Operator
ladies and gentlemen good afternoon i would like to welcome everyone to flutter entertainment's third quarter 2025 update call all lines have been placed on mute to prevent any background noise after the speaker's remarks there will be a question and answer session if you would like to ask a question during that time simply press star followed by the number one on your telephone keypad if you would like to withdraw your question press star one a second time thank you and i would now like to turn the conference over to Paul Timms, Group Director of Investor Relations. You may begin.
Hi, everyone, and welcome to Flutter's Q3 update call. With me today are Flutter CEO, Peter Jackson, and CFO, Rob Coldrake. After this short intro, Peter will open with a summary of our operational progress, and then Rob will go through the Q3 financials and updated guidance for 2025. We will then open the lines for Q&A. Some of the information we are providing today, including our 2025 guidance, constitutes forward-looking statements that involve risks, uncertainties and other factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors are detailed in our earnings press release and our SEC filings. In addition, all forward-looking statements are based on current expectations and we undertake no obligation to update any forward-looking statement except required by law. Also, in our remarks or responses to questions, we will discuss non-GAAP financial measures. Reconciliations are included in the results materials we have released today, available in the Investors section of our website. And I will now hand you over to Peter.
Thank you, Paul. I'm pleased to report a good third quarter, the continued momentum in both our US and international businesses. During Q3, we saw over 14 million average monthly players engaging with our products, driving revenues 17% ahead year over year and adjusted EBITDA 6% higher. While we reported a net loss for the quarter, this is driven by the non-cash impairment charge following the regulatory changes in India and the previously communicated payments afforded for improved US market access terms. Customer-friendly sports results in September and October, which, as we've previously outlined, are transitory in nature, mean we are reducing our full-year outlook for 2025 by $280 million in adjusted EBITDA, but the underlying business is performing well, and I'm really pleased with the strong positioning of Flutter's core business as we continue to execute in the final quarter of the year. Before I provide an update on the Q3 performance of the US and international businesses, I'd like to share how we're strategically positioning FanDuel to capture the emerging prediction markets opportunity. I'm very excited to announce our expansion into this market with the launch of Fangio Predicts in December. We will immediately unlock the significant incremental addressable market by offering a compelling sports product to the vast majority of the US adult population in those states currently without sports betting. Entertainment and financial prediction markets will also be available. Flutter is exceptionally well positioned to capitalise on this opportunity through our strategic partnership with CME Group, combined with Fangio's nationwide brand presence, market-leading sports betting expertise, and two decades of our own experience operating the Betfair exchange. Fangio predicts will also accelerate acquisition of customers into the Fangio ecosystem ahead of the state legalisation of sports betting. Furthermore, the strength of our world-class pricing and risk management capabilities is at market-making opportunities which we continue to assess. We believe the sports prediction market opportunity lies solely in those states currently without sports betting access, as we can clearly see prediction markets are having a negligible impact in the states where Fangio Sportsbook is already available to customers. The opportunity to extend the Fangio footprint into these new states is significant, and our aspirations to be the clear market leader. Our investment will therefore be meaningful while maintaining the disciplined approach that has served us so well since the inception of sports betting in the US. In summary, we believe this is a hugely exciting opportunity for Canjul and one that we will seize. We have successfully demonstrated that we have the capabilities to win in sports betting and iGaming and I firmly believe this will also be the case for prediction markets. This is all in addition to our existing regulated business. In the long term, we firmly believe that it is state-regulated sports betting and iGaming that remains the most valuable long-term opportunity in the US. The importance of having the best quality sports betting product, combined with the ability to price increasingly complex sports products accurately, cannot be overstated. These are both areas where Flutter and Fangio excel. As demonstrated by international precedent, long-term success in the US gaming sector will be achieved by those operators with scale positions and the highest quality sports betting product. Turning now to our existing business in the US, we maintained our clear position as the number one online operator in both sportsbook and iGaming. Amp growth of 8% year over year is encouraging, driven by a strong iGaming Amp growth of 30% and accelerating sportsbook app growth of 5%. From a revenue perspective, we delivered growth of 9%, led by exceptional iGaming performance, where our revenue was up 44% year-over-year, delivering 27% GGR market share in Q3. We added over 500 new slots titles during the quarter, with our proprietary