FanDuel Makes $71M California Office Purchase

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FanDuel has paid more than $71M to buy a plush luxury office space (pictured) in the prestigious neighborhood of Beverly Hills, California. That’s despite California sports betting remaining illegal for the foreseeable future.

The leading U.S. sportsbook does offer daily fantasy sports (DFS) in the Golden State, which is the nation’s largest market for such games, as well as its TVG horse race betting service.

Located at 9000 Wilshire Boulevard, FanDuel’s new acquisition was sold by Skanska USA, a division of the Swedish construction firm Skanska.

The $71 million fee prices the property at $1,410 per square foot. That is more than four times the current average office sale price in Southern California​​​​.

The move comes as FanDuel’s owner, Flutter Entertainment, is finalizing its new U.S. stock listing on the New York Stock Exchange.

Skanska Profits  

The building, designed by Neil M. Denari and HLW International, features floor-to-ceiling glass windows and a panoramic view of the Beverly Hills area. Another standout feature is an 11,000-square-foot roof deck and lounge area.

Skanska took three years to develop the building from a parking lot and two retail spaces. It bought the site for $18.2 million in 2019 before beginning development in 2020.

This investment indicates FanDuel’s commitment to a premium working environment for its workers, even if it has to pay out more than average for the region.

It also shows the operator believes in the declining national DFS market, spending a significant sum to open in a state where it is focused on that part of its business.

The high price paid for the property contrasts with the declining office sales volume in Los Angeles County, where the average price has dropped to $295 per square foot​​​​​​​​ going into 2024.

FanDuel’s Business Expansion

Although some might consider this a strange purchase, given California’s consistent rejection of sports betting, giant gambling operators buy real estate in various places for many reasons.

While FanDuel’s new Beverly Hills location likely isn’t a prelude to the operator taking bets in California in the near term, it does offer DFS and its TVG cable service in the state.

The operator currently has multiple job openings in Los Angeles, several of which pertain to TVG​​, so some of those new employees could be heading to 9000 Wilshire Boulevard.

On its recruitment page, FanDuel offers at least a few reasons it is committed to Los Angeles.

“This city is as famous for its sport as it is for its Oscar winners. The Rams, Dodgers, and Lakers are global brands. Los Angeles is full of passion, diversity, and creativity. That’s what makes it a magnet for the ambitious, and that’s why FanDuel is here,” it reads.

Amid the booming U.S. gambling market, FanDuel is the only sports betting operator to be consistently profitable, so it can afford to spend more than most.

Meanwhile, FanDuel’s nearest competitor, DraftKings, last year opened an office amid the Nevada casinos of Las Vegas, despite not offering a single gambling service in the state.

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