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How has Daily Fantasy and Skill-Based gaming taken over college and professional sports?

How are social media influencers being leveraged to normalize sports gambling in mainstream culture?

How are Black people, both as bettors and athletes, positioned at the center of the growth of the sports betting industry?

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Ontario Bans Athletes and Celebrities from iGaming Endorsements

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On February 28, 2024, amendments to the Registrar Standards for Internet Gaming (Amended Standards) took effect. The Amended Standards prohibit the use of athletes and restrict the use of celebrity promoters, including social media influencers, in internet-gaming (iGaming) advertising and marketing. The Amended Standards were announced by the Alcohol and Gaming Commission of Ontario (AGCO) on August 29, 2023. The AGCO provided further guidance on the implementation of the Amended Standards on February 8, 2024 (Implementation Guidance).

The Amended Standards were introduced following AGCO consultations with a broad range of stakeholders, including mental-health and public-health organizations, responsible gambling experts, gaming operators, broadcast and marketing groups, and the public, and are intended to reduce the risk of potential harm to those under the legal gaming age.

The Amended Standards

The Amended Standards revise Standard 2.03, which relates to marketing and advertising efforts for registrants in Ontario. The highlights of the amendments are as follows:

Active and Retired Athletes. Generally speaking, advertising, marketing materials and communications (marketing communications) are now prohibited from using the endorsement of active or retired athletes (Athlete Prohibition) in marketing and advertising efforts. The Amended Standards include an exemption allowing athletes to be included in marketing communications only if the exclusive purpose is to advocate for responsible gambling practices.

Social Media Influencers. The Amended Standards broaden the scope of the current restrictions on marketing materials utilizing endorsers who would likely be expected to appeal to minors and now specifically capture social media influencers as well (Minors Prohibition).

Implementation Guidance

Athlete Prohibition

The Implementation Guidance clarifies that the Amended Standards are intended to capture individuals who gained notoriety as athletes, including but not limited to professional and amateur athletes from various sports. The AGCO has specifically listed the following examples of athletes that would be captured by this prohibition: players in the National Hockey League, National Basketball Association, Major League Baseball, National Football League, Canadian Football League, Major League Soccer and Premier League; Olympians; and players in e-sports, darts and bowling.

The Implementation Guidance further clarifies that the Amended Standards are not intended to capture casual participants in local sports who are not recognized or known as athletes. They are also not intended to prevent the use of game footage, operator logo placements or the sponsorship of teams by operators.

Minors Prohibition

The Implementation Guidance further provides that in evaluating whether a symbol, role model, social media influencer, celebrity or entertainer is likely to appeal to minors, registrants must conduct a credible assessment, using criteria they have established for likely appeal, supported by records and control activities of whether a particular individual is likely to be expected to appeal to minors. The criteria would include the demographic composition of the individual's following or fan base, an assessment of data on audience demographics and whether the individual has obvious or direct links to activities that are popular with minors (e.g., gained or enhanced their notoriety for being in a film that appeals to children).

The Implementation Guidance does not prescriptively define what constitutes a "social media influencer" but does note that the term includes individuals active on social media who may be known by different terms (e.g., bloggers, streamers or content creators).

Out-of-Province Advertisements

The Implementation Guidance acknowledges there may be practical limitations with respect to Ontario broadcasters displaying out-of-province advertisements that may not meet the Amended Standards. The AGCO notes it will continue to work with registrants to address out-of-province advertisements but expects registrants to take reasonable measures to meet the Registrar's Standards.

For further information, please contact:

or any other member of our Gaming group.

Blakes and Blakes Business Class communications are intended for informational purposes only and do not constitute legal advice or an opinion on any issue. We would be pleased to provide additional details or advice about specific situations if desired.