Flutter gaming platform enabling faster content delivery. Exclusive content continues to drive customer engagement, including new Wonka and Samurai titles, and the latest Puff and Puff installments Puff and Lots of Puff, with our most successful game launch to date, testing record engagements in GGR levels. With population penetration currently well below long-term expectations, we see significant runway for growth in existing states, with further state legalisation of further incremental opportunities. In Sportsbook, while September and October have been impacted by customer-friendly NFL sports results, we are clear that this is just the normal ebb and flow of sports outcomes, and we maintain our absolute conviction in our pricing accuracy. The NFL has a very concentrated schedule, and this drives intense customer engagement on a small number of events. Average handle on an NFL game is typically five times that of an NBA game, increasing to more than 10 times for stand-alone games. This can result in greater variability in the short term, as we've seen in recent history, but we are confident that our reported margin will revert to expectations in the longer term. The start of the NFL season consistently sees heightened levels of competition in the market. In Q3 this year, it was even more pronounced than in previous years, with September characterised by exceptionally high levels of competitor generosity. These dynamics temporarily impacted Fangio's NFL handle growth and same-game parlay penetration in the opening weeks of the season, as we deliberately chose to not match these uneconomic This disciplined approach helped deliver an NGR market share of 47% in September. While market competitive intensity has moderated from the NFL season start, it still remains at elevated levels. Fangio's scale as the number one operator in the US has subsequently enabled us to take action to strengthen our market leadership. We responded in a strong but disciplined way at the start of Q4 with increased investment in customer acquisition and retention and we've been very pleased with the momentum that this has driven. The NBA season launched in late October and we off to a good start. Customer engagement, handle and same-game parlay penetration are all tracking strongly in the early weeks of the season, giving us confidence that growth this season is shaping up well. We're also excited to see what our new strategic NBA partnership Amazon Prime can unlock, including a range of merchandising and product integrations. Our international division delivered a good performance, with revenue 21% higher year-over-year, including the benefit of our SNI and Bette National acquisitions. We delivered organic iGaming growth of 10% to a strong performance in Turkey and CSAIL's Italian online business. Organic sportsbook performance was encouraging against a strong prior year sportsbook performance which benefited from the Euros and more favourable sports results. In Italy, we launched MyCombo and CSAIL, the only four same-game parlay products available in the market in time for the start of the Italian soccer season. Customer engagement has been strong, with over half of sports customers placing a MyCombo bet during the first seven rounds of the season. The integration of Flutter Studios into the SEA Italian online platform has enabled in-house content to be offered to our Italian customers with a strong pipeline of future content. The SNI integration has also been progressing well. We've enhanced the iGaming proposition, optimized retail gaming machines and commission structures, and increased customer acquisition volumes by deploying CSAIL's proven retail sign-up programme. The migration of SMI online customers to the SEA online platform remains on track for ATRON 2026, keeping us well on course to deliver our synergy targets while bringing our leading platform capabilities to SMI customers. In the UK and Ireland, the successful migration of SkyBet onto our shared Flutter UK platform has enabled delivery of new products and improvements for our SkyBet customers. This included the launch of our highly popular SuperSub offering and the new SquadBet proposition, powered by our next-generation pricing capability. There's been much speculation around potential gaming tax increases in the upcoming UK budget. We remain engaged with policymakers and expect decisions to be based on economic merit, taking into account the industry's substantial contribution to UGA tax revenues and employment. We await the outcome in the budget later this month. However, should taxes increase, Flutter's unmatched scale and market-leading position will help to mitigate the impact, as we have demonstrated historically. In Brazil, an expanding portfolio of games and improved generosity delivered record iGaming revenues. On Sportsbook, we remain focused on integrating Flutter's in-house pricing capabilities and generosity functionality to materially elevate the overall customer proposition ahead of the World Cup next year. Outside of performance during the quarter, the sudden regulatory change in India was extremely disappointing. Flutter has invested significantly in India for the last number of years, responsibly delivering innovative skill-based games to Indian customers. JungleAid will now only offer free-to-play content as we assess our medium-term options in the market. Looking ahead, I'm extremely excited about expanding our US portfolio to include foundational predicts, and I'm confident that our market leadership can diversify international business positions as well for the remainder of the year and into 2026. I'll now hand you over to Rob to take you through the financials.
