The Cashout: Could Penn Really Opt Out Of ESPN Bet Deal?

Gambling news today: College betting scandal involves daily fantasy; Formula One signs betting deal; bad news for Georgia sports betting

Feb 28, 2025

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TCL will offer market analysis in the US gambling space in The Cashout every Friday to paid subscribers, along with a news roundup for free subscribers.

Penn Entertainment’s earnings call did not paint a promising future for ESPN Bet. That leads today’s three things to know in the US online gambling market (paywalled).

But first, a roundup of recent gambling news for free!

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Gambling news roundup

Sources: Fresno State athletes played fantasy on own stats (ESPN): “Fresno State and the NCAA are investigating allegations that two men's basketball players participated in daily fantasy contests based on their own performances, according to multiple sources familiar with the matter. The sources told ESPN that Mykell Robinson and associates bet and entered daily fantasy sports contests involving Fresno State games in which he played. The wagers and fantasy entries included the under on Robinson's points and rebounds, according to the sources. At least one major U.S. sportsbook received increased betting interest on Robinson's props in games this season, according to an industry source.”
- “Fresno State senior guard Jalen Weaver told ESPN on Thursday that he played a daily fantasy contest on his points total in the Bulldogs' home game against New Mexico on Dec. 31. Weaver said he risked $50 that he would score more than 11 points on the fantasy site Sleeper. He finished with 13 points in a 103-89 loss to the Lobos.”
- The scope of what Robinson did isn’t entirely clear, but with Weaver it’s clear he placed at least a parlay on his performance at a fantasy pick’em site/app. That’s the first known instance of this happening with a player in an amateur or professional sport, at least publicly.
  - To place a fantasy pick’em bet/entry, you need to use two or more outcomes involving player statistics. There are mechanisms through which a user could approximate straight bets.
- This feels like a watershed moment for fantasy pick’em, although it remains to be seen if it will be. Sports betting has been under the microscope in recent months for a variety of reasons, while the quasi-regulated fantasy pick’em industry has endured some pushback but had settled into a sort of equilibrium of late. This new news cycle has the chance to disrupt the niche industry (ie PrizePicks, Underdog, Sleeper et al) greatly.
Formula 1 appoints ALT Sports Data as Official Betting Data Supplier to drive growth in sports betting (F1): “Formula 1 have announced that ALT Sports Data has joined the sport as Official Betting Data Supplier to drive engagement and growth in the Formula 1 betting ecosystem. The partnership will see the San Diego-based company – a leader in trading and consumer data for action and emerging sports – drive responsible and regulated sports betting on F1.”
- Emily Prazer, Chief Commercial Officer at Formula 1, said: “Sports betting is an increasingly important part of the global fan experience, and Formula 1 is committed to delivering new and entertaining ways for our audiences to engage with the sport. We are delighted to partner with ALT Sports Data, whose expertise in bespoke sports betting markets and analytics makes them the perfect partner to help us drive forward in this exciting new chapter.”
- Gambling on auto racing of all types has been an also-ran in the United States, between a lack of volume of races and challenges around live betting. It will certainly be interesting to see if this deal can unlock something interesting around betting on races here and/or abroad.
State Senate kills proposal to put sports betting on Georgia ballot (Fox 5 Atlanta): “A Georgia Senate resolution to possibly put legalizing sports betting and casinos on the ballot died in committee on Thursday. … The measure would have legalized both online sports betting and casino gambling and taxed them at 20% if it was approved by voters during a November election.”
- Legalization efforts here aren’t entirely dead for the year, but it’s a major blow to getting a bill done in Georgia.
- The possibility of expansion for online sports betting in new states is looking grim as we head into March, with efforts across the country mostly running into headwinds.
