Flutter Entertainment chief executive officer Peter Jackson says prediction markets are having limited impact on regulated online sportsbooks in US states where the products compete directly.
Jackson said the position differs substantially in states where conventional online sports betting remains prohibited, giving prediction market operators access to customers without competition from licensed sportsbooks.
Speaking during a discussion with Oppenheimer analyst Jed Kelly, Jackson said: “Clearly, in the states where there isn’t regulated online sports betting, prediction markets have a free run. There’s no competitor to them other than the illegal bookies.”
Major states including California and Texas have yet to legalise conventional online sports betting, creating potentially valuable markets for federally regulated sports event contracts.
Flutter has exposure to both sectors through FanDuel and FanDuel Predicts.
FanDuel Predicts offers sports event contracts in states where FanDuel does not operate a regulated sportsbook, allowing Flutter to participate in markets otherwise unavailable to its conventional betting business.
Jackson said Flutter’s customer data showed a different pattern where regulated sportsbooks and prediction markets operate alongside one another.
Jackson said: “All the data we look at in the regulated states, we’re seeing very limited cannibalisation.
“It makes sense because the sports offering on a regulated online sportsbook is better than you can find on the prediction markets.”
He identified a broader range of betting markets and promotional offers as advantages held by traditional sportsbooks.
Jackson said competing operators examining customer behaviour were reaching similar conclusions, although Flutter has not disclosed detailed market-level data quantifying the level of crossover.
The comments come as prediction markets continue to expand sports event contracts across the US while facing legal challenges from states arguing that the products constitute sports betting and should be subject to state gambling laws.
Prediction market operators maintain that event contracts offered through federally regulated exchanges fall under the jurisdiction of the Commodity Futures Trading Commission.
Despite the growth of the sector, Flutter continues to invest heavily in its regulated US sportsbook business.
FanDuel generated sportsbook handle of US$11.96bn during the second quarter, up 2% year-on-year.
Sportsbook revenue fell 15% to $1.04bn, reflecting sporting results and other factors rather than a decline of the same scale in wagering activity.
Flutter is also increasing investment in its US operations during the second half of 2026, including customer acquisition, retention, loyalty and product development.
Jackson, who will step down as Flutter chief executive officer on September 30, said the company continues to see substantial long-term growth potential in regulated US sports betting.
Dan Taylor will succeed him as group chief executive officer on October 1.
Flutter’s assessment suggests prediction markets currently present their greatest competitive threat in states where regulated sportsbooks cannot operate, rather than markets where consumers already have access to established betting platforms.
