FanDuel, a Flutter Entertainment brand, announced its decision to leave the American Gaming Association (AGA) on November 18, 2025, after the association signaled it would exclude members that offer prediction markets. The move aligns with Flutter’s strategy to launch FanDuel Predicts, a partnership with the CME Group that will bring event‑based contracts to U.S. consumers in December 2025.
The decision follows Flutter’s Q3 2025 earnings, where the group reported revenue of $3.79 billion, up 17% year‑over‑year, driven by strong iGaming growth and acquisitions of Snai and Betnacional. Adjusted earnings per share rose 29% to $1.64, beating analyst expectations of $0.79 by $0.85, a 107% surprise. The company’s net loss widened to $789 million, largely due to a $556 million non‑cash impairment related to regulatory changes in India and a $205 million payment to Boyd Gaming for U.S. market access.
In the U.S. segment, revenue increased 9% to $1.07 billion, with iGaming up 44% and sportsbook revenue down 5%. The decline in sportsbook earnings, which fell 12% to $51 million, reflects customer‑friendly odds and intensified competition. International revenue grew 21% to $2.72 billion, supported by the acquisitions mentioned earlier. Adjusted EBITDA for the quarter was $478 million, a 6% increase, but the margin slipped 130 basis points to 12.6% due to higher U.S. operating costs and investment in the new prediction‑market platform.
Flutter cut its full‑year 2025 revenue guidance by $570 million to $16.69 billion and adjusted EBITDA guidance by $380 million to $2.915 billion, citing weaker U.S. sportsbook performance and the need to fund FanDuel Predicts. Management highlighted that the prediction‑market initiative will require $40‑$50 million in Q4 2025 and $200‑$300 million in 2026, but it is expected to diversify revenue and tap a growing market that operates under federal CFTC oversight rather than state gambling law.
The AGA’s stance on prediction markets—viewing them as gambling that should be regulated at the state level—conflicts with Flutter’s view that these markets fall under federal regulation and can be offered without state licensing. By exiting the AGA, FanDuel signals a broader industry rift, as DraftKings has also left the association. The move underscores a shift toward tech‑driven operators carving out independent regulatory pathways and pursuing new product lines outside the traditional casino‑centric ecosystem.
Overall, FanDuel’s departure from the AGA and the launch of FanDuel Predicts represent a strategic pivot that could reshape Flutter’s revenue mix. While the company faces headwinds in U.S. sportsbook margins, the prediction‑market platform offers a tailwind that may offset future competitive pressures and provide a new growth engine in a regulated federal environment.
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