SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 1/15/25:
- Flutter Faces Financial Hit From Sports Outcomes, Analyst Says
- Will Texas Expand Gambling in 2025? Meet the Key Players
- Crypto.com Expands Its Sports Prediction Market Menu
- DraftKings Books A Flight With Delta, But In-Flight Gambling Isn’t Here Yet
- Stakeholders Push Feds to Back Responsible Gaming and Tech Rules
- DraftKings Hit With Lawsuit Over Alleged Deceptive Promotions
- NFL Favorites Win Big, Exposing Risks for Sports Betting Companies
- Polymarket Faces Backlash for Betting Markets on LA Wildfires
Flutter Faces Financial Hit From Sports Outcomes, Analyst Says
Flutter Entertainment, the parent company of FanDuel, announced an unexpected 7% reduction in its 2024 cash flow projections, attributing the drop to a surge in sports bettors’ wins driven by an unprecedented rate of NFL favorites winning—reportedly the highest in two decades. According to Jefferies analyst James Wheatcroft, FanDuel’s U.S. operations faced a $260 million cash-flow hit, softened to $170 million at the group level through reduced marketing and favorable sports-betting results in the UK. Despite these challenges, Wheatcroft emphasized that Flutter’s earnings guidance remains unchanged, viewing any share price weakness as a potential buying opportunity in an improving market environment.
Will Texas Expand Gambling in 2025? Meet the Key Players
As the Texas Legislature reconvenes, expanding gambling is once again on the table. While polls show broad support among Texans, past attempts to legalize sports betting and casinos have stalled. Governor Greg Abbott, whose stance on gambling has softened, remains focused on other priorities, while Lt. Gov. Dan Patrick continues to block pro-gambling bills in the Senate, citing a lack of Republican support. Meanwhile, Miriam Adelson, majority owner of Las Vegas Sands and the Dallas Mavericks, has heavily invested in lobbying efforts, donating over $13 million in 2024 alone. The 2025 legislative session will determine whether Texans will have the chance to vote on these pro-gambling amendments.
Crypto.com Expands Its Sports Prediction Market Menu
Crypto.com has broadened its entry into sports prediction markets by adding wagers on the NFC and AFC championships, remaining college bowl games, and the college football national championship. Following its December launch of Super Bowl “contracts,” users can now buy and sell predictions—such as betting $25.75 on the Detroit Lions to win the Super Bowl for a $100 payout if correct. Governed by the Commodity Futures Trading Commission (CFTC), this product is legal in all 50 states and positions Crypto.com as the first regulated platform in the U.S. to offer this trading model. CEO Kris Marszalek calls it a “fundamentally new concept for sports,” blending financial trading with sports engagement. The initiative has sparked industry buzz, with analysts highlighting its potential impact on the regulated online betting market.
DraftKings Books A Flight With Delta, But In-Flight Gambling Isn’t Here Yet
DraftKings has partnered with Delta Airlines, as revealed at CES 2025 by Delta CEO Ed Bastian. The collaboration aims to enhance the gaming experience for travelers through Delta’s in-flight entertainment systems, combining Delta Sync with DraftKings’ expertise. However, the specifics of the deal remain unknown, given the legal restrictions of in-flight gambling under the Gambling Devices Act of 1962. Speculations range from converting gambling winnings into SkyMiles to non-gambling gaming options for entertainment. As DraftKings continues to innovate in the competitive online gambling market, this partnership showcases its effort to stay ahead, even as plans take shape.
Stakeholders Push Feds to Back Responsible Gaming and Tech Rules
As gambling rapidly evolves, industry stakeholders emphasize the need for stronger federal oversight to address problem gambling and regulate emerging gaming platforms. During a webinar hosted by IC360, experts highlighted the challenges posed by the expansion of legal gambling, with nearly 40 states now allowing sports betting and seven permitting online casinos. Calls for tools like a national digital self-exclusion list aim to tackle problem gambling across state lines. Additionally, the panelists stressed the urgency of addressing new gaming formats like sweepstakes, prediction markets, and digital trading platforms that exploit regulatory gaps, urging Congress to create policies that ensure responsible growth in the gambling sector.
DraftKings Hit With Lawsuit Over Alleged Deceptive Promotions
DraftKings is under fire as a class-action lawsuit, filed by Chicago-based law firm Loevy & Loevy in New York, Massachusetts, and California, accuses the company of misleading consumers with promotions like “risk-free” bets and deposit bonuses. The lawsuit claims these offers were not as risk-free as advertised, often requiring users to wager their own funds upfront and offering non-cash credits with restrictive terms as refunds. Plaintiffs argue these practices violated consumer protection laws and disproportionately impacted inexperienced bettors. While DraftKings denies the allegations and emphasizes its commitment to compliance and transparency, legal experts believe the case could heighten scrutiny of promotional tactics in the rapidly expanding online betting industry. This follows similar allegations in Massachusetts in 2023 regarding unrealistic wagering requirements for a $1,000 bonus offer.
NFL Favorites Win Big, Exposing Risks for Sports Betting Companies
The NFL season proved challenging for sportsbooks, with FanDuel and DraftKings reporting substantial revenue losses due to a historic win rate for favorites—the highest in 20 years. Flutter Entertainment, FanDuel’s parent company, estimates $390 million in revenue was lost between November and December alone, highlighting the volatility of the industry. Despite these short-term setbacks, U.S. sports betting revenue surged 27% in 2024, reaching nearly $11.1 billion by October, with projections for January 2025 wagers to exceed $13.9 billion. Partnerships with major leagues like the NFL and MLB, coupled with increasing legalization across 38 states, have solidified FanDuel and DraftKings as integral parts of the sports viewing experience. Both companies continue to expand, with Flutter investing $3.8 billion in marketing in 2023 and DraftKings increasing revenue by 63.6% to $3.7 billion. These investments are shaping the future of sports betting integration within the broader sports ecosystem.
Polymarket Faces Backlash for Betting Markets on LA Wildfires
Polymarket, the crypto-based prediction market, has sparked controversy by allowing bets on the progression of the deadly Los Angeles wildfires, including acreage burned and containment timelines. The wildfire markets have drawn over $270,000 in trading volume but faced criticism for appearing to profit from tragedy. Critics argue such markets are morally questionable and could create harmful incentives. Polymarket defends the markets as tools for providing probabilistic forecasts and transparency on widely discussed topics. Known for its controversial betting topics, Polymarket has previously allowed markets on criminal cases and geopolitical events, continuing to test the boundaries of taste and ethics in prediction markets.
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