National

Finish Line

Axios Finish Line

A slew of apps and games that simulate sports and casino betting are gaining popularity among children.

Why it matters: The line between gaming and gambling is getting blurrier — and social betting, which involves no real money, can lead kids to the real thing, experts say.

The big picture: "Gambling has become normalized in our society," says Jeff Derevensky, a professor of psychiatry at McGill University and director of the International Centre for Youth Gambling Problems and High-Risk Behaviors. "We’re seeing a migration and an integration between gaming and gambling."

Global downloads of social gambling apps increased from 33 million in 2012 to 1.39 billion in 2020, according to an analysis of Android app data by David Zendle, an expert on the effects of video games and gambling at the University of York.

Of the 1,132 "social casino" games analyzed, 1,107 — or nearly 98% — had an age rating of 12+ or lower.

Social casino games, which can be played for free through platforms like Facebook and Zynga, let players bet virtual money on games like slots, poker and blackjack.

What's happening: Sports betting is one of the fastest growing parts of the gambling industry, and that trend is reflected in the social betting world.

"Younger generations tend to view sports betting as a game of skill, rather than gambling, which has a more negative connotation," says Axios sports editor Kendall Baker. "From TV commercials to in-stadium sportsbooks, betting has fully infiltrated the fan experience for all ages, making it feel mainstream and casual."

There are downloadable apps like Omada, BETUP and WagerLab. Some have age restrictions that require users to be 17 or older, but they're easy enough to circumvent, says Keith Whyte, executive director of the National Council on Problem Gambling.

There are also sports betting-like games that are marketed directly to kids. The National Football League and Nickelodeon have collaborated on a kids site that has cartoons, NFL trivia, and a feature that lets kids pick winners and get points for selecting correctly. 

"We have worked (and will continue to) with CBS/Viacom on the elements in and around this game and there is nothing gambling-related or intended,"   Alex Riethmiller, VP of communications for NFL Media, told Legal Sports Report. ViacomCBS owns Nickelodeon.

The stakes: "There’s a massive exposure effect," says Whyte. "There’s a habituation and grooming effect." 

Studies have shown that kids who engage in social betting games are likelier to develop gambling problems later in life.

Yes, but: The solution isn't necessarily to do away with these apps, but for parents to be more aware of what their kids are doing, says Timothy Fong, a co-director of the Gambling Studies Program at UCLA.

Many of these games are akin to "modern-day Monopoly," he says, and it's possible for kids to enjoy them safely.

"This is a new area of parenting," Fong says. "We're always talking about teaching kids about drugs and alcohol. And now parents need to learn about these games and talk to their kids about gambling."

Editor's note: This story originally published on Feb. 10. 

Online betting comes for kids

The line between gaming and gambling is getting blurrier.

Illustration of a bright blue baseball glove catching a red and white playing dice

Sports betting

Gaming

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

Shifts in technology and media are changing the way we play, watch and understand sports. Business models are adapting and social change is forcing those in charge of teams and leagues to reconsider decades-old practices.

Sports

Sports betting handle, by state

Note: Handle = total money wagered. Data: Legal Sports Report; Chart: Sara Wise/Axios

New York launched mobile sports betting on Saturday, with four online sportsbooks beginning operations and another five awaiting final approval.

The big picture: Now that New Yorkers can bet from their couch — rather than travel to New Jersey — many believe the Empire State will eventually contend with New Jersey and Nevada for most money wagered by state (currently 17th).

State(s) of play: 30 states plus Washington, D.C., have live, legal sports betting markets, but only 18 (plus D.C.) allow mobile betting, per Forbes.

In-person and mobile (15 plus D.C.): Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Michigan, Nevada, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, the District of Columbia, West Virginia, Wyoming

In-person only (12): Arkansas, Delaware, Louisiana, Maryland, Mississippi, Montana, New Mexico, North Carolina, North Dakota, South Dakota, Washington, Wisconsin

Mobile only (3): New Hampshire (in-person will launch soon), Tennessee, Virginia

Legal, not yet operational (3): Florida, Nebraska, Ohio

What to watch: It's no coincidence this launch came just before the NFL playoffs and CFP Championship. The next month will almost certainly break the record for money wagered on sports nationwide.

Sports betting headed for record month

New York launched mobile sports betting on Saturday, with four online sportsbooks beginning operations.

