FanDuel continued to be a strong and growing revenue generator for parent company Flutter during the third quarter of 2026.
- FanDuel’s revenue grew by 6%, led by an 8% spike in iGaming.
- Flutter’s overall net loss grew because of marketing, tax implications in the U.K., and the Brazilian betting ban.
- Early sports betting outcomes have been unfavorable so far in Q4 in both the U.S. and International.
The global gaming operator reported on Wednesday that U.S. revenue grew 6% to $1.45 billion, with FanDuel’s sports betting accounting for a 4% year-over-year increase and iGaming spiking 8%. Those areas were well ahead of the company’s group revenue rise of 2%.
This is despite recently appointed Flutter CEO Dan Taylor admitting to shareholders “sports results went against us in the quarter.”
FanDuel’s Adjusted EBITDA reached $3 million, down 94% from the previous Q3, after the company invested more into its prediction market product and launched in the newly regulated Canadian province of Alberta during the three-month period that ended Sept. 30.
“Our Q3 performance gives me confidence that we are moving in the right direction,” said Taylor. “In the U.S., our sportsbook improvement plan is delivering early but tangible progress in customer engagement and performance.”
Staying ahead in the U.S.
Taylor told investors that the launch of the FanDuel Rewards program and new products helped push the sportsbook performance ahead of expectations during a period with a 13% year-over-year handle increase. Average monthly players rose 9% compared to Q3 2025, and FanDuel remained at the top of the U.S. market share.
FanDuel Casino AMPs grew by 24%, and the revenue growth came from “competitive dynamics" and the U.S. market’s “maturity curve,” Taylor said.
Flutter noted that FanDuel’s prediction market capabilities “substantially improved” during Q3, but Taylor said that while prediction markets still have little impact on sports betting activity, the industry is seeing a rise in marketing costs associated with trading exchanges.
Enjoying Covers content? Add us as a preferred source on your Google account“The duration of this trend will depend in part on how the regulatory landscape develops, but at this early stage, we expect our marketing intensity to continue in 2027 at levels similar to this year,” Taylor said.
Business changes
Flutter said group revenue of $3.87 billion was down because of the “adverse” impact of International sports results compared to the previous third quarter.
The gaming operator attributed a group net loss of $1.15 billion, up from $789 million in Q3 2026, to an $873 million non-cash impairment charge in Brazil, which recently banned online betting.
International’s $2.42 billion was flat year over year, while Adjusted EBITDA fell 14% due to controversial gaming tax increases in the U.K. that led Flutter to cut 1,400 jobs last month.
While Flutter’s AMPs spiked 12% year over year in the U.S., they were down 8% in the International segment behind the exit in India.
Guidance reduction
Taylor said early sports betting outcomes have been unfavorable so far in Q4 in both the U.S. and International, but Flutter is backing off its full-year guidance because of the Brazilian market impact.
Group revenue decreased by $300 million after Q3, giving the company a projected $17.61 billion in 2026. Adjusted EBITDA was reduced by $160 million to $2.49 billion.
“Online betting and gaming is still a relatively young industry, with significant room to grow as markets develop and customer behavior evolves,” Taylor said. “Flutter enters its next phase from a position of strength. We have leading businesses in many of the world’s most attractive markets, great brands and scale advantages that few others can match. Our job now is to make more of those advantages.”
