Paddy Power Eyes Strong U.S. Revenue Growth by 2027

Last Updated on July 27, 2026 by Maurya

Paddy Power’s parent company, Flutter Entertainment, is betting heavily on continued expansion in the United States as it works toward ambitious revenue and profitability targets for 2027.

The key name behind that American growth story is not Paddy Power itself, however. Flutter operates its U.S. sports betting and online casino business primarily through FanDuel, while the Paddy Power brand remains focused largely on the United Kingdom and Ireland. Referring to “Paddy Power’s U.S. growth” is therefore convenient shorthand for the wider Flutter group’s American strategy.

Flutter originally set out a target of approximately $9.7 billion in 2027 revenue from existing U.S. states, based on the midpoint of a projected 15% to 17% compound annual growth rate. The company also projected roughly $2.4 billion in adjusted EBITDA from those states, with the corresponding margin reaching around 25%. Importantly, those estimates excluded revenue from states that had not yet launched regulated online betting or iGaming when the forecast was produced.

Recent results show why the U.S. remains central to Flutter’s long-term investment case. FanDuel produced substantial growth during 2025, although softer sportsbook activity at the beginning of 2026 has added a layer of uncertainty to the path toward the 2027 target.

The opportunity remains significant, but reaching Flutter’s goals will require more than general growth in legal sports betting. Product innovation, online casino expansion, disciplined promotional spending, state regulation and improved customer retention will all influence the outcome.

Paddy Power, Flutter and FanDuel: Understanding the Relationship

Paddy Power is one of several major gambling brands owned by Flutter Entertainment. The company’s international portfolio also includes Betfair, Sky Betting & Gaming, PokerStars, Sportsbet, Sisal and Snai.

In the United States, Flutter operates primarily through FanDuel and TVG. By contrast, Paddy Power is grouped with Flutter’s UK and Ireland operations, where the business also maintains a substantial retail betting-shop network. Flutter reported that it had 506 Paddy Power shops across the UK and Ireland at the end of 2025.

This distinction matters because FanDuel, rather than Paddy Power, is responsible for the American revenue numbers discussed in Flutter’s forecasts.

Flutter acquired its initial controlling interest in FanDuel in 2018, shortly after the U.S. Supreme Court overturned the federal law that had effectively prevented most states from authorizing sports betting. FanDuel subsequently became Flutter’s largest individual brand and one of the leading operators in the American market.

By the end of 2025, FanDuel’s online sportsbook was available in 25 U.S. states or territories. Its online casino operated in five states, while its daily fantasy sports product was available in 43 states.

What Is Flutter Targeting for 2027?

Flutter outlined its medium-term financial ambitions at its September 2024 Investor Day. At the group level, management presented a pathway toward approximately $21 billion in annual revenue by 2027, more than $5 billion in adjusted EBITDA and an adjusted EBITDA margin of approximately 25%.

For the U.S. business, Flutter’s central projections included:

These targets were based on operations in states where Flutter was already active at the time. The forecast did not include the potential benefit of additional states legalizing sports betting or online casino gaming before 2027.

That exclusion provides Flutter with a possible source of upside. A new state can require substantial launch spending at first, but it may eventually add revenue, customers and scale that were not included in the original existing-state forecast.

The targets should nevertheless be treated as forward-looking objectives rather than guaranteed outcomes. Betting revenue can fluctuate significantly with sporting results, promotional decisions and customer behavior, while regulatory or tax changes can alter the economics of individual states.

FanDuel Entered 2026 From a Stronger Financial Position

FanDuel delivered impressive headline growth in 2025. Flutter’s U.S. segment generated $6.97 billion in revenue, up from $5.80 billion in 2024. Adjusted EBITDA increased from $507 million to $922 million, while the adjusted EBITDA margin improved from 8.7% to 13.2%.

The revenue mix showed that FanDuel was no longer relying exclusively on sports betting:

• Sportsbook revenue reached $4.63 billion.
• iGaming revenue increased to $2.10 billion.
• Other U.S. revenue contributed $239 million.

