Flutter sees prediction markets raising advertising costs more than wagering pressure

According to Covers, Flutter chief executive Dan Taylor said on the November 4 earnings call that prediction markets were having a limited effect on FanDuel customer wagering, while pushing media and marketing costs higher across the industry.

The distinction puts competitive spending, rather than a substantial shift in customer betting, at the center of Flutter’s assessment.

FanDuel Predicts builds an audience

FanDuel Predicts had around 140,000 active users in October, according to Covers. That figure provides a measure of participation in the offering, though the supplied reporting gives no earlier user count for comparison.

Flutter also said its United States other revenue increased 20 percent in the third quarter to 66 million dollars. Market-making activity on exchanges was the main driver of that growth.

What it means for prediction markets

• Competition is showing up in advertising costs. Taylor’s comments indicate that prediction markets can increase industry marketing expenses even while their impact on FanDuel customer wagering remains limited.
• Participation offers a benchmark, not a growth rate. Around 140,000 active users in October establishes an audience measure for FanDuel Predicts; without a comparison period, it does not establish momentum.
• Exchange activity is contributing to revenue. Flutter linked most of the growth in United States other revenue to market-making, but the supplied figures do not isolate revenue from FanDuel Predicts.