Thanks Peter. Group revenue increased by 17% and adjusted EBITDA grew 6% in the quarter, driven by excellent organic iGaming growth and the benefits of our recent acquisitions. Group net loss was $789 million for the quarter, compared to $114 million in the prior year. This was primarily due to three significant one-off items. First, a non-cash impairment charge of $556 million related to our jungly business, following the legislative change in India that meant we had to cease real money operations there. Second, the previously communicated $205 million payment to Boyd for revised US market access terms, which will deliver approximately $65 million in annual savings going forwards. And third, increased amortisation costs related to our recent acquisitions and business transformation. These were partly offset by $247 million year-over-year benefit from the Fox Auction fair value adjustments. Adjusted earnings per share grew 29%, while loss per share increased $3.91 from $0.58 in Q3 2024, due to the impact of the mainly non-cash items I have just outlined. Turning to the US, revenue was 9% higher, with exceptional high gaming growth of 44%, offsetting a sportsbook revenue decline of 5%. This led to adjusted EBITDA of $51 million, compared with $58 million in the prior year. Sportsbook performance reflected the competitive dynamics Peter mentioned, with customer-friendly sports results and heightened competitor generosity at their NFL season starts. We are pleased with the momentum in the business at the start of Q4. Handle and amp growth has been strong, and the NBA season has started positively. In international, revenue of $2.4 billion reflected growth of 21%, with our acquisitions contributing 18 percentage points of this increase. On an organic basis, iGaming performance was very strong, particularly in Turkey and Italy, with sportsbook performance reflecting tough prior year comparatives from the European Championships. Adjusted EBITDA increased by 10% year-over-year to $505 million, demonstrating the resilience of our diversified portfolio. I'm really pleased with the progress we're making across our $300 million cost transformation programme and we continue to identify further efficiencies beyond our original targets. The delivery of the UKI technology re-platforming, the redesign of our UKI organisational structure and the excellent progress we are making on the SNI integration are all good examples of our disciplined approach to driving incremental efficiencies. Operating cash flow reduced by $81 million and free cash flow reduced by $87 million year over year, reflecting the void payment for improved US market access terms. Our leverage ratio was 4 times, or 3.7 times, including SNI on a pro-forma basis, and we remain committed to our medium-term target of 2 to 2.5 times. We continued returning capital to shareholders with share repurchases of $225 million in the third quarter, and a further $245 million repurchased in the fourth quarter. This completed our authorised programme for 2025, bringing the total cash return to shareholders to $1.12 billion since inception, representing 2% of our issued share capital. The programme will continue into 2026, with a Q1 2026 repurchase of up to $250 million, as we make good progress towards our total commitment to return $5 billion over the coming years. Moving now to the outlook for 2025, Q4 has started very well and is in line with our expectations on an underlying basis. We've seen an impact from customer-friendly sports results in the initial weeks of the quarter, and we're therefore updating our four-year guidance to reflect the following factors. First, trading performance in Q3. second the impact of sports results in q3 and q4 today across both our us and international businesses third increased q4 investment in us sportsbook which has already strengthened our leadership position fourth our strategic investment in fanduel predicts as we launch this exciting new product fifth the cessation of real money gaming in india and finally tax costs associated with the Illinois wager fee. In aggregate for the group, this represents a decrease of $570 million revenue, $380 million adjusted EBITDA, with group revenue and adjusted EBITDA now expected to be $16.69 billion and $2.915 billion respectively at the midpoint, representing 19% and 24% year-over-year growth. Additional information on 2025 guidance is available in today's release including additional income statement and cash flow items. Finally, as Peter outlined, we are very excited about the prediction markets opportunity and plan to invest meaningfully to harness the growth we believe that this can deliver. At this early stage, we anticipate an incremental EBITDA cost $40 to $50 million in Q4 2025, and between $200 to $300 million in 2026. We will closely monitor returns with a priority on building value for the future, while also maintaining the flexibility to accelerate investment where performance warrants. With that, Peter and I are happy to take your questions, and I'll hand back to Abby to manage Thank you.
Operator
And we'll now begin our question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via speaker phone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. To be able to take as many questions as possible, we ask that you please limit yourself to one question and one follow-up. Again, it is star one if you would like to join the queue. And our first question comes from the line of Jeff Stantiel with Stiefel. Your line is open.
Hey, good afternoon, everyone. Thanks for taking our questions. Maybe just starting off on the $200 million to $300 million of plan investment next year for FanDuel Predicts, Peter, could you just maybe talk a little bit more on the return algorithm for this product, Meaning, are you planning to acquire users with similar payback thresholds at sports and casino, or adjust to reflect some of the higher uncertainty for this product? And then when you think about LTVs and return on the spend, the strategic positioning ahead of eventual traditional sports betting regulation and cross-sell opportunity factor into that calculation, are you restricting just two gross profits from the prediction wagering?
Hi, Jeff. Look, we're very excited about Foundry of Predicts. You know, the ability to take their sports product into the half of America that, you know, who can't currently avail of the sports learning products, I think, is something which is tremendously exciting. And, you know, the ability to partner with, you know, CME and leverage all of the expertise we have, we've had and built over the years of the Betfair Exchange, I think, means we're going to be a very formidable investor. And we have to put money behind it. Now, from a customer acquisition perspective, we are going to maintain a very disciplined approach, as we always have done since operating in the U.S., and we will be carefully monitoring the CAC to LTV dynamics. Ultimately, we do want to see as many states passing legislation to introduce sports betting as possible, and then we'll be able to migrate those customers onto sports betting. But, you know, I think it is important that we put strong investment behind this. I think we've got an incredible brand. We're going to have a great product when it launches in December, and I think we'll have the market-leading product by the time we get to Q2 next year.
Thanks for all that, Caleb. And maybe shifting gears over to some of the higher, I think you call it, a rational competitor generosity that you saw early on in the NFL season as moderated, though it's still elevated here. Just, I guess, can you add a little bit more color, you know, how widespread was this across multiple operators? What do you see as sort of the rationale, you know, from some of your peers on raising spend, you know, this year specifically and then thematically, I guess, how do you think about the risks that the broader industry maybe starts to drift more irrational in a type of prisoner's dilemma type exercise, you know, following some of this stuff? Thanks.
