Core Viewpoint - Flutter Entertainment plc (NYSE:FLUT) is identified as an undervalued stock with significant upside potential heading into 2026, despite recent price target reductions by analysts [1][2]. Group 1: Analyst Ratings and Price Targets - Joe Thomas from HSBC upgraded Flutter's stock from Hold to Buy, lowering the price target from $265 to $228 [1]. - Ben Shelley from UBS reiterated a Buy rating, reducing the price target from $360 to $340 [1]. Group 2: Valuation and Market Concerns - The stock is currently trading at a price-to-earnings ratio of 20 and an EV/EBIT ratio of 16, which account for UK tax increases [2]. - Concerns exist regarding a slowdown in the US betting market, creating uncertainty around management's return on investment timeline [2]. Group 3: Market Opportunities - The company is expected to benefit from new state liberalization in the US sports betting market [2]. - The UK budget is seen as a major overhaul for the company, with potential catalysts including FanDuel Predicts and legislative openings in the US sports betting market [3]. Group 4: Company Overview - Flutter Entertainment plc is a global online sports betting and iGaming operator, offering a variety of products such as sports betting, casino games, daily fantasy sports, poker, and lottery through multiple brands [4].

Core Viewpoint - The UK Government's recent changes to online gaming taxation will significantly impact Flutter Entertainment's adjusted EBITDA, with expected impacts of approximately $320 million in fiscal 2026 and $540 million in fiscal 2027 [1][2]. Tax Changes and Financial Impact - Effective from April 2026, the iGaming tax will increase by 19 percentage points to 40 percent, while from April 2027, the sports betting tax (excluding horse racing) will rise by 10 percentage points to 25 percent [5]. - The adjusted EBITDA impact for Flutter is projected to be $320 million in 2026 and $540 million in 2027, with first order mitigation expected to be around 27% in 2026 and 37% in 2027 [2][6]. Mitigation Strategies - Flutter anticipates that direct first order mitigation, including reduced operational, promotional, and marketing spend, will account for approximately 20% of the gross impact in the first six months post-implementation, increasing to about 40% thereafter [2]. - The company expects to leverage its scale and market position to achieve material second order mitigation benefits, potentially gaining market share and improving operational efficiencies [2][3]. Industry Context - The tax increases are viewed as detrimental to the industry, potentially benefiting illegal gambling operators who do not pay taxes and do not invest in safer gambling practices [3]. - The UK's remote gaming duty is now higher than in countries like the Netherlands, which has previously seen a rise in illegal gambling following tax increases [3]. Company Overview - Flutter Entertainment is a leading online sports betting and iGaming operator with a diverse portfolio of brands, including FanDuel, Sky Betting & Gaming, and PokerStars, generating $14,048 million in revenue globally for fiscal 2024, a 19% year-over-year increase [9].

Core Insights - Flutter Entertainment reported a solid Q3 performance with a 9% increase in average monthly players (AMPs) and a 17% rise in revenue year-over-year, driven by acquisitions and organic iGaming growth [2][3][8] - The company experienced a significant net loss of $789 million, primarily due to a non-cash impairment charge related to regulatory changes in India and a payment to Boyd for market access [4][8][39] - Flutter plans to launch "FanDuel Predicts" in December, aiming to capture new market opportunities in states without regulated sports betting [3][10][15] Financial Performance - Average monthly players (AMPs) increased to 14,133, up from 12,920, representing a 9% year-over-year growth [2] - Revenue for Q3 reached $3,794 million, compared to $3,248 million in the previous year, marking a 17% increase [2] - Adjusted EBITDA was $478 million, a 6% increase from $450 million in Q3 2024, with an adjusted EBITDA margin of 12.6% [2][40] - The net loss margin was 20.8%, with a loss per share of $3.91, significantly higher than the previous year's loss of $0.58 [2][4] US Market Insights - In the US, revenue grew by 9% year-over-year, driven by a 44% increase in iGaming revenue, while sportsbook revenue declined by 5% due to customer-friendly sports results [3][16] - FanDuel's handle growth in Q4 has shown a positive trend, with a 10% year-over-year increase to date, supported by strong NBA season performance [5][58] - The company holds a 47% net gaming revenue share in the online sports betting market as of September [20] International Market Insights - International revenue grew by 21% year-over-year, with adjusted EBITDA of $505 million, reflecting strong contributions from recent acquisitions [26][50] - The cessation of real-money gaming in India negatively impacted organic growth, while iGaming continued to thrive in regions like Turkey and Italy [35][49] - Brazil showed exceptional growth with a 412% increase in revenue, driven by the Betnacional acquisition [33][49] Strategic Developments - The launch of "FanDuel Predicts" is expected to unlock new growth opportunities by offering a sports product in states without current access to sports betting [10][15] - Flutter's strategic investments and acquisitions are aimed at enhancing its market position and driving sustainable growth [7][36] - The company is focused on maintaining a disciplined approach to investment while monitoring returns to build long-term value for shareholders [14][36] Guidance and Outlook - The updated guidance for 2025 anticipates group revenue of $16.69 billion and adjusted EBITDA of $2.915 billion, reflecting year-over-year growth of 19% and 24%, respectively [6][59] - The guidance incorporates the impact of Q3 performance, Q4 sports results, and investments in FanDuel Predicts and market access [6][59] - Flutter expects to continue leveraging its market leadership in the US and diversify its international business for future growth [36][61]