A file photo showing a sign that reads "Bet sports now!" in New Jersey.

Axios Sports

Legality of sports betting in the U.S.

Data: American Gaming Association; Cartogram: Axios Visuals

Sports betting is now legal and operational in 30 states, plus the District of Columbia, with Wisconsin accepting its first legal bets on Tuesday at Oneida Casino, near Green Bay.

Charted: The state(s) of sports betting

Sports betting is now legal and operational in 30 states, plus the District of Columbia.

A chart showing the legality of sports betting in the U.S.

The most unpredictable NFL season in recent memory is costing bettors at a historic clip.

Driving the news: November was among the worst months ever for the betting public thanks to underdogs covering the spread nearly 60% of the time and winning 23 games outright.

Notable games: Jaguars over Bills in Week 9; Dolphins over Ravens in Week 10; Texans over Titans in Week 11.

That's part of a season-long trend in which underdogs are 99-77-1 against the spread — on pace to be the best mark since 1980.

The big picture: While the NFL's chaos cursed bettors last month, it's made for a wildly entertaining season — and the upshot is a wide-open playoff race with six weeks left.

27 teams are within 1.5 games of a playoff spot, and 25 teams have at least five wins (compared to just 18 at this point last season).

This is the first year since 2014 with no 10-win teams through Week 12, and just two division leaders hold more than a two-game lead over second place (NFC North, NFC South).

Wild stat: 25 games this season have been decided on the final play — the most through 12 weeks since the merger. That kind of end-game coin flip has helped cause this unprecedented parity.

AFC: 1. Ravens (8-3), 2. Patriots (8-4), 3. Titans (8-4), 4. Chiefs (7-4), 5. Bengals (7-4), 6. Bills (7-4), 7. Chargers (6-5)

NFC: 1. Cardinals (9-2), 2. Packers (9-3), 3. Buccaneers (8-3), 4. Cowboys (7-4), 5. Rams (7-4), 6. 49ers (6-5), 7. Washington (5-6)

Go deeper: New Jersey becomes first state to hit $1 billion in monthly sports bets

November was brutal for NFL bettors

Underdogs covered the spread nearly 60% of the time and won 23 games outright.

Jacksonville Jaguars kicker Matthew Wright prepares to kick a field goal

15.5-point underdog Jacksonville Jaguars beat the Buffalo Bills in Week 10. Photo: Sam Greenwood/Getty Images

NFL, NBA, MLB & NHL

Data: Legal Sports Report; Chart: Axios Visuals

New Jersey sportsbooks took $1.01 billion in bets in September, the first time any state has eclipsed the billion-dollar mark.

The big picture: New Jersey has overtaken Nevada as the sports betting capital of America in the three years since the U.S. Supreme Court overturned PASPA, giving states the power to legalize sports betting.

By the numbers: $19 billion has been wagered in the Garden State since the Supreme Court's June 2018 ruling, generating roughly $1.4 billion in revenue for sportsbooks and $169 million in tax revenue for the state.

Snapshot: Here are the top five states by sports betting handle (i.e. total amount wagered) since June 2018.

Between the lines: New Jersey has benefited from the lack of legal options in New York, with bettors traveling across state lines to place wagers. But New York's online betting market is coming, and it could rival — or even surpass — New Jersey's.

State of play: 28 states plus Washington, D.C., currently have legal sports betting markets, with four more states — Florida, Maryland, Wisconsin and Nebraska — gearing up to launch.

Go deeper: New Jersey is America's new sports betting capital

New Jersey becomes first state to hit $1 billion in monthly sports bets

New Jersey has overtaken Nevada as the sports betting capital of America.

A chart showing New Jersey's monthly sports betting handle

Pro Rata

Axios Pro Rata

Media Trends

Axios Media Trends

Gambling has always been about the flypaper. Use glitz to get customers in the door, free drinks to get them in the seats and then loyalty perks to get them to tables with higher minimums.

Why it matters: A version of the flypaper effect is now happening with the gambling industry itself, which is experiencing a major consolidation wave.

Online content drives people to online sports betting, which then drives them to interactive online gaming, which is higher margin and often partners with physical casinos for co-branding or white-label opportunities. And within all of that is online ad tracking, which lets operators retarget and significantly increase conversion rates.

