Flutter Branding Provides Buffer in Prediction Markets Fight

October 08, 2025

Shares of Flutter Entertainment (NYSE: FLUT) have dropped 15.72% over the past month because to investors' concerns over the convergence of football and prediction markets, but one analyst thinks the online wagering behemoth has the branding advantages necessary to withstand the storm.

Dan Wasiolek of Morningstar reported on Wednesday that Flutter, the owner of FanDuel, is in a unique position to profit from the expansion of online sports betting and iGaming in the United States.  According to the analyst, FanDuel uses branding benefits as part of a duopoly with DraftKings (NASDAQ: DKNG), as evidenced by its revenue share of 35% to 40% in the states where it operates.

"Flutter Entertainment has leveraged its leading technology and product offering into an advantaged global brand, the source of its narrow moat, which spreads across the US, the UK, Australia, and other international markets like Italy,” observes Wasiolek.

One of the most valuable gaming brands in the world is FanDuel, while Flutter brands like Betfair, Paddy Power, and Sisal, among others, have impressive market shares outside of the US.  This is relevant to the discussion of prediction markets since Flutter has an edge over rival DraftKings in that it can mitigate part of that risk through its global operations.

Flutter Brand Benefits: Killing the Competition

While some analysts agree that prediction markets like Kalshi could be a drag on Flutter and DraftKings' earnings, it's important to note that some experts think the football volume in prediction markets is exaggerated, and there is widespread agreement that FanDuel's sports betting product—including parlays—is far better than what can be found on yes/no exchanges.

Furthermore, Flutter's branding advantages have killed competitors both domestically and internationally.  The US sports betting cemetery is home to about a dozen businesses, the majority of which arrived in recent years. They ended up there because they lacked the financial means and branding necessary to compete with Flutter.

“While smaller peers are falling by the wayside, Flutter’s competitive and financial position is allowing it to acquire emerging digital gaming operators in various international markets, which it is then integrating into its leading product and risk management tools,” adds Wasiolek.

The analyst observed that regulation hasn't significantly reduced FanDuel's market share and that some current, smaller domestic online sportsbooks are freely investing to draw in new clients, indicating that the operator's well-known brand is a major benefit.

The Sturdy Flutter Balance Sheet

Flutter declared last year that it will repurchase $5 billion worth of its stock over the following years; Wasiolek believes this amount may increase to $6 billion over the course of four years.  Since that estimate, the company has continuously repurchased its stock, and the recent decline brought on by prediction markets may present an opportunity for the operator to purchase shares at a favorable price.

Strong cash flow, no impending debt maturities, and a reasonable debt/earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio strengthen Flutter's capacity to use acquisitions for expansion and return capital to investors.

“We see Flutter’s financial health as sound. Debt/adjusted EBITDA stood at 3.1 times in 2024. We see this as manageable, given that the company has no meaningful debt due until 2028, when $1.6 billion is scheduled to mature,” concludes Wasiolek. “We see no issues with servicing its $9.9 billion in total debt, since we forecast $15 billion in free cash flow to the firm during 2025-29.”