• Loading stock data...
Friday, September 5, 2025
Fox Analyst and Media Entrepreneur Greg Olsen to Speak at Tuned In Get your ticket now!

FanDuel Misses Projections As Betting Favorites Dominate 

 Favored teams dominated the end of college basketball, just as they did during much of the 2024 NFL season. That’s cutting directly into the revenue of top sportsbooks. 

Bob Donnan-Imagn Images

A run of favored teams dominating top-tier sporting events is causing further turbulence in the U.S. sports betting market, with even more expected.

Flutter Entertainment, parent company of U.S. market leader FanDuel, said in its first-quarter earnings report that “adverse sports results,” particularly the recent March Madness dominated by favorites, cut into its revenue during the period. The company’s $3.7 billion in quarterly revenue and $335 million in net income, while solidly up over the comparable period in 2024, missed analyst expectations. 

Additionally, Flutter has lowered its full-year guidance for the U.S. market, and now expects to deliver $7.4 billion in revenue and $1.13 billion in adjusted earnings for 2025. Those figures are down from prior targets of $7.72 billion in revenue and $1.4 billion in adjusted earnings, but will still represent significant year-over-year growth.

Both FanDuel and top rival DraftKings made similar comments regarding 2024’s fourth quarter, blaming “the most customer-friendly NFL results in 20 years” for “significant adverse impacts” to revenue during the critical fall period. DraftKings will release its first-quarter earnings report after the close of Thursday trading and discuss the results with analysts the next morning.

As sports betting continues to develop in the U.S., such a situation remains a growing concern as additional analytics available to both pro teams and bettors have made some on-field outcomes more readily predictable, and could also play out in Major League Baseball this year. Flutter, however, remains confident that its overall market status will withstand that.

“The nature of sports results will influence our quarterly results as we have seen in the NFL in Q4 and March Madness in Q1,” said Flutter CEO Peter Jackson in an earnings call with analysts. “But over time, these variations are transient and we do not compromise our compelling growth model, a long-term value creation opportunity. In fact, it’s these ups and downs in sports results that makes sports exciting and drives engagement.”

Penn Status

Elsewhere in sports betting, ESPN Bet operating partner Penn Entertainment said Thursday that it posted a 4% increase in first-quarter earnings to $1.67 billion and reversed a prior $114.9 million loss to a $111.5 million gain. The results represented a critical sign of life after a more challenged report for 2024’s fourth quarter, one in which Penn Entertainment president and CEO Jay Snowden mused about potentially ending the $2 billion sports betting partnership with ESPN early

ESPN Bet remains well behind U.S. sports betting market leaders FanDuel and DraftKings in most states. Penn Entertainment is also facing a lawsuit from activist investors seeking a board seat, an action that calls the company’s “foray into the sports betting world a complete failure.” Snowden, however, expressed confidence in a turnaround for ESPN Bet, fueled in part by an integration into ESPN’s forthcoming direct-to-consumer streaming service

“We’re finally getting to a point, after being live with ESPN Bet for a year and a half, where the really deep integrations that we were really excited about when we did the deal are starting to happen,” he said in an earnings call with analysts.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

State of Connecticut Submits Bid for Minority Ownership of Sun 

The bid would value the Connecticut Sun above $250 million.

Torre: Key Phrases Missing in Clippers’ Pushback on Kawhi Deal

The NBA said it’s investigating the report involving the Clippers.

Featured Today

Oct 13, 2024; Philadelphia, Pennsylvania, USA; Philadelphia Eagles quarterback Jalen Hurts (1) and wide receiver A.J. Brown (11) celebrate their touchdown pass during the second quarter against the Cleveland Browns at Lincoln Financial Field.

TV Ratings Just Changed Again. The NFL Will Be the Big Winner

Nielsen’s new viewership system will have a big impact on sports.
Ohio State Buckeyes wide receiver Jeremiah Smith (4) celebrates with offensive lineman Donovan Jackson (74) after a touchdown catch against Notre Dame Fighting Irish in the first quarter during the College Football Playoff National Championship at Mercedes-Benz Stadium in Atlanta on January 20, 2025.
August 30, 2025

The Most Expensive Roster Year in College Football History

The House settlement created revenue-sharing—and a big NIL loophole.
August 26, 2025

‘You’re Going to Get Beat Up’: The Liberty’s All-Male Practice Squad

A select group suits up weekly to take on the defending champs.
August 24, 2025

The Honey Deuce Effect: How Tennis Perfected the Signature Cocktail

Sold every 1.5 seconds, they total more than $12 million in sales.

Thunder Favored, but Bettors Backing Pacers Big in NBA Finals

The most bet-on exact series outcome is the Thunder winning in five.
February 20, 2025

Americans Bet $148 Billion on Sports in 2024, Up 23.6%

Both overall handle and revenue rose by more than 20% last year.
Fanduel
March 4, 2025

FanDuel Retains Sports Betting Crown With $14B in 2024 Revenue

The FanDuel parent company posts big increases in revenue and net income.
Sponsored

Trailblazer Cal Calamia Is Racing for ‘Advocacy, Storytelling, and Performance’

The marathoner wants excellence—not just inclusion—to be the goal for non-binary athletes.
DraftKings app
February 14, 2025

Lawsuit Says DraftKings VIP Program ‘Preyed On’ Gambling Addicts

The company’s being sued for negligence and intentional infliction of emotional distress.
August 20, 2024

Beloved ‘Backyard Sports’ Brand Says It Will Relaunch After Decade Hiatus

“Backyard Baseball” was a turn-of-the-century computer hit. 
DraftKings
August 2, 2024

DraftKings Announces Consumer Tax Starting Next Year

The company’s stock fell 5% Friday morning.
July 24, 2024

The Perfect Storm Propelling ‘EA Sports College Football’ to Early Success

Growing fandom and a long wait have already reaped dividends for EA.