The sports betting boom is starting to look very different for the employees who helped build it. FanDuel is the latest major name tied to gambling layoffs, reportedly cutting a few hundred jobs across software engineering, customer service, business development, and management roles, according to Front Office Sports. The cuts mark FanDuel’s third round of layoffs in less than a year and come as the broader gambling industry faces pressure from prediction markets, artificial intelligence, and a tighter push for profitability.
A FanDuel spokesperson confirmed that layoffs took place but did not say how many employees were impacted.
“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.
The cuts reportedly reached longtime employees, including people who had been with FanDuel since its daily fantasy sports era. One source described the layoffs as “very widespread,” while another said former employees have already been trying to land jobs at other sportsbooks.
For workers, the rollout felt familiar and brutal. Employees reportedly received vague meeting invites the night before. Once they joined the calls, human resources was present.
“As soon as I saw the HR person, I was like ‘oh god, here we go,’” one laid-off employee told Front Office Sports.
FanDuel’s parent company, Flutter Entertainment, has also been making major changes at the top. In May, Reuters reported that FanDuel CEO Amy Howe had left the company after Flutter reshuffled leadership around its U.S. business. Flutter CEO Peter Jackson told Reuters, “It’s no secret that FanDuel has underperformed,” adding that the company needed the right team in place to support the business.
However, FanDuel is not moving in isolation. The gambling industry has seen a growing wave of layoffs in 2026. Penn Entertainment cut more than 75 workers from its Penn Interactive unit in May. Gambling.com Group announced a 25% workforce reduction. LSports reportedly laid off at least 39 employees. Earlier this year, Underdog cut at least 125 workers as it shifted more attention toward prediction markets. PrizePicks and DraftKings have also reportedly made cuts.
That pattern is what makes FanDuel’s layoffs bigger than one company trimming headcount. Gambling companies built massive teams during the sports betting gold rush. Now, with growth slowing and AI becoming a bigger part of operations, the same companies are cutting costs while trying to prove they can still compete.
Former FanDuel employees pointed to prediction markets, AI, and economic uncertainty as possible factors. One person said the company had been “playing catch-up” with prediction markets. Another said workers recently went through two weeks of “AI workshops” focused on tools like Claude, ChatGPT, and FanDuel’s internal AI platform.
Two sources told Front Office Sports that FanDuel is offering severance and benefits, with one person describing the packages as “pretty good.”
For now, the message across gambling is clear: the industry is still chasing the next big bet, but workers are paying the price for the reset.
