Finance News

Story: Flutter Makes Money on Prediction Markets by Setting Odds, Not Running an Exchange

By James Thorp

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Why Flutter Picked Market-Making Over Platform Operations. The choice makes sense for a company that built its fortune on odds.

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Diversification After a Rough Quarter. Jackson's comments came as Flutter cut its full-year guidance.

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Flutter Entertainment found a way in. Not as a platform. As the house.

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The company behind FanDuel doesn't want to compete with Kalshi or Polymarket for retail prediction market users.

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The choice makes sense for a company that built its fortune on odds. Flutter's algorithms already price thousands of sports bets daily, managing risk across markets where…

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FanDuel Predicts launched in late 2024. Five states got access first. The app, built with CME Group, offers contracts on financial data releases and event-based markets.

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Jackson's comments came as Flutter cut its full-year guidance. Unfavorable sports results hurt the bottom line—bettors won, the house lost.

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Most prediction market platforms chase retail users. Kalshi wants traders making small bets on Fed decisions.

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FanDuel Predicts combines financial contracts with sports-adjacent markets, creating a hybrid offering. Users can bet on jobless claims one minute and the Oscars the next.

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Flutter's focus on liquidity provision instead of exchange operations is pretty much a bet on its existing strengths.

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The prediction market space is getting crowded, but Flutter's angle is different. It's not trying to be Kalshi or Polymarket.

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Flutter's move into market-making came at a time when U.S. prediction markets are expanding fast.

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The risks are real. Pricing prediction markets is harder than pricing sports bets in some ways—outcomes can hinge on obscure data releases or unpredictable events, and liquidity…

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