We've, you know, historically, you know, see a lot of generosity at the beginning of the season when customers are trying to reactivate their customer bases and get them back onto the platform. And look, this year we saw a heightened level and there was a lot of irrational behavior. It's not the first time we've seen it. We can all call out the difference of competitors in the past have spent a lot of money trying to acquire customers. What's most important is to have the best product in the business. And that's what we have with, you know, best pricing for customers. And so, look, when we look at the performance into Q4, we're very comfortable with the level of customers who've got on the platform. We're comfortable with the level of, you know, same-game parlay penetration that we're seeing as well. And so, you know, people spend a lot of money, but they haven't really managed to sort of move the needle for themselves. At some point, people will realize that, you know, it's not worth pursuing these offers because it doesn't deliver for them.
Operator
And our next question comes from the line of Paul Ruddy with Davey. Your line is open.
Hi, Peter and Rob. Thanks very much for taking the question. Just if you wouldn't mind, would you be able to give us just a little bit more colour on trading in September and into Q4 in the US, please?
And then just secondly, on prediction markets, just on the investment next year, would you expect, it's a tricky question because you don't have full oversight maybe, but would you expect that investment to be the entire investment, i.e. you'll do all the unregulated states within that next year thank you yeah i thought i'll pick up on the first part of the question maybe please we'll pick up on the british market investment so as peter mentioned we did see a lot of competitive kind of action at the start of the new nfl season with some very uneconomic offers in the market you know we maintained our our discipline our investment posture as we tend to do. So there was some handle and an SGP share that we lost in the first couple of weeks of September, but we were pleased with the way that we managed through September and subsequently our performance into October. If you look at September share data, we actually took 47% of the NGR share in September, I think which reflects maybe some of the value that others were getting for for some of the investment that they made um we have seen you know a moderation of that competitive intensity but you know it still remains a little elevated would say from from normal levels um but you know we're really pleased with our momentum into q4 we've got a record number of amps on the platform we've got double digit handle growth and we've got a really strong sports and bet mix um with the nba season starting well so we're quite pleased with our momentum.
Paul, with regards to the investment levels around prediction markets, we'll know a lot more next month when we launch the product and we see how much traction we gain. I'm excited to think about all of that marketing that currently lands nationally for customers who can't avail of the sports betting product. Suddenly they get a bit of download FanDuel Predicts and find that they've got access, whether it's sat in California or wherever they are. We think that the figures that we've created for investment next year will be more back-end loaded towards the launch of the football season. As we've done historically, we're going to be prepared to invest at levels whilst we continue to see great returns and paybacks. We'll know a lot more in the first couple of quarters next year once we get some traction and see what the LTVs look like, see how they compare with our experience operating Betfair globally. And I think that'll really help inform how hard we can push. Okay, thanks very much.
Operator
And our next question comes from the line of Ed Young with Morgan Stanley. Your line is open.
Good evening. My first question is on prediction markets as well. you've talked in the release about extensive engagement with regulators and tribes tribal lands being ring fenced and also they're not offering the product should a state regulate i think it's probably further along than many expected to be able to get access to the whole u.s in one form or another could you perhaps give a little bit of color to the extent you can on the nature of those conversations and how they developed and does it give you any more optimism in terms of the liberalisation path for other states to regulate sports betting going forward. And then second of all, just to get a bit more colour perhaps on the NBA, you've talked about Amazon, but that's clearly a forward-looking bit. You've talked about much better engagement. You seem much more happy with the performance this year. Can you just give a little bit of colour on what lies below that? Is that the nature of the games in the leagues this year in terms of unpredictability, or is it product upgrades that have driven that change in performance related to last year? Thanks.
Hi, Ed. Let me take the edition markets one, and then Rob can talk a little bit about the NBA. We have obviously been having extensive engagement with stakeholders as we get close to launching the edition markets product. As you well know, sitting in the UK, as a prediction market, you know, it's not in the same ballpark as a fully-fledged sports betting product. You know, the breadth of Colette's offering, generosity, and a bunch of other things are just nowhere near as good. So, you know, pragmatically, you know, this is, you know, the Foundry of Prediction Pollets is something that's been very exciting for the half of America who can't currently access sports betting. But, you know, if you're sat in a state and you're getting close to passing legislation you won't want to miss out on the on the tax dollars so look we we hope that this does accelerate some of the legalization of states that were sort of you know previously in the pipeline um for um for launching um sports betting because ultimately that's what we'd like to see as many states having that as possible because i think that means you know consumers will get a much better offer yeah so picking up on the second part of your question around the MBI.
