UK-listed gambling operator Paddy Power Betfair (PPB) took a Q3 earnings hit thanks to its US market operations, while warning that regulatory changes in multiple markets will have a serious drag on future results.

In a trading update issued on Friday, PPB reported revenue of £483m in the three months ending September 30, up 10% year-on-year. But earnings were down 16% to £101m due to higher regulatory costs and the daily fantasy sports (DFS) losses incurred via PPB’s recent acquisition of FanDuel.

Online revenue was up 15% to £248m, driven in part by the second half of this summer’s FIFA World Cup, but PPB says online revenue was up 13% in the quarter’s post-Cup period. Online sports revenue improved 11%, with sportsbook growth (+17%) seriously outshining that of the Betfair betting exchange (+1%).

Online gaming revenue shot up 26%, thanks to January’s product enhancements leading to better cross-sell rates, and additional summertime tweaks to the gaming product in PPB’s sports apps.