Flutter Entertainment is confident that the scale and experience of its business will ride out the challenges of tax changes across multiple markets and the rise of prediction markets in the US.

The LSE/NYSE gambling group revealed revenue of $4.2bn in Q2 2025, up 16% from $3.6bn the year prior benefiting from, as always, FanDuel’s market leadership in the US alongside the addition of revenues from the newly acquired Snai in Italy and NSX in Brazil.

This brings Flutter’s year-to-date (YTD) revenue as of 30 June 2025 to $8.1bn. It is not all rosy news though, as the firm’s bottom line has taken a hit with Q2 net income down 88% from $297m in 2024 to $37m this year – as accounts suffer from continued FOX option impairments and a higher global tax bill.

Leadership acknowledges growing challenges. First and foremost is taxation, with taxes up across some of the group’s core markets and more likely underway in the UK, while US tax changes at both the federal level (the Big Beautiful Bill) and state level (pre-bet taxes in Illinois and other states) are posing new challenges.

Addressing investors on the firm’s Q2 conference call, Flutter CEO Peter Jackson shared that the company is ‘disappointed’ in the Illinois wager fee, which has prompted it to introduce a €50 fee on all bets in the state. However, leadership expressed confidence in Flutter and the wider US industry’s ability to engage with policymakers.

“On the US regulatory front, I believe our sector is making meaningful progress in encouraging lawmakers to adopt a balanced tax strategy which promotes market growth and investment. We believe our substantial US scale positions us well to mitigate tax changes,” he said.

US dominance, UK struggles, and positive dawn in Brazil

Although Flutter’s bottom line has been hit by taxation, a burden experienced by many other IGaming PLCs this summer, the firm’s Adjusted EBITDA has remained strong. Flutter closed Q2 with a 25% increase in EBITDA from $738m to $919m.

A market-by-market breakdown saw US revenue grow 17% to $1.8bn (Q2 2024: $1.5bn), and adjusted EBITDA stand at $400m, attributed by the firm to favourable sports results and a ‘strong operating leverage’, though iGaming revenue dwarfed sports betting revenue in terms of growth – 42% against 11%.

While FanDuel may be Flutter’s most valuable brand, its international division is an asset getting stronger by the year. This division encompasses a huge range of markets including the UK, Ireland, Georgia, Italy, and now Brazil.

The aforementioned takeovers of Italian firm Snai, the group’s second M&A asset in Italy following its buyout of Sisal in 2021, and Brazilian firm NSX, operator of the Betnacional sportsbook, very significant moments in 2025.

Revenue for the international segment rose 7% from $7.4bn last year to $7.9bn, with iGaming again seeing the biggest revenue increase of 27% to $1.3bn while sports betting revenue rose 4% to $1bn – both being $997m last year.

iGaming revenue was particularly driven by the UK and Ireland (17%), Southern Europe and Africa (24%) and the Asia Pacific (24%) regions. Similar to other firms like fellow B2C outfit Betsson and B2B firm Kambi, Flutter attributed slower growth in sports betting to the impact of last year’s UEFA 2024 European Championship.

CEO Jackson emphasised Sisal’s role in driving SEA growth as well as India in driving APAC growth, and adding that Flutter “delivered impressive double digit growth in UKI despite implementing slots restrictions in line with the UK Gambling Act Review requirements”.

“In our international markets, we completed the Snai and NSX transactions during the quarter, creating a leadership position in Italy and establishing a scale position in Brazil,” he said during the investors presentation.

“In Italy, Snai integration plans are well underway. Our good progress means we have increasing confidence in our synergy targets.”

On Brazil, he added: “We retain a strong conviction that the market opportunity will be very significant, and that those operators with scale and the best product win the largest share of the market.”

Of Flutter’s international markets, Brazil saw the sharpest revenue increase of 175% to $44m ($18m), easily attributed to the huge expansion of the firm’s activity there following the takeover of NSX.

SEA revenue followed, up 63% from $390m to $657m. APAC revenue was up 7% to $402m ($385m), Central and Eastern Europe revenue up 8% to $138m ($128m), while UK&II revenue was up just 1% to $936m ($928m).

Despite being cited as key to overall international iGaming revenue growth by the company, adjustments in line with the recommendations of the Gambling Act review and declines of 12 in sportsbook revenue impacted Flutter’s overall UK performance.

Jackson: trust in scale & efficiencies

The quarter has again reaffirmed Flutter as global gaming’s most valuable PLC, but ultimately the company is still going to face the same challenges as everyone else. Taxation in particular, alongside changing regulatory dynamics and new restrictions, and in the US the rising popularity of prediction markets and events contracts like Kalshi poses some new questions.

For Flutter, the main question raised by this is ‘should we get in on the action?’. Jackson noted on the earnings call that the events contract space is ‘developing at pace’, and further hinted at the possibility of Flutter launching its own platform.

“We have two decades experience of operating the world’s largest betting exchange, the bet for exchange,” he said. “We’ve shared similar characteristics with events contracts, and this will help inform our views. We’re closely monitoring regulatory development, and are assessing opportunities and potential participation strategies this may present for FanDuel.”

Regardless of the event contacts debate, Flutter remains confident in FanDuel’s market leadership, and with good reason. Leadership has taken particular confidence from the agreement with Boyd Gaming to secure total control of FanDuel.

After closing Q2 trading, Flutter has changed its outlook for the year based largely on US considerations – namely taxation, market access savings, the timing of new state entries, and the impact of sports results.

The firm now expects group revenue of between $17.26b and adjusted EBITDA of £3.29bn, representing respective growth of 23% and 40% year-over-year. This could be seen as either an increase or a decrease due to post-Q1 expectations being revenue of between $17.08bn–$17.53bn and EBITDA between $3.18bn–$3.40bn.

Jackson summarised Q2: “I am pleased with the excellent underlying performance we have delivered in the second quarter alongside the good progress made on a number of key strategic initiatives.”

“Such varied achievements in one quarter are a great reflection of our teams’ focus and ability to execute effectively, leaving us well positioned for the second half of the year,” he concluded.

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