Flutter CEO Dan Taylor Says FanDuel Prediction Markets Product Now Competitive After Initial Shortfalls

Flutter CEO Dan Taylor acknowledged that FanDuel's prediction markets product was "not competitive" when he first reviewed it but has improved substantially after several months of focused work.

Taylor made the remarks on Nov. 4’s Q3 earnings call, his first since succeeding Peter Jackson. The update came alongside Flutter's report of U.S. revenue growth that was offset by a steep drop in EBITDA, driven in part by spending on the prediction markets vertical.

Product Upgrades Fuel Volume Surge

FanDuel Predicts recorded $119 million in Q3 volume, a 102% increase from Q2, with 140,000 active users in October. October volume rose 271% from July levels.

Taylor pointed to the switch of sports event contracts from CME Group to Crypto.com, expansion of parlay-style combo markets, securing an independent registered Futures Commission Merchant status, and advances in market making as key changes. "The product, when I first went over to FanDuel in the spring, was not competitive," Taylor acknowledged. "I think the team have made tremendous progress on the product in the last few months, and the results we're seeing are very good."

He described predictive markets as "a very meaningful incremental opportunity for FanDuel" and noted a "clear pipeline of further improvements."

Cost Pressures Mount as Company Guides for Market-Making Returns

U.S. revenue rose 6% year over year to $1.45 billion, with sports betting revenue at $817 million and iGaming at $572 million. U.S. adjusted EBITDA fell 94% to $3 million, reflecting investments in prediction markets and the dual-vertical launch in Alberta.

Flutter anticipates a net contribution of approximately $50 million in revenue and $40 million in EBITDA from market making for 2026. CFO Rob Coldrake said the company is "increasingly well-positioned to capture this opportunity" through exchange links, pricing expertise, and liquidity. Taylor added that market making sits "at the heart of Flutter's capabilities" and represents an "exciting near-term revenue and profit generator."

Rising media costs from competing prediction market operators have begun to affect FanDuel, though Taylor called this impact temporary. The company intends to sustain or increase investment levels given current momentum, according to reporting by SBC Americas. Regulatory and legal developments will determine the pace of scaling.

Forward Path for Prediction Market Participation

Operators face a narrow window to secure liquidity and product differentiation before regulatory outcomes crystallize. Flutter's experience shows that early, disciplined spending can convert initial weaknesses into competitive positioning, but sustained EBITDA pressure will test how long investors tolerate the outlays before clearer legal signals emerge.