FanDuel pulls the plug on P2P DFS platform

Summary

• FanDuel is pulling the plug on its P2P DFS platform just months after launch
• The abrupt move affects 17 states and raises questions about the company’s shifting priorities
• FanDuel could have decided that the product would be superseded by the prediction market platform it now runs

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FanDuel is shuttering its P2P DFS platform only several months after it released it in the United States. The company confirmed the news in a media release on Friday, March 27, saying that it will no longer offer the product across all previously available states.

FanDuel drops P2P DFS product from its portfolio

FanDuel highlighted the hard work that had gone into building FanDuel Picks and argued that its intended goals had been achieved, but noted that the company had restructured its operations and internal resources to serve its customer base better. After careful consideration, we’ve made the decision to sunset FanDuel Picks and reallocate resources to other areas of our business where we see the greatest opportunity to serve our customers, the company added in a blog post. The decision affects all 17 states where the platform is available and follows a successful launch and expansion for FanDuel Picks, among its fast adoption by customers. FanDuel said that any contest that was paid for by a customer already will be settled as normal, with the balances updated at the appropriate time. In the meantime, FanDuel intends to retain its DFS offering through its dedicated FanDuel DFS platform, which will remain operational across the United States.

Prediction markets may have something to do with the decision

The reason for the FanDuel P2P DFS shutdown remains speculative, but it may have to do with the fact that the platform has shifted its attention to prediction markets over the past months. FanDuel Predicts has become the company’s first foray into the vertical, celebrating the unique sector which allows customers to place trades instead of bets on the outcomes of events - from sports to entertainment, to politics, and more. While the sector has faced stiff opposition in the form of multiple legislative moves, investment in major sector companies remains steady. For its part, FanDuel has been decisive about its participation in the sector. The firm surrendered its license in Nevada, where state gambling regulators have pushed back hard against the prediction market sector, and FanDuel further had a falling out with the American Gaming Association, presumably over the difference of opinions on prediction markets.