TLDR
- FanDuel CEO Amy Howe is leaving and will be replaced by President Christian Genetski as Flutter restructures its U.S. management team
- Flutter Q1 revenue hit $4.3 billion, up 17% year-over-year, but U.S. sportsbook revenue grew just 1% while iGaming surged 19%
- FanDuel’s average monthly players dropped 6% and sportsbook handle fell 9%, partly blamed on customer-friendly NFL results
- FanDuel Predicts expanded nationwide with prediction market contracts now live in 18 non-sportsbook states including California, Texas, and Florida
- Flutter lowered its full-year 2026 guidance, now expecting revenue of $18.3 billion and adjusted EBITDA of $2.87 billion
Flutter Entertainment reported its first quarter 2026 earnings this week, and the biggest headline was a leadership change at FanDuel. CEO Amy Howe is stepping down from the role.
FanDuel President Christian Genetski will take over as CEO. Flutter also promoted its International CEO Dan Taylor to a newly created role of President of Flutter Entertainment.
Group CEO Peter Jackson said the changes are meant to keep the company “as agile, focused, and well-positioned as possible.” He told analysts that “now is the right time for us to put in place new leadership in the business.”
Jackson stressed there is “no change in our strategy or posture of the business.” The restructuring is focused on sharpening execution in the U.S. sportsbook market.
Flutter reported group revenue of $4.3 billion for Q1, a 17% increase compared to a year ago. Adjusted EBITDA came in at $631 million, up 2%.
U.S. revenue reached $1.76 billion, up 6%. But the numbers underneath told a more complicated story.
Sportsbook revenue grew just 1% year-over-year to $1.14 billion. iGaming revenue, on the other hand, jumped 19% to $564 million.
Sportsbook Struggles Traced to NFL Season
FanDuel’s sportsbook entered 2026 with a smaller customer base than expected. Average monthly players fell 6% during Q1, and sportsbook handle dropped 9%.
Jackson pointed to “customer-friendly” NFL results in late 2024 as a key factor. High gross revenue margins during that stretch hurt customer activity and drove some bettors away.
U.S. adjusted EBITDA fell 26% to $119 million. Flutter said higher costs from prediction market investment and new-state launches also weighed on profits.
The company said it has launched a “sportsbook improvement plan” to reverse the slide. That includes expanded same-game parlay options, a new loyalty program, and a wager insurance product called BetProtect+.
Jackson said the early signs are encouraging. He noted that player counts, handle, and revenue margins all improved as the quarter progressed.
Flutter also has World Cup-related soccer features planned for later this year to boost engagement.
Prediction Markets Expand as Legal Questions Linger
FanDuel Predicts rolled out nationwide during Q1 for financial, economic, and commodities contracts. Sports-event contracts are now available in 18 states that do not have legal sportsbooks, including California, Texas, and Florida.
Flutter launched a “One App” in April that gives users access to either sports betting or prediction markets depending on what their state allows.
The company said it plans to launch a market-making platform in the coming months. Jackson said Flutter’s pricing technology could help power that effort.
Flutter expects prediction market investment losses to land toward the upper end of $250 million to $300 million in adjusted EBITDA impact. CFO Rob Coldrake said spending will increase in Q2 around the FIFA World Cup and again in Q3 for the NFL season.
Jackson said prediction markets are not cannibalizing the sportsbook business. He noted the two products attract different customer types, with prediction market users skewing younger and more entertainment-focused.
Flutter lowered its full-year 2026 revenue guidance to $18.3 billion from $18.4 billion. Adjusted EBITDA guidance dropped to $2.87 billion from $2.97 billion.
Net income for Q1 fell 38% to $209 million. Diluted earnings per share came in at $1.23, down 22%. The company pointed to higher interest expenses, increased depreciation, and prediction market spending as factors.
Flutter ended Q1 with leverage of 3.7x and said it has returned $190 million to shareholders through its buyback program through May 1.