There's a few things that we're finding very positive and exciting. One is we're definitely seeing an enhanced handle from where we were at this point last year and as I alluded to double digit growth in the season so far. It would also be the new television deals that are out there are getting good traction and I've had some data showing that the viewing figures are up. Our new partnership with amazon prime we're you know very excited about the integrations look like they're working well for us from a financial perspective you know we've seen significant improvement in the mba parlay handle mix year on year um so it's something um over 1100 basis points improvement um year on year which um is flowing through into a healthy healthy product mix as well i think the other thing as well is just engagement with the products. I think at one point last year there was potentially less engagement with the NBA product. There seems to be excellent engagement with the NBA this year and I think of the 100 or 80 to 100 matches so far as reading the stat yesterday that half of them have gone down. There's been five points between them in the last few minutes of the game. So there's some really good engagement around it which is good to see. Thank you.
Operator
And our next question comes from the line of Jordan Bender with Citizens. Your line is open.
Hey, everyone. Afternoon. Thanks for the question. You still have the 27 targets out there, and prediction markets obviously weren't in those numbers when you provided it. So as we start to layer in the prediction market and the capital outlay that's going to happen over the medium term, is there any kind of sense on your end of do you feel any worse or better about the EBITDA and margins that you laid out during your investor and I guess my follow-up for the second question here. Would you look to get FanDuel traders involved in prediction markets? And I guess does this present an opportunity just given the volume that you're seeing?
Let me pick up on the 2017 guidance point, Jordan, and then Steve will pick up the second point. So we're obviously not providing any updated guidance for 2027. Building on what Pete said earlier about prediction markets, We're incredibly excited about it and the additional TAM that that's opening up for us. We need to see how the investment next year plays through. But from my perspective, it'll be a very good scenario if we invest more than we planned because that'll be demonstrating that we're seeing good returns on that investment spend. So we're quite excited about where that can go. A couple of other things probably just to bear in mind, we've done the Boyd deal this year, which delivers some cost of sales savings through to 27. We finished 2024 with a larger business, but we've also had some tax increases. So there's a number of things in the mix, but if you take a step back from the detail, probably the thing that I'm most excited about is the prediction market opportunity.
And Jordan, in terms of being a market maker for prediction markets, you know there's a lot of complexity to to do to be a market maker on a tftc regulated dcm um yeah i think you but if you look at you know what what what's required for them you know the ability to um price complex correlated outcomes accurately is something that we do every day in our in our core business so look it is something that we're actively evaluating but but in the immediate term Our focus is the B2C launch of Fangio Predix next month.
Understood. Thank you very much.
Operator
And ladies and gentlemen, we ask that you now please limit yourself to one question, so we may take as many questions as possible in the time remaining. Our next question comes from the line of Jason Tilchen with Canaccord Genuity. Your line is open.
Good afternoon. Thanks for taking my question. Yet another one on prediction markets. I'm just curious from a product perspective how you're viewing the ability to take learnings from Betfair operations overseas versus maybe what you're planning to do differently based on some of the different product features that have resonated in the U.S. market with prediction markets to date.
Hi, Jason. So, yeah, look, fortunately, we were able to get a bunch of the team who've been working on the Betfair exchange for years involved in developing the products we have. We'll be launching in December for Fangio Predicts. So we can take the learnings and expertise from Betfair. We can clearly, we have a very good understanding of what U.S. consumers want through the experience of Fangio. And look, we'll be launching an exciting product next month. And we've got some fast follow features we'll be bringing in. I'm very confident by Q2 next year we'll have the leading product in the market.
Operator
And our next question comes from the line of Sean Kelly with Bank of America. Your line is open.
Operator
Hi, good afternoon, everyone. Thank you for taking my questions. Peter, whoever wants to take it, just wondering if you'd give us a little bit more color on how you're underwriting the revenue side of the prediction market formula. I think we all know there's going to be some J-curve and early investment involved. But just how are you thinking about the fee structures here? You know, that environment seems like it's very dynamic in the U.S. So how price sensitive do you think customers are going to be? And just how are you kind of thinking about the top line function and maybe your cost structure that sits underneath it? It obviously should be much better, given the lack of state-level taxes, obviously.
Well, Sean, one of the nice things about offering prediction markets, as we see with the backfair exchanges, you're not subject to the vagaries of sports results. You're right, it is a commission-based structure. So we'll launch in December. We'll get early indications of how customers are behaving. But we're excited to see how we can build out our lifetime value models. And that will make sure that we can maintain a disciplined approach to acquisition in the market.
Operator
And our next question comes from the line of Bernie McTernan with Needham & Company. Your line is open.
Good afternoon. Thanks for taking the question. Just to follow up, Peter, twice you mentioned that you expect the product to improve and by 2Q have a market leading product. So just wanted to get some more specificity there in terms of, you know, what kind of product you're launching with and then the major improvements we should expect in the coming months. Thank you.
