During Flutter Entertainment’s Capital Markets Day event, FanDuel Sportsbook CEO Amy Howe spoke about the future of the company. Despite expectations that FanDuel could lose some of its market dominance with new operators launching, the CEO assured its dominance would persist.
Additionally, Howe sent a message to newcomers in the industry, warning them of the difficulties they will encounter. With several sportsbooks already shutting down their operations in the U.S. market, there is validity to support Howe’s comments.
FanDuel Confident In Remaining Dominant
The meeting took place on Wednesday, November 16 and Howe discussed the projected growth of the company with more markets going live. FanDuel is projecting a $22.6 billion market growth by 2030. This would come from steady growth in both new and existing markets.
Howe also sent her warning to incoming sportsbooks about how difficult it will be to establish themselves. FanDuel Sportsbook has held a strong market share since PASPA’s repeal and is going to be a tough juggernaut surpass.
“It should be clear that new entrants that are entering now at this point may face a real challenge taking on scale players who have more than a four-year head start,” Howe said.
This warning from Howe has validity when looking at the several operators that failed in the sports betting arena. 2022 saw the end of Fubo Sportsbook, Golden Nugget Sportsbook, and now MaximBet. The industry, while booming, has seen its share of failures.
Sportsbooks Failing In The Market
Looking at the more recent failures in Fubo Sportsbook and MaximBet, these failures came from the lack of market hold from these operators. MaximBet struggled to compete in the market against bigger sportsbooks and was unable to sustain consistent losses.
“Our ability as an early-stage company to compete in a market where operating costs far exceed revenue, even among the top operators, is not sustainable,” the company said in a statement. “Our priority now, in consultation with state regulators, is to wind down operations and help active customers in Colorado and Indiana withdraw their funds and close their accounts.”
Fubo Sportsbook saw similar issues. The company never dominated in any of the markets that it operated in. When Arizona set its single-month betting handle record of $690 million in wagers, Fubo Sportsbook was only responsible for $879,565 of that total, which is less than one percent.
“Following our previously announced strategic review, we have concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer term profitability goals, said David Gandler, co-founder and CEO of FuboTV. “Therefore, we have made the difficult decision to exit the online sports wagering business effective immediately. We look forward to providing more color, as well as discussing our full third quarter 2022 results and full year outlook, on our November 4 earnings call.”
While Howe’s warning was more of a focus on FanDuel’s success than other sportsbooks’ failures, there is a lot to support these claims. It will be a fight for any new sportsbook entering the U.S. market.