Should Flutter Entertainment's (FLUT) Strong US iGaming and Loyalty Gains Prompt Action From Investors?

• Flutter Entertainment recently reported strong year-over-year revenue growth and a significant Q2 2025 earnings surprise, driven by impressive momentum in its US iGaming operations and the success of its Fan Club Rewards Club loyalty program.
• This performance has sparked renewed confidence from major Wall Street analysts and contributed to meaningful movements in the company's share price.
• We'll examine how Flutter Entertainment's robust US iGaming growth and loyalty program success could affect its investment narrative outlook.

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Flutter Entertainment Investment Narrative Recap

To be a shareholder in Flutter Entertainment, you need to believe that the company's strong position in the expanding US iGaming market and its ability to drive user engagement through innovative offerings, like the Fan Club Rewards Club, can offset industry challenges. The upbeat Q2 2025 report reaffirms this growth story and boosts short-term prospects, but the key risk investors must weigh remains regulatory scrutiny: shifts in US state tax regimes could materially impact profitability, regardless of recent operational outperformance.

One relevant update tied to these catalysts is Flutter's raised 2025 revenue guidance to US$17.26 billion, which closely followed the successful US iGaming growth spurred by Fan Club Rewards Club. This signals management's confidence in the segment's momentum and echoes the market optimism behind recent analyst price target increases, despite the persistent sector-wide pressures from taxation and compliance changes.

Yet, in contrast to recent upbeat news, investors should not overlook the mounting taxation risk across key US markets...

Read the full narrative on Flutter Entertainment (it's free!)

Flutter Entertainment's outlook anticipates $23.5 billion in revenue and $2.5 billion in earnings by 2028. This scenario assumes 16.4% annual revenue growth and a $2.1 billion increase in earnings from today's $366 million.

Uncover how Flutter Entertainment's forecasts yield a $343.11 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided five fair value estimates for Flutter ranging from US$163 to US$1,000 per share. While some expect strong upside driven by continued iGaming expansion, others remain cautious due to growing regulatory and tax pressures, which could meaningfully affect future returns.

Explore 5 other fair value estimates on Flutter Entertainment - why the stock might be worth 46% less than the current price!

Build Your Own Flutter Entertainment Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Flutter Entertainment research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Flutter Entertainment research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Flutter Entertainment's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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