Coinbase, FanDuel Hit by Glitch at AWS Data Center

Posted on: May 8, 2026, 02:49h. 

Last updated on: May 8, 2026, 02:49h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Some FanDuel bettors complained about not being able to cash out
  • The gaming company said the issue appears to be the result of a broader AWS outage
  • Coinbase acknowledged “core” trading functions were limited due to the outage

An outage at an Amazon Web Services (AWS) data center in Northern Virginia created problems for companies in the sports betting and prediction market industries, including FanDuel and Coinbase Global (NASDAQ: COIN).

FanDuel customers were adversely affected by an AWS data center outage. (Image: Shutterstock)

Adding to what’s been an eventful week for the unit of Flutter Entertainment (NYSE: FLUT), FanDuel disclosed late Thursday that it was aware of technical difficulties affecting customers and that it was looking into the matter. That was followed up by an announcement that it was working with a service provider, presumably AWS, to “troubleshoot.”

At this time, the issue appears to be related to a broader global AWS outage. We understand how frustrating this can be and appreciate your patience while services are restored,” according to the latest post on the FanDuel customer support X account.

That post, which has 762 replies as of this writing, indicates customers were highly dissatisfied with some claiming they were offered cash outs prior to the AWS outages only to see those bets go down in flames. Others expressed dismay that FanDuel was the only sportsbook affected by the tech issue while others threatened legal action against the gaming company.

Coinbase Ensnared, Too

Coinbase, also dealing with an eventful week, was also affected by the AWS down time. On its X page, Coinbase Support noted it was affected by the AWS snafu.

Coinbase said its systems are designed to be sturdy in the face of a single-zone outage and that it’s conducting a full analysis. The company indicated details could be fluid until it receives a comprehensive retrospective from AWS.

“This primary issue is now fully resolved – thank you for your patience. If you have any outstanding questions about your account, please reach out to Coinbase Support, we’re ready to help,” according to a post on X.

Coinbase, the largest US-based cryptocurrency trading house, is a rising player in the prediction market industry. It offers event contracts through a partnership with Kalshi. The company didn’t mention its prediction market platform in discussing the AWS outage.

AWS Outage Largely Resolved

Northern Vigrinia is home to a significant population of data centers. Regarding the Amazon outage, it was caused by overheating at the Virginia facility, but the situation is now mostly fixed.

“We are actively working to bring additional cooling system capacity online, which will enable us to recover the remaining affected hardware in the impacted zone,” AWS said in a statement. “Some customers will continue to see their affected EC2 instances and EBS volumes as impaired until we achieve full recovery.”

AWS is one the largest cloud computing infrastructure providers, controlling a third of that market in the US.