The Flutter-owned sportsbook has reduced its workforce for the third time in less than a year, with cuts spanning multiple departments amid rising competition from prediction markets and increased use of artificial intelligence.
FanDuel has conducted its third round of layoffs in less than 12 months, with several hundred employees cut across software engineering, customer service, and business development. The reductions, which took place in the first week of June, add to a growing tally of job losses across the US sports betting industry as operators face intensifying pressure on multiple fronts.
The company confirmed the layoffs in a statement, though it declined to specify the number of employees affected. “FanDuel implemented organisational changes to ensure the company remains agile, focused, and well-positioned to capitalise on what lies ahead, and these changes affect a number of roles across the business,” a spokesperson said. “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.”
FanDuel employs approximately 5,000 people in total, meaning a reduction of several hundred represents between 5% and 10% of its total workforce. Sources familiar with the matter described the cuts as “very widespread,” with affected employees spanning multiple business areas and seniority levels, including staff who had been with the company since its roots as a daily fantasy sports platform. Those impacted received an invitation to a meeting with their manager the evening before the cuts were made; when they joined the following morning, a representative from human resources was on the call.
A Year of Turbulence at the Market Leader
The latest round of redundancies is the third in under a year at FanDuel. A previous round took place in November 2025, and in March 2026, the company announced that the FanDuel TV linear network would be wound down over a 20-month period, a change that affected more than 100 employees. In May 2026, Amy Howe departed as FanDuel CEO after five years in the role — a move announced alongside Flutter’s Q1 results, which fell short of analyst expectations. Flutter Group CEO Peter Jackson described the timing as the “right moment for new leadership.”
The cuts come as Flutter prepares to consolidate its entire stock listing on the NYSE, having announced the withdrawal of its shares from the London Stock Exchange effective August 3, 2026.
Prediction Markets, AI, and a Shifting Industry Landscape
Multiple employees told media that the factors behind the job cuts include the rise of prediction markets, increased investment in artificial intelligence, and a deteriorating economic environment for consumer-facing businesses. FanDuel launched its own prediction market platform in December 2025, nearly a year after Kalshi began offering sports event contracts — a gap that sources say left the company in a reactive posture. In the weeks preceding the layoffs, staff were put through two weeks of workshops focused on AI tools, both external platforms and FanDuel’s own internal systems.
FanDuel is not alone. The US online betting industry has seen a significant wave of redundancies in 2026. Penn Entertainment cut more than 75 employees from the division overseeing theScore Bet, its iGaming platform, and social gaming products in May. The same month, Gambling.com Group, known as GDC Group, announced a 25% reduction in its workforce. Underdog laid off more than 125 people — approximately 20% of staff — in March as it pivoted its product focus toward prediction markets. DraftKings and PrizePicks also made cuts earlier in the year.
The American Gaming Association has documented the rapid maturation of the US sports betting market, with operators increasingly shifting from a growth-at-all-costs model to one focused on profitability and sustainable unit economics. That transition is proving costly in human terms across the sector.
What Comes Next
FanDuel confirmed that severance and benefits are being offered to affected employees, with sources describing the packages as reasonable. The company did not provide guidance on whether further organisational changes are planned.
The broader question facing Flutter and FanDuel is whether the cost reduction programme underway is sufficient to restore investor confidence. Flutter’s share price has fallen sharply over the past 12 months, and the company faces questions about its ability to compete with the rapidly expanding prediction market platforms that are attracting users and investment at pace.