Flutter And PENN Entertainment Consider Launching Prediction Markets
In a notable shift within the gambling sector, CEOs Peter Jackson of Flutter Entertainment and Jay Snowden of PENN Entertainment have revealed that both companies are exploring the launch of prediction markets in the U.S. This strategic consideration arises amid Flutter’s recent Q1 earnings call, where reported revenue fell short of expectations, prompting the exploration of innovative avenues to bolster profitability.
Flutter, the parent company of FanDuel in the U.S., also operates Betfair—a leading European betting exchange that empowers users to trade predictions effectively. In the wake of emerging competition from entities like Kalshi and Crypto.com, which are making strides in sports betting markets, Jackson indicated the potential for introducing Betfair to the American landscape. He remarked, “As the operators of the world’s largest sports betting exchange, we possess extensive knowledge of this space. The Betfair Exchange has provided us with invaluable insights into operational dynamics.”
Furthermore, Jackson emphasized that prediction markets could act as a catalyst for engagement in states currently prohibiting online sports betting applications. He noted, “In jurisdictions that remain unregulated, there exists a prime opportunity akin to developments in daily fantasy sports (DFS). However, it’s essential to recognize that while DFS serves as a successful precursor to parlay products, prediction markets offer a more restricted scope. Nonetheless, we are intrigued by the potential this presents.”
PENN Entertainment’s Position on Prediction Markets
PENN Entertainment’s Jay Snowden echoed sentiments of cautious optimism, sharing that the company would consider participation in prediction markets as conditions permit. During the Q1 earnings call, he stated, “While this is not our top priority—given our focus on executing current strategies and fulfilling our performance guidance—we remain vigilant. Should this opportunity materialize for the industry, we anticipate taking part.”
In partnership with ESPN Bet, PENN Entertainment is actively engaged in providing sports betting in the U.S., with a review of this collaboration scheduled for next year. Reflecting on the future of this partnership, Snowden noted, “The optimal path will likely become apparent to us and others. Our teams are committed to delivering a differentiated experience that meets market demands.” He expressed confidence in achieving strong outcomes through the football season and beyond, stating, “We believe 2026 holds significant potential to illustrate the rationale behind our initial deal.”
The Emerging Landscape of Prediction Markets
A key player in this evolving narrative is Kalshi, which proudly asserts that it offers legal sports betting across all 50 states. The company has recently won court victories against state regulators, operating under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Kalshi positions itself as operating outside the purview of state regulation, further complicating the landscape.
Despite concerns from various states and sports associations—including the MLB and NBA—over regulatory oversight, the CFTC recently withdrew its legal challenge against election betting on Kalshi, setting a significant precedent that could pave the way for wider acceptance of prediction markets. Competing platforms like Crypto.com and Kalshi are now venturing into offering single-match markets across popular sports leagues such as the NBA, MLB, NHL, and NFL. This innovation has drawn envious glances from traditional sportsbooks like ESPN Bet and FanDuel, who remain subject to state regulations and must secure licenses, pay fees, and fulfill tax obligations to operate legally.
Should regulatory frameworks evolve further, traditional sportsbooks may develop their own prediction markets to retain competitive advantage within the gambling ecosystem. The landscape is undeniably shifting, and both operators and consumers await with bated breath to see how these potential changes unfold in this burgeoning sector.
With expertise gleaned from years of observation and participation in the industry, I remain excited about the developments in prediction markets and their implications for the future of betting.
