PokerStars parent company Flutter Entertainment is preparing for a change at the top after announcing that CEO Peter Jackson will step down following a difficult second quarter for the global gambling group.
Jackson will be replaced by Flutter President Dan Taylor on October 1, with the outgoing chief executive remaining as an adviser until the end of 2026.
Taylor only became Flutter president in May and has also been leading efforts to improve performance at FanDuel through his role overseeing the company’s international operations.
“Our priority will be to keep delivering for our colleagues, customers, and shareholders while building on the momentum we’ve created across the business,” Taylor said.
Flutter’s portfolio includes some of the biggest names in online gambling, including PokerStars, FanDuel, Paddy Power, Betfair and Sky Bet.
Flutter Reports $296 Million Q2 Loss
The leadership announcement arrives at a challenging time for Flutter.
The company reported a $296 million loss for the second quarter, compared with a $37 million profit during the same period last year. Flutter shares had already fallen 14% during August before dropping another 5.2% following the earnings announcement.
Quarterly revenue nevertheless increased 3% overall to $4.33 billion, helped by stronger international performance. Average monthly players fell 11%, however, while the U.S. business was one of the biggest areas of weakness.
U.S. revenue declined 6%, including a 15% fall in sports betting revenue. Online gaming performed better, recording growth of 6%.
FanDuel remains the largest online sportsbook in the U.S., and Flutter has indicated it isn’t planning to surrender that position. The company said it intends to make “proactive sportsbook investment” during the second half of 2026 “to extend FanDuel’s leading position.”
International Markets and World Cup Provide a Boost
Flutter’s operations outside the U.S. delivered stronger results.
International revenue increased 10%, with sportsbook revenue climbing 14% and online gaming growing 7%. UK revenue was up 7%, while Central and Eastern Europe recorded growth of 16%.
Some of Flutter’s fastest expansion came elsewhere. Revenue increased 36% in Southeast Asia and 64% in Brazil, while Asia-Pacific revenue slipped 1%.
This summer’s FIFA World Cup also provided a major boost for the sportsbook business. Flutter reported more than 10 million users during the tournament, an 88% increase compared with the 2022 World Cup.
World Cup betting handle reached $3 billion, up 174%, generating approximately $300 million in revenue.
FanDuel Faces Growing U.S. Competition
FanDuel currently operates its sportsbook in 25 U.S. states, Washington D.C. and Puerto Rico. Its online casino business is available in Michigan, New Jersey, Pennsylvania, West Virginia and Connecticut.
The company is competing not only with established regulated sportsbooks but also with the rapidly developing prediction market sector, where platforms offer sports-related event contracts.
Regulatory pressure is another issue for the wider U.S. sports betting industry. Several states have considered or introduced tighter restrictions, particularly around player prop betting, while proposed legislation in New York would prohibit live sports betting.
Flutter also faces higher costs in the UK after the country’s online gaming tax rate increased from 21% to 40% on April 1.
PokerStars Activity Continues to Decline
For poker players, one of the most notable details in Flutter’s latest update concerns PokerStars.
Flutter reported “an overall decline in activity on the PokerStars global platform” as it continues restructuring the historic online poker brand and integrating it more closely with its wider gambling operations.
Part of that strategy has involved bringing PokerStars into the FanDuel ecosystem in North America and combining player pools where regulations allow.
The wider transformation came at a considerable short-term cost. Flutter recorded $120 million in additional restructuring and integration expenses during Q2, although the PokerStars integration is expected to help deliver $300 million in annualized cost savings by the end of 2026.
The latest financial update also follows further changes inside PokerStars itself. More than 100 layoffs were recently announced, affecting employees across the company’s hubs in Canada, Europe, the UK and Ireland.
Flutter Enters a New Era
Flutter’s recent history has been shaped heavily by major acquisitions.
The company acquired almost 58% of FanDuel in 2018 before buying another 37% three years later. It completed its ownership of the U.S. sportsbook last year by purchasing Boyd Gaming’s remaining 5% stake for $1.76 billion.
PokerStars joined Flutter’s portfolio through the roughly $6 billion combination with The Stars Group in 2020.
Taylor will therefore inherit one of the world’s largest gambling businesses when he takes over in October, but also one facing several immediate challenges. FanDuel remains the U.S. market leader, international markets are producing growth, and the World Cup delivered a substantial betting boost.
For the poker side of the business, however, Flutter’s acknowledgement that PokerStars global activity is declining will be the figure players and the wider industry watch most closely.
