Flutter Entertainment has confirmed it is already making money from prediction markets as a market maker rather than a platform operator. That positioning separates it from the retail-facing exchanges competing for the same users.
Singapore Summit: Meet the largest APAC brokers you know (and those you still don’t!)
During a recent earnings call, Flutter CEO Peter Jackson addressed investor concerns that prediction markets like Kalshi and Polymarket are eating into the $14 billion U.S. sports betting sector.
He argued the opposite: that the growth of event-based trading is a business opportunity for firms with existing risk-pricing infrastructure.
“Market-making will be a good contributor to our revenues,” Jackson said, adding that the company is “making money from it already” following a trial phase.
FanDuel parent CEO on prediction market combos: “We are going to be market making on as many platforms as we can.”
They have already started as an MM on at least one platform, he said. pic.twitter.com/kSFc0ZJJNq
— Fairplaygov (@fairplaygov) May 6, 2026
How the Model Works
Flutter’s approach is to apply its existing odds-setting algorithms to event contracts. As a market maker, the company quotes buy and sell prices, earns the spread, and manages the resulting inventory risk. That makes prediction markets a natural extension of the risk-pricing infrastructure it already uses in sports betting.
In late 2024, FanDuel partnered with CME Group to launch FanDuel Predicts, a mobile app offering contracts on S&P 500 levels, oil prices, GDP, and CPI data alongside more familiar event-based markets.
The app launched in five states and is moving toward a national rollout. The combination of financial contracts and sports-adjacent markets in a single interface also gives Flutter regulatory flexibility.
Event contracts classified as derivatives fall under federal jurisdiction, which allows Flutter to operate in states where sports betting remains restricted.
What Is the Timing
Flutter announced the move while cutting its full-year guidance after unfavorable sports results. Prediction market revenue offers some diversification, though market-making still carries pricing and inventory risk.
Rather than operating a retail prediction market platform, Flutter is focusing on market-making and liquidity provision. The company applies its existing pricing infrastructure to event contracts and earns revenue from the spread between buy and sell prices.
That is a different business than running an exchange, and it requires different infrastructure, risk management, and regulatory relationships to sustain.
Flutter Entertainment has confirmed it is already making money from prediction markets as a market maker rather than a platform operator. That positioning separates it from the retail-facing exchanges competing for the same users.
Singapore Summit: Meet the largest APAC brokers you know (and those you still don’t!)
During a recent earnings call, Flutter CEO Peter Jackson addressed investor concerns that prediction markets like Kalshi and Polymarket are eating into the $14 billion U.S. sports betting sector.
He argued the opposite: that the growth of event-based trading is a business opportunity for firms with existing risk-pricing infrastructure.
“Market-making will be a good contributor to our revenues,” Jackson said, adding that the company is “making money from it already” following a trial phase.
FanDuel parent CEO on prediction market combos: “We are going to be market making on as many platforms as we can.”
They have already started as an MM on at least one platform, he said. pic.twitter.com/kSFc0ZJJNq
— Fairplaygov (@fairplaygov) May 6, 2026
How the Model Works
Flutter’s approach is to apply its existing odds-setting algorithms to event contracts. As a market maker, the company quotes buy and sell prices, earns the spread, and manages the resulting inventory risk. That makes prediction markets a natural extension of the risk-pricing infrastructure it already uses in sports betting.
In late 2024, FanDuel partnered with CME Group to launch FanDuel Predicts, a mobile app offering contracts on S&P 500 levels, oil prices, GDP, and CPI data alongside more familiar event-based markets.
The app launched in five states and is moving toward a national rollout. The combination of financial contracts and sports-adjacent markets in a single interface also gives Flutter regulatory flexibility.
Event contracts classified as derivatives fall under federal jurisdiction, which allows Flutter to operate in states where sports betting remains restricted.
What Is the Timing
Flutter announced the move while cutting its full-year guidance after unfavorable sports results. Prediction market revenue offers some diversification, though market-making still carries pricing and inventory risk.
Rather than operating a retail prediction market platform, Flutter is focusing on market-making and liquidity provision. The company applies its existing pricing infrastructure to event contracts and earns revenue from the spread between buy and sell prices.
That is a different business than running an exchange, and it requires different infrastructure, risk management, and regulatory relationships to sustain.