Published on: December 22, 2025, 07:53h.

Updated on: December 21, 2025, 06:55h.

• Flutter Entertainment stands out as one of 10 stocks recommended by the financial journal for 2026.
• It is the sole gaming stock featured on this list.
• The shares of the FanDuel parent company have fallen by 14% in 2025.

Despite a series of favorable football outcomes for bettors and the rise of prediction markets, Flutter Entertainment (NYSE: FLUT) has seen its stock performance falter this year. However, some market analysts believe that the stock may be on the verge of recovery in 2026.

The gaming giant has earned its spot among the 10 stocks that Barron’s advises investors to hold in 2026, alongside well-known brands like Amazon (NASDAQ: AMZN) and Walt Disney (NYSE: DIS). This endorsement is particularly valuable for Flutter investors, as last year’s recommended stocks from Barron’s delivered an impressive average return of 27.9%, greatly surpassing the S&P 500’s 15.3% growth.

Key to the bullish outlook on Flutter stock is the belief that the market may have overreacted to the competitive threat from prediction markets. In simpler terms, offerings from platforms like Kalshi aren’t seen as competitive compared to FanDuel’s expansive sports betting options.

“In the realm of sports betting, prediction markets can’t match FanDuel when it comes to live betting, prop bets—like individual player bets in football or basketball—and multi-outcome parlays, which tend to be particularly lucrative for FanDuel,” Barron’s reports.

Flutter is the sole gaming entity on the financial journal’s list of stocks to watch for 2026.

Potential Boost for Flutter Stock From Prediction Markets in 2026

With its European prediction markets experience from Betfair, Flutter is well-positioned to make a significant entrance into the US market, and plans are already in motion to accomplish this.

“As of this morning, FLUT has not yet introduced a competitive prediction product, despite earlier expectations for FanDuel to do so before DKNG,” remarked Truist Securities analyst Barry Jonas in a note dated December 19. “We anticipate the launch of FanDuel Predicts to be imminent. Notably, Fanatics launched their prediction product in 24 states a fortnight ago.”

FanDuel Predicts is anticipated to mirror the offerings from DraftKings and Fanatics, with Flutter opting not to provide sports event contracts in states where it already holds sports betting licenses. However, it plans to make these derivatives available in states including California, Florida, Georgia, and Texas.

Evaluating Prediction Market Scenarios for Flutter and Its Competitors

Jonas outlines several potential scenarios affecting sports event contracts. One scenario involves the Supreme Court ruling in favor of the permissibility of these contracts, potentially positioning DraftKings and FanDuel as leaders in the market. The most favorable outcome would be a court hearing scheduled for next year.

Conversely, if sports event contracts are deemed illegal, DraftKings and FanDuel would likely revert to their standing as the dominant operators in US sports betting. A third scenario represents a waiting period that Flutter and its competitors might prefer to avoid.

“As we await legal clarity, there is a risk that in the interim, other sports prediction platforms, such as Kalshi, Robinhood, and Coinbase, could gain significant market share,” Jonas concludes. “Meanwhile, it’s possible that DKNG and FLUT may have to withdraw their sports prediction products from states that clarify they view prediction markets as illegal, especially if additional regulators strengthen their stance.”