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FanDuel CEO Amy Howe Predicts Profitability in 2023
FanDuel CEO Amy Howe recently affirmed that the largest U.S. online sportsbook operator will achieve profitability this year, despite a increasingly competitive landscape. The unit of Flutter Entertainment was profitable in the first half of 2023, and Howe stated that FanDuel will likely achieve profitability for the entire year based on earnings before interest, taxes, depreciation, and amortization (EBITDA). This will make it the first internet sportsbook operator to accomplish that feat in the U.S.
In an interview with CNBC, Howe explained that FanDuel is prepared to deal with new entrants to the domestic sports betting market, such as Fanatics and Penn Entertainment’s ESPN Bet. She emphasized the importance of having a superior product experience, stating, “At the end of the day, if your product doesn’t work, it doesn’t matter how great your brand is, you have to have a really phenomenal experience.”
Currently, FanDuel and DraftKings combine for over 70% of the U.S. online sports wagering market. Howe acknowledged that scale is essential in the U.S. sports betting industry, and that both FanDuel and DraftKings are proficient at mastering it. Analysts are bullish on both operators as they offer online or retail sportsbooks in 21 jurisdictions across 36 states and Washington, D.C.
Data suggests that FanDuel and DraftKings can efficiently retain customers, fostering enviable loyalty among those clients. Barriers to entry in the sports wagering industry in the U.S. remain high, largely due to the lead established by FanDuel and DraftKings in the market.
Howe noted that in the complex regulatory environment of online sports betting, significant costs are incurred in creating a great product and technology platform. Additionally, operators must spend a lot of money to responsibly bring consumers to their platform.
The domestic sports betting industry has seen multiple operators exit the business or drastically scale back operations in the past five and a half years due to the challenges involved. Despite the obstacles, FanDuel remains confident in its ability to thrive in the competitive market.