Sportsbook revenue increased by 15% during 2025, while iGaming revenue climbed by 37%. The online casino result was supported by a 26% increase in average monthly players and continued product development, including new games and site-wide jackpot features.

Flutter also reported that FanDuel ended 2025 with approximately 41% of U.S. online sports betting gross gaming revenue in the states where it operated. Its iGaming share was approximately 27% to 28%, depending on the measurement period cited in Flutter’s disclosures.

These figures demonstrate the scale of the platform. They also show why relatively small improvements in retention, betting margin or operating efficiency can have a meaningful effect on earnings.

Early 2026 Results Introduced a More Cautious Note

The start of 2026 was less straightforward.

Flutter reported $1.76 billion in first-quarter U.S. revenue, representing year-over-year growth of 6%. Sportsbook revenue increased by only 1%, although iGaming revenue remained stronger with growth of 19%.

Average monthly U.S. players declined by 1% overall. Sportsbook average monthly players were down 6%, while iGaming players increased by 10%. Flutter said that FanDuel had exited 2025 with a smaller sportsbook customer base than expected, partly reflecting customer churn and weaker recycling of player funds following earlier betting outcomes.

Management responded by restructuring parts of the sportsbook operation and focusing on rewards, loyalty and product development. New initiatives included a sportsbook loyalty program, additional same-game parlay functionality and Bet Protect+, a feature through which eligible customers can purchase protection against certain bet outcomes.

For the full 2026 financial year, Flutter guided to approximately $7.80 billion in U.S. revenue at the midpoint, which would represent 12% year-over-year growth. U.S. adjusted EBITDA was forecast at approximately $970 million, or growth of around 5%.

The slower projected growth in adjusted EBITDA partly reflects investment in new markets and FanDuel Predicts. Flutter’s guidance included approximately $300 million of adjusted EBITDA investment in FanDuel Predicts and around $105 million of losses associated with new U.S. states.

The result is a more balanced outlook. FanDuel remains highly profitable and continues to expand, but its route to the original 2027 objectives may not be linear.

Why Flutter Still Sees Major U.S. Growth Potential

Several structural factors support Flutter’s confidence in the American market.

1. The Legal Sports Betting Market Is Still Expanding

Legal sports wagering has moved rapidly into the mainstream since 2018. The American Gaming Association reported that U.S. commercial sports betting revenue reached approximately $16.96 billion in 2025, an increase of 22.8%, as legal operators handled $166.94 billion in wagers.

The AGA currently identifies legal sports betting in 39 states and Washington, D.C., although the exact products available vary by jurisdiction. Some states allow statewide mobile wagering, while others permit only retail sportsbooks or more limited forms of betting.

Future state launches could increase FanDuel’s addressable audience. Flutter’s original existing-state target did not count on such launches, meaning new regulation could create additional revenue opportunities beyond the base forecast.

New states are not automatically profitable, however. Operators generally spend heavily on licensing, marketing, technology and customer acquisition during the launch period. The economic benefit tends to develop as the market matures and promotional intensity declines.

2. Online Casino Gaming Could Become the Bigger Prize

Sports betting attracts significant media attention, but regulated online casino gaming may offer a more valuable long-term opportunity.

Online casinos operate throughout the year, are less dependent on the sports calendar and typically generate higher revenue per customer. They can also produce more predictable activity than sportsbooks, where quarterly results may be affected by unexpected wins or losses for popular teams.

U.S. commercial iGaming revenue reached approximately $10.74 billion in 2025, rising 27.6% from the previous year. That revenue came from only a small group of states with comprehensive legal online casino markets.

FanDuel’s 37% iGaming revenue growth during 2025 and 19% growth in the first quarter of 2026 indicate that the company is already benefiting from this trend.

Additional iGaming legalization would therefore be particularly important. Even one large state authorizing regulated online casinos could materially expand the addressable market.

The challenge is that lawmakers have generally been more cautious about online casino legislation than sports betting. Concerns about problem gambling, tax structures and the potential effect on land-based casinos have slowed adoption.

3. FanDuel Can Generate More Revenue From Existing Customers

Revenue growth does not have to come entirely from acquiring new users.

