FanDuel Cuts Hundreds of Jobs as Gambling Industry Shake Up Continues

FanDuel has carried out another round of layoffs, its third in less than a year, as the gambling industry faces mounting pressure to adapt.

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Sources told Front Office Sports that several hundred employees were let go last week, affecting teams across software engineering, customer service, and business development. The cuts were described as “very widespread,” with some long‑time staff, including managers and employees who had been with FanDuel since its early daily fantasy sports days, among those impacted. 

The job losses come as operators across the sector adjust to new realities, including the rise of prediction markets, tighter demands for profitability, and the growing use of artificial intelligence. 

A FanDuel spokesperson confirmed that layoffs had taken place but declined to give details on the number of people involved. “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.

Third round of layoffs in seven months for FanDuel

FanDuel’s latest job cuts mark the third round of layoffs in just seven months, highlighting the pressure facing the gambling industry.

The company, owned by Flutter Entertainment, employs around 5,000 people, meaning the loss of several hundred staff could represent more than 5 percent of its workforce. Previous cuts took place in November, while in March, FanDuel announced plans to wind down its TV network over 20 months, a move that affected more than 100 employees.

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The most recent layoffs were handled through short meetings arranged the night before. Employees received calendar invites from managers, only to find human resources representatives present when they joined the calls. 

One former worker recalled, “As soon as I saw the HR person, I was like ‘oh god, here we go.’” Within an hour, access to company laptops and internal systems was removed. 

Those impacted believe several factors drove the decision, including rising competition from prediction markets, heavier reliance on artificial intelligence, and wider economic uncertainty. FanDuel has been trying to catch up in the predictions space, launching its own platform in December 2025, nearly a year after rivals like Kalshi. 

Employees also noted recent “AI workshops” aimed at teaching staff to use external tools such as Claude and ChatGPT, alongside FanDuel’s internal systems. 

An industry-wide trend

FanDuel is not alone in cutting jobs. In May, Penn Entertainment reduced staff at theScoreBet and its online casino division, Gambling.com Group, cut 25% of its workforce, and LSports laid off nearly 40 employees.

Earlier in the year, Underdog, PrizePicks, and DraftKings also announced significant reductions, showing how widespread the shake‑up has become across the gambling industry. 

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Source: FOS