Publication Date: May 12, 2026, 11:37 AM.

Updated on: May 12, 2026, 11:37 AM.

• Flutter CEO Peter Jackson addresses FanDuel’s promotional expense issues affecting results
• Does not confirm if this led to the recent leadership change
• He expresses optimism regarding prediction markets

Peter Jackson, the CEO of Flutter Entertainment (NYSE: FLUT), noted that challenges related to FanDuel’s promotional spending had an impact on the sportsbook’s performance in the fourth quarter, resulting in a lower-than-expected customer base as they entered this year. However, he refrained from stating that this was the sole reason behind recent shifts in leadership within the organization.

These observations were made during a conference call led by JPMorgan analyst Daniel Politzer. Flutter’s announcement of Amy Howe’s exit from her role as CEO of FanDuel – a position she occupied for nearly five years – surprised the gaming sector last week. While there is unverified speculation suggesting Howe may have been scapegoated for Flutter’s declining stock price, Jackson chose not to comment on this. He did, however, emphasize the importance of improving FanDuel’s customer generosity program.

“We observed very high margins in Q4, which supports our view on potential gross margins, but we didn’t execute our generosity strategy as planned,” remarked Jackson during the JPMorgan call. “Consequently, we commenced this year with a smaller customer base than we expected.”

Last month, FanDuel rolled out a rewards program, and Jackson noted there has been a favorable response to this initiative, asserting that the operator is now equipped to enhance discussions regarding customer generosity.

Positive Developments for FanDuel

Howe’s exit wasn’t extensively discussed during the JPMorgan conference call, with her name not mentioned at all. Nonetheless, Flutter shareholders are seeking clarity and positivity, particularly as the stock has dropped by 54.25% year-to-date.

“We’re experiencing strong engagement during the NBA playoffs, which is one of our key sports and historically our top revenue source towards the end of the calendar year,” stated the CFO during the call.

Coldrake emphasized that Flutter is not making ambitious assumptions about the FanDuel business. However, he did indicate a “gradual improvement” anticipated throughout 2026, as customer generosity and product enhancements may facilitate modest growth in betting volume by year-end.

Flutter Profitable in Prediction Market Making

In terms of prediction markets, FanDuel has only been engaged for a few months, yet Jackson noted that it has already found profitability in this segment, claiming, “We might be among the few profitable entities in prediction markets at this moment.”

Market making for event contracts is seen as a logical extension for operators like FanDuel, given their established expertise in sports trading, presenting significant long-term growth potential, especially if prediction markets achieve the success some industry analysts predict.

“We can utilize much of our pricing accuracy in both sectors, presenting a natural opportunity for well-positioned businesses like ours to excel in market-making,” Jackson stated during the JPMorgan call. “This is particularly true where we can leverage our expertise with parlays to explore combo opportunities, an area where we possess considerable knowledge.”