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.
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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.”
— Fairplaygov (@fairplaygov) May 6, 2026
They have already started as an MM on at least one platform, he said. https://t.co/bMYYyM4Obm pic.twitter.com/kSFc0ZJJNq
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.
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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.
