Flutter Entertainment

FLUT

Market cap $36.5B

DKNG and FLUT race to dominate U.S. online sports betting, with product upgrades and iGaming expansion shaping the next growth phase.

The Budget brought plenty of political theatre, but for the gambling sector the headline was blunt: a steep rise in taxes on online betting and gaming. Chancellor Rachel Reeves set out a two-stage overhaul that lifts the tax burden on the industry far beyond what many investors had pencilled in.

Bookmakers Entain PLC (LSE:ENT), Evoke PLC (LSE:EVOK) and Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT) have warned investors of "highly damaging" consequences from the new UK gambling tax measures in yesterday's Budget, which are set to come into force from next April. Under changes announced in the autumn Budget, online gaming duty will rise to 40% from April 2026, and a new 25% remote betting duty will apply to online sports betting, excluding horse-racing, from April 2027.

FanDuel-owner Flutter Entertainment said on Wednesday the UK government's plans to raise online gaming taxes will hit its adjusted EBITDA by about $320 million in fiscal 2026 and $540 million in 2027 before it can mitigate the impact.

The rise of prediction markets has sent DraftKings Inc (NASDAQ: DKNG) and Flutter Entertainment PLC (NYSE: FLUT) shares lower. While some investors and analysts see prediction markets as a major competitor, an analyst said the selloff is overdone and both companies have a $5 billion opportunity of their own in the market.

The industry's first multi-user parlay builder will bring a new level of social interaction to sports betting ahead of Thanksgiving NEW YORK , Nov. 24, 2025 /PRNewswire/ -- FanDuel, the premier online gaming company in North America, today announced the launch of Pass The Leg, a first-of-its-kind in-app feature that transforms traditional parlay betting into a shared, social experience just in time for holiday gatherings. Pass The Leg allows customers to build a single group parlay collaboratively, with each participant adding their own leg before placing individual bets using their own funds.

The NBA, MLB and NFL have all worked with betting companies to put restrictions on prop bets — wagers placed on a specific statistic within a game

Key gambling stocks remain resilient despite macroeconomic headwinds, including tariffs, rising credit defaults, and unemployment. A portfolio blending domestic operators, online iGaming growth, and undervalued Asian casino plays offers strong upside potential. Las Vegas prices are moderating, with convention bookings and VIP arrivals, especially from Asia, showing stability.

FanDuel and DraftKings on Tuesday said they are quitting the American Gaming Association. Prediction platforms like Kalshi and Polymarket, which allow customers to trade on events across pop culture, news and politics, have skyrocketed in popularity, and sportsbooks have been getting in.

A tax rise is rarely welcome news, but the betting sector may soon find itself brushing off the cobwebs from an old playbook. With reports that the chancellor has dropped plans to lift income tax rates in the late-November Budget, attention has swung back to an easier target: gambling duties.