Citigroup Downgrades Flutter Entertainment to Sell on U.S. Market Slowdown Concerns

Citigroup has downgraded Flutter Entertainment (FLUT) from Outperform to Sell, signaling a cautious shift in sentiment toward the iGaming giant. The downgrade is primarily attributed to the company's 2026 guidance, which forecasts a slowdown in the U.S. market alongside headwinds from new regulations and increased tax burdens. Furthermore, Flutter is facing intensifying competition from prediction market platforms such as Kalshi, which recently partnered with Robinhood Markets. While the company aims to achieve $300 million in cost savings by 2027 and has announced a major share buyback program, analysts remain concerned about long-term growth sustainability. This rare Sell rating from a major financial institution is expected to weigh on the stock and potentially impact the broader sports-betting sector. Investors are now closely monitoring how Flutter navigates these regulatory hurdles and competitive pressures.