Flutter Entertainment Stock Falls as Rising Prediction Market Volumes Pressure Traditional Gambling

Key Stats for Flutter Entertainment Stock

• Price change for Flutter Entertainment stock in last 6 months: -44%
• $FLUT Stock Price as of Jul. 21: $101
• 52-Week High: $314
• $FLUT Stock Price Target: $158

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What Happened?

Flutter Entertainment (FLUT) stock is falling this week, down nearly 4% and on track for its fourth straight losing session. The pressure is coming from prediction markets, the newer, unregulated betting-style platforms like Kalshi that are eating into traditional sportsbook activity.

Bank of America noted prediction market volume hit about $10 billion in June, and the share of DraftKings users who also use Kalshi jumped to 9.5% from just 4% in January.

Analysts also flagged a gap between expectations and reality for FanDuel, Flutter’s biggest brand. Bank of America’s EBITDA estimate for FanDuel sits at $634 million, well below Flutter’s own guidance of roughly $970 million.

Both Flutter and DraftKings still carry a neutral rating from the firm, but analysts say they want more clarity on FanDuel Predicts’ strategy heading into the NFL season when Flutter reports earnings on August 5.

This comes as Flutter itself has acknowledged a tougher stretch.

• Q1 U.S. revenue grew 6%, but active monthly players slipped 1% year over year after high sportsbook margins late last year thinned out the customer base.
• The company has since rolled out fixes, including a new loyalty program and a product called Bet Protect+, which lets customers insure bets for a small fee.
• Adoption of Bet Protect+ has come in at double the company’s original expectations.

Despite the near-term stock weakness, Flutter stands out to some investors precisely because of how far it’s fallen.

Shares are down roughly 66% from their all-time high, a decline notable enough that investor Michael Burry disclosed a full-sized long position in both Flutter and DraftKings on July 8, arguing the market is pricing these companies as if their best days are over.

Together, the two companies control about 78% of the U.S. online sports betting market.

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What the Market Is Telling Us About Flutter Entertainment Stock

The drop in Flutter Entertainment stock shows investors are genuinely worried that prediction markets could pull meaningful volume away from regulated sportsbooks.

That said, Flutter itself has said it’s seeing only limited cannibalization so far, pointing to differences in customer age and behavior between the two products.

For now, the market seems split.

Analysts are cautious but not bearish, keeping neutral ratings, while a well-known contrarian investor is betting the selloff has gone too far.

With earnings coming August 5, the market will be watching closely for signs of whether Flutter Entertainment stock can stabilize or whether prediction market pressure keeps building.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!