Flutter (FLUT), The World’s Biggest Betting Company Has Lost Two-Thirds of Its Value. Is the Bottom In?
Flutter Entertainment (FLUT), owner of FanDuel, has seen its stock drop 69% from its 2025 high, closing at $89.56 on September 18, 2026. Rothschild downgraded the stock to Neutral, citing four forecast cuts in 2026 due to rising taxes, increased competition, and reduced profit margins. Despite challenges, FanDuel holds 44% of the US sports-betting market, and the company's revenue grew 17% year over year.
How this was made
The 30-second read
Why it matters
Analyst downgrade reflects concerns over repeated guidance cuts and rising tax costs, likely prompting short‑term selling pressure.
Market read
The downgrade adds fresh negative sentiment to a heavily discounted stock, creating a potential short‑term trade.
What to watch
Potential upside from the expanding online casino segment and any future tax relief negotiations.
Background
Flutter Entertainment (FLUT) is the world’s largest betting operator, primarily through its FanDuel platform in the US.
Ticker impact
Rothschild downgraded Flutter to Neutral on Sep 21 and cut its price target to $119 from $169 after four forecast revisions this year.
Potential further short-term decline toward $110-$115 range.
Four forecast cuts and a 69% price drop highlight execution risk; the new target suggests limited upside.
Market effects
US sports‑betting sector faces margin pressure from higher taxes and competitive bonus spending.
Illinois tax hike may dampen betting volumes in the Midwest.
Flutter's downgrade could weigh on broader gambling‑related equities.
Counterpoint
The 13‑times forward earnings multiple may still represent a value opportunity if management stabilizes guidance.
Key entities
- AnalystRothschild
Downgraded Flutter to Neutral and reduced price target.
- Business UnitFanDuel
Flutter's US sportsbook, holding ~44% market share.