Well, Bernie, I don't want to tell my competitors everything we've got planned, right? But, you know, look, we're very confident in our abilities to deliver a winning proposition. You know, I mean, I think in the short term, you know, we'll have a great product offering available for consumers. But we're obviously, we're not going to be ready for the, you know, we're not, you know, it was not ready for the start of the NFL this season, but, you know, we're really focused on making sure that when we get to 2026, the NFL season, we'll have a very compelling offer for customers. You know, and look, I think we've been able to, you know, increment and, you know, and deliver exciting features on our sportsbook, and I think we'll be able to do the same for British markets. We've got a clear roadmap, and some of the stuff that people love, like the player props and things that they see in the sportsbook, will be available next year.
Operator
And our next question comes from the line of Barry Jonas with Truist Securities. Your line is open.
Hey, guys. Nevada just put out a notice saying you've surrendered your gaming license from the state due to FanDuel predicts. Can you talk about the ramifications here, and are there further risks we should monitor for current or future state gaming licenses now, or was Nevada really the main risk? Thank you.
Very high. As I've stated, we have had conversations with different stakeholders over time, and Nevada was amongst that. And we did have a license in Nevada, But we didn't have any retail or B2C operations there. We were supporting Boyd as part of our legacy arrangements. So, look, once we're sad to have to surrender the license, that's what we've done. Nevada are protecting their interests. We need to possess our interests. And Fendral Predicts will allow us to go after the half of the market that we haven't previously been able to go after.
Operator
And our next question comes from the line of Clark Lampin with BTIG. Your line is open.
Thanks a lot. Maybe for the sake of variety, I'll switch it up and ask a question about iGaming. Your growth accelerated a little bit this quarter of 45 in the U.S. Just curious how you guys think about product differentiation beyond what you've already done with exclusives and the rewards framework and then maybe bigger picture. Or where do you think about whether it's U.S. or for the full business iGaming revenue mix going? Thanks a lot.
Thanks a lot. Look, I don't think we should underestimate how important some of those pieces are, you know, from exclusivity of content. I mean, I think, you know, the third installment in the Huffman Plus series was the most successful one we've had to date, and we're very excited about it. The reward programs, which have been key for us in other markets, and I think we're demonstrating how important it is in the US market, and also the work we've done from a jackpot perspective. So some of this stuff is really hard to replicate. So the team would do a brilliant job executing, and there's loads more improvements and changes to deliver. And it's not just in the US market as well. You know, we're taking our capabilities. You know, I know that the team here in the U.S. is spending time with our colleagues in Italy and in Central and Eastern Europe. So, you know, we're sharing best practices around the world, and that's what's allowing us to stay ahead of our competitors.
Operator
And our next question comes from the line of Jed Kelly with Oppenheimer. Your line is open.
Hey, great. Thanks for taking my question. Just as we look out to next year, obviously, you know, with prediction markets, but has anything changed in the underlining earnings power that you see as prediction markets over into next year? Anything with promotional velocity, taxes that you sort of could touch on?
Yeah, let me pick up on this, Jeff. I mean, as we mentioned earlier, we've got some really good momentum in the business at the moment and our focus is on exiting 2025 with the strongest business possible you know we we've got a real level of confidence that will continue to grow into 2026 you know both in the us and internationally we're not taught on this call much about our international business yet but you know we're really confident about the growth profile that we've got there next year um you know especially from an EBITDA perspective with some of the transformation initiatives that we're delivering. So, you know, there's not anything that, you know, is particularly front of mind, obviously, that the prediction investment will be incremental to what we've previously looked at. But, you know, as we've said earlier, we're very excited about that and what that will potentially mean for us in 2027 and beyond. So, yeah, no significant changes to 2026. Thank you.
Operator
And our next question comes from the line of Brant Montour with Barclays. Your line is open.
Thanks, everybody. So my question is on the fourth quarter sort of sportsbook investment. You know, could you give us a sense for if that's all NFL or if that was NFL and NBA? And I think the more important point would be, you know, if you do see good returns on that investment, would you be looking to sort of keep that going? Or is your number one priority to sort of get back to the levels that you were at prior?
Thanks, Brian. I mean, the point we'd say is we've got flexibility and agility around where we invest, particularly from a generosity perspective. And, you know, we can tweak and be agile with that as we move from week to week, depending on what we see in the market. As we've said on a number of occasions previously, we've got a discipline set of economic parameters that we invest to in terms of paybacks, ROIs and CACs. And, you know, that that model has worked very well for us consistently, and that's not something that we're going to materially diverge from. As we said earlier, you know, at the start of Q4, we've seen some very compelling opportunities to invest and lean in and potentially, you know, where some others went in very hard early in September, they retraced a bit. But as we said, we are seeing some some elevated levels of generosity in the market. So we're very confident with our posture and what that will deliver and the size of business that we'll accept 2025. We do anticipate, as Peter said earlier, that in the medium to longer term, the generosity in the market will moderate. And that's what we've experienced in many other markets around the world historically. So that's what we'll see at some point in time. And in the meantime, we're very confident with our generosity posture. Thanks.
Operator
And our next question comes from the line of Ben Shelley with UBS. Your line is open.