FanDuel can also increase the value of its established customer base through improved personalization, live betting, same-game parlays, streaming, loyalty rewards and cross-selling between sportsbook and casino products.

Same-game parlays have been especially important to the economics of modern sportsbooks. These products allow customers to combine several outcomes from the same event into one wager. Because the individual selections are often correlated and the calculation of fair odds is complex, operators with advanced pricing technology may achieve attractive structural margins.

Flutter said its sportsbook structural revenue margin reached 14.2% in 2025. Management remains confident in reaching approximately 15% in 2027 and 16% over the longer term.

Higher structural margin can support revenue even without an equivalent increase in betting handle. It can also improve operating leverage, provided that gains are not offset by excessive promotions, unfavorable customer behavior or higher gaming taxes.

4. Scale Can Improve Profitability

FanDuel has already incurred much of the technology, compliance and brand investment required to operate nationally. As revenue grows in mature states, a greater proportion can potentially flow through to adjusted EBITDA.

This operating leverage is visible in the 2025 results. U.S. revenue increased by 20%, but adjusted EBITDA rose by 82%, lifting the margin by 4.5 percentage points.

Flutter’s 2027 target assumes that the adjusted EBITDA margin from existing states will rise to approximately 25%. Achieving that outcome would depend on revenue growth, efficient customer acquisition, disciplined promotional spending and better absorption of fixed technology and corporate costs.

Could FanDuel Predicts Add Another Revenue Stream?

Flutter has also entered the U.S. prediction-market sector through FanDuel Predicts.

The product allows eligible customers to trade event contracts relating to sports, financial, economic and other outcomes. Unlike a conventional state-licensed sportsbook, a prediction platform may be structured under federal commodities rules, depending on the contract and operating model.

Flutter has described prediction markets as an incremental opportunity that could introduce FanDuel products to consumers who do not have access to regulated online sportsbooks. At the end of 2025, the company said FanDuel Predicts was available in five states, while sports-related contracts had expanded more widely during 2026.

The opportunity is accompanied by considerable regulatory risk. State gaming regulators and industry groups have questioned whether certain sports event contracts effectively operate as wagering products outside established state betting frameworks.

Flutter’s first-quarter 2026 disclosure said FanDuel Predicts revenue was not material, and revenue for the remaining three quarters had not been included in its annual guidance. At the same time, the company expected substantial investment costs as it developed the platform.

Prediction markets should therefore be viewed as potential upside rather than the foundation of the 2027 revenue case.

The Biggest Risks to Flutter’s 2027 Outlook

Flutter’s American growth plan is compelling, but it faces several obstacles.

Regulatory and Tax Pressure

Sportsbook tax rates vary significantly between states. Some jurisdictions impose relatively moderate revenue taxes, while others apply rates exceeding 30% or even 50%.

Higher taxes reduce the amount an operator retains after paying customer winnings. They may also lead companies to reduce promotions, adjust pricing or reconsider investment in less profitable states.

Flutter said increased state gaming taxes added 210 basis points to U.S. cost of sales as a percentage of revenue in 2025.

Strong Competition

FanDuel competes with DraftKings, BetMGM, Caesars Sportsbook, Fanatics Sportsbook and several regional operators.

Scale provides an advantage, but market leadership is not permanent. Customers can maintain accounts with multiple sportsbooks and switch platforms in response to promotions, pricing, product features or service quality.

Flutter’s weaker sportsbook player figures in early 2026 showed how quickly customer engagement can change. Management’s increased focus on loyalty and rewards suggests that retention is now as important as new customer acquisition.

Volatile Sports Results

Sportsbook revenue can move sharply when heavily backed teams or popular betting selections win.

Flutter distinguishes between structural revenue margin—the expected margin generated by pricing and the mix of betting products—and the actual margin after sporting results. The gap between those figures can affect quarterly revenue and earnings.

Flutter reduced its 2026 guidance partly to account for an unfavorable first-quarter sports-results impact of approximately $45 million in U.S. revenue.

Slower State Legalization

The original growth case assumes continued development of the regulated U.S. betting market. Political resistance or legislative delays could reduce the number of new state opportunities.

