FanDuel Is on Annual Profitability Path in 2023 Says CEO

In an interview for Bloomberg Television, Howe expressed her optimism about the company’s future and emphasized the robustness of the company’s operations.

FanDuel Expects 17 million Bets on the Super Bowl

FanDuel CEO Amy Howe expressed her confidence that this year will mark a turning point for her company:

We feel very confident about our path to profitability for 2023. Fundamentals of our business are looking very strong so we remain very confident about full-year profitability this year.

FanDuel CEO Amy Howe

In another interview for Yahoo! Finance Howe also discussed the company’s outlook for the 2023 Super Bowl and the sports betting industry. With 17 million bets expected to be processed on the big game, the company is preparing for a major surge in new customers. 

According to Howe, the Super Bowl offers a unique opportunity to expose a large number of recreational users to the FanDuel platform and its industry-leading assortment of player props and same-game multis.

Considering the expected surge in new customers as a result of the Super Bowl and with the projected annual profitability, FanDuel will definitely be ahead of its competitors. Both BetMGM and DraftKings have struggled to maintain profitability. It is projected that BetMGM will only begin to see positive results in the latter half of 2023. Meanwhile, industry experts predict that DraftKings will achieve profitability by the end of 2023.

FanDuel Has a Scale Advantage in Terms of Customer Acquisition

FanDuel is also taking steps to drive more activity from existing bettors through promotions and events. The company has partnered with former NFL player Rob Gronkowski to offer a “Kick of Destiny” in the third quarter of the Super Bowl, where customers who place a bet of $5 or more will have a chance to win a portion of $10 million.

One of the big challenges for companies in the sports betting industry is the cost to acquire new customers. Howe noted that FanDuel has a scale advantage and has been able to acquire customers more efficiently than many of its competitors, but the Super Bowl is a major event that requires special consideration. The company also plans to introduce new users to other major events such as March Madness and the Kentucky Derby.

Another aspect of acquiring new customers is through content. FanDuel launched its TV channel, FanDuel TV, last year and the company is exploring ways to make a profit from its content, while also using it to promote sports betting. However, with a focus on the path to profitability for tech companies, FanDuel has been disciplined about its deals and customer acquisition strategies.