Core Insights - DraftKings Inc. (DKNG) is set to report its third-quarter 2025 results on November 6, with expectations of a revenue increase but potential earnings pressure due to various factors [1][10]. Financial Estimates - The Zacks Consensus Estimate for DKNG's third-quarter adjusted loss per share has widened to 14 cents from 2 cents over the past month, compared to an adjusted loss of 60 cents in the same quarter last year [2]. - Revenue expectations are pegged at $1.24 billion, reflecting a 13.3% year-over-year increase [2][10]. Revenue Drivers - The anticipated revenue growth is attributed to ongoing product innovation, strong user engagement, and DKNG's leadership in online sports betting and iGaming [3]. - Live betting continues to be a significant growth driver, supported by industry-leading uptime and a variety of in-game wagering options, particularly during major sports seasons [4]. - DKNG's expansion into new jurisdictions, such as the mobile sportsbook launch in Missouri, is expected to contribute positively to revenue [5]. Cost Pressures - The company's bottom line may face pressure from rising tax burdens in key states, expansion-related expenses, and elevated marketing investments during the peak football season [6][10]. - New tax pass-through mechanisms and regulatory developments could also create temporary margin friction [7]. Earnings Prediction - Current models do not predict an earnings beat for DKNG, with an Earnings ESP of -100.00% and a Zacks Rank of 4 (Sell) [8][9].

Core Insights - Flutter Entertainment will release its third quarter 2025 update on November 12, 2025, after market close [1] - A conference call will be held on the same day at 4:30 p.m. EST to discuss the results and answer questions [2] - Flutter is a leading online sports betting and iGaming operator with a strong market position in the US and globally [3] Company Overview - Flutter operates a diverse portfolio of brands including FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, and others [4] - The company aims to leverage its size and innovative mindset to drive long-term growth and promote sustainability through its Positive Impact Plan [3] Investor Information - Analysts and investors can participate in the conference call by dialing specific numbers and using conference ID 20251 [3] - A public audio webcast of the call will be available for those unable to attend live, with a replay accessible approximately one hour after the call concludes [2]

