Flutter Entertainment said it would move FanDuel Predict's sports and novelties contracts with CME Group to Crypto.com, as it looks to use prediction markets to expand into states where sports betting is illegal.
"We've extended our partnership with Crypto.com, who will deliver a set change in content on the FanDuel Predicts product and allow us to deliver an improved prediction model proposition ahead of the [National Football League] season," said Flutter Chief Executive Peter Jackson in an interview.
Earlier Wednesday, the company said Jackson would step down as CEO in September. Dan Taylor, Flutter president and the international division's CEO, will succeed him.
Sports betting is illegal in 11 U.S. states including California, Texas and Alabama, according to the American Gaming Association.
"We look at prediction markets as being an incremental opportunity for us," Jackson said. "It enables us to go after the customers in the heart of America, which we can't currently offer up."
The decision by Flutter to move contracts comes weeks after outgoing CME CEO Terry Duffy in an earnings call said sports-prediction markets amounted to gambling. Duffy added that he anticipates the issue will make it to the Supreme Court.
CME and Flutter first partnered in August 2025 to develop event-based contracts and expand access to financial markets in the U.S. for FanDuel users.
Flutter swung to a loss in its second quarter, and reported a decline in betting sales and high customer churn in the U.S. The company also lowered its revenue forecast for the year.
Jackson said the decline in revenue was attributed to sports results--betting related to the National Basketball Association finals and the early stages of the FIFA World Cup--which he said were costly for the company.
But he said Flutter's promotion around goal-scoring betting during the World Cup made the tournament a success because top scorers let up further into the games.
"As it got into the latter stages, some of those famous goal scorers dried up and it ended up being a terrific tournament for us," Jackson said.
In contrast with the slide in the U.S., Flutter's international markets outperformed with a 10% climb in sales and positive engagement across the World Cup--especially during the tournament's knockout stages, when fewer goals were scored, the company said.
Jackson said the success of the international business gave him confidence that Taylor was well positioned to lead the company's next phase of growth.
Taylor's appointment as CEO comes amid a broader leadership shakeup at the company. Amy Howe stepped down as FanDuel CEO in May, and Flutter at that time created the new role of president for Taylor to oversee the group's underperforming U.S. operations.
Comments