What Happened to FanDuel Group?

FanDuel's journey began in 2009 in Edinburgh, Scotland, as a pivot from a news prediction site called Hubdub, introducing a faster-paced daily fantasy sports (DFS) model. The company experienced explosive growth between 2013 and 2015, establishing itself as a leader in the nascent DFS space, competing primarily with DraftKings. During this period, FanDuel secured significant funding rounds, including a $275 million Series E round in 2015, valuing the company at over a billion dollars. However, its rapid expansion also led to legal challenges in several U.S. states, questioning the legality of DFS as a game of skill versus chance, and a proposed merger with DraftKings was blocked by the Federal Trade Commission in 2016 due to antitrust concerns.

The landscape dramatically shifted in May 2018 when the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA), paving the way for states to legalize sports betting. Seizing this opportunity, FanDuel was acquired by Flutter Entertainment (then Paddy Power Betfair) in July 2018, becoming Flutter's primary U.S. brand for online gaming. This acquisition marked a pivotal turning point, allowing FanDuel to rapidly expand into online sports betting and casino games, leveraging its existing brand recognition and user base. It quickly launched its online Sportsbook in New Jersey in September 2018 and subsequently expanded into numerous other states as legalization progressed.

FanDuel has since solidified its position as the market leader in U.S. sports betting and iGaming. By 2024, it held over 40% of the U.S. sports betting market share and generated $5.79 billion in revenue, a 19.6% increase from the previous year, with over $50 billion wagered on its platforms. The company continued its strong performance into 2025, projecting full-year revenue between $7.47 billion and $7.97 billion, and adjusted EBITDA of $1.28 billion to $1.52 billion. FanDuel has also forged key partnerships with major sports leagues like the NFL, NBA, and NHL, and expanded its offerings to include horse racing (FanDuel Racing) and a rebranded TV network (FanDuel TV).

A significant recent development is FanDuel's entry into the federally regulated prediction market space with the launch of 'FanDuel Predicts.' Announced in November 2025 and initially rolled out in five states in December 2025, this standalone app, developed in partnership with CME Group, allows users to trade event contracts on financial, economic, and even sports outcomes. By January 2026, FanDuel Predicts expanded its non-sports markets nationwide to all 50 U.S. states, with sports contracts available in 18 states, including large markets like California, Florida, and Texas, where traditional online sports betting may be restricted. Flutter Entertainment plans a heavy investment in FanDuel Predicts, projecting up to $300 million in adjusted EBITDA losses in 2026 as it aims for long-term growth in this new frontier.

As of March 2026, FanDuel continues to face a dynamic environment. While maintaining market leadership, Flutter Entertainment reported a slowdown in customer and betting growth in Q4 2025, partly attributed to improved competitor products and an unfavorable NFL season for gamblers. The company also faces ongoing legal challenges, including class-action lawsuits alleging deceptive advertising, underhanded business practices, and contributing to problem gambling. In a move towards responsible gaming, FanDuel announced it would stop accepting credit card deposits for its sportsbook, casino, and racing products in the U.S. starting March 2, 2026. Despite these challenges, FanDuel remains a dominant force, with its parent company forecasting $18.4 billion in revenue for 2026, driven by continued expansion and the potential of its prediction market venture.