MGM Resorts International Q3 2025 Financial Update Summary Company Overview - **Company**: MGM Resorts International (NYSE:MGM) - **Date of Update**: October 14, 2025 Key Financial Highlights - **Cash Distribution**: BetMGM will return at least $200 million to parent companies by year-end [2][11] - **EBITDA Guidance**: Upgraded to approximately $200 million from at least $150 million [2][10] - **Revenue Guidance**: Expected to be at least $2.75 billion, up from prior guidance of at least $2.7 billion [2][10] - **Q3 Revenue**: $667 million, a 23% year-on-year growth [3][10] - **Year-to-Date Revenue Growth**: 31% year-on-year with EBITDA at $150 million [3][10] Online Sports Betting (OSB) Performance - **Q3 OSB Revenue**: $202 million, up 36% from Q3 2024 [3][10] - **Player Acquisition**: Focused on premium mass segment with improved retention capabilities [4][10] - **Handle Growth**: Up 13% with NGR margin expansion of 110 basis points [4][10] - **NFL Season Impact**: Strong results in July and August helped absorb September's player-friendly outcomes [4][10] iGaming Performance - **Q3 iGaming Revenue**: $128 million, a 21% increase [7][10] - **Player Metrics**: Active players up 21% despite no new market launches since 2022 [7][10] - **Content Offerings**: New exclusive games launched, contributing to robust player acquisition and retention [8][10] Product Enhancements and Marketing - **App Upgrades**: Significant improvements in app speed, features, and stability ahead of the NFL season [5][10] - **Brand Campaign**: "Make It Legendary" featuring Jon Hamm and Derek Jeter to enhance brand visibility [6][10] - **New Features**: Launched live Same Game Parlays and improved rewards dashboard [6][10] Cash Management and Future Outlook - **Unrestricted Cash Balance**: Projected to exceed $300 million, targeting $100 million as a minimum balance [12][10] - **Quarterly Cash Distributions**: Plan to distribute excess cash above the minimum balance [12][10] - **2025 Revenue and EBITDA Growth**: Expected year-on-year growth of 33% in revenue and nearly $450 million in EBITDA improvement [11][10] Industry Context and Regulatory Environment - **Prediction Markets**: Company maintains a cautious stance on prediction markets, emphasizing regulatory compliance [13][16] - **Market Volatility**: Acknowledges potential revenue swings due to NFL results [11][10] - **Legislative Focus**: Targeting new states for sports betting and iGaming expansion, including Alabama and Nebraska [62][63] Conclusion - **Overall Business Health**: Company expresses confidence in maintaining strong momentum through Q4 and into 2026 [14][10] - **Future Growth Potential**: Optimistic about expanding into new jurisdictions and enhancing product offerings [39][40]

Core Insights - The sports-betting company has raised its full-year earnings guidance due to strong performance in its iGaming and online sports divisions [1] Company Performance - The company reported significant growth in its iGaming and online sports segments, contributing to the overall positive financial outlook [1]

Core Viewpoint - Flutter Entertainment plc has announced a share repurchase program with a maximum consideration of up to $245 million, aimed at reducing its share capital [1][2]. Group 1: Buyback Details - The buyback will commence on October 1, 2025, and conclude no later than December 31, 2025 [2]. - This buyback represents the fourth tranche of a multi-year share repurchase program totaling up to $5 billion, with an expected return of approximately $1 billion to shareholders in 2025 [2]. - Davy Securities UC will execute the buyback independently, with a maximum acquisition of 17,674,003 ordinary shares, adjusted for previous tranches [3]. Group 2: Regulatory Compliance - The buyback will adhere to U.S. Securities Exchange Act rules and EU Market Abuse Regulation, ensuring compliance with legal standards [4]. Group 3: Future Considerations - Future buyback decisions will depend on the ongoing assessment of the company's capital needs and market conditions [5]. Group 4: Company Overview - Flutter is recognized as the world's leading online sports betting and iGaming operator, with a diverse portfolio of brands including FanDuel, PokerStars, and Paddy Power [7][8].

