Flutter CEO addresses cannibalization fears as sports betting stocks hit multi-year lows amid prediction market surge

CEO Peter Jackson denies prediction markets are hurting FanDuel’s sports betting handle despite Flutter stock hitting a 4-year low and a $250M investment plan.

By: AXL Media

Published: Mar 4, 2026, 7:49 AM EST

Source: The information in this article was sourced from IGB

Market reaction and stock performance

Flutter Entertainment, the parent company of FanDuel, experienced a sharp market correction following its latest earnings call, with shares plunging as much as 15 percent. The sell-off has brought the company’s stock near its May 2022 lows of $96 per share, a stark contrast to the high of $309 recorded in August 2024. This downward trend is not unique to Flutter; industry rival DraftKings has faced similar pressure. Analysts suggest that the rise of event contracts and prediction markets has created a volatile environment for traditional sports betting operators, leading to a 54 percent decline in Flutter’s value over the last 12 months.

Executive stance on cannibalization

During the earnings call, CEO Peter Jackson was questioned extensively regarding the potential for prediction markets to "cannibalize" or steal volume from traditional sports betting handles. Jackson reported that a comprehensive internal review found no evidence of material cannibalization. He argued that the total addressable market for prediction markets, which some forecasts suggest could reach $1 trillion by 2030, far outweighs any minor shifts in existing sports wagering. Despite these assurances, the 36.8 percent decline in Flutter's stock during February 2026 indicates that investors remain skeptical of the transition.

Strategic investment in FanDuel Predicts

To capitalize on the growing asset class, Flutter has committed to investing between $250 million and $300 million in FanDuel Predicts for the 2026 fiscal year. CFO Rob Coldrake indicated that the majority of this spending is slated for the second half of the year. Unlike some competitors who have already committed to proprietary market-making services to generate trading fees, Flutter is currently only weighing its options for a dedicated market-making arm. This cautious approach to infrastructure development comes as the company focuses on leveraging its existing pricing capabilities within the prediction space.