What should you care about when reading news about the legal battles surrounding prediction markets across the country? Goodwin attorney Andrew Kim helps me break down the signal from the noise.
But first, the gambling news roundup!
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Gambling news roundup
Missouri rejects a ban on college athlete prop bets after NCAA gambling scandals (WRAL, The Associated Press): “Missouri gambling regulators on Thursday rejected a request from the NCAA to restrict bets on the performance of college athletes in response to recent betting scandals, but left open the possibility of revisiting the issue as the state’s fledgling sports betting market gets better established.”
“The action by the Missouri Gaming Commission came just a week after the NCAA sent a letter to state gambling oversight boards asking them to ban college athlete prop bets — a popular type of wager focused on what individual players will do in a game, like scoring a certain amount of points in basketball or surpassing a particular passing yardage in football. The NCAA also urged states to ban certain other specialty bets, such as wagers on whether a team will trail by a particular point spread at halftime of a game. …
“I just don’t feel that I have enough information to grant a request by the NCAA to prohibit this type of sports wagering, because I don’t know enough yet,” commission chair Jan Zimmerman said.
My latest newsletter on prediction markets:
FanDuel Introduces “Play with a Plan:” A Research-Based Approach to Responsible Gaming (press release): Many responsible gaming messages tell players what not to do. FanDuel’s new “Play with a Plan” campaign flips that script, empowering customers to make their own informed decisions about their individual play.
“Play with a Plan” is a comprehensive initiative across all FanDuel products. Guided by behavioral research, the program features existing responsible gaming tools in a manner that promotes introspective decision-making and proactive gaming management rather than restrictive messaging.
The launch builds on the proven success of FanDuel’s Responsible Gaming program, which reached a milestone last year as responsible gaming tool usage increased 41% year over year—achieving the highest participation rate in company history.
Just as people wear seatbelts not because they expect an accident, but as a standard safety practice, planning one’s play becomes a universal approach to improve how players engage with the platform, regardless of their current play style.
“Play with a Plan” helps to empower customers to evaluate their gaming habits proactively, providing actionable guidance that emphasizes what players can do while reinforcing FanDuel’s commitment to meaningful consumer protections in regulated online sports betting. It works to reframe the conversation around responsible gaming by treating it like any other smart habit.
The initiative also follows FanDuel’s parent company, Flutter’s, Positive Impact Plan which included an annual $100 million investment in Responsible Gaming.
“This refreshed platform was purposeful and reflects the research we’ve done to rethink how Responsible Gaming is communicated most effectively to consumers,” said Cory Fox, Senior Vice President of Public Policy and Sustainability at FanDuel. “These insights shaped everything from the development of our messaging to ongoing innovation across our tools. FanDuel remains focused on making Responsible Gaming more intuitive and inviting for customers.” …
FanDuel is taking a more integrated approach than ever before to raise awareness of its RG features, leveraging a multi-channel strategy including television, programmatic, social, and audio, with high-impact placements to maximize effectiveness. This comprehensive marketing investment reflects FanDuel’s commitment to treating responsible gaming as a core platform feature worthy of significant support.
You can watch the commercial here:
X Games and Stake Announce Groundbreaking Global Partnership to Revolutionize Action Sports Betting (press release): X Games, the undisputed cultural home of action sports, today announced a global partnership naming Stake as the Exclusive Online Casino and Sports Betting Partner of the X Games League (XGL). This historic collaboration marks a significant evolution for X Games as it prepares to launch the X Games League, integrating elite competition with next-generation fan engagement and sports wagering.
As the X Games continues to push the boundaries of progression, this partnership leverages Stake’s position as the world’s leading online casino and sports betting platform to reach a digitally native, global audience. Building on the foundation laid by official data provider Alt Sports Data, fans will now have unprecedented access to live odds and betting integrations on Stake and across the X Games ecosystem. Highlights:
Official Status: Stake becomes the Exclusive Online Casino & Sports Betting Partner for the X Games League (XGL).
Global Live Streaming: All four global XGL events each year, including the upcoming Winter X Games in Aspen, will be live-streamed on Kick.com.
Integrated Betting Experience: Real-time odds provided by Alt Sports Data will be featured during broadcasts, offering fans a seamless way to engage with the competition.
XGL Drafts: Stake and Kick.com will serve as the exclusive home of betting and live streaming experience of both the Summer and Winter XGL Drafts.
Athlete Collaboration: A new Athlete Ambassador Fund will support top-tier X Games athletes in creating exclusive, co-branded content for the global community.
The Handle: Michigan Sports Betting Revenue Nears All-Time High In December (The Closing Line, paywall): Michigan is the most recent market to publish its December sports betting report. Here are the stats:
Handle: $525M (-15% YoY)
Revenue: $85.8M (+319%)
Hold: 16.3%
Taxes: $5.76M
A lot more data that you can dig into after the paywall. As always, ask if you want a free trial.
Another Attempt To Restore Gambling Loss Deduction Fails (InGame): “Another day, another dollar lost — well, another 90 cents lost, as yet another attempt to restore the gambling-loss deduction back to 100% didn’t get over the goal line. This time, an effort to tack on the change via an amendment to H.R.7148, an appropriations bill, failed. It was led by Rep. Dina Titus (D-NV), who testified before the Rules Committee Wednesday, noting that 25 other legislators on both sides of the aisle were co-sponsoring the notion.”
New York lawmaker optimistic as iCasino bills return for 2026 (iGB): “For the fourth straight session, New York Senator Joe Addabbo is starting with optimism the state will legalise iCasino gambling this year. Addabbo reintroduced SB2164, which would legalise online casinos in New York. The Democrat from Queens is the chair of the Senate Racing, Gaming and Wagering Committee. Lawmakers also introduced an Assembly counterpart, A6027.”
