Flutter Entertainment has launched the second phase of a broad cost transformation program targeting another $500 million in gross operating-cost and capital-expenditure savings by 2029, while its growing prediction-market operations are already expected to generate about $50 million in market-making revenue in 2026.
The new efficiency initiative builds on phase one of Flutter’s transformation program, which is running ahead of expectations. The company remains on track to deliver more than $300 million of previously targeted savings by 2027, along with approximately $200 million of additional cost savings announced as part of its U.K. gaming tax mitigation plans.
Phase two broadens the effort across Flutter’s global organization. Management plans to remove duplicated functions, improve technology efficiency, better align corporate functions and deploy AI across operations. The additional program is expected to produce $500 million of gross operating-cost and capital-expenditure savings by 2029.
Flutter expects those efficiencies to help offset inflation and known tax increases while preserving capacity to invest in initiatives that can generate additional revenue. Internationally, management believes the program can support its long-term target of 5% to 10% annual revenue growth while maintaining margins in more mature markets and providing funding for higher-growth opportunities.
One of the newest growth opportunities is prediction markets. Flutter has expanded FanDuel Predicts with player props and customizable combinations while developing a market-making capability that management says is scaling rapidly.
Flutter views prediction markets as incremental to conventional sportsbook and iGaming activity and says it has so far seen limited cannibalization among existing sportsbook customers in regulated states. FanDuel Predicts also gives Flutter an opportunity to acquire customers in states before traditional sports betting becomes regulated there.
The company has shifted FanDuel Predicts sports and novelty contracts to Crypto.com while continuing to offer CME financial markets. Flutter expects the arrangement and its nationwide FanDuel brand to support faster product launches and greater marketing efficiency.
Market making could become an additional source of economics beyond the consumer-facing product. Flutter says its pricing and risk-management capabilities position it to provide liquidity across prediction-market platforms at relatively low incremental investment. Management already expects approximately $50 million of market-making revenue in 2026.
Flutter generated Q2 revenue of $4.326 billion, increasing 3% year-over-year. Free cash flow increased 21% to $189 million, although adjusted EBITDA declined 45% to $508 million as the company absorbed investment, taxes and other pressures.
U.S. investment included spending on FanDuel Predicts and other growth initiatives. FanDuel nevertheless maintained its No. 1 position in both sportsbook and iGaming, while Flutter said it intends to increase second-half investment to strengthen the platform further.
The combination of a new $500 million efficiency program and a prediction-market operation beginning to generate meaningful revenue illustrates Flutter’s attempt to create funding capacity internally while continuing to invest in emerging forms of online wagering and financial-market activity.
KEY QUOTES:
“The quality of our portfolio was evidenced once again in Q2 as we delivered another encouraging quarter relative to our expectations. Group revenue increased by 3%, supported by M&A, strong iGaming growth globally and excellent customer engagement during the FIFA World Cup with our diversified brand portfolio engaging around 10.5 million customers.”
“In the US, we made good progress against our strategic priorities, and FanDuel maintained its #1 position in sportsbook and iGaming. The momentum we are seeing gives us confidence to increase investment in the second half to further strengthen our proposition.”
Peter Jackson, CEO of Flutter Entertainment
