Flutter Loses CEO As It Spends More To Seduce Gamblers

Flutter will replace its longtime CEO this fall as its FanDuel subsidiary urgently spends more on promotions intended to reactivate gamblers and reduce churn.

Peter Jackson will step down Sept. 30 after nearly nine years as CEO, Flutter announced alongside its second-quarter financial results. Dan Taylor, Flutter’s president and international CEO, will replace him Oct. 1. The move follows FanDuel CEO Amy Howe’s exit earlier this year. FanDuel is Flutter’s flagship U.S. gambling business.

Shares of the company fell approximately 10% following the news of Jackson’s departure and the company’s second-quarter results. The stock was down about 65% over the prior 12 months.

Jackson’s departure also comes ahead of the 2026 NFL season, the business’s most lucrative stretch.

The end of the last NFL season was highly profitable for FanDuel in the short term but damaging to customer retention. A long sequence of weeks in which customers lost unusually large amounts depleted gambling balances and contributed to customer churn.

Flutter later acknowledged that it failed to respond with enough promotional offers to keep users gambling. Flutter’s proposed solution is to spend more on bonusing and direct marketing.

Second Quarter Results

By several profitability measures, it was a poor quarter for Flutter:

• Flutter posted a $296 million quarterly net loss, compared with a $37 million profit a year earlier.
• Adjusted EBITDA fell 45%, to $508 million.
• U.S. adjusted EBITDA plunged 70%, to $119 million.
• Flutter cut full-year revenue guidance by $395 million and EBITDA guidance by $210 million.
• U.S. sales and marketing expenses rose 61%, to $353 million.

FanDuel’s U.S. revenue fell 6% during the second quarter, partly because sports results were considerably less profitable for the company than they had been a year earlier.

Flutter described those sports results as a financial “headwind.” Among the outcomes that reduced the company’s gambling revenue was the New York Knicks’ successful June playoff run.

The decline did not reflect weaker gambling activity, according to the firm. The amount wagered per NBA Finals game increased 40% and the number of active customers rose 25%.

FanDuel also said 2.3 million customers used its platform during the FIFA World Cup.

Chief Financial Officer Rob Coldrake said July produced the highest number of active U.S. customers in FanDuel’s history. Major League Baseball betting also reached record weekly levels.

More Activity on FanDuel

Flutter reported 3.84 million average monthly U.S. players during the quarter, up 9% from 3.52 million a year earlier. Flutter’s U.S. sportsbook generated $1.04 billion in revenue from nearly $12 billion wagered. Sportsbook revenue fell 15%, despite the amount wagered increasing 2%.

FanDuel is spending more on promotions, after acknowledging that it could have done more to keep customers gambling. That spending is expected to equal roughly 6% of sportsbook handle during the second half of the year, up from the company’s previous plan.

The company has also expanded its FanDuel Rewards Club to 70% of customers and introduced features such as Bet Protect+ and Super Sub. Flutter said the loyalty program is boosting engagement.

Coldrake acknowledged that FanDuel could have generated greater short-term profits by offering customers fewer promotions. Instead, management believes the additional incentives will maximize long-term shareholder value.

US Online Casino Gambling

Online casino revenue continued to grow, with $577 million in revenue in the quarter, up 14% from $507 million last year. FanDuel Casino is available in five states, compared to 24 for its sportsbook.

U.S. “other revenue,” a category that includes prediction markets, fantasy sports, and racing, was $67 million. Flutter said new market-making revenue more than offset declining fantasy-sports revenue.

Altogether, Flutter’s US revenue was $1.68 billion, down 6% from $1.79 billion in Q2 2025.

India Closure Drives Global Player Decline

Flutter reported 14.29 million average monthly players globally, down 11% from 15.98 million.

The company attributed a 17-percentage-point drag to the closure of its real-money gaming operations in India.

On a simple adjusted basis, that suggests Flutter’s player base outside the India closure grew approximately 6%.

Flutter reported $4.33 billion in total quarterly revenue, up 3% year over year.

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