The Sports Betting Market in the United States is Too Saturated, According to New FanDuel CEO

October 5, 2021

According to a Financial Times report published Monday (Oct. 4), a new chief executive of gambling, sportsbook, and fantasy sports company FanDuel said the U.S. gambling sector is too congested, causing a slew of competitors to fail.

According to a press release issued by FanDuel on Monday, Amy Howe has been named CEO (Oct. 4). She was previously the worldwide chief operating officer of Ticketmaster. Howe became president of FanDuel in February. According to the release, she oversaw the company's Sportsbook, Casino, Racing, and Daily Fantasy divisions in that capacity. She was named interim CEO in July.

While there are many contenders in the sports betting industry, only a few will emerge as champions, according to Howe, who now leads the 12-year-old company with more than 12 million registered users.

According to PYMNTS, 25 states have legalised sports betting since the Supreme Court made it permissible in 2018. Many more states are trying to cash in on what is estimated to be a $10 billion industry by 2025. DraftKings, like FanDuel, is a big player in the sports betting industry. Last month, the digital sports gaming business launched a $20 billion offer to buy Entain, a U.K. online sports betting company, largely with DraftKings stock and cash. Entain owns the poker and gambling sites Coral, Ladbrokes, and PartyPoker in the United Kingdom.

DraftKings announced its intention to buy Golden Nugget Online Gaming for $1.56 billion in an all-stock transaction in August. DraftKings will be able to use Golden Nugget's iGaming product and current database of more than 5 million consumers because of the deal.

Depending on state and regulatory approvals, DraftKings also aims to open a sportsbook at the Toyota Centre. In the first quarter of 2022, the merger is likely to be completed.