FanDuel Is Latest Gambling Company to Cut Jobs

FanDuel has undergone its third round of layoffs in less than a year, adding to mounting job cuts across the gambling industry as operators grapple with the rise of prediction markets, pressure to improve profitability, and increased artificial intelligence use.

Two sources familiar with the matter tell Front Office Sports that a few hundred employees were laid off across various areas of the business, including software engineering, customer service, and business development. Another source tells FOS the cuts were “very widespread” and that employees have been trying to find jobs at other sportsbooks. The new round of cuts, which took place last week, included multiple people who had been in management positions for multiple years, as well as employees who started with the sportsbook back when it was a daily fantasy sports company (FanDuel first launched in 2009).

A FanDuel spokesperson confirmed that layoffs took place but would not comment on the number of people impacted.

“FanDuel implemented organizational changes to ensure the company remains agile, focused, and well-positioned to capitalize on what lies ahead, and these changes affect a number of roles across the business,” the spokesperson said in a statement. “We are deeply grateful to the talented colleagues whose contributions have helped drive FanDuel’s success and are committed to supporting those impacted through this transition.”

“While decisions like this are never easy, these changes will strengthen our ability to execute on our long-term strategy,” they added. 

FanDuel, which is owned by publicly traded Flutter Entertainment, has about 5,000 total employees, meaning a few hundred employees could be more than 5% of the total workforce but likely less than 10%. The company previously held a round of layoffs in November, a source tells FOS, and more recently, in March, it was reported that the FanDuel TV network will be sunsetted over the course of 20 months, a change affecting more than 100 employees. 

In May, Amy Howe was pushed out from her role as FanDuel CEO after five years leading the sportsbook.

Those impacted by the latest round of cuts received an emailed invite to a nondescript meeting with their manager the night before; when they joined the meeting the following morning, there was a representative from human resources on the call. “As soon as I saw the HR person, I was like ‘oh god, here we go,’” one laid-off employee tells FOS. Within an hour or so of those meetings, employees no longer had access to their company-issued laptops or internal systems, a common practice amid corporate layoffs.

Multiple laid-off employees tell FOS they believe the factors leading to the job cuts include increased competition from prediction markets, additional emphasis on AI, and an uncertain economic environment. One person tells FOS the company has been “playing catch-up” with prediction markets—FanDuel launched its own prediction-market platform in December, nearly a full year after Kalshi began offering sports event contracts. Another laid-off employee says there were recently two weeks of “AI workshops” aimed at teaching employees how to use external platforms like Claude and ChatGPT, as well as FanDuel’s own internal AI platform. 

Two sources confirmed FanDuel is offering severance and benefits, with one person describing those packages as “pretty good.”

FanDuel is not nearly alone when it comes to gambling companies making job cuts. In May, Penn Entertainment cut loose more than 75 employees across the division that houses theScoreBet, as well as its online casino and social gaming businesses. The same week, Gambling.com Group, which goes by GDC Group, announced a 25% reduction in its workforce, and Israeli sports data provider LSports laid off at least 39 of 240 total employees.

Before that, in March, Underdog laid off at least 125 people—or just over 20% of the company’s workforce—as it pivots toward a greater focus on prediction markets. This year has also seen cuts at PrizePicks and DraftKings.