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FanDuel has hired Alison Kutler as the company's vice president of sustainability and responsible gaming, Axios has learned.

State of play: As sports betting goes mainstream, operators are investing more resources into ensuring their customers are gambling responsibly.

Sports betting is now legal in 38 states plus D.C., and major sports leagues — long opposed to betting — are now partners in the fast-growing industry.

It's become more approachable and less stigmatized, but there are still serious risks associated with gambling of any kind.

Background: FanDuel is already a leader in responsible gaming. Hiring Kutler should help the company better protect consumers and work with regulators.

Kutler comes to FanDuel from NFT and blockchain developer Dapper Labs, where she served as senior vice president of global government affairs.

She had a similar role at Visa and has held multiple positions in the U.S. government, including as special advisor to the chairman of the FCC.

Now, she'll work in sports — a field she's loved her whole life. 

"My parents said my first word was 'touchdown,'" Kutler, a Nebraska native, tells Axios.

What they're saying: "There is no higher priority at FanDuel than ensuring our customers play responsibly," FanDuel president Christian Genetski tells Axios.

"Alison is the right leader during this critical time to ensure …  that we build a sustainable industry with responsible gaming as a cornerstone."

"Her career is replete with examples of where she built industry consensus by navigating difficult issues among many different stakeholders."

Exclusive: FanDuel hires Alison Kutler to lead responsible gaming

As sports betting goes mainstream, operators are investing more in responsible gaming.

Sports betting

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.

More than half of college-age Americans are betting on sports, including two-thirds of those living on college campuses, per survey results released Wednesday by the NCAA.

By the numbers: The survey, commissioned by new NCAA president Charlie Baker and conducted last month, polled 3,527 people in the U.S. aged 18-22.

58% of respondents have participated in at least one sports betting activity, which includes both daily and season-long fantasy sports.

67% of on-campus students have bet on sports, and 63% recall seeing advertising for sportsbooks, which the NCAA notes is higher than the general population's rate.

State of play: As legal sports betting surges nationwide, the NCAA wants to "better understand what student-athletes are experiencing on their campuses … so we can best help them deal with [its] potentially disruptive dynamic," Baker said Wednesday.

The backdrop: This survey comes in the wake of three recent college sports betting scandals, illustrating why Baker is so keen to get a better grasp of the environment.

Alabama baseball coach Brad Bohannon was fired earlier this month amid an investigation into potential match-fixing.

Over 40 athletes at Iowa and Iowa State are under investigation for violating NCAA gambling rules, which prohibit athletes from betting on any sports — college or pro — in which the NCAA conducts a championship.

It doesn't appear those athletes engaged in match-fixing, but beyond breaking the rules, some of them may have broken the law: Iowa is among the 27 states where you must be at least 21 to legally wager on sports.

What to watch: The NCAA said it will conduct an athlete-only survey later this year — the first since 2016, two years before the Professional and Amateur Sports Protection Act's repeal paved the way for legal sports betting. At that time, 24% of male athletes and 5% of female athletes said they wagered on sports. Something tells me the updated numbers will be slightly higher.

Survey: Over half of college-age Americans bet on sports

The survey comes in the wake of three recent college sports betting scandals.

Illustration of a slot machine featuring a basketball, baseball and football, ending in three dollar signs.

Data: Legal Sports Report; Table: Axios Visuals

Five years ago today, the Supreme Court overturned the Professional and Amateur Sports Protection Act, launching what has become a massive legal sports betting industry.

Why it matters: The booming business has become inescapable to fans, littering TV broadcasts with ads and driving the conversation in sports bars across America.

State of play: Since the bill was overturned, Americans have legally wagered over $220 billion on sports, generating over $17 billion in revenue for sportsbooks and $3 billion in state and local taxes.

33 states (plus Washington, D.C.) have live, legal markets, four states have legalized betting but haven't begun operations, and another six have active legislation or ballot initiatives.

Every major league has official betting partners, and 11 different pro stadiums have or are planning in-venue sportsbooks.

Between the lines: There are dozens of sportsbook operators. But in the 12-month period ending Feb. 2023, four accounted for nearly 90% of the U.S. market, per gambling analytics firm Eilers & Krejcik.

The big picture: A brief snapshot of the industry’s explosive growth…

May 2018-April 2019: $8.3 billion wagered, eight new markets launched.

May 2019-April 2020: $13.7 billion, nine new markets launched.

May 2020-April 2021: $34 billion, five new markets launched.

May 2021-April 2022: $74.2 billion, nine new markets launched.

May 2022-April 2023: $90.4 billion, three new markets launched.

What to watch: The three most populous states in the nation — California, Texas and Florida — still don't have legal sports betting markets.

That should change at some point, given those three states are home to 32 of the 124 (26%) teams in the major North American leagues.

Reality check: It could be a while. Texas has a pair of active bills, but little support in the state Senate.

California saw a pair of costly propositions fail last fall.

Florida is engaged in legal battles with the Seminole tribe, which claims to have exclusive rights to gaming in the state.

The bottom line: Five years ago, sports betting was limited largely to Las Vegas. Now, over half of American adults live in a state where they can bet legally — often from the comfort of their couch.

Editor's note: Most states have only reported numbers through March, and five states — New Mexico, Washington, North Dakota, Wisconsin and North Carolina — do not make total wager amounts publicly available.

America's five-year sports betting cash chase

The business has become inescapable to fans, littering broadcasts with ads and driving conversation in bars across America.

