Flutter(FLUT) Plunges 4.54% as Bank of America Downgrade and Structural Hold Decline Weigh

The share price fell to its lowest level since April 2025 today, with an intraday decline of 4.28%.

Flutter(FLUT) has slid 4.54% over two days, extending a downward trend driven by Bank of America’s downgrade to “Neutral” and reduced price targets. Analysts cited deteriorating structural hold rates, regulatory risks, and intensifying competition in prediction markets as key concerns. Flutter’s FanDuel division, while more diversified than peers, faces margin pressures from unpredictable sports betting outcomes and shifting user behavior toward alternative wagering products.

Structural hold volatility has eroded profitability, with BofA noting a 200-basis-point decline in Flutter’s hold rates over the past two years. Rising tax burdens in the U.S. and UK further threaten margins, as states like Illinois and New Jersey hike online betting levies. The UK Autumn Budget on November 26 looms as a potential catalyst for tax harmonization, which could disproportionately impact Flutter’s international operations. Regulatory uncertainty around prediction markets adds complexity, with states like New York warning of license risks for operators expanding into this space.

Investor sentiment remains cautious despite Flutter’s recent earnings beat. While some hedge funds have increased stakes, others have trimmed positions, reflecting divergent views on management’s ability to navigate structural headwinds. The stock’s decline underscores broader challenges in the online gaming sector, where profitability is increasingly tied to macroeconomic, regulatory, and competitive dynamics. Analysts urge close monitoring of tax policy shifts and market competition to gauge Flutter’s near-term trajectory.