FanDuel Celebrates New NYC Office

At the ribbon-cutting for FanDuel’s new 36,000-square-foot office in Manhattan’s Flatiron District, New York State Senator Joseph Addabbo reaffirmed his push to legalize online casino gaming (iCasino) in the state. His comments came as the state grapples with a projected $6 billion budget shortfall in Fiscal Year 2026-27 and amid a busy week for gambling-related legislation.

FanDuel CEO Amy Howe was joined by key executives and roughly 800 New York-based employees to inaugurate the new headquarters, which features memorabilia like Rob Gronkowski’s “Kick of Destiny” jersey and vintage Yankee Stadium seats. The event served both as a milestone for FanDuel’s expansion in the city and a platform for broader policy advocacy.

“We knew New York would do great in the market nationally,” Addabbo said during the ceremony. “We’re not done. We want to expand FanDuel here with iGaming.”

FanDuel has led New York’s online sports betting (OSB) market since it launched in January 2022. For the current fiscal year, the company reported $2.14 billion in betting handle, placing it at the top of the state’s OSB rankings. But while sports betting offers strong user engagement, its relatively low margins have made iCasino legalization a priority for lawmakers like Addabbo, who chairs the Senate Racing, Gaming and Wagering Committee.

Supporters argue that iCasino offers significantly higher tax revenue potential. Some industry estimates suggest New York could generate at least $1.5 billion annually from legalized online casino gaming. By comparison, the state earned just over $1 billion in sports betting tax revenue during the last fiscal year.

 

• FanDuel opens 36,000-square-foot NYC office amid continued dominance in New York’s online sports betting market with $2.14B in FY 2025-26 handle.

• State Senator Joseph Addabbo renews call to legalize online casino gaming (iCasino) to address New York’s projected $6B budget deficit.

• Tax revenue from iGaming projected at $1.5B annually, surpassing last year’s $1B from sports betting, highlighting growing legislative urgency.

Legislative Focus Split as Casino Deadline Looms

Addabbo’s advocacy comes at a critical juncture. On Friday, companies interested in downstate casino licenses face a key application deadline, a process that has diverted attention away from the iCasino debate in Albany. Industry observers say legislative focus may remain fragmented unless the budget crisis forces prioritization of high-revenue initiatives like iGaming.

“It’s not a question of if,” Addabbo added. “It’s a question of when. And that’s when we’re really going to blow this out of the water.” The opening also marked FanDuel’s first major public event since announcing a $0.50 surcharge per sports bet in Illinois—a response to the state's new tax on sportsbook handle, the first of its kind in the U.S. Rival DraftKings followed with a similar move days later.

The Illinois law, passed in a last-minute legislative push, has raised broader concerns about sportsbook profitability and regulatory headwinds. Yet according to a June 16 note from Fitch Ratings, leading operators like FanDuel and DraftKings are unlikely to see ratings impacts from state-level tax increases.

“Recent tax hikes could dampen industry momentum,” Fitch’s David Lowenstein wrote, “but increases in a single state have no impact on the credit ratings of market leaders.” FanDuel executives declined to comment further on the company’s strategy during the New York ceremony.

IPO Timing Clouded by Rate Uncertainty

FanDuel’s new office, which it shares with IBM and Franklin Templeton, also symbolizes the company’s growing footprint in U.S. finance and tech sectors. Its parent company, Flutter Entertainment, listed on the New York Stock Exchange in 2024, sparking speculation about a potential FanDuel spin-off or U.S.-based IPO.

However, macroeconomic uncertainty may slow those plans. While a lower interest rate environment typically supports IPO activity, the Federal Reserve has paused cuts as it assesses the economic impact of global tariffs. This has made equity markets more volatile, especially for gambling companies navigating regulatory flux. Still, the tone at the ceremony remained optimistic.

 

“It feels like the first day of school,” Howe said. “It has been many years in the making.”

 

As FanDuel doubles down on its New York presence, policymakers like Addabbo are betting that iCasino will be the next frontier in the state’s gambling expansion—and a potential solution to its looming budget shortfall.