FanDuel’s CFO Maintains Mysterious Stance on Nevada Expansion
During a regulatory hearing with the Nevada Gaming Control Board (NGCB), David Jennings, the CFO of FanDuel, refused to provide any details about the company’s plans to expand into the state. Jennings kept his response vague, stating that no concrete decision had been made at this time.
Jennings joined FanDuel in 2022 and is based at the company’s headquarters in New York.
Despite the lack of information from Jennings, it appears that FanDuel has overcome an initial obstacle in its efforts to obtain certification in Nevada. The NGCB is expected to send the necessary documentation to the Nevada Gaming Commission (NGC) for further review. FanDuel is primarily owned by Flutter Entertainment of Ireland, with Boyd Gaming of Las Vegas holding a smaller 5% stake in the company.
Currently, FanDuel does not have much experience in the Nevada online sportsbook industry. Instead of offering its own wagering services, FanDuel has been working with Boyd Gaming’s sportsbook at Fremont Hotel and Casino to provide promotions and odds to customers.
Both FanDuel and its competitor, DraftKings, see Nevada as a lucrative market for their businesses, but have faced challenges in entering the state. Although both companies are leaders in the daily fantasy sports (DFS) and online casino industries, those forms of gambling are prohibited in Nevada.
In Nevada, sportsbook operators are required to have a connection with a physical casino in the state. DraftKings is exploring options to meet this requirement by potentially taking control of Golden Nugget Online Gaming (GNOG), which is owned by Tilman Fertitta.
There is speculation that FanDuel’s expansion into Nevada is likely, but it would require Boyd to rebrand its sportsbook mobile application and have FanDuel operate it.
While FanDuel has offices in six locations across the United States, it currently does not have a presence in Nevada.
On the other hand, DraftKings recently established a new facility in Southwest Las Vegas, positioning itself in a prime location within the state’s gaming industry. The company’s move was recognized by Builtin, which ranked DraftKings among the most entrepreneurial companies in Las Vegas. The gaming industry in Nevada is a major employer, and DraftKings joins eleven other companies in the vertical on the list.