Fanduel, the American broadcaster of racing into homes via its TV channels, is set to slowly close.
The company made the announcement that it will phase out its linear broadcast over the next 20 months, with punters in the US still be able to watch their products until contracts end in 2027.
According to reports, the first round of cuts will occur in June, where around 60% of employees will lose their roles. The company will then slowly wind up their operations, with more to leave the company by November. Around 100 people will lose their jobs as a result of the changes.
The company’s racing and sports betting operations will continue to operate as per normal.
FanDuel will continue to broadcast races as per their contracts, but will no longer have any in-house or studio hosts and reduced production requirements, saving the company significant amounts of money.
Some races will still include on-course hosts, the company said.
In announcing the changes, FanDuel CEO Amy Howe said that “continuation of the network did not align with the company’s long-term strategy.”
One key statistic may prove an indicator behind why FanDuel made their decision.
According to the PaulickReport, FanDuel TV reached 50 million homes in the US a few years ago via cable offerings such as Hulu and Verizon and even YouTube. That figure is now 30 million.
It follows a global trend where racing can now be viewed on wagering apps, such as Bet365, TAB or Sportsbet in Australia, putting significant pressure on linear broadcasters given the significant costs of live television.
Andrew Moore, general manager of racing for FanDuel, told the PaulickReport the company conducted ‘’a thorough review of the business and the investments needed to support a linear network didn’t align with its long-term strategy’’.
‘’Fans will still be able to watch and bet on horse racing with us just as they do today,’’ he said.
‘’Our FanDuel Racing and TVG apps will continue to offer the same great experience, and we’ll keep broadcasting races through the end of 2027 while working closely with our partners across the sport.”
”Our current plan is structured around production obligations and contractual timelines.’’