Economy & Business

Sports betting laws, by state

Data: American Gaming Association; Cartogram: Axios Visuals

For the first time ever, the Super Bowl is being held in a state where sports betting is legal — and at a stadium with its own sportsbook.

Why it matters: The milestone game at State Farm Stadium in Glendale, Arizona, represents America's — and the NFL's — vastly evolved stance on gambling.

State(s) of play: Arizona is one of 33 states (plus Washington, D.C.) with a live, legal sports betting market. It ranks 10th in total handle (wagers accepted) among all states since PASPA was overturned in 2018, per Legal Sports Report.

The intrigue: 50.4 million U.S. adults are expected to wager $16 billion on Super Bowl LVII, per the American Gaming Association. Both figures are roughly double last year's record tally.

Some of those bets will be placed at the BetMGM Sportsbook on the State Farm Stadium grounds.

It's one of 11 in-venue sportsbooks across the country and the first (of two) at an NFL stadium.

The big picture: The NFL has come a long way from being the league that once banned players from appearing at an offseason fantasy football event in Las Vegas.

Its reservations were rooted in a fear of match-fixing, but once PASPA was overturned and the nationwide attitude began to change, the NFL embraced betting as much as any league.

In 2021 alone, the NFL inked deals with Caesars Entertainment, DraftKings and FanDuel to be its official sports betting partners, as well as additional agreements with BetMGM, FOX Bet, PointsBet and WynnBet.

And frankly, the league should be thrilled by the sea change: 34% of fans say the expansion of legal sports betting has made games more exciting.

What we're watching: There's no one-size-fits-all approach to legal sports betting markets. Here's a brief snapshot of some differences nationwide, courtesy of our Axios Local coverage:

Arkansas legalized in-person sports betting back in 2018, but only began taking mobile wagers last March, per Axios NW Arkansas.

In Washington, gambling is limited to those on the premises of a tribal casino — a restriction some are pushing to change, per Axios Seattle.

North Carolina also only allows sports betting at tribal casinos, but lawmakers are expected to push for the legalization of mobile wagering soon, per Axios Raleigh.

This Super Bowl is the first in a state with legal sports betting

Americans are expected to wager $16B on the Super Bowl — roughly double last year's bets.

Super Bowl

NFL, NBA, MLB & NHL

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

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

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.

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

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.

Reproduced from American Gaming Association; Cartogram: Axios Visuals

2020 was poised to be a big year for sports betting. Some of that momentum was lost due to the shutdown, but the industry is still surging ahead — and holding out hope for a massive fall.

The state of play: Sports betting is now legal and fully operational in 18 states, plus Washington, D.C.

Another four states — Virginia, North Carolina, Tennessee and Washington — have passed bills legalizing it this year, but are not yet operational.

Driving the news: William Hill opened a temporary sportsbook at Washington, D.C.'s Capital One Arena last Friday, making it the first pro sports stadium or arena in the country with a full-service sports betting operation.

A permanent sportsbook is being built inside the arena, but with construction delayed, the ticket box office area was converted into a temporary site.

Legal (18 states plus D.C.): Arkansas, Colorado, Delaware, Illinois, Indiana, Iowa, Michigan, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New York, New Mexico, Oregon, Pennsylvania, Rhode Island, West Virginia, Washington, D.C.

Passed bill (4 states): North Carolina, Tennessee, Virginia, Washington.

Active bill (9 states): , Hawaii, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, Ohio, South Dakota, Vermont.

Failed legislation in 2020 (12 states): Alabama, Alaska, Arizona, California, Connecticut, Florida, Georgia, Kentucky, Maine, Minnesota, Missouri, Wyoming

No legislation in 2020 (7 states): Idaho, North Dakota, Oklahoma, South Carolina, Texas, Utah, Wisconsin

Go deeper: The NFL's slow embrace of sports betting

The states that have legalized sports betting

Sports betting is now legal and fully operational in 18 states, plus Washington, D.C.

Politics

Colorado became the 18th state to officially begin accepting legal sports wagers, including via online sportsbooks, at the start of May.

Why it matters: The convenience of mobile betting is the future, and with sports creeping back, Colorado can treat the next few months more or less like a beta test as it prepares for the wave of that will come when sports return in full.

The state of play: Since PASPA was repealed two years ago, states have steadily passed sports betting legislation. Some allow mobile betting, while others require bettors to place wagers in a physical casino.

Mobile betting: New Jersey's sports betting volume nearly matched Nevada's within its first year, largely thanks to a massive mobile footprint, which saw 86.5% of a record $562.7 million wagered in November 2019 coming from online bets, per Legal Sports Report.

No mobile betting: New Yorkers are so desperate for mobile betting that they're taking their phones across the river to New Jersey, costing New York millions in tax revenue. Multiple other states with sports betting, but no mobile option, fell way short of revenue projections last year.

The big picture: Developers like Boom Sports, who just inked a huge deal with Penn National Gaming to operate mobile sportsbooks in five states where online sports betting isn't even legal yet, believe that policy will eventually catch up with consumer behavior.

"When we started Boom Sports five years ago, we looked at the market, and less than 1% of all casino gaming revenue was generated online. It was still 99% generated in land-based casinos, and we just knew based on the world and where it was going, that was going to change in a big way."

The bottom line: Sports betting has long been associated with bookies and casinos, but those days are coming to an end. Now, sportsbooks' target customer is closer to your average sports fan — and the best way to reach the vast majority of them is through their phones.

Go deeper: Coronavirus sends sports betting scrambling

The growth of mobile sports betting

The best way to reach the vast majority of average sports fans is through their phones.

Illustration of a group of phones with the hundred dollar bill on the screens

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