Flutter Entertainment will route every sports and novelty contract on Fanduel Predicts to Crypto.com’s exchange, leaving CME Group with only the financial markets on a venture CME majority-owns. The move comes three weeks after CME’s chief executive told analysts that many sports prediction markets amount to gambling. Flutter booked $6 million in market-making revenue in the quarter and guides to $50 million for the year.
Key Takeaways
CME owns 51% of the Fanduel Predicts venture it is now losing sports contracts on.Flutter booked $6M market-making revenue in Q2 and guides to $50M for 2026.Flutter cut U.S. guidance $395M on revenue and $210M on adjusted EBITDA.Flutter states that Fanduel Predicts revenue in the quarter was not material, that second-half gross revenues will be offset by customer-acquisition costs before rising in 2027, and that operational progress in the first half was slower than planned. Against a full-year Predicts investment Flutter has previously put at about $300 million, the $50 million market-making line is the return so far. U.S. adjusted EBITDA fell 70% to $119 million, which the company attributes partly to prediction-market spending.
Jackson is leaving. Flutter said Dan Taylor, promoted to group president in May after Fanduel’s own leadership change, becomes chief executive on October 1. The same release cut U.S. revenue guidance by $395 million and adjusted EBITDA guidance by $210 million, and reported a $296 million net loss. Shares closed Wednesday at $92.91, down 11.5%.
CME’s own event-contract business is compounding. On the July call, chief financial officer Lynne Fitzpatrick said the exchange has handled roughly 525 million event contracts since launch, that more than 140,000 accounts traded them during the quarter, up about 13% from the prior three months, and that average daily volume passed four million contracts, up roughly 40%. The venue Flutter is moving away from is the one growing fastest inside CME.
