Flutter Entertainment chief Peter Jackson to step down next month as gambling giant reveals replacement

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Peter Jackson is to step down as chief executive of Flutter Entertainment at the end of next month in the latest upheaval at the gambling industry giant.

He is set to be succeeded by Dan Taylor, chief executive of Flutter's international division, on October 1.

The news came as the owner of Paddy Power, Betfair and Sky Bet unveiled its financial results for the second quarter of the year on Wednesday.

The leadership at Flutter has been under pressure in recent months, with its share price falling by two-thirds over the last year. Amy Howe, chief executive of Flutter's American arm FanDuel, left the company in May.

• Flutter's $40bn fall: has the global gambling giant behind Paddy Power and Betfair lost its mojo? 

Jackson said: "It has been such a privilege to lead Flutter's transformation and I am incredibly proud of what we have achieved over nearly nine years. 

"Flutter is a fantastic business with a portfolio of world-class brands, talented colleagues and genuine competitive advantages. 

Peter Jackson is set to leave Flutter Entertainment at the end of September

"Having worked closely with Dan for many years, I have seen first-hand his ability to grow businesses, build strong teams and deliver exceptional results. I leave with great confidence in Dan, the leadership team and the company's future." 

Jackson first joined what was to become Flutter when he became a non-executive director of Betfair in 2013 and then Paddy Power Betfair following their merger. 

He took over as chief executive of Paddy Power Betfair in January 2018 and oversaw the company's development into one of the gambling world's largest companies, including the merger with Sky Bet owner Stars Group.

Flutter said Jackson would remain with the company as an adviser through to the end of the year "to support a smooth transition".

Peter Jackson: "Flutter is a fantastic business with a portfolio of world-class brands"

The company's chair John Bryant thanked Jackson "for his significant contribution to the business".

He added: "Peter leaves Flutter with gold medal positions around the world and exceptionally well positioned for the future."

Bryant also welcomed Taylor to his new role. He added: "Dan’s breadth of experience and responsibilities across the group, combined with his deep understanding of the industry, give us every confidence that he is the right person to lead Flutter into its next phase of growth."

Taylor joined what was then Paddy Power Betfair in 2015 as managing director for its retail division.

In May he was appointed as Flutter president, alongside his previous remit as chief executive officer of Flutter International.

He said: "Our priority will be to keep delivering for our colleagues, customers and shareholders, while building on the momentum we've created across the business. The opportunities ahead are significant – both those we see in the market today and those we will create ourselves in the future. I look forward to leading the business as we continue to innovate, grow and build on the strengths that make Flutter unique."

Dan Taylor: new chief executive of Flutter Entertainment

The news came as Flutter reported a three per cent increase in revenue for the second quarter to $4.3 billion. However, adjusted earnings fell by 45 per cent to $508 million.

In the US, revenue was down six per cent, while adjusted earnings fell by 70 per cent to $119m, although that was ahead of forecasts.

Revenue was up ten per cent in Flutter's international division but adjusted earnings were down 19 per cent, with revenue growth offset by the tax increase announced in the UK last autumn and World Cup marketing spend.

Flutter reported early trading in the third quarter as being ahead of expectations thanks to "good engagement" in the knockout stages of the World Cup and "slightly favourable" sports results.

However, the company reduced its full-year guidance for revenue and adjusted earnings by two per cent and seven per cent respectively.

David Brohan, gaming and leisure analyst at stockbrokers Goodbody, said it had been a "solid" quarter for Flutter. He added: "On the change of CEO, we view Dan Taylor as a strong candidate, and while Peter Jackson has had a successful reign as CEO, given the ongoing pressures in the business, the change is not a major surprise."

Flutter delisted from the London Stock Exchange on Monday. Its share price was down about 10.5 per cent on the New York Stock Exchange by late morning on Wednesday.

Comment: End of an era for Flutter as Peter Jackson departs

By Bill Barber, industry editor

In an industry where leaders have come and gone with alarming regularity, Peter Jackson had been one of the constants in the gambling sector for more than eight years.

However, in recent months the signs have been emerging that his tenure at the head of Flutter Entertainment might be coming to an end.

Eyebrows were raised when Jackson did not travel to Ireland for Flutter's annual meeting in May, although he did attend the event virtually.

Dissatisfaction with the company's leadership had become apparent earlier that month when Amy Howe, chief executive of Flutter's US arm FanDuel, left abruptly after five years at the helm.

Jackson built Flutter into one of the giants of the global gambling industry. The purchase of FanDuel gave the company a market leading position in the US, while the company expanded elsewhere, notably in major markets such as Italy and Brazil.

However, Flutter's position in the US has come under pressure and its share price has fallen by about two-thirds over the last year.

Part of that fall has been due to the rise of a rival in the US in the shape of prediction markets. Flutter launched its own prediction markets offering in November, but Jackson admitted on Wednesday that progress had been "slower than planned". 

In Dan Taylor, Jackson's successor, Flutter has appointed someone who in football parlance "knows the club", from the company's betting shops to its international business.

He will need all that experience to steer Flutter through what are still difficult times.

Read these next:

Flutter Entertainment set for last day on London Stock Exchange - what does it mean for the betting giant? 

Paddy Power, Betfair and Sky Bet owner Flutter Entertainment to delist from the London Stock Exchange 

Flutter Entertainment shares fall after financial results fail to match expectations

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