TLDR
- FanDuel laid off several hundred employees last week across software engineering, customer service, and business development
- This is the company’s third round of layoffs in under seven months
- The cuts may represent more than 5% of FanDuel’s roughly 5,000-person workforce
- Employees cited prediction markets, AI adoption, and economic uncertainty as key drivers
- FanDuel is not alone — Penn Entertainment, DraftKings, and others have also cut jobs in 2026
FanDuel has laid off several hundred employees, marking the third time the company has cut jobs in less than seven months.
Sources told Front Office Sports the cuts were described as “very widespread,” hitting teams across software engineering, customer service, and business development. Some long-time staff, including managers who joined during FanDuel’s early daily fantasy sports days, were among those let go.
FanDuel employs around 5,000 people. Losing several hundred workers could mean more than 5% of its total workforce gone in one move.
A FanDuel spokesperson confirmed the layoffs but did not say how many people were affected.
“FanDuel implemented organizational changes to ensure the company remains agile, focused, and well-positioned to capitalize on what lies ahead,” the statement read.
How the Layoffs Unfolded
Employees received calendar invites from managers the evening before the cuts. When they joined the calls, they found HR representatives waiting instead.
One former employee said, “As soon as I saw the HR person, I was like ‘oh god, here we go.'” Within an hour, access to laptops and internal systems was cut off.
Previous layoffs at FanDuel happened in November 2025. In March 2026, the company announced it would shut down its TV network over 20 months, a move that affected more than 100 workers.
Those impacted believe the decision was driven by rising competition from prediction markets, greater use of artificial intelligence, and broader economic pressure.
FanDuel launched its own predictions platform in December 2025, nearly a year after rivals like Kalshi had already entered that space. The company had also been running internal AI workshops, teaching staff to use tools such as Claude and ChatGPT.
A Wider Industry Shake-Up
FanDuel is not the only gambling company reducing headcount in 2026.
In May, Penn Entertainment cut staff at theScoreBet and its online casino division. Gambling.com Group reduced its workforce by 25%. LSports laid off nearly 40 employees.
Earlier in the year, Underdog, PrizePicks, and DraftKings all announced job cuts too.
The pattern points to an industry under pressure to become leaner, adopt new technology, and compete in a fast-changing market.
FanDuel is owned by Flutter Entertainment, one of the largest gambling companies in the world. Flutter has not made a separate statement about the latest round of cuts.
The gambling industry’s shift toward prediction markets and AI-driven tools appears to be reshaping how companies are structured and where they invest resources.
For the workers affected, the transition support offered by FanDuel has not been detailed publicly beyond the company’s statement expressing gratitude for their contributions.
