The latest spate of layoffs in the gambling industry continues, with the operator FanDuel reportedly telling staff last week that hundreds would be let go.
Quoting two anonymous sources, the media outlet Front Office Sports reported that the sportsbook operator has told “a few hundred employees” they will be laid off.
The cuts reportedly include software engineers, customer service staff, and business development workers.
Another (also anonymous) source told the same media outlet that the FanDuel cuts were “very widespread” and included managers who had been in their posts for several years.
FanDuel has cut jobs on two previous occasions in the past 12 months. Rival operators such as Underdog, PrizePicks, Penn Entertainment, and DraftKings have also laid off employees. The slots developer IGT also axed 700 workers in March.
Gambling Industry Layoffs: FanDuel Confirms Exits
One of the affected FanDuel employees, Greg Blinn, a senior director of business development, confirmed his exit in a LinkedIn post on June 8.
“To everyone who was impacted last week, there’s no sugarcoating it,” Blinn wrote. “It’s shocking, painful, and it sucks. I’ve had the chance to work with so many of you, and I know how talented you are.”
Another affected employee, part of the FanDuel software engineering team, also confirmed his exit, saying that the layoff “stings.”
In a statement, FanDuel confirmed that cuts had been made. It said that it had “implemented organizational changes to ensure the company remains agile, focused, and well-positioned to capitalize on what lies ahead.”
“These changes will strengthen our ability to execute on our long-term strategy,” the firm added.
AI & Prediction Markets Blamed for FanDuel Cuts
Some of those affected blamed AI for the cuts. One employee said they attended two weeks of “AI workshops.” These reportedly focused on the use of Claude, ChatGPT, and FanDuel’s own AI solutions.
Others blamed a rise in competition from prediction market players. One said that FanDuel and others are now “playing catch-up” with major prediction market players.
Sportsbook operators have expressed their frustration with the likes of Kalshi in recent weeks. Last month, the DraftKings co-founder Matt Kalish took aim at Kalshi in an X tirade.
The latest round of cuts comes just weeks after FanDuel parted ways with Amy Howe, its CEO of the past five years.
Peter Jackson, the CEO of the FanDuel operator Flutter, said at the time it was “no secret that FanDuel has underperformed.”
Jackson backed FanDuel to recover. He claimed the firm now had “to get the right team in place to support the business.”
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