A new chief executive of gambling, sportsbook and fantasy sports company FanDuel said the U.S. gambling market is too crowded, ultimately leading the throngs of competitors to fail, according to a Monday (Oct. 4) report from Financial Times.
Howe joined FanDuel in February as president. In that role, she was responsible for leading the company’s Sportsbook, Casino, Racing and Daily Fantasy businesses, according to the announcement. In July, she was appointed interim CEO.
Now heading the 12-year-old company, which has more than 12 million registered users, Howe said that while there are many contenders in the sports betting arena, only a few will come out as champions.
Since the U.S. Supreme Court in 2018 made sports betting legal, 25 states have legalized sports gambling, and many other states are looking to cash in on what is expected to be a $10 billion enterprise by 2025, according to PYMNTS.
In addition to FanDuel, DraftKings is one of the major players in sports betting. Last month, the digital sports gaming company made a $20 billion offer comprised mostly of DraftKings stock and cash to acquire U.K. online sports betting company Entain. Entain owns U.K. poker and gambling companies Coral, Ladbrokes and PartyPoker.
In August, DraftKings announced its intent to acquire Golden Nugget Online Gaming in an all-stock transaction valued at approximately $1.56 billion. The merger will enable DraftKings to take advantage of Golden Nugget’s iGaming product and current database of more than 5 million customers.
DraftKings also plans to open a sportsbook at the Toyota Center, pending state and regulatory authorizations. The merger is expected to close in the first quarter of 2022.