Driving the news: CNBC yesterday reported that DraftKings had offered to buy Entain, the listed British sports betting firm that owns Ladbrokes and Coral, for $20 billion. Entain later confirmed it had received a takeover offer from DraftKings, but didn't provide additional details.

A source familiar with the situation says that DraftKings made its offer more than two months ago for just under that $20 billion mark, and that there have not been counterbids.

This would be DraftKings’ largest acquisition to date, but it’s been active. Just this year it bought the Golden Nugget Online Casino for $1.5 billion in stock, sports betting video content company VSiN for what Axios hears is around $100 million and reportedly is among the suitors for a $3 billion brand licensing deal with ESPN.

Entain has bankers, harkening back to an earlier $11 billion takeover offer that it rejected from MGM Resorts, with which it has a U.S. online sports betting partnership called BetMGM.

Big picture: Gaming company M&A hit an all-time high in 2021, per CrunchBase, and just last week we saw a massive IPO for SportRadar, a provider of data technology to sports betting companies.

The bottom line: This is about expected growth in U.S. online sports betting, as more states legalize and bettors become more comfortable. That's where both DraftKings and MGM see upside for Entain, which mostly operates in the matured European market. Or, put another way, we're still in the early innings.

Gambling on U.S. sports betting growth

DraftKings has offered to buy Entain, a British sports betting firm, for nearly $20 billion.

Illustration of a die with sport balls on it.

 As sports betting emerges from the shadows and steps into the light, it's seeping into every aspect of fandom.

The state of play: How fans watch games, where fans watch games, how media covers those games — it's all being transformed quite rapidly.

On the stadium: For the next 20 years, the Superdome — a New Orleans landmark and one of America's most iconic buildings — will be named after Caesars Entertainment. Similar deals will likely follow.

In the stadium: North America's first in-arena sportsbook opened in Washington, D.C., in May, and at least three more are coming soon to Chicago and Phoenix. Whether on your phone or at a kiosk, betting at the game will eventually be commonplace — like it is in England.

On the broadcast: Millions of fans watch their teams on Bally's Sports (formerly Fox Sports regional networks), which is directly integrated with sports betting operator Bally's Corporation. Meanwhile, MLB is partnering with DraftKings on betting-themed broadcasts and fans can even stream MLB games in the DraftKings app.

During commercials: YouTube may have banned sports betting ads, but the NFL is leaning in this season, allowing networks to sell six ad spots per game to sportsbooks. It won't be as overwhelming as the DraftKings/FanDuel barrage in the early days of daily fantasy, but expect a healthy dose of ads like this Jamie Foxx-BetMGM spot.

In the media: ESPN, Fox and other major networks have deals with betting operators, and publications are increasingly promoting sportsbooks through affiliate links. Longtime reporters are leaving traditional journalism for jobs at sports betting sites or sportsbooks themselves. Even the Associated Press has a deal with FanDuel to exclusively reference their betting odds.

Consider this: James is a sports fan living in Phoenix. Here's a potential fall Sunday for him in the not-so-distant future...

On his way to the Cardinals game, he listens to his favorite podcast, "The Dan Le Batard Show," which is distributed by DraftKings. Once inside the stadium, he skips the beer line for the BetMGM sportsbook, which also conveniently serves beer.

That night, he catches the end of the Suns game on TNT, which is interrupted so Charles Barkley can promote FanDuel, which has a deal with Turner. Then James switches over to Bally Sports Arizona, a network named after a casino company.

Go deeper: How sports gambling swallowed sports media (Columbia Journalism Review) 

The sports betting tsunami

Gambling is transforming the sports landscape.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

MLB and the Action Network, a sports betting data and analysis site, have entered into a multi-platform content partnership, Axios has learned.

Why it matters: As sports betting continues to expand and evolve, leagues are looking for ways to provide unique content for their fans, and no sport has as many betting opportunities as baseball, with its 162-game slate.

Details: The partnership spans three main facets — syndication, programming and integration, all with an eye on seamlessly incorporating sports betting content into the MLB landscape beginning later this month.

Syndication: Action Network-authored articles will be distributed on both Action and MLB digital platforms.

Programming: The Action Network will produce and distribute a weekly, 30-minute show called "Payoff Pitch," with betting analysis and advice for that week's games.

Integration: MLB's existing properties, including its articles and its own gambling show, "Bettor's Eye," will regularly feature Action Network talent and betting information.