Hi, thanks for taking my question. Could you share any early learnings from the measures you took in Illinois and the impact on player behavior there? And how does this guide your response to strategy on potential tax hikes going forward?
Yeah, hi, Ben. I can pick up on Illinois. So, obviously, with the structure that was introduced in Illinois, I should expect we're seeing a reduction in the number of bets there. but increasing handle per bet when we looked at the september data you know illinois is definitely behaving in line with with other states so we saw no no impact on our q3 numbers however we do still kind of monitor this um very closely and we're looking at the the market data closely at the start of q4 and what that may or may not mean when you take a step back and approach this higher level we definitely feel that this is a another lever or tool that we've got in our armory to potentially mitigate taxes in high tax jurisdictions um moving forwards yeah we're hopeful that the regulatory landscape potentially accelerates with some of the prediction developments as well as with as we discussed earlier but yeah this is certainly something that we'll have in our toolkit moving forward and and we'll consider elsewhere where where appropriate Thank you.
Operator
And our next question comes from the line of Ryan Sigdahl with Craig Hallam. Your line is open.
Hey, good afternoon, guys. Curious if you're willing to comment kind of on the initial product launch and predictions, if that will include Parley's, your largest competitor in the U.S. That's forthcoming also in prediction markets that they're going to have some prepackaged stuff just to help on the liquidity side. But curious if you're willing to comment on what offerings you're going to have on the Parley side.
Hi, Ryan. Look, we are not going to launch Parlays next month when we launch Fangio Predicts, but you can expect us to fast follow with this early next year.
Operator
And our next question comes from the line of John Decree with CBRE. Your line is open.
Hi. Thank you. Another one on iGaming. It's probably harder to discern, But, you know, curious if you've seen any more competitive, aggressive behaviors in the promotional environment for iGaming in the U.S., probably easier to see during NFL season, but curious, you get great results in the quarter. But is that equally as competitive as sports betting?
Hi, John. You don't quite see the same externalities driving iGaming as you do sports, where obviously you have season launches and big games and stuff like that. We've heard a lot from competitors about how focusing particularly on the direct casino space, which is something that we've been uh focused on for a while but you know the team have been uh focused on what they can control you know which is you know things like you know massive exclusive content which you know we're very excited about um it's not just huff and puff we've got wonka and samurai titles we've got vegas map blackjack in q3 um so you know there's lots of stuff that we've focused on you know i think we've had 500 new titles in the water um i if i look at the business you know we've got amp growth 30% year over year. So, you know, I think people are trying to, you know, focus on this, but I think the team has got really good momentum in the business, and, you know, I think there's exciting plans in the pipeline.
Thanks, Peter. All very helpful. Appreciate it.
Operator
And our next question comes from the line of Robert Fishman with Moffitt Nathanson. Your line is open.
Good afternoon. Back to the competitive landscape in the U.S., do you think the new partnership with ESPN in DraftKings will change any future competitive dynamics? And are you looking to pursue any other media partnerships, including any update would be welcome with your Fox relationship and the equity stake there? Thank you.
Hi, Robert. Yeah, as you'd expect, I don't think there are many partnerships that emerge in the U.S. market that we haven't looked at. And as a scale player, if we want to do these deals, we've got the resources to make them happen. We've been very pleased with our Amazon partnership you know the tip-off of the NBA season the odds integration and stuff that you can do from a consumer perspective and also you see on the screen I think it worked really well I can resonate very well but you know ESPN struggled to get their product to work you know we've seen a number of these media deals you know struggle because of the quality of the product we have the best product in the market and we think that's what stands us in in best uh in best regard in terms of continuing to to grow and be um being on board in america and our next question comes from the line of joe soft with susquehanna your line is
open thanks uh peter i was wondering if you could comment on the viability of the parlay product on sandal predicts and whether or not you guys expect to use it to hedge maybe any of the local concentrated that's that you might have in your sports but yeah hi hi Joe we we're excited about the launch of angel predicts you know I think there's you know that I stated you know we're going to make this the parlay product you
know available early next year yeah I don't think should underestimate that quite how hard it is to bring parlays to life on these platforms and they can only really be delivered in a pre-packaged way you're never going to get the same degree of choice or depth of markets and you know that's one of the challenges and why the prediction markets are not in the same ballpark as as a sports betting product i don't think that there will be the right type of depth of market for us to be hedging and i'm not sure it's something we'd necessarily want to do either we've got real confidence in our in our pricing on our platform And that's not something that I'd be anticipating us doing.
Operator
And our next question comes from the line of Chad Bainan with Macquarie Group. Your line is open.
Afternoon. Thanks for taking my question. I wanted to ask about, I guess, the swift message or decision in India in the seizing of that market. I know you've seen openings and closings in different markets in your time. Does it feel like the parliament is vehemently against, you know, this industry, or are they just looking to better, you know, protect the consumer? And if we see movement to the black market, maybe something opens up in the next couple of years that's just more in line with what they want.