New York Lawmakers Have A Lot They Want To Change About Legal Betting (InGame): “New York lawmakers seem enthusiastic about changing the state’s online sports betting laws. Wednesday, seven bills were filed, each of which on its own would significantly change the face of New York sports betting, and taken as a whole would dramatically change what is available to bettors and how operators treat them. The bill that would impose the most change is AO 9636, which would eliminate everything from team and player proposition bets to over/under bets. The bill, sponsored by Assemblywoman Carrie Woerner, would limit wagering to “final outcome, score, or winner of a sporting event or contest.”
Indiana still aims to ban sweepstakes, but would no longer criminalize them (SBC Americas): “An omnibus bill that would ban sweepstakes gaming in Indiana got a unanimous vote of approval in a House committee on Thursday, but not before a lawmaker expressed concerns that a prohibition was the wrong way to treat the vertical. House Public Policy Committee Chair Ethan Manning’s HB 1052 advanced by a 10-0 vote at a Jan. 22 meeting. However, an amendment removed a provision that would have criminalized the operation of such games, downgrading the proposed criminal penalties to civil penalties. The amendment also refined the definition of sweeps to add “multi-currency” to the language that previously used only ‘dual-currency.’”
Global payments platform Paysafe joins Social Gaming Leadership Alliance (SBC Americas): “Paysafe has joined the Social Gaming Leadership Alliance (SGLA) as the sweepstakes and social gaming group’s newest member. The global payments platform, which provides solutions to gaming operators such as bet365, PokerStars, Jackpocket and Betfair, is the second payments provider among the SGLA’s membership, after Canadian firm Nuvei.”
Youth Prevention Toolkit
FanDuel’s Trusted Voices: Conversations About Betting is designed to equip adults with tools and resources to talk to young people about gambling.
This specific resource is designed to raise awareness of the risks of youth access to gambling and provide guidance to parents and trusted adults on how to play their part to prevent underage gambling.
The latest from Straight to the Point:
Underdog’s Pioneering Responsible Play Fund, GuardDog, Announces New Investment in Regen (press release): GuardDog, a responsible play innovation fund from Underdog, today announced an investment in Regen, the first platform to automatically convert entries into savings with every play. In addition to the investment, Underdog will feature Regen as a new resource in its responsible play hub, highlight Regen in customer communications from the responsible play and customer support teams as well as provide access to the platform to all of its employees.
Regen allows users to link their sportsbook, fantasy sports and prediction market accounts, and automatically save a small percentage from every entry, win or loss, creating savings without changing how they play. The platform works quietly in the background, setting money aside while players engage with sports.
“With major shifts happening in our industry, it is important to further our dedication to building a stronger and more responsible ecosystem — and apply player protection rigor across all platforms and entry type, prediction markets and fantasy sports,” said Adam Warrington, Vice President of Responsible Gaming at Underdog. “At Underdog, we focus on simplicity in our product and in our responsible play tools. Regen’s mission aligns with our goals as they empower users to set up a simple and intuitive savings mechanism that provides a new and evolved RG tool.”
“Building a robust financial future is becoming essential for today’s players, and Underdog has always been ahead of the curve,” said Daniel Prior, co-founder of Regen. “We’re thrilled to bring Regen to their team and users, delivering real savings in a way that’s effortless and genuinely impactful. With their support, we’re accelerating our mission to set every player in America on firmer financial footing.”
Stifel Initiates Coverage On Sports Betting Data Suppliers (Legal Sports Report): “Stifel initiated coverage of two sports betting suppliers, Sportradar and Genius Sports, on Wednesday. Stifel’s Jeffrey Stantial rated Sportradar a buy with a $28 price target and initiated Genius at hold with a $10 target. Both offer a ‘pick and shovels’ model opportunity to invest in online sports betting, which is projected to grow global gross revenue at a 15% compound annual growth rate from 2023 through 2030. The two suppliers offer ‘recurring and predictable’ revenues and strong customer net retention rates, Stantial said. The sector ‘seems to be consolidating into a rational duopoly’ with the two suppliers, he added.”
Santa Anita Park sues California DOJ over seizure of betting machines (LA Times): “The fight over whether Santa Anita Park can legally have Racing on Demand machines at its facility moved to its next step of litigation on Tuesday when the track filed a writ of mandate against the California Department of Justice. The 52-page complaint, filed in Los Angeles Superior Court, offered new details on the confiscation of 26 betting machines on Saturday. It also attempts to bring the California Horse Racing Board into the fray by detailing meetings that racing officials had with the regulatory agency.”
Fifth Defendant in Sports Betting Fraud Ring Sentenced (DOJ press release): The last of five Mid-South men, LaVonte Holmes, who executed a sports betting fraud scheme between 2022 and 2024, was sentenced to prison on January 20, 2026.
According to information presented in Court, the defendants purchased both stolen personal identifying information—including dates of birth and social security numbers—and bank account information off the internet to create and fund fraudulent sports betting accounts on multiple sports betting smartphone applications in order to earn account opening incentives multiple times over.
In addition to conducting the scheme in the Western District of Tennessee, the ring would travel to other states to perpetrate the fraud as well. All five defendants pled guilty to aggravated identity theft in violation of 18 U.S.C. § 1028A and unauthorized use of an access device in violation of 18 U.S.C. § 1029(a)(2) and were sentenced by Chief United States District Court Judge Sheryl H. Lipman. …
U.S. Attorney D. Michael Dunavant said, “With new and ever-changing technology, applications, and platforms, criminals are using more creative and disturbing ways to commit fraud against vulnerable victims, including identity theft. For these thieves, their bets did not pay off, and were instead parlayed into prison sentences.”
