FanDuel Reportedly Laying Off Staff Amidst Legal Woes
A report in Forbes by Maury Brown further strengthens the perception that DFS operator’s in the U.S. like FanDuel and DraftKings are feeling the pressure more than they’d like to admit. According to sources at FanDuel, they have begun a process of lying off workers. The exact extent of the job cuts are not known but a senior executive in the company did announce the layoffs. Initially FanDuel responded by denying any layoffs were on the cards but after request for further comment on Wednesday confirmation of the previous statement were not to be heard.
The timing of this layoffs comes as another Attorney General, Ken Paxton of Texas has joined his colleagues in Illinois and New York by stating that DFS is illegal under Texas law as it is based on chance and not skill. This latest development comes after recent reports that DraftKings are looking to sub-lease their posh 25,000 square foot New York office space for which they signed a five year lease last year in June.
In another sign of how serious DFS operators are taking the legal threat to their business seriously, it was revealed in disclosure forms that DraftKings have increase their Q4 spending from $10k in Q3 to $80k in Q4 in 2015.