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FanDuel is laying off hundreds of employees, impacting about 5% to 10% of its workforce, in its third round of cuts in less than a year amid a broader restructuring and shift toward prediction markets.
The layoffs spanned multiple departments, including software engineering, risk management, business development and customer service.
In a statement, a FanDuel spokesperson said the company is making organizational changes to remain agile and better positioned for future growth.
FanDuel cuts hundreds of jobs across key departments
Affected employees reportedly received severance and benefits packages that some described as “strong” or “generous.”
The cuts included both long-tenured staff from FanDuel’s early daily fantasy sports era and some mid- and senior-level managers.
FanDuel expands into prediction markets with new products
Prediction markets have emerged as a growing competitive pressure point for traditional sportsbooks. On platforms such as Kalshi, sports event contracts now account for more than 85% of trading volume, according to industry data.
Unlike traditional sports betting, prediction markets can operate in jurisdictions where sports wagering is restricted, expanding their reach.
In response, FanDuel has moved into the space with its own offering, FanDuel Predicts, launched in December 2025 through a partnership with CME Group.
The company has also partnered with Crypto.com to expand access to regulated prediction market products. DraftKings has similarly explored the sector through its acquisition of Railbird Exchange.
Flutter-linked strategy shift reshapes sportsbook operations
The workforce reduction comes amid broader leadership and structural changes. Former CEO Amy Howe recently exited the company, while Flutter Entertainment’s Managing Director of Casino, Asaf Noifeld, resigned in June.
Earlier this year, FanDuel also shut down its television network, FanDuel TV, eliminating more than 100 roles and allowing several media partnerships to expire as part of broader cost reductions.
Executives have emphasized that the layoffs were not driven by immediate financial distress but instead reflect longer-term restructuring priorities.
“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, according to news by Yahoo Finance.
“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 today is difficult, I remain very confident in the future of our Sportsbook business, the strength of our strategy, and the opportunities ahead,” Karol Corcoran, managing director of sportsbook, wrote in a message to staff.
Senior Vice President of Marketing Ari Avishay also told employees he remains “excited and energized” about the company’s direction.
At the same time, Flutter recently lowered its full-year EBITDA guidance after first-quarter earnings and outlined a sportsbook improvement strategy focused on product enhancements, loyalty initiatives and emerging market opportunities.
Gambling industry layoffs spread across major operators
FanDuel’s restructuring mirrors broader cost-cutting trends across the online gambling sector.
Penn Entertainment laid off about 75 employees from its online division in May. Underdog Fantasy also reduced its workforce by roughly 125 roles earlier this year. Other operators, including DraftKings and PrizePicks, have also reportedly made staffing adjustments amid shifting market conditions.
Operators are responding to slowing sportsbook growth, tighter margins and rising competition from alternative wagering formats, including prediction markets.
