FanDuel CEO Amy Howe Says Black Market Gambling Poses Threat to Online Sports Betting
The NFL embracing sports betting last season was a turning point; ‘It’s become mainstream’
FanDuel Group Chief Executive Amy Howesaid that while legal sports betting in the U.S. has become mainstream, illegal gambling operators online still pose a threat to the industry.
Thirty-five states and the District of Columbia have legalized sports betting, driving a boom in the gambling industry in recent years. Gambling companies have argued that the practice should be legalized because betting on sports has long been happening in the black market, including through offshore online sportsbooks.
Speaking at The Wall Street Journal’s The Future of Everything Festival, Ms. Howe said consumers might not even be aware they are betting on an illegal, unregulated site.
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“There’s a massive black market that still exists,” Ms. Howe said. “Hard to quantify exactly but probably to the tune of trillions of dollars. As that black market persists, the states aren’t getting the economic benefit of that. Consumers aren’t being protected.”
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Ms. Howe, who was named CEO of FanDuel in October, said FanDuel is working to raise awareness about the black-market among consumers, state attorneys general and at the federal level. “I don’t think there is the level of awareness that there needs to be on just how big it is,” she said.
Meanwhile, FanDuel’s scale of business has become “so massive,” she said. The company took 8 million bets on the Super Bowl this year and another 19 million wagers during March Madness. FanDuel is one of the National Football League’s approved sports-betting partners, which includes being able to advertise during NFL games.
“I think NFL was really an inflection point this year,” Ms. Howe said. “For everybody who watches NFL games, it was hard to watch a game and not see a number of advertisements…you’ve definitely started to see that tipping point, where it’s become mainstream.”
To address gambling addiction, Ms. Howe said the company is investing in products that allow customers to manage and limit wagering activity. FanDuel’s parent company, Flutter Entertainment Plc, has a goal that by 2030, 75% of its global consumer base should be using at least one of the company’s responsible gambling tools, she said.
“We believe we have to get this right, in order to protect our business not just in the short term but in the long term,” she said.
Write to Katherine Sayre at katherine.sayre@wsj.com
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