FanDuel has laid off hundreds of employees across multiple departments in its third round of workforce reductions in less than a year, as gambling companies increasingly cut costs amid a rapidly changing industry landscape.
The layoffs, first reported by Front Office Sports, affected FanDuel employees across risk management, software engineering, customer service, business development and other areas, according to sources familiar with the matter who spoke with Legal Sports Report.
It come a few weeks after parent company Flutter Entertainment replaced longtime FanDuel CEO Amy Howe. Sources familiar with the restructuring told LSR that part of the reorganization involved increasing focus on prediction markets, which have become a growing strategic priority across the industry.
FanDuel parent stock rises after cuts
Shares of Flutter have fallen roughly 60% over the past year, amid investor concerns over sportsbook profitability, earnings misses and growing competition from emerging platforms subject to different rules.
Flutter shares are up roughly 6% since reports of the layoffs first surfaced.
“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,” a FanDuel 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.”
Employees knew of cuts in advance
Sources familiar with the matter told LSR that employees had been informed roughly a month earlier that workforce reductions were expected, prompting many to begin searching for opportunities elsewhere.
One source familiar with FanDuel’s restructuring told LSR that part of the company’s reorganization involved increasing focus on prediction markets as the company looks to compete nationally with platforms such as Kalshi and Polymarket, which offer sports contracts in all 50 states.
Those affected included management-level employees who had spent years with the company, as well as workers who had been with FanDuel since its early daily fantasy sports days.
The cuts impacted at least several hundred employees out of FanDuel’s workforce of roughly 5,000 people. FOS reported that affected employees received severance and benefits packages, with one describing the terms as “pretty good.”
FanDuel execs confident in new strategy
Internal emails reviewed by LSR show executives telling remaining employees that the layoffs were part of a broader restructuring effort rather than a response to immediate financial concerns.
“Within Sportsbook, we said goodbye to a number of talented teammates across the teams,” Managing Director of Sportsbook Karol Corcoran wrote in an email to staff. “While today is difficult, I remain very confident in the future of our Sportsbook business, the strength of our strategy, and the opportunities ahead of us.”
FanDuel Senior Vice President of Marketing Ari Avishay delivered a similar message.
“I want everyone to know that I am excited and energized about what we are going to accomplish together,” Avishay wrote. “I believe in this company. I believe in all you.”
Layoffs part of broader industry trend
In March, FanDuel announced the closure of FanDuel TV, impacting more than 100 employees. The company has also allowed several media contracts to expire and reduced spending across certain business units.
FanDuel’s leadership change coincided with Flutter lowering its full-year EBITDA guidance when it reported first-quarter earnings and outlined a sportsbook improvement plan centered on prediction markets, loyalty programs and product enhancements.
The gambling industry has experienced a wave of workforce reductions as operators look to improve efficiency and protect margins amid slowing sportsbook growth, increasing competition and the emergence of prediction markets.
Former ESPN Bet operator Penn Entertainment cut more than 75 jobs from its online betting division in May, while fantasy and prediction market operator Underdog cut approximately 125 workers earlier this year. PrizePicks and DraftKings have also reportedly made workforce reductions.
FanDuel eyes path forward
Sports event contracts now account for more than 85% of Kalshi’s trading volume and have become a growing concern for traditional sportsbooks, particularly in states where sports betting remains illegal.
FanDuel first entered the space through a partnership with CME Group in December 2025, before expanding FanDuel Predicts nationwide earlier this year. It recently broadened its available offerings through a deal involving Crypto.com’s regulated prediction market infrastructure.
DraftKings has similarly accelerated its prediction market ambitions through its acquisition of Railbird Exchange, which could eventually allow it to operate more of the infrastructure underlying its own event-contract offerings.
A source familiar with FanDuel’s plans told LSR the company is evaluating similar long-term opportunities.
