Amy Howe, the CEO of Flutter-owned FanDuel and one of the few female leaders in the sports betting industry, is no longer in that position, the company confirmed in its first-quarter earnings release.
CNBC had the news first and cited anonymous sources who “asked not to be named in order to speak about internal matters.” If the news came from people within Flutter could it could lead to an SEC investigation, as the story was published roughly two hours before Flutter’s earnings report was scheduled to be released.
The stock began to tumble shortly after CNBC’s report went live around 2 p.m. Eastern. FLUT had traded above Tuesday’s closing price of $103.33 all of Wednesday until the news on Howe was released and closed down 4.1% to a new 52-week low of $99.10.
FanDuel declined to comment on Howe’s status or whether the company will self-report or internally investigate the potential SEC violation.
Genetski grabs torch
FanDuel President Christian Genetski will take over as CEO, according to CNBC’s sources. Howe was the first to hold the position of president, with the role created for her when she joined the company in March 2021.
She was appointed CEO of FanDuel in October 2021, taking over for Matt King, who eventually joined Fanatics as CEO of its gaming business.
Genetski took over as president in July 2022. Before that he was FanDuel’s chief legal officer and worked with regulators and legislators on both daily fantasy sports and sports betting.
Jackson, Howe comment on change
Flutter CEO Peter Jackson said it is the right time to make a change in leadership considering FanDuel’s growth potential.
“I would like to thank Amy for her contribution to Flutter and FanDuel and recognize the impact she has had on the business since joining in 2021,” Jackson said in a statement. During this time, FanDuel has experienced periods of strong performance alongside meaningful change and transformation. We wish her every success for the future.
“I’m delighted that Christian will lead the business. He has a strong track record at FanDuel and deep market knowledge, and we are confident he will build momentum and continue strengthening FanDuel’s position as the leading online sportsbook and iGaming operator in the US.”
Howe said she has “great confidence” in FanDuel’s team and its future.
“It has been a privilege to lead FanDuel over the past five years,” Howe said. “I’m incredibly proud of the business we’ve built and the talented team behind it, as well as the entertainment experiences we deliver to our customers every day. Together, we have established a clear leadership position in the market, strengthened our product and brand, and built strong foundations for future growth. With the business well positioned for what comes next, I believe this is the right moment to hand over to new leadership to build on that progress and capture the opportunities ahead.
FanDuel parent stock under pressure
The switch from Howe comes when Flutter is already feeling pressure on its stock because of prediction markets and a shifting sports betting market that has seen handle decline in recent months.
Jackson admitted on the fourth quarter earnings call that FanDuel did not respond correctly with its promotional spending to help offset the decline in betting as bettors were winning less. Analysts slashed targets after the report but some noted the selloff seemed like an overreaction to concerns about prediction markets.
Wednesday’s closing price is 67.9% off of its 52-week closing high of $308.60 from August 28.