Core Insights - Flutter Entertainment reported strong Q2 2025 results with a 16% year-over-year revenue growth and a 25% increase in adjusted EBITDA, despite an 88% decline in net income due to non-cash charges [2][5][32] Financial Performance - Average monthly players (AMPs) increased by 11% to 15,978, while revenue reached $4,187 million, up from $3,611 million in Q2 2024 [2][32] - Net income fell to $37 million from $297 million, resulting in a net income margin of 0.9%, down 730 basis points year-over-year [2][32] - Adjusted EBITDA rose to $919 million, with an adjusted EBITDA margin of 21.9%, reflecting a 150 basis point improvement [2][32] - Earnings per share decreased to $0.59, while adjusted earnings per share increased by 45% to $2.95 [2][33] US Market Performance - US revenue grew by 17%, driven by a 42% increase in iGaming revenue and an 11% rise in sportsbook revenue [5][16] - Flutter maintained its leading position in the US market with a sportsbook gross gaming revenue (GGR) market share of 41% and a record 27% iGaming GGR market share [16][35] - The company reported a favorable gross revenue margin of 16.3% in June, the highest on record [16] International Market Performance - International revenue increased by 15%, with the Snai and NSX acquisitions contributing significantly to growth [22][40] - iGaming revenue in international markets grew by 27%, with notable performance in Turkey and Italy [45][46] - The company achieved a 21.7% overall market share in Italy, with 30.2% of the online market [14][46] Strategic Initiatives - Flutter's acquisition of Snai and NSX has positioned it as the largest operator in Italy and established a significant presence in Brazil [6][12] - The company extended its US market access partnership with Boyd to 2038, enhancing its market access efficiency [9] - Flutter's focus on innovation is evident with the launch of new features and products, including the FanDuel Rewards Club and Same Game Parlay+ [17][20] Updated Guidance - The company raised its full-year 2025 guidance, expecting group revenue and adjusted EBITDA of $17.26 billion and $3.295 billion, representing year-over-year growth of 23% and 40%, respectively [4][56] - The updated guidance reflects the impact of favorable US sports results, tax changes, and renegotiated market access savings [4][56]

Financial Data and Key Metrics Changes - DraftKings achieved record revenue of $1,513 million in Q2 2025, representing a 37% year-over-year growth [11] - Adjusted EBITDA reached over $300 million, doubling the previous record, with a margin of 20% [11][12] - The company maintained its fiscal year 2025 guidance for revenue between $6,200 million and $6,400 million, with adjusted EBITDA expected between $800 million and $900 million [14][15] Business Line Data and Key Metrics Changes - Sportsbook net revenue increased by 45% year-over-year, with a handle of approximately $11,500 million, and live betting handle up 16% [12][13] - iGaming net revenue grew by 23% year-over-year, driven by a significant increase in active iGaming customers [13] - The adjusted gross margin improved to 48%, an increase of over 400 basis points year-over-year [13] Market Data and Key Metrics Changes - The sportsbook promotional reinvestments as a percentage of gross gaming revenue improved by nearly 600 basis points year-over-year [12] - The company noted that sportsbook outcomes in May and June added $110 million to revenue due to favorable conditions [9] Company Strategy and Development Direction - DraftKings is focused on enhancing its sportsbook product and capitalizing on the upcoming NFL and NBA seasons [8] - The company is exploring federally regulated prediction markets to enhance shareholder value [9] - Capital allocation is directed towards maximizing risk-adjusted returns, with 6.5 million shares repurchased in the first half of the year [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 30% adjusted EBITDA margin target over time [8] - The company is optimistic about the upcoming mobile sportsbook launch in Missouri and its potential financial impacts [16] - Management acknowledged the challenges posed by higher tax rates in certain states but remains focused on core business fundamentals [16][17] Other Important Information - The company is leveraging artificial intelligence and new technologies to improve operational efficiency and customer acquisition [14][33] - DraftKings is monitoring legislative developments regarding micro betting and prediction markets, indicating a proactive approach to regulatory changes [108] Q&A Session Summary Question: Insights on prediction markets opportunity - Management indicated that the total addressable market (TAM) for prediction markets is still uncertain and is being evaluated [20][21] Question: Crossover customer analysis and regulatory conversations - Management is in a monitoring phase regarding regulatory discussions and is assessing the crossover customer potential [25][27] Question: Cost optimization opportunities - Management highlighted potential cost reductions in older agreements and payment processing as areas for improvement [31][32] Question: iGaming revenue acceleration - Management noted that iGaming is ramping up but still has room for growth [39][40] Question: Structural hold improvement drivers - The increase in structural hold was attributed to a better bet mix, particularly in parlays [46] Question: Market access deals and partnerships - Management sees opportunities to renegotiate market access deals and is open to partnerships with sports streaming apps [50][51] Question: Customer acquisition strategies for Q3 - Management is optimistic about customer acquisition efficiency during the peak season and the upcoming Missouri launch [96][98]