Chad, I can give you a bit of perspective on this. We were frustrated at the speed with which the bill that emerged came into law. And I would hope that in that sort of time frame you talk about, we might get some more legal clarity around the extent to which some of these games of skill may be able to come back. They had had 70 years worth of constitutional protection in India. But it's not that long ago that we saw Black Friday in America and not where we are today. So we're going to maintain the jungly products on a free-to-play basis and we'll see what happens. We're doing all the lobbying and legal challenges that you'd expect. Thank you.
Operator
And our next question comes from the line of Estelle Weingrub with J.P. Morgan. Your line is open.
Hi, good evening. I've got one question on the UK, please. How do you see the underlying market at the moment? I mean, sportsbook revenue remains negative year on year. Clearly, you're lapping some tough comps there, plus the euros-related comps. But iGaming also slowed this quarter to a low single-digit number, FX. How should we look at the quarters ahead for both sports and iGaming, assuming broadly normalized sports results?
Hi, Estelle. I think in summary, we're pleased with the momentum that we've got in the UK. As you said yourself, there's quite a lot of results in the mix because we had a very favourable Euros in Q3 last year, which is impacting the comps on the sportsbook revenue. In gaming, we were 7% up. We've got some good new content there, but we've lapped some of the pricing initiatives that we had in last year. But, you know, we're feeling really confident, you know, we've completed the migration of our SkyBet platform now onto our UKI platform. When we did a similar transition with Paddy Power a few years ago, it really benefited the business and it acted as a real catalyst for growth in that business moving forwards. And, you know, we're hoping and anticipating the same will happen with SkyBet. They've already been able to launch a number of new products into SkyBet this season. We've got super sub products on Sportsbook now. We've also got SquadBet in there, which is something that's being powered off of our outcome based pricing. So, you know, we're really encouraged. We're the market leader in the UK. We've got an exceptionally strong business and we're very confident about what 2026 will bring.
Operator
Thanks. And our final question comes from the line of Monique Pollard with Citigroup. Your line is open.
Hi, afternoon. Thank you for taking my question. It was just one on the commentary that you gave in the quarter about the lower than anticipated parlay mix at the start of the NFL season. So I wanted to see if you could comment, please, on sort of what was going on there. As you said, it was transitory in nature and related to that, how the Yorway product is Thank you.
Yeah, hi Manik. Let me start on the parlay next question, maybe Peter can pick up on your way and what we're doing around outcome-based pricing. But as we've mentioned on a couple of occasions, at the start of the season, there were a lot of quite uneconomic offers in the market, a lot of promotional spend. And a number of those were same-game parlay-based offers. We won't name them by name, but I think people are aware of some of the very generous offers that were in the market. As I mentioned earlier, these handle driving measures don't always convert to revenue. I think that transpired to be the case for some of our competitors to have these offers in the market at the start of the season. We did see a moderation of that later into September and also into October. Actually, when we look at our parlay mix now in NFL and in NBA, we're really pleased with it. and I alluded to the numbers earlier. So I think we're in a good position and, you know, we're very pleased with our product mix.
Yeah, Monique, from a sort of your way perspective, you know, it's now available for all of our customers this season, including those in Canada. And the more sophisticated approach we have to pricing it's helping improve an increase in bets, cash downs year to date which is making a big difference you've got to remember it's a very fundamental rewrite so there's now a matrix of spikes of every eventuality that can occur and so as the game is progressing it means we've got a much broader array and set of products that consumers can select from. And it even means that whilst the game's playing, we're updating and changing the odds of which team we think is going to win the Super Bowl. You think about what that's requiring on a Sunday when you've got a full slate of games going on, that's very, very complex. And so there's a bunch of things we can do around daily specials, which we do in an automated way. big improvements around cash out and reductions in suspension so it's improving speed of pricing updates it's reducing latency so we're excited and of course there's also the trials we've been doing around AI powered conversational so there's a lot excitement around where it will take us Thank you So I think we've reached the end of the question. Thank you very much, everybody, for joining the call. We spent a lot of time talking about prediction markets today. We've put a lot of effort into getting to this position where we're going to be able to launch this product next month. Huge thanks to the team who've worked on this, particularly to those folks who've been involved in the very constructive dialogue with lots of our regulators. You know, we've always said that we would never do anything to damage our existing businesses. Like, you know, Nevada's a little bit different. We don't have a B2C operation there. But, you know, we're very, very excited to be able to launch our prediction markets product next month. And, you know, we're excited about what we've got coming down the line from a product perspective. But, of course, it's not just, you know, what we're seeing with prediction markets. You know, I'm very bullish about the existing business we have in the U.S., strong growth in iGaming. and, of course, benefiting from the diversification we have internationally. So a lot to be excited about into Q4 and going into 2026. So thank you very much, everyone.
Operator
And ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.
