Flutter Entertainment plc (NYSE:FLUT) owns one of the most popular sportsbooks in America, FanDuel. This biggest online betting company in the market closed at $89.56 on September 18, 2026 – close to its 52-week low and down about 69% from its high a year ago. On September 21, Rothschild downgraded the stock to Neutral and cut its price target to $119 from $169. The bank’s reason was that Flutter has now lowered its 2026 forecast four times this year.
Why the Forecast Keeps Falling
A few forces are squeezing the US business. States keep raising taxes on betting. Illinois now charges a fee on every online wager. Consequently, the betting there dropped around 15%. Flutter anticipates approximately $40 million in extra tax costs nationwide. In addition to this, the competition in the market is getting heavier. To retain their customers, the leading companies are increasing the bonuses and free bets, which negatively affects the margins. The unpredictable nature of the sports results further complicates the business. And in its last update, Flutter cut FanDuel’s profit outlook by 22%.
The Bull Case
FanDuel holds about 44% of the US sports-betting market, commanding roughly 41% to 44% of the gross gaming revenue (GGR) share. Its closest rival, DraftKings, secures 32% to 34% of the market. Total company revenue grew 17% year over year, with around 20% expansion in its high-margin online casino division. Sports outcomes naturally even out over the long term, which should normalize near-term volatility. Following the 69% sell-off, shares trade nearly 13 times forward earnings, offering an attractive multiple for the leader of a fast-growing industry.
The Bear Case
The bears, however, think the damage is beyond recovery. Gaming taxes do not often get rolled back, and at the same time, heavy spending is required to keep up the customer retention rate. Four forecast cuts in a single year raise deep concerns about the management’s ability to judge its own business. Additionally, institutional interest in the stock has faded a lot in the first half of 2026. According to the Insider Monkey database, the number of hedge funds holding Flutter fell to 37 at the end of the second quarter of 2026, down from 57 in the first.
The Bottom Line
Flutter Entertainment plc (NYSE:FLUT) remains the market leader, but repeated guidance cuts have tested investor patience. For long-term investors, the sell-off offers an entry point into a growing business trading at a steep discount. But without operational stability in the company’s management, the decline will continue, and the discount will be meaningless. Steady earnings guidance in the upcoming quarters will signal recovery in management’s performance.
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