing, drawing on experience notched with Betfair in Europe years ago. The company is planning to spend up to $300 million this year on its US prediction markets push.
There’s a need to tread lightly in some states where sports betting isn’t legal. In those markets, prediction market operators are offering sports derivatives, drawing the ire of state policymakers and regulators. Famously anti-gaming Utah is an example as it’s already locked in a legal battle with Kalshi. Jackson acknowledges Utah will never approve OSB, though it appears his preference is for states that don’t currently have regulated OSB to eventually change their perspectives on that front.
“We have to think about the opportunities in Utah with that in mind,” he said at the conference. “In California, we hope that at some stage, there so — we can see some regulated OSB come to market. So that gives us a different perspective in terms of the ability to acquire customers and better cross-sell them in the future.”
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