With the impressive and constant rise of sports betting markets across the United States, FanDuel’s CEO has levelled some sharp words against the firm’s competitors. For the longest time, FanDuel has been competing for the top spot in the United States, and for the most part, it has done a solid job at getting there. Now that the markets are becoming more lucrative, there’s much stronger competition standing up against the likes of FanDuel, but the company’s CEO is offering a warning about the road ahead.
FanDuel’s CEO, Amy Howe, has been in the position since 2021, weathering many of the changes that have come in the legislation governing the United States. In recent months, we’ve seen dozens of states open their doors to sports betting practises – and that includes online sports betting, which is a particular concern of Howe’s.
‘A Really Phenomenal Experience’
In an interview with CNBC, Amy Howe spoke about what customers are expecting in the rise of sports betting greatness:
‘What we know is you’ve got to have a superior product experience, right? At the end of the day, if your product doesn’t work, it doesn’t matter how great your brand is, you got to have a really phenomenal experience. But at the same time, one of the things that we’re seeing, which is not dissimilar to many ecommerce industries, is that you’ve got to have scale.’
Howe went on to talk positively about FanDuel’s work in the nation even before sports betting was legalised in so many states. Partnerships and deals were being firmed up before some of these competing firms – such as Disney and Fanatics – even thought about getting involved with gambling. She spoke of the strict requirements, the intense entry process to the market, and the responsibilities levelled on these operators, prospective or veteran:
‘In a world like online sports betting, the barriers to entry are high. … You have to be licensed; you have to navigate a very complex regulatory environment. There are significant costs to spend in creating a great product and technology platform. And oh, by the way, you’re spending a lot of money making sure that again, you can responsibly bring consumers to your platform.’
Howe left the interview with a damning statement:
‘It’s certainly not for the faint of heart. And if you’re sitting there with a low single-digit share, and you don’t have that scale advantage over time, it just becomes harder to reinvest back into giving what consumers want.’
FanDuel’s representatives have a solid platform upon which to advise the industry at large. The company’s success in the growing sports betting markets in the United States has been nothing short of monumental in recent years, and things show no sign of slowing any time soon.