FanDuel parent Flutter Entertainment’s stock hit an all-time low Tuesday after Brazil banned online betting, the latest blow to the world’s largest online gambling company just days before its longtime CEO departs.
Shares fell more than 7% between Friday‘s close and Monday’s open, with the decline continuing Monday. Flutter has lost roughly three-quarters of its value since peaking above $313 in August 2025, when FanDuel’s U.S. sports betting dominance made it a Wall Street favorite.
The selloff comes as Flutter spends hundreds of millions this football season to revive FanDuel amid competition from prediction markets, higher taxes and slowing sportsbook growth. Regulatory setbacks across the globe have only complicated that outlook as CEO Peter Jackson prepares to depart Wednesday.
Flutter’s global expansion setbacks
Brazil’s provisional ban prompted Flutter to suspend its betting and online casino operations ahead of an Oct. 6 deadline. The company expects to lose approximately $70 million in revenue and $20 million in adjusted EBITDA if the shutdown lasts through 2026.
“Flutter is extremely disappointed by this development and is reviewing all available options, including the potential to appeal,” the company said in a press release. “Flutter continues to engage constructively with the Brazilian authorities on sensible, effective regulation to protect customers from the risks of the unregulated market.”
Flutter paid roughly $350 million for a 56% stake in Brazilian operator NSX Group in 2025.
Flutter expects to lose out on an extra $250 million in revenue this year and $310 million in 2027 from India’s ban on real-money online games this summer. The company shut down paid operations at Junglee in August, the Indian gaming business in which it had invested $237 million.
FanDuel spends to regain momentum
FanDuel retained a leading 39% share of U.S. sportsbook gross gaming revenue in the second quarter, but sportsbook revenue fell 15% year over year. Flutter’s U.S. adjusted EBITDA plunged 70% to $119 million.
The results followed the May departure of FanDuel CEO Amy Howe, who was succeeded on by company President Christian Genetski. Part of the weakness stems from FanDuel’s handling of last year’s favorable NFL results. Flutter acknowledged it failed to reinvest enough of its sportsbook winnings into promotions, leading to higher customer churn and a smaller customer base entering 2026.
Heading into Week 4 of the NFL season, FanDuel is offering more generous promotions and has expanded its loyalty program. Flutter cut its 2026 U.S. adjusted EBITDA outlook by more than 20% in August, with approximately $270 million dedicated to rebuilding customer momentum. Higher state gambling taxes are also expected to cost Flutter another $40 million this year.
FanDuel Predicts plays catch up
Competition from prediction markets has added to slowing sportsbook growth, with monthly betting handle largely flat or declining year over year as sports event contracts have surged in popularity.
Flutter launched FanDuel Predicts through CME Group in December, but its early performance fell short of expectations as Kalshi and Polymarket captured sports betting volume, particularly in states without legal sportsbooks. Flutter has since expanded its partnership with Crypto.com, moving its sports contracts to the company’s OG Prediction Markets exchange.
The company plans to invest $200 million to $300 million in FanDuel Predicts this year, mostly in the second half. Management expects those customer acquisition costs to offset the product’s gross revenue during that period, with larger revenue contribution projected for 2027. Flutter cut its full-year adjusted EBITDA outlook by $210 million in August to $2.655 billion and is targeting $500 million in annual cost savings by 2029.
Wall Street had already lowered its expectations before the latest selloff. In August, Wells Fargo cut its Flutter price target to $112, Wedbush lowered its target to $126 and BTIG reduced its target to $113. All three remain well above Tuesday’s trading price.
FanDuel retreats from media ambitions
The spending marks a reversal from FanDuel’s earlier expansion into sports media. In 2022, when it commanded more than 40% of the U.S. betting market, FanDuel launched its own television network and streaming service, pouring money into original programming even as rivals began pulling back.
DraftKings sold VSiN in 2024 and shifted to an advertising-only deal with NBC in 2025. Penn Entertainment shed Barstool Sports in 2023 before ending its expensive ESPN partnership in 2025. PointsBet also cut its annual NBC Sports advertising commitment by 42% in 2023 before selling to Fanatics.
In March, FanDuel announced plans to shut down its TV network and cut more than 100 jobs.
