Published on: October 8, 2025, 04:09h.
Updated on: October 8, 2025, 04:09h.
- Flutter’s branding strengths, notably FanDuel, remain solid despite growth in prediction markets
- Analyst points to global reach and robust financial standing as additional assets
As concerns mount about the overlap between football and prediction markets, shares of Flutter Entertainment (NYSE: FLUT) have declined by 15.72% over the last month. However, one analyst asserts that the online betting titan holds the necessary brand strength to navigate these challenges.
In a report released on Wednesday, Morningstar analyst Dan Wasiolek stated that Flutter, the parent company of FanDuel, is well-positioned to seize opportunities in the growing realms of iGaming and online sports betting within the US. As part of a market duo with DraftKings (NASDAQ: DKNG), FanDuel benefits from a significant branding edge, boasting a revenue percentage ranging from 35% to 40% in operational states, according to Wasiolek.
“Flutter Entertainment has transformed its leading technology and product offerings into a globally recognized brand, creating a narrow competitive advantage across the US, UK, Australia, and other international locations, such as Italy,” remarked Wasiolek.
FanDuel ranks among the most valuable gaming brands globally, and Flutter’s international brands, including Betfair, Paddy Power, and Sisal, also enjoy substantial market shares. This is especially relevant in discussions about prediction markets, as Flutter can mitigate some risks through its global operations—an advantage typically absent for its competitor DraftKings.
Flutter’s Branding: Destined to Outperform Competitors
While some market analysts express that prediction platforms like Kalshi may impact Flutter and DraftKings’ earnings, it is important to highlight that expert opinions suggest the volume of prediction markets concerning football may be exaggerated. There is widespread agreement that FanDuel’s sports betting products, including multi-bets, significantly outperform those found on yes/no platforms.
Furthermore, Flutter’s branding prowess has been a decisive factor in outperforming competitors both domestically and internationally. Numerous businesses have entered the US sports betting market only to falter in previous years due to a lack of branding and financial capacity to match Flutter’s dominance.
“As smaller competitors continue to withdraw, Flutter’s competitive edge and financial stability allow it to acquire burgeoning digital gaming operators in various international regions, which it can then integrate with its top-tier products and risk management systems,” remarked Wasiolek.
The analyst pointed out that several existing, smaller domestic online sportsbooks are investing heavily to attract new users, yet this strategy has not significantly diminished FanDuel’s market share, underscoring the operator’s brand prominence as a critical asset.
Flutter’s Financial Strength Is Robust
Last year, Flutter announced plans to repurchase up to $5 billion in shares over the coming years — a figure Wasiolek expects could rise to $6 billion over four years. The company has consistently engaged in stock repurchases since that estimate, and the recent dip attributed to prediction markets may present a favorable opportunity for the operator to acquire shares at competitive prices.
A manageable debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio, alongside no immediate debt maturities and strong cash inflow, enables Flutter to reward investors as well as pursue growth through acquisitions.
“We view Flutter’s financial position as secure. Its debt-to-adjusted EBITDA ratio stood at 3.1 times in 2024. We consider this manageable, particularly since the company does not have substantial debt maturing until 2028, when $1.6 billion is set to be due,” concluded Wasiolek. “We anticipate no difficulties in servicing its total debt of $9.9 billion, given our forecasts show $15 billion in free cash flow generated for the company during 2025-29.”