Coinbase and FanDuel Affected by AWS Data Center Malfunction


Published on: May 8, 2026, 02:49h.

Updated on: May 8, 2026, 02:49h.

  • A number of FanDuel users reported issues with cashing out
  • The gaming platform indicated that a widespread AWS outage was likely the cause
  • Coinbase admitted that some key trading operations were impacted by the outage

An outage at an Amazon Web Services (AWS) facility in Northern Virginia disrupted operations for businesses in the sports betting and prediction market sectors, notably affecting FanDuel and Coinbase Global (NASDAQ: COIN).

FanDuel users faced challenges due to an AWS data center outage. (Image: Shutterstock)

In what has been a tumultuous week for Flutter Entertainment’s FanDuel (NYSE: FLUT), the company announced late Thursday that it was aware of ongoing technical issues affecting its users and was actively investigating the situation. They followed this up by stating they were collaborating with their service provider, likely AWS, to resolve the issues.

“Currently, this matter seems tied to a wider global AWS outage. We recognize the frustration this may cause and genuinely appreciate your patience as we work towards restoring services,” stated a recent update from FanDuel’s customer service team on X.

As of this writing, the post has received 762 reactions, with many customers expressing significant dissatisfaction. Some claimed they were given cash-out options prior to the AWS disruptions, only to see their bets fail. Others were disheartened that FanDuel appeared to be the only sportsbook affected and some even threatened legal action against the platform.

Coinbase Affected as Well

Coinbase, also navigating a challenging week, was similarly impacted by the AWS downtime. On its X page, Coinbase Support acknowledged the disruptions caused by the AWS incident.

Coinbase mentioned that its systems are built to withstand a single-zone outage and is conducting a thorough analysis. They noted that information may change as they await a complete review from AWS.

“The main issue has now been fully resolved – we appreciate your patience. If you have any unresolved concerns about your account, please contact Coinbase Support; we’re here to assist you,” stated a post on X.

As the leading cryptocurrency exchange in the U.S., Coinbase is becoming a significant player in the prediction market sector, offering event contracts in collaboration with Kalshi. However, they did not mention their prediction market service in their statements regarding the AWS outage.

AWS Outage Mostly Resolved

Northern Virginia hosts a large number of data centers. The AWS outage was attributed to overheating in the Virginia facility, but most issues have since been addressed.

“We are actively working to enhance our cooling systems, which will help us recover the remaining impacted hardware in the affected area,” AWS stated. “Some clients may still notice impairment in their affected EC2 instances and EBS volumes until full recovery is achieved.”

AWS is one of the largest providers of cloud computing infrastructure, controlling about a third of the market share in the U.S.



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