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Citi Slashes Flutter Rating Amid FanDuel Woes
16 Apr
Summary
- Flutter Entertainment stock dropped 48% year-to-date.
- Citi downgraded Flutter to sell due to uncertain US growth.
- FanDuel Predicts faces regulatory uncertainty and costs.
Citi analysts have issued a significant downgrade for Flutter Entertainment, moving its rating from buy to sell. This decision stems from flagging performance in its FanDuel business and considerable uncertainty surrounding its US prediction market expansion. Flutter Entertainment's stock has experienced a substantial decline, shedding 48% of its value year-to-date as of April 16, 2026.
Reduced confidence in the projected US growth for fiscal years 2026 and 2027 has led Citi to revise its valuation methodology. The bank's research arm also noted that FanDuel Predicts is currently assigned minimal value, primarily due to the ambiguous regulatory landscape for prediction markets in the United States. This situation is compounded by FanDuel's plan to invest up to $300 million in its new prediction market venture, a move that has raised investor concerns about regulatory clarity for this burgeoning sector.
