FanDuel parent Flutter is becoming more explicit about what went wrong in its U.S. sportsbook business.
Following the FanDuel leadership shakeup last week, Flutter CEO Peter Jackson acknowledged the company’s sportsbook execution fell short as it heads into the most important stretch of the year for U.S. sportsbooks.
“We know that we didn’t operate as effectively as we should have done,” Jackson said during a JPMorgan investor conference Monday.
Flutter rolled out a broader sportsbook “improvement plan” last week after replacing FanDuel CEO Amy Howe, even as first-quarter revenue and adjusted EBITDA came in ahead of Wall Street expectations. Shares are down roughly 58% over the past year, however, as investor concerns mount around slowing sportsbook growth, rising prediction market competition and execution issues inside FanDuel’s core sportsbook business.
The stock closed at a 52-week low on Monday before rebounding 2.1% to close at $95.96 on Tuesday.
What went wrong for FanDuel
Jackson pointed specifically to FanDuel’s customer retention and promotional strategy as a source of recent struggles, suggesting stronger margins late last year came at a customer cost.
“We saw very high margins in Q4, which to some extent supports our view of where our gross margins can get to, but we didn’t execute well on generosity,” Jackson said. “So we ended up starting this year with a smaller customer base than anticipated.”
U.S. sportsbook revenue rose just 1% year-over-year in Q1, while handle declined 9% and monthly active sportsbook players fell 6%. Structural sportsbook revenue margin also fell 0.4 percentage points to 13.7%.
Jackson said the company has reworked parts of FanDuel’s internal structure following Howe’s departure, framing the leadership reset as an execution-focused move.
“There’s a bunch of organizational changes that we’ve made, which I think really will sharpen our focus on execution and delivery, which ultimately has been one of our challenges,” he said.
Inside FanDuel’s turnaround plan
Flutter’s sportsbook recovery plan centers on customer retention, loyalty and quicker product rollouts ahead of the NFL season.
Jackson said FanDuel’s sportsbook loyalty rollout has generated strong early interest.
Flutter is also rolling out revised promotional mechanics, expanded Bet Protect+ offerings and a more aggressive product cadence. Jackson said the team has improved its focus on trading and getting products into customers’ hands faster.
Flutter lowered full-year EBITDA guidance last week after shifting much of its expected U.S. profitability toward the second half. That sets it up for a critical football season, while FanDuel continues investing heavily in prediction markets and World Cup customer acquisition.
“I think investors obviously want to see us continue to execute, but we are still the largest player in America,” Jackson said. “We’re determined to get the business, not just back on the front foot, but we need to get our mojo back and show that we can keep growing our share and help grow the category.”
