🔒 🔒 Flutter sets aside $157.5 million for Sportsbet Fast Code class action

Global wagering powerhouse Flutter has set aside US$109 million (A$157.5 million) towards a potential resolution of the pending Fast Code class action against Sportsbet.

The Maurice Blackburn-led claim alleges that in-play sports bets placed through the Fast Code service breached the Interactive Gambling Act 2001. 

It covers losing bets placed between December 24, 2018, and December 24, 2024, and excludes racing. Sportsbet denies the allegations and defended its position in a Supreme Court of Victoria trial in August.

“The trial concluded in August 2026, and the matter is now before the court awaiting judgment. While the Group remains confident in its position, it has recognised a provision of $109 million (A$157.5 million) to facilitate a potential resolution of the matter,” Flutter said in its quarterly filing.

“At this time, the Group cannot reasonably estimate any loss in excess of the amount provisioned or a range thereof.”

Flutter’s latest update revealed Sportsbet’s revenue, in Australian dollars, fell four per cent in the September quarter compared to last year, as unfavourable sports results and sports mix offset five per cent handle growth. 

Exchange rates lifted Australian revenue to US$348 million from US$336 million. The filing describes the Australian racing market as softer and expects that to continue in the near term.

Group revenue rose 2 per cent to US$3.874 billion. The net loss of US$1.148 billion included US$873 million of impairments on Brazil, where a government ban has shut Flutter’s operations, and adjusted EBITDA fell 25 per cent to US$360 million.

Profit pressure extended beyond Australia. US revenue increased 6 per cent to US$1.455 billion, but adjusted EBITDA dropped to US$3 million from US$51 million as Flutter invested in prediction markets. 

International revenue was broadly flat at US$2.419 billion, while adjusted EBITDA declined 14 per cent to US$435 million, primarily reflecting higher UK gaming taxes, partly offset by cost savings.

Average monthly players fell three per cent to 13.7 million from the same quarter last year, driven largely by an eight per cent decline in non-US players after the closure of the Indian business in August last year.

In his first results since succeeding Peter Jackson, chief executive Dan Taylor cut full-year revenue guidance by US$300 million to US$17.61 billion. 

The adjusted EBITDA guidance midpoint was reduced by US$160 million to US$2.495 billion, incorporating adverse sports results into October and the Brazilian closure, partly offset by cost reductions.

Taylor’s shareholder letter set out a broader challenge: Flutter was not extracting enough value from its brands, expertise and scale, and needed to simplify its operations so it could invest behind opportunities offering the strongest long-term returns.

His priorities are to strengthen FanDuel’s US leadership, capture the prediction markets opportunity, improve returns from the International portfolio and streamline the operating model.

He said this would require faster execution and tough decisions, alongside disciplined investment and improved cash generation.

“Online betting and gaming is still a relatively young industry, with significant room to grow as markets develop and customer behaviour evolves,” Taylor said.

“Flutter enters its next phase from a position of strength. We have leading businesses in many of the world’s most attractive markets, great brands and scale advantages that few others can match.

“Our job now is to make more of those advantages. Our Q3 performance gives me confidence that we are moving in the right direction.”

Flutter expects an additional US$500 million in gross operating-cost and capital-expenditure savings by 2029, beyond its existing International transformation and UK tax-mitigation programs. 

Taylor said artificial intelligence, fewer management layers, reduced duplication and simpler technology would help direct more investment towards customers.