Three of the largest US online gambling operators reported losses for the second quarter of 2026. Flutter lost around $300 million, DraftKings $25.7 million, and PENN Entertainment's interactive segment posted a $9.5 million loss.
Flutter replaces CEO after US collapse
Flutter recorded its worst result in years. Adjusted EBITDA in the US fell from $400 million to $119 million in the quarter. On 1 October Dan Taylor, head of the international division, will take over as CEO, replacing Peter Jackson. FanDuel CEO Amy Howe left the company earlier in the spring after a weak first quarter.
Flutter shares dropped 11% following the earnings release, even though group adjusted EBITDA of $508 million beat analyst estimates of $484.5 million. The company cut its 2026 revenue target from $18.3 billion to $17.91 billion, with the entire revision coming from the US business.
DraftKings reported revenue of $1.44 billion, down $69 million from the second quarter of 2025. A year ago the company posted a profit of $63.8 million; this quarter it recorded a $25.7 million loss. CEO Jason Robins maintained full-year guidance: revenue of $6.5–6.9 billion and adjusted EBITDA of $700–900 million. The company is betting on prediction markets, a product already built into its Super App and available nationwide.
PENN in profit, but online still losing
PENN Entertainment posted a profit of $32.6 million, compared with a loss of $18.3 million a year earlier. The interactive segment's loss narrowed from $62 million to $9.5 million as the company shifted focus to theScore Bet after failures with Barstool Sports and ESPN Bet. PENN shares rose from $16 to $20 over the week and are up 35% year to date.