Go deeper: How sports betting is shaping the future of MLB (WBUR)

Scoop: MLB partnering with sports betting analysis site Action Network

No sport has as many betting opportunities as baseball.

Major League Baseball (MLB)

FanDuel and The Associated Press have reached an agreement to make FanDuel the exclusive provider of sports odds across AP’s global sports report, executives tell Axios. 

Why it matters: While traditional advertising is an effective customer acquisition tool, FanDuel Chief Marketing Officer Mike Raffensperger says "I think the thing where we move the needle is partnerships with media companies."

FanDuel spent more than any other sports book on advertising around online gambling content in Q1 2021, per Nielsen. 

Details: Under the terms of the agreement, the AP will include FanDuel sportsbook odds exclusively in its daily sports odds fixtures, game previews, and other sports stories where odds are mentioned. 

FanDuel is paying the AP an undisclosed amount to be the AP's exclusive partner. 

FanDuel widgets will be integrated across the sports pages of APNews.com. Widgets will distribute select FanDuel content across the AP wire. AP will maintain full editorial control. 

The AP will cite FanDuel odds as a single source in its copy when referring to betting odds and will hyperlink out to FanDuel's home page, not to any of its betting pages. The company wants to steer clear from any direct affiliate marketing relationships. 

"We want more context in our reporting," says Barry Bedlan, AP’s global director of text and new markets products. "That's ultimately what this is about."

AP's customer base of media companies that license its content will have some flexibility around whether they wish to include hyperlinks to FanDuel. Some local media companies have their own partnerships with local sportsbooks, Bedlan notes.

Between the lines: For the AP, having one provider of odds provides consistency that's "huge for us," says Bedlan. 

"We have been providing sports betting odds on the wire for at least 30 years," says Bedlan. But what's new, Bedlan says, is "we are providing more of that context in our reporting throughout our wire."

For example, "if we're covering or previewing a game, we're mentioning what the odds are now. Five year ago that wasn't as common."

The big picture: Like rival DraftKings, FanDuel is working to become a media and content company alongside being a gaming company, Raffensperger says. 

Asked if FanDuel would ever entertain buying up a sports betting media outlet like some of its rivals, Raffensperger said the company "is always in the market of interesting acquisitions."

FanDuel has a robust media presence that includes partnerships with The Ringer, Turner Sports, CBS, Audacy, Hulu, the NFL, NBC, DC United, Brooklyn Nets and dozens of others. 

It has its own podcast network, a TV affiliate around horse racing, and creates a lot of its own content. Some of the sports companies and personalities it sponsors, like Pat McAfee & PMI Team, are its best-performing marketing vehicles. 

What to watch: Raffensperger says media investments will become more national as more states legalize betting across the country. 

Exclusive: AP and FanDuel team up on sports betting odds

FanDuel is paying the AP an undisclosed amount to be its exclusive partner.

Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images

Media

Medina Spirit, the horse whose Kentucky Derby win is in jeopardy after he failed a drug test, was being treated with an anti-fungal ointment for dermatitis that contained the steroid found in the test, trainer Bob Baffert acknowledged Tuesday. 

The big picture: Baffert noted that it's not yet definitively known whether the ointment is behind the positive drug test but said that it "could explain the results" and that the investigation is ongoing. 

"While we do not know definitively that this was the source of the alleged 21 picograms [of  betamethasone] found in Medina Spirit's post-race blood sample, and our investigation is continuing, I have been told by equine pharmacology experts that this could explain the test results," Baffert said in a statement. 

The state of play: Medina Spirit's test results earlier this week showed more than the permitted amount of betamethasone, a steroid used to reduce pain and swelling.

Baffert, a Hall of Fame trainer, has had five horses fail drug tests in just over a year.

What to watch: Churchill Downs has announced that the horse will be disqualified as the 2021 Kentucky Derby winner if a second test comes back positive. Those results aren't expected for weeks, per the Courier Journal. 

Baffert's lawyer said separately on Tuesday that an agreement has been reached to allow Medina Spirit to run in Saturday's Preakness in Baltimore, Maryland, according to the Courier Journal. Baffert has said he will not attend the race.

Baffert: Ointment could have caused Medina Spirit's positive drug test

Churchill Downs has said it will disqualify the horse as the 2021 Kentucky Derby winner if another test comes back positive.

Kentucky Derby winner Medina Spirit. Photo: Rob Carr/Getty Images

All Sports betting stories