Flutter’s Peter Jackson exits as FanDuel Predicts shifts contracts to Crypto.com

Flutter is entering a new phase just as prediction markets start to weigh more heavily on sportsbook economics. The company is cutting full-year US adjusted EBITDA guidance by 22% and says FanDuel Predicts will move its sports and novelty contracts from CME Group Inc. to Crypto.com.

1. Peter Jackson said on Wednesday’s second-quarter earnings call that he will step down as Flutter CEO in late September, after nine years in the role. Dan Taylor will succeed him on 1 October, leaving Flutter to manage the transition while the prediction markets business is still taking shape.
2. Jackson’s departure comes after former FanDuel CEO Amy Howe also cut ties with the company, and Flutter is doing so in a market where sportsbooks are under pressure from the rapid rise of prediction markets. The article says analysts, hedge fund managers and other financial experts blame the latest swoon on prediction markets, with DraftKings on deck.
3. Flutter reported $6 million in prediction market-related revenue in the second quarter and estimates $50 million from the segment for the full year. It also expects category expenses of more than $200 million, which is the part PSPs and partners will care about most: the economics are not exactly screaming for easy margin expansion.
4. FanDuel Predicts has been lagging competitors that run an internal market-making exchange. In June, Kalshi handled about 83% of the notional volume share among prediction markets, while US prediction markets saw an estimated $50 billion in trading volume from event contracts on the quadrennial tournament, helped by the first World Cup in North America since 1994.
5. Flutter said FanDuel Predicts will move all sports and novelty contracts from CME Group Inc. to Crypto.com. CME Group still owns a 51% stake in FanDuel Predicts, and customers will continue to have access to CME financial derivatives. Jackson also said Flutter needs to be “thoughtful” about whether to build its own market-making exchange, and warned against moving too quickly into that setup.

For high-risk operators, the useful read here is simple: prediction markets are no longer a side show. They are starting to distort sportsbook planning, push up category spend, and force platforms to decide whether they want exposure through partnerships, an in-house exchange, or neither.