The Current: PrizePicks Ends Against-The-House Fantasy, Now Offers Peer-To-Peer Only
Gambling news roundup: Trump Jr. joins Polymarket as advisor, investor; NCAA, Venmo partner to curb harassment of athletes; BetMGM launches 'Make it Legendary' campaign.
The Current is a weekly report on a new development in the gambling industry from The Closing Line.
The biggest operator in daily fantasy sports no longer offers against-the-house parlays.
PrizePicks is moving to a peer-to-peer version of its fantasy pick’em game in all states.
The news was first reported by SBC Americas. Per a PrizePicks spokesperson to SBC:
“We are excited to offer players a more social and engaging DFS product that sets the standard for future innovation in the DFS industry.”
The idea behind PrizePicks pick’em is predicting how two or more players will perform in statistical categories — things like points scored, touchdowns, rebounds, etc.
The eventual shift by PrizePicks to P2P only was a badly kept secret in gaming industry circles…I had heard rumors this change was coming throughout the year. It seemed like it was just a matter of when and how the change happened.
The logical explanation for the move to P2P only would be to make the company more attractive (ie a lighter shade of gray) for a potential sale. It’s clear that the P2P version of fantasy pick’em is more accepted across the country.
You can see on PrizePicks’ site that it no longer makes a distinction between its original against-the-house model and the newer P2P version:
Here is what the page looked like as of July 16, when there was still a split between P2P and against-the-house states:
And then earlier this month, when PrizePicks notes the original against-the-house game was still live in two states:
PrizePicks launched the P2P Arena game early in 2024.
PrizePicks moved to P2P in California early in July, ahead of an attorney general’s opinion saying that all real-money daily fantasy contests in the state are illegal. So far, no one has exited the state, to my knowledge. Underdog followed PrizePicks’ lead and now only offers P2P fantasy in CA.
The biggest question hanging over the daily fantasy sports industry is whether California will actually attempt to enforce that AG opinion. Clearly, PrizePicks and others feel the P2P version of the game is more defensible from a legal standpoint.
Of note:
DraftKings Pick 6 is a similar P2P game offered in California and elsewhere.
FanDuel also launched its P2P fantasy pick’em game earlier this year in a limited cohort of states. It now operates in 15 states:
Will other fantasy pick’em apps eventually follow PrizePicks, or will they be happy to continue offering the against-the-house model? Many pick’em operators don’t currently have a P2P version operational.
No matter what, the PrizePicks move makes it seem like the future of DFS 2.0 is destined to be P2P.
FanDuel’s Trusted Voices: Conversations About Betting is designed to equip adults, including parents and coaches, with tools and resources to talk to young people about gambling, including information on warning signs, risks and proxy betting. The program is led by retired professional basketball player Randy Livingston and his wife, basketball agent Anita Smith, who share their personal stories related to problem gambling, with the hope of preventing others from experiencing similar harms. Learn more and join the conversation here.
Gambling news roundup
Venmo and the NCAA Team Up to Curb Harassment of Student-Athletes (press release): “As college football season kicks off, Venmo is collaborating with the NCAA to help protect student-athletes from these unwanted interactions. Every member of the Venmo community deserves a safe and respectful experience when they use the app, so we’re strengthening the protections we have in place to make it easier for these users to maintain a positive experience.
These protections include:
A Reporting Hotline: Venmo will offer a dedicated hotline for student-athletes and the NCAA to report potential cases of abuse for investigation and identify typologies of athlete harassment on Venmo.
Student-Athlete Resources: Venmo will provide a best practices guide for student-athletes to stay safe on Venmo with details on the reporting hotline. The guide will be distributed directly to student-athletes via NCAA channels, including newsletters, emails, and e-learning modules.
Athlete Account Support: Venmo will monitor student-athletes' accounts on an ongoing basis to help mitigate an influx of requests based on game performance and work directly with them to implement additional security measures as needed.
User Education: Venmo will educate users on the possible outcomes of harassing athletes through unwanted requests to athletes, including potential account closure.
David Szuchman, SVP, Head of Global Financial Crime and Customer Protection, PayPal, emphasized, “While unwanted interactions to athletes make up an extremely small percentage of transactions on Venmo, even a small number of these incidents is unacceptable. The safety and security of our users remain our highest priority. Harassment or abuse of any kind is not tolerated on the platform, and strict action is taken against users who violate our policies. Through these measures, we are taking decisive steps to help prevent the misuse of our platform and ensure all our users feel protected when they use Venmo.”
