Stay away from Flutter Entertainment as its FanDuel business lags, while uncertainty over the entity’s stateside prediction market push persists, according to Citi. The bank’s research arm double downgraded the owner of FanDuel to sell from buy. “We no longer value the US on [fiscal year 2028] given reduced conviction in 2026/[expected 2027] US growth forecasts,” analyst Monique Pollard said in a note to clients. “We also note that FanDuel Predicts is ascribed minimal value under our updated methodology … reflecting regulatory uncertainty.” U.S.-listed shares of the sports betting firm have plunged 48% since the beginning of the year. The decline comes as the company forecasted in late February more modest growth in the quarters ahead, particularly for its U.S. business. That followed signs of weakening customer engagement on FanDuel tied, in part, to a less buzzy NFL season, Flutter Entertainment CEO Jeremy Peter Jackson told investors earlier this year. FLUT YTD mountain Flutter Entertainment stock has lost nearly half its value in 2026. To boot, FanDuel could allocate up to $300 million to building out its new prediction market in the near term — a move that has given investors pause as U.S. regulations for the burgeoning industry remain uncertain. FanDuel began rolling out its prediction markets platform in the U.S. late last year, according to a company statement . The move aims to capitalize on a boom in event contracts, which enable users to wager on the outcomes of real-world events such as sports matches and political races. Prediction markets, led by Kalshi and Polymarket, are growing quickly in the U.S. The industry is track to grow to $1 trillion by 2030 , according to Bernstein. But it’s too soon to tell whether that new business will secure the regulatory approval it needs to continue operating in the U.S. and drive a big boost to business, Citi said. “It could be argued that this approach does not give credit to the opportunity presented by FanDuel Predicts over the medium-/long-term,” Pollard wrote. “Given the nascency of the business and the regulatory uncertainty surrounding prediction markets, investors will require proof of execution and legal clarity for the segment before ascribing it material value.” Citi’s call goes against consensus on Wall Street. Of the 25 analysts covering Flutter, 20 have a buy or strong buy on the stock, LSEG data shows. Flutter did not immediately respond to CNBC’s request for comment.
