Flutter CEO Dan Taylor: Here's how prediction markets like Kalshi and Polymarket are disrupting FanDuel

New Flutter ( FLUT ) CEO Dan Taylor won't have a honeymoon period as the FanDuel operator looks to jump-start its online betting business while also thwarting deep-pocketed, free-spending prediction markets sites like Kalshi and Polymarket.

"Marketing spend across the category was up 60%-plus in September and 50%-plus October. And a lot of that is driven by the incremental investment we're seeing from the prediction operators," Taylor said on Yahoo Finance. "But for us, we need to be really disciplined. We measure and track the returns we get from our marketing spend very closely, and we see good returns. We will be investing more because we see more opportunities to do so and the market is competitive."

Taylor took over as Flutter CEO on Oct. 1 after spending many years running the platform's international business.

"Our customers across the country, we are starting to see them use the product in a very similar way [to prediction markets]," Taylor said. "So the behaviors we're seeing on our prediction product in the OSB states and the non-OSB states, they're kind of pretty similar in terms of the mix of parlay bets, the mix of inplay, the types of things they're betting on are kind of similar."

Taylor faces an uphill battle given the increasing competition for betting dollars.

Flutter delivered modest top-line growth in the third quarter, generating a total group revenue increase of 2% to $3.874 billion.

Sales were led by a 6% increase in US revenue to $1.455 billion, driven by solid sportsbook and iGaming handle. International revenue remained essentially flat at $2.419 billion due to adverse customer-friendly sports results and regulatory headwinds.

Adjusted operating profits fell 25% from the prior year.

Flutter warned on weak sports results to start the fourth quarter both in the US and internationally. The company was forced to mark down its full-year revenue and operating profit outlooks.

Flutter stock still rose 3% on the session before closing Wednesday's trading slightly down.

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