As NCAA President Charlie Baker notes, “The harassment we are seeing across various online platforms is unacceptable, and we need fans to do better. We applaud Venmo for taking action, and we need more social media companies and online platforms to do the same. Several states have passed laws to crack down on this behavior to protect student-athletes, and we hope more do the same because stopping this abuse requires action on multiple fronts.”
I have moved to doing a daily roundup of all things prediction markets at The Event Horizon. You can also find the Kalshi Volume Report here, with Week 0 of college football accounting for about 10% of all trading last week:
Malik Beasley Could Still Be Charged in Gambling Probe Despite Feds Dropping ‘Target’ Status (Front Office Sports): “Malik Beasley isn’t out of the water with a federal gambling investigation — yet. Beasley is no longer the ‘target’ of the Eastern District of New York probe, ESPN reported Friday, potentially opening the door for the 3-point specialist to sign with a team with a month to go before NBA training camps open. Investigators are reportedly focusing on a handful of games during Beasley’s tenure with the Bucks from the 2023–24 season in which at least one prominent U.S. sportsbook detected unusual prop bet activity, according to ESPN. To federal prosecutors, ‘target’ has a specific and narrow technical definition.”
Caesars Sportsbook Institutes Illinois Per-Bet Fee (Sports Betting Dime): “Caesars Sportsbook will be imposing a $0.25 per-bet fee on Illinois users this September, the latest Prairie State sportsbook to institute a per-bet fee or minimum bet amount for customers. The sportsbook notified its Illinois users of the changes on Monday, Aug. 25, sending out notices to each registered customer. Caesars is the latest licensed Illinois sportsbook to either impose a per-bet fee or minimum bet amount to counteract the state’s own per-bet fee that went into effect in July.”
If you’re trying to keep up with what all the sportsbooks are doing in Illinois, here’s a handy tweet:
Illinois is just creating a worse sports betting product and taxing its own residents. I think policymakers thought they were taxing the sportsbooks. Regardless, the new tax remains a silly policy that isn’t really helping anyone, the state included.
California Sports Betting Has Majority Support: Poll (Legal Sports Report): “California sports betting seems to be gaining traction with voters, according to a poll showing a majority of residents are open to legalization. California sports betting drew support from 60% of registered voters, who said they were ‘open’ to legalizing it, in a Politico–Citrin Center–Possibility Lab survey of more than 1,400 people. About a quarter of respondents said legal wagering is long overdue, while another 35% said it ‘might make sense’ but would need more details. Four in ten remained opposed, largely citing fears of increased problem gambling.”
Whether California eventually gets legal sports betting of any type is not going to be based on its popularity moving forward; it’s predicated on what the tribes want. If the tribes come to terms on the idea that they want sports betting and how it will work, then California will have sports betting. End of story.
However, there is sports betting going on in California today, via prediction markets at Kalshi, Robinhood and Crypto.com. Three CA tribes have sued to try to stop sports betting on their lands.
BetMGM Unveils First Major Corporate Brand Repositioning with "Make it Legendary" Campaign (press release): “BetMGM, a leading sports betting and iGaming operator, today unveiled the next evolution of its brand in collaboration with leading independent ad agency Highdive. The refreshed brand identity highlights BetMGM's dynamic entertainment ecosystem — one that unlocks a world of possibilities, elevated experiences and exceptional hospitality. Bringing the brand to life, the new ‘Make it Legendary’ campaign is anchored by a series of multi-channel spots featuring BetMGM's newest brand ambassador: EMMY® Award and Golden Globe Award-winning actor Jon Hamm.”
"This isn't just a campaign — it's a reimagining of what BetMGM stands for. We're at the forefront of entertainment and gaming, with the spirit of Las Vegas woven into our DNA," said Casey Hurbis, Chief Marketing Officer, BetMGM. "Our new positioning celebrates the thrill, spectacle and storytelling potential in every spin, play and reward. With Jon Hamm's talent and universal appeal, he's a natural fit to represent the refined essence of our brand."
“Highdive worked hand-in-hand with BetMGM's creative team on the transformation, informed by extensive customer research. The first of six new spots is scheduled to premiere Saturday, Aug. 30 during college football games, with additional spots rolling out across TV, social, digital, out-of-home and BetMGM properties nationwide. Directed by two-time Directors Guild of America Director of the Year Noam Murro, the spots leverage Hamm's charisma and storytelling charm to make every interaction feel like an elevated experience.”
