FanDuel CFO Reticent About Operator’s Nevada Efforts

Posted on: February 8, 2024, 02:48h. 

Last updated on: February 9, 2024, 12:38h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

In remarks made at his licensing hearing before the Nevada Gaming Control Board (NGCB) on Wednesday, FanDuel CFO David Jennings didn’t reveal much about his employer’s potential plans in the state.

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The FanDuel Sportsbook logo. It doesn’t appear the sportsbook operator will be entering Nevada anytime soon. (Image: FanDuel Sportsbook)

Jennings, who has been with the online sportsbook operator since 2022, was approved for licensing by the NGCB. At the hearing, he was queried by Commissioner George Assad on the possibility the company will soon enter Nevada. The answer wasn’t encouraging.

Nothing that we’ve announced at this time,” Jennings said.

Jennings is based out of New York, which is home to FanDuel’s U.S. headquarters. His approval for licensing in Nevada now moves on to the Nevada Gaming Commission (NGC). FanDuel is 95% owned by Ireland-based Flutter Entertainment (NYSE: FLUT), with the remaining 5% held by Las Vegas-based Boyd Gaming (NYSE: BYD).

Nevada Road Continues Winding

Currently, Flutter/FanDuel has scant Nevada exposure. The operator provides odds and FanDuel branding for the Boyd-operated downtown Fremont Hotel Casino sportsbook. But it doesn’t take bets anywhere in the state.

For FanDuel and archrival DraftKings (NASDAQ: DKNG), Nevada footprints are believed to be highly coveted though long unattainable. Both companies gained prominence through the world of daily fantasy sports (DFS), an activity forbidden in the Silver State. The pair are also among the two largest operators of regulated internet casinos. Regulated or illicit, iGaming is another no-no in Nevada.

Nevada regulations stipulate that sportsbook operators have direct ties to a land-based casino operating in the state. Via its 2021 acquisition of Golden Nugget Online Gaming (GNOG), DraftKings might meet that requirement via the Golden Nugget in downtown Las Vegas. That casino is owned by Tilman Fertitta, not DraftKings.

As for FanDuel entering Nevada, some analysts speculate that it’s possible, and a potentially easier lift, if Boyd were to decide to let FanDuel run and rebrand the Boyd Sports mobile application.

No Established Nevada Footprint

In the U.S., FanDuel has offices in six cities, according to its website. But none are in Nevada, and it’s not clear when that status will change.

Conversely, competitor DraftKings recently opened a plush new office in Southwest Las Vegas, directly across the street from the Durango casino. Currently, there are five open roles in that office.

Last month, DraftKings was named one of the most entrepreneurial companies in Las Vegas by BuiltIn. Owing to gaming being the largest private sector employer in Nevada, 11 companies from that industry, including DraftKings, made the list. DraftKings is the only one of those 11 that doesn’t call Sin City its domestic home.