This risk is more pronounced in iGaming, where only a limited number of states currently permit full online casino operations.

Responsible-Gambling Concerns

Industry growth is likely to bring greater scrutiny of advertising, product design, customer affordability and the use of behavioral data.

Flutter says responsible gaming is fundamental to the sustainability of its business. Its long-term goal is for 75% of online customers to use at least one “Play Well” tool by 2030. The available features include deposit limits, time-outs, budgeting tools and spending information. Flutter reported that 52.1% of FanDuel customers used its My Spend feature during 2025.

For FanDuel, responsible-gambling investment is not only a compliance requirement. Strong safeguards may help protect customers, preserve regulatory relationships and reduce the risk of more restrictive legislation.

Can Flutter Reach Its U.S. Revenue Target?

Flutter has established a strong platform from which to pursue its 2027 objectives.

FanDuel generated nearly $7 billion in U.S. revenue during 2025, increased adjusted EBITDA substantially and maintained leading positions in sportsbook and iGaming gross gaming revenue. Its online casino operation continues to grow rapidly, while improved product features and pricing capabilities could support higher sportsbook margins.

At the same time, the first quarter of 2026 demonstrated that the business is not immune to customer churn, competition or unpredictable sporting outcomes. Flutter’s forecast of 12% U.S. revenue growth for 2026 remains healthy, but it is below the pace implied by the most optimistic interpretation of its original medium-term ambitions.

Investors and industry observers should watch several indicators over the coming quarters:

• U.S. sportsbook average monthly player growth.
• FanDuel’s share of sports betting and iGaming revenue.
• Customer retention following the launch of loyalty rewards.
• Progress toward a 15% structural sportsbook margin.
• iGaming growth in existing states.
• The cost and performance of new state launches.
• Regulatory developments affecting prediction markets.
• Changes in state betting and casino tax rates.

The 2027 target remains achievable in principle, but execution will be crucial. Flutter must restore stronger sportsbook engagement while maintaining its momentum in online casino gaming and controlling the cost of expansion.

Final Verdict

Paddy Power owner Flutter Entertainment continues to see the United States as one of its most important long-term growth markets.

FanDuel’s scale, brand recognition, technology and market share give Flutter advantages that many competitors cannot easily reproduce. The company has also shown that its U.S. business can produce meaningful operating leverage as states mature and revenue expands.

Yet the next phase will be more demanding than the initial land-grab that followed the legalization of sports betting. Future success will depend less on launching promotional offers and more on retaining customers, improving products, growing iGaming, managing taxes and operating responsibly.

Flutter’s approximately $9.7 billion existing-state revenue objective for 2027 offers a clear benchmark. Whether the company reaches it will depend on FanDuel’s ability to turn market leadership into consistent, sustainable and increasingly profitable growth.

For now, the direction remains positive—but the mixed sportsbook performance seen in early 2026 means the journey toward 2027 deserves close attention.

FAQs

Does Paddy Power operate in the United States?

Paddy Power itself is primarily a UK and Irish betting brand. Flutter Entertainment’s main U.S. operation is FanDuel, which offers online sports betting, casino gaming, fantasy sports and horse-racing products.

How much U.S. revenue did Flutter generate in 2025?

Flutter’s U.S. segment produced approximately $6.97 billion in revenue in 2025, up 20% from $5.80 billion in 2024.

What is Flutter’s U.S. revenue target for 2027?

Flutter projected approximately $9.7 billion in 2027 revenue from the U.S. states where it was already operating when the target was announced. The forecast excluded the potential benefit of subsequent state launches.

Is FanDuel profitable?

Yes. FanDuel’s U.S. segment generated approximately $922 million in adjusted EBITDA during 2025, compared with $507 million in 2024.

What could drive FanDuel’s future growth?

Potential drivers include growth in existing sportsbook markets, online casino expansion, new state launches, improved customer retention, higher structural betting margins and new products such as FanDuel Predicts.

What are the main risks?

The primary risks include higher gaming taxes, stronger competition, slower legalization, unpredictable sports results, customer churn, regulatory intervention and growing concern about gambling-related harm.