Flutter Cuts 2026 Forecast After $1.15bn Q3 Loss; Brazil Ban Blamed

Flutter Entertainment reported a net loss of $1.15 billion for Q3 2026 and has reduced its full-year guidance, citing a provisional gambling ban in Brazil, higher taxes and poor sports betting results. The group now expects 2026 revenue of $17.61 billion and adjusted EBITDA of $2.49 billion; the revisions were announced with the quarterly results published on 5 November 2026.

Quarterly drivers: Brazil, US and taxes

Brazil accounted for the largest single hit to earnings after its government introduced a provisional ban on sports betting and online casino gambling in September 2026. Flutter suspended its Brazilian operations on 26 September 2026 and closed its local Betfair business, leaving Betnacional as the remaining brand for a potential return. The restrictions produced $873 million in non-cash impairment charges, including $537 million after tax attributable to Flutter through its 56% ownership of Flutter Brazil. Flutter established that business under a $356 million agreement with Betnacional owner NSX Group in 2025.

Outside Brazil, higher gambling taxes also weighed on profitability. International adjusted EBITDA fell 14%, and the increase in UK remote gaming duty from 21% to 40% contributed to the margin pressure. The group recorded $105 million in additional legal loss provisions relating to an Australian class action.

Group revenue rose 2% to $3.87 billion, while adjusted EBITDA declined 25% to $360 million, below analyst expectations of about $4 billion revenue for the quarter. The quarterly net loss widened from $789 million in Q3 2025 to $1.15 billion in Q3 2026.

FanDuel growth and margin squeeze

FanDuel continued to grow customers in the US but at a heavy cost to profitability. US revenue increased 6% to $1.46 billion, supported by an 8% rise in iGaming and a 4% increase in sportsbook revenue. Sportsbook handle climbed 13% and sportsbook bet counts rose 15%. Despite those top-line gains, US adjusted EBITDA fell 94% to $3 million.

FanDuel's investments in prediction markets, branded FanDuel Predicts, and elevated marketing spend were cited as key reasons for the EBITDA decline. The prediction markets unit recorded 66,000 average monthly players in Q3, up 39% from Q2, and then attracted 140,000 new customers in October 2026.

New chief executive Dan Taylor, who succeeded Peter Jackson on 1 October 2026, highlighted rising customer acquisition costs. He said industry-wide media spend rose more than 60% in September and over 50% in October, driven in part by prediction market operators.

"It also puts pressure on some of our share of voice, and we need to be disciplined about how we spend our marketing dollars," Dan Taylor said.

US average monthly players increased 12% year on year, with iGaming up 24% and FanDuel sportsbook players up 9%. Taylor noted promotional spending limited revenue gains.

Cost-savings plan and operational changes

Taylor set out further cost reductions alongside the results. He targets an additional $500 million in gross operating expense and capital expenditure savings by 2029, to be achieved through artificial intelligence, simpler technology systems and organisational changes. The new target is incremental to existing restructuring programmes that affect up to 1,400 employees across the UK, Ireland, Portugal and Romania; Flutter is also closing its Sky Bet operation in Malta.

Taylor said share buybacks will remain on hold while management works towards a leverage ratio of 2 to 2.5 times over roughly two years. He intends to prioritise investment in existing businesses and debt reduction.

Revised full-year outlook and segment expectations

Flutter lowered its 2026 revenue midpoint by $300 million to $17.61 billion and trimmed adjusted EBITDA guidance by $160 million to about $2.49 billion. For 2026 the company still expects US revenue of $7.34 billion and US adjusted EBITDA of $715 million. Management also anticipates a cost of sales of approximately 58% of revenue through 2027.

Regional performance in Q3 showed mixed results: UK & Ireland revenue rose 4% to $889 million; Southern Europe and Africa increased 13% to $836 million; Central and Eastern Europe grew 10% to $166 million; Asia Pacific revenue declined 4% to $349 million following the closure of the real-money gaming market in India.

Flutter shares have fallen more than 60% since the start of 2026 as management cuts costs and reassesses investment priorities.

Takeaway for operators and investors

The company remains ready to resume Brazilian operations if regulatory conditions change, but the impairment and pause in Brazil were the single largest contributors to the quarterly loss. Taylor's savings plan and pause on share buybacks frame the company response while it manages higher customer-acquisition costs and tax-driven margin pressure. See regulation for context on duties and market closures, and visit /casino for FanDuel iGaming metrics.