(AsiaGameHub) – Flutter Entertainment’s strong start to the 2026 fiscal year has been tempered by the news that Amy Howe has stepped down as CEO of FanDuel.
The company announced a leadership transition in North America alongside plans for a “revitalisation programme” at FanDuel, aimed at addressing its “soft sportsbook” performance to bolster profitability.
This strategic shift is considered vital for FanDuel to maintain its leadership in the US iGaming sector and to enter the prediction markets space, where it aims to compete effectively against emerging rivals like Kalshi and Polymarket.
The focus on US operations dominated the analyst call for the NYSE/LSE-listed gambling firm, overshadowing the strong performance of Flutter International, which reported a 27% revenue increase to $2.54bn and an EBITDA contribution of $587m.
As it navigates changes in the US, Flutter highlighted its “global engine,” which is expected to be further strengthened in 2026 by growth in Italy and Brazil.
Group CEO Peter Jackson remarked: “Our performance in Italy has been extremely strong,” noting that the new Italian portfolio—comprising SISAL, SNAI, Betfair.it, and Pokerstars—now boasts 2 million active accounts.
“We are the clear number one operator online, outgrowing the market and our main competitors,” Jackson said, highlighting that SISAL has secured a 31% market share under Italy’s new online gambling framework.
“This performance is even more remarkable given the drag from the ongoing integration of the SNAI business,” with leadership aiming to become the outright market leader in Italy by the end of 2026.
Although Flutter has multiple growth drivers, analysts remained focused on the restructuring of FanDuel and its engagement with US consumers.
Peter Jackson and CFO Robert Coldrake addressed the FanDuel growth strategy, which remains under intense scrutiny due to shifting competitive dynamics in the US wagering market.
Improving sportsbook performance is a strategic priority, as Flutter noted declining KPIs related to “sportsbook softness.” Sportsbook handle fell by 9%, and sportsbook AMPs dropped by 6%, reflecting customer churn that first appeared in 2025.
Flutter stated that insights from FanDuel’s successful iGaming operations will be integrated into the sportsbook revitalisation plan. This includes introducing improved loyalty rewards, the “Bet Protect+” insurance feature, expanded Same Game Parlay options, and enhanced product personalisation.
Analysts repeatedly questioned the financial impact of entering the prediction markets sector, expressing concern that FanDuel might be drawn into a costly acquisition battle against existing operators.
In April, FanDuel launched its “consolidated One app,” which integrates its US sportsbook with its new prediction markets platform.
Coldrake confirmed that Flutter invested “circa $40m in Q1” on prediction market initiatives, describing it as an initial “testing and learning phase” focused on marketing, customer acquisition, and promotional mechanics. However, he cautioned that spending is expected to increase significantly in the second half of the year.
Despite fears of an escalating promotional war, management emphasized that the group would maintain financial discipline. “We will remain very disciplined in terms of our investment around prediction markets,” Coldrake stated, adding that Flutter would continue to evaluate spending against CAC and LTV metrics.
To support its entry into this space, leadership has allocated an investment budget of approximately $250m–$300m for developing its prediction markets offering in 2026.
Analysts also questioned whether FanDuel’s increased loyalty rewards and promotions were a defensive reaction to competition from prediction market operators in states where sportsbooks are not yet regulated.
Customer-led optimisation of FanDuel
Jackson dismissed the idea that Flutter was shifting its core margin strategy: “There’s no change in our strategy or posture in the business,” he said, framing the increased generosity as a return to the “customer-first approach” that has helped FanDuel lead the US market.
Jackson noted that products like Bet Protect+ have seen “twice the sub levels of engagement that we had expected,” and that new loyalty tiers and social betting promotions are already driving sequential improvements in sportsbook KPIs.
The discussion also covered Flutter’s broader sportsbook optimisation efforts, which have included the closure of FanDuel Picks, the discontinuation of FanDuel TV Racing, and the exit from the Mexican market via Betfair as of January 2026. Analysts asked if this signaled a wider rationalisation strategy.
Coldrake characterized these moves as “relatively easy from a capital allocation perspective,” noting that management aims to direct investment “towards the highest return areas.”
“This is a constant focus for us in terms of optimisation and efficiencies,” he added, stressing that Flutter’s priority remains “improving the economics of the core FanDuel sportsbook and igaming ecosystem.”
Keeping a cross-Atlantic balance
Only one question addressed international performance, with analysts seeking updates on the UK & Ireland following the migration of Sky Bet customers to Flutter’s new consolidated platform. Jackson identified Sky Bet’s sportsbook performance as “the biggest drag on performance in the UK,” though he noted that migration KPIs are now improving rapidly.
Jackson highlighted “the highest customer acquisition volumes for five years” at Sky Bet and revealed that Sky Gaming surpassed one million customers in March.
“We’ve now got great product for the Sky customers,” Jackson said, noting that the company is beginning to see positive results following the disruption caused by the migration.
Christian Genetski will now lead the transition in North America, assuming operational control of FanDuel following Howe’s departure. Jackson reassured investors that the leadership change is intended to improve execution rather than reflect strategic uncertainty.
“Christian Genetski has proved to be an exceptional leader,” Jackson stated. “He has been instrumental in scaling the FanDuel business to market leadership.”
Flutter remains confident that FanDuel has the structural advantages necessary to lead the next phase of US wagering, regardless of any disruption from prediction markets. Leadership maintains that Flutter is successfully executing its own strategy in both the US and international markets.
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