The CFTC must respect state and tribal authority in regulating sports betting (SBJ, Opinion by Bill Miller of the American Gaming Association): “The Commodity Futures Trading Commission (CFTC) is facing a pivotal decision that could undermine years of state-led progress in the regulation of sports betting. Recently, several trading platforms, including Crypto.com, Kalshi and Robinhood, have attempted to introduce “sports event contracts,” which enable users to speculate on the outcomes of sporting events. These platforms argue that these contracts are investment vehicles, not wagers or bets. This is sports betting, and if you don’t believe it, their own advertising presents it quite clearly. The reality is that this effort amounts to a backdoor for national sports betting that threatens state authority, consumer protections and the integrity of the legal sports betting industry.”
- Sports event trading is definitely gambling and usurps state regulatory regimes. The big question will be if the CFTC cares from a legal and regulatory standpoint.
- More on how Kalshi is expanding its sports betting portfolio here.
Oklahoma Gov. Stitt still thinks his sports betting idea is best (SBC Americas): “Oklahoma Gov. Kevin Stitt doubled down this week on his stance on launching commercial sports betting, promising to veto any tribal exclusivity.
Stitt has been advocating for sports betting expansion for years and published a plan to welcome online sportsbooks to Oklahoma in November 2023. He continues to be clear that he does not believe that tribal exclusivity is the right thing for the state. ‘If the Legislature is going to pass sports betting in Oklahoma, it needs to be a fair deal for everyone — not just the tribes,’ he posted on social media platform X with a link to his 2023 proposal. ‘I rolled out a solid, fair plan over a year ago.’”
MGM RESORTS & BETMGM EXPAND COMMITMENT TO PROBLEM GAMBLING RESEARCH, TREATMENT & PUBLIC AWARENESS (MGM press release): “MGM Resorts International (NYSE: MGM) and BetMGM announced today the expansion of several groundbreaking collaborations, aiming to provide critical resources, advance research efforts, and strengthen industry-wide initiatives to better support individuals affected by problem gambling. This news comes as MGM Resorts and BetMGM join the National Council on Problem Gambling (NCPG) in recognizing March as Problem Gambling Awareness Month (PGAM).”
- This kind of messaging and commitment to problem and responsible gambling is badly needed. It’s smart of MGM to package all of this into one place.
Mooresville man splits Quick Pick jackpot after buying lucky ticket online (WCNC): “Welch collected his prize this week. After required federal and state taxes, he took home a little over $232,000. Cash 5 is one of six games offered by the North Carolina Education Lottery with an online option. Players can purchase their tickets through the lottery's website or official mobile app, as well as in participating stores. The jackpot for Thursday's drawing is $100,000.”
- It’s a fascinating time around online lottery sales; at least anecdotally it feels like I am seeing more stories of late about people winning jackpots online.
- This is of course different than lottery couriers, which have come under fire in Texas. In North Carolina, it’s done via the lottery directly.
- Online lottery sales clearly increase handle and revenue for states that have them, whether as a regulated product or not. Much like the online casino/retail casino debate, there will continue to be concerns of cannibalization of retail sales by online, even when online is growing the pie in total.
What DraftKings & FanDuel Don’t Want You To Know (More Perfect Union):
The Isaiah Rodgers story arc (Twitter): It’s been a crazy ride for NFL player Isaiah Rodgers. He was suspended for a year in 2023 for violating the league’s gambling policy. He was reinstated and played mostly as a backup and returner for the Eagles in 2024; he stuck with the team and played in the Super Bowl, where he was credited with a pass defensed. He had a fumble recovery and 40-yard return earlier in the playoffs. And now he is getting a key to the city in Tampa (see tweet). It’s quite a turnaround in a couple of years.
Start Me Up: BettorWatch Is Tackling Responsible Gambling One Person At A Time (Casino Reports): “Price is the CEO of BettorWatch, a Colorado-based company that’s taking a novel approach to responsible gaming — one that treats each gambler as unique as their own heartbeat. ‘Different players have different metrics to their play,’ Price explains. ‘For some people, they may be in the responsible bucket through wagering thousands of dollars, and other people, not the same case.’
Looming Threat to $15 Billion Sportsbook Industry Is Legal for Now (Bloomberg, paywall): “This week Ira writes about his experience betting on sports (purely for reporting purposes) via prediction markets.”