Hamm said, "BetMGM is all about style, and the 'Make it Legendary' campaign captures that energy. It's witty, cinematic, and shows that betting with BetMGM is an unmatched experience."
Commercial here:
DraftKings Launches Responsible Gaming Education Month Campaign Featuring Super Bowl Tickets Sweepstakes (press release): “DraftKings Inc. is marking Responsible Gaming Education Month (RGEM) with a monthlong campaign designed to promote responsible play. At the center of the effort is the launch of a sweepstakes—offering customers the chance to win NFL tickets, including a grand prize trip to Super Bowl LX, by engaging with tools like My Budget Builder and My Stat Sheet. As the NFL season kicks off, DraftKings is combining new technology with meaningful initiatives to encourage responsible play and help customers make more informed choices.”
“We are excited to launch our sweepstakes initiative in celebration of Responsible Gaming Education Month, inviting customers to explore our tools in a fun and engaging way,” said Lori Kalani, Chief Responsible Gaming Officer at DraftKings. “As a leading operator, we are committed to providing customers with tools that support responsible play and enhance their experience. This campaign recognizes and celebrates customers who use these resources, helping to foster a more informed and responsible gaming culture. Responsible gaming has been part of the DraftKings experience from day one, and we are proud to continue building on that foundation as the industry evolves.”
“To build excitement for the NFL season and increase awareness of DraftKings’ newest responsible gaming tool, the sweepstakes will kick off with a chance to win NFL regular season tickets for customers who use My Budget Builder between August 26 and September 8, following the first Monday Night Football game. Each subsequent week will introduce a new way for customers to engage in responsible gaming—such as setting reminder alerts or exploring Smart Betting Tips in our Responsible Gaming Center—with two more pairs of regular season tickets up for grabs. In the final week, customers who use My Stat Sheet to reflect on their personal play will be entered to win the grand prize: an unforgettable trip to Super Bowl LX.”
The New Normal: Sweepstakes, Prediction Markets, and the Fight for The Future of Gambling in California (Webcast, 10 a.m. Pacific, 1 p.m. Eastern): “California has stepped up its battle against unregulated sweepstakes gambling with AB 831, a bill aimed at dismantling the sweepstakes casino industry and holding the entire ecosystem accountable - from operators and payment processors to celebrity endorsers. At the same time, the inevitable collapse of sweepstakes and DFS+ is fueling a migration into prediction markets, raising urgent questions about jurisdiction, compact integrity, and the future of exclusivity in California. In this episode of The New Normal, we’ll examine California’s fight against sweepstakes gambling and the rise of prediction markets as the next battleground. Our guests are James Siva, Chairman of the California Nations Indian Gaming Association (CNIGA), and Dustin Gouker, Analyst, The Closing Line, who will break down what these changes mean for tribes, regulators, and the industry at large.”
Yep, that’s me! Tune in!
California’s Big Lagoon Rancheria Joins Opposition To AB 831 (Sweepsy): “The Big Lagoon Rancheria has asked California’s Senate Appropriations Committee to ‘pause consideration of AB 831 to allow for meaningful tribal consultation and consideration of the bill’s impacts,’ becoming the second tribe to raise concerns over the proposed ban on sweepstakes casinos in California. In a letter dated Aug. 25 and signed by Tribal Chairperson Virgil Moorehead, the tribe urged lawmakers not to advance the measure without further dialogue.”
Comment from a spokesperson for the Social and Promotional Gaming Association: “The SPGA agrees with Big Lagoon Rancheria Chairperson Moorehead that AB 831 is rushed and flawed legislation. It’s irresponsible for California lawmakers to jam through this broken bill over a growing chorus of complaints from tribes, consumers, and California companies.”
Ex-NC Lawmaker Tells Georgia: Sports Betting Didn’t Lose Elections (Covers): “Legalizing sports betting wasn’t a career-killer for politicians in North Carolina, and it may not be for lawmakers in Georgia either. That, at least, was part of a pitch made to a handful of Georgia House lawmakers on Monday, as the chamber’s Study Committee on Gaming met again to hear testimony about online sports betting, horse racing, and casino gaming.”
Ifrah Law has been at the center of advancing iGaming in the U.S., shaping groundbreaking legislation, leading precedent-setting cases, and guiding clients that span the iGaming ecosystem through every phase of their business journey. Learn more at IfrahLaw.com.
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