For permission to republish this content, please contact the Blakes Client Relations & Marketing Department at [email protected] .
© 2024 Blake, Cassels & Graydon LLP

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registrar standards for internet gaming 
agco amended standards 
igaming advertising regulations 
advertising compliance guidelines 
athlete endorsement prohibition

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Sidelined: Ontario Ban on Athlete and Celebrity iGaming Endorsements Takes Effect | Blakes

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On February 28, 2024, amendments to the Registrar Standards for Internet Gaming (Amended Standards) took effect. The Amended Standards prohibit the use of athletes and restrict the use of celebrity promoters, including social media influencers, in internet-gaming advertising and marketing. The Amended Standards were announced by the Alcohol and Gaming Commission of Ontario (AGCO) on August 29, 2023.

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Tyrese Haliburton voices his opinion on the impact of sports betting.

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Tyrese Haliburton voices his opinion on the impact of sports betting. #sportsbetting

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In my opinion, the US should adopt similar rules to Ontario's Amended Standards for internet-gaming advertising and marketing to better protect young people from the potential harms of gambling. Ontario's regulations prohibit the use of active or retired athletes and restrict celebrity promoters, including social media influencers, in mobile sports betting advertisements. These changes followed extensive consultations with stakeholders such as mental-health and public-health organizations, responsible gambling experts, and the public, aiming to reduce gambling appeal to minors. By implementing similar standards, the US can help mitigate the influence of prominent figures who attract young audiences, thereby fostering a safer online gambling environment and promoting responsible gambling practices.

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Senator Blumenthal Demands Sports Betting Companies Stop Targeting Problem Gamblers

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[HARTFORD, CT] - This week, U.S. Senator Richard Blumenthal (D-CT) wrote eight major sports betting companies to demand they stop leveraging data to target problem gamblers with promotions and ads. Blumenthal's call to action comes at the start of March Madness and urges companies to make it easier for problem gamblers to remove themselves from online gaming platforms as the tournaments begin in the coming days.

"Sports betting companies are exploiting, targeting, and taking advantage of vulnerable problem gamblers, especially during these coming weeks. How? They are enticing those problem gamblers to do more. They are enticing problem gamblers by targeting them based on the data they collect in real time about who is betting how much and where, and they are collecting that data and then targeting the most vulnerable problem gamblers to do more, leading them down dark paths to addiction. And the reason very simply is that they want to make more money," said Blumenthal on Monday at an event at the Wheeler Clinic Family Health & Wellness Center in Hartford, Connecticut. On Monday, Blumenthal also visited the Connecticut Renaissance's Gambling Treatment Program's open house in Norwalk - which offers individual, couples, family and group treatment for anyone affected by problem gambling - and the No Kiddin' Social Sober Club, a sober social club founded by Bobbie Malatesta.

In January, Blumenthal introduced the Gambling Addiction Recovery, Investment, and Treatment (GRIT) Act, which sets aside federal funds to help prevent, treat, and study gambling addiction in the United States.

"Every other form of addiction-drugs, alcohol, tobacco-involve federal funding. But none for gambling addiction, and that is wrong," continued Blumenthal at Monday's event in Hartford. "And that is why the measure I have proposed, the GRIT Act, would devote about half of the revenue from the federal excise tax on gambling. It's a quarter of one percent, but it would produce millions of dollars for treatment, research, and other measures to help people who are addicted."

Video of the Blumenthal's remarks in Hartford can be found here. The text of Blumenthal's letter to FanDuel is available below. Identical letters were also sent to Draft Kings, MGMBet, ESPNBet, Fanatics, Caesars, BetFred, and Bet365.

Dear Ms. Howe,

As the 2024 March Madness tournaments kick off, more and more Americans will place wagers. Last year, the American Gaming Association estimated a record 68 million Americans wagered on March Madness.[1] That number is expected to increase as gambling becomes more accessible. I am deeply concerned about gambling operators using data to engage in aggressive marketing practices that entice gamblers who spend the most to keep spending, undoubtedly fueling problem gambling. Instead of using this data to identify and proactively offer help, such as self-exclusion and treatment services, gambling operators have prioritized profits over people.

I urge you to leverage the data you collect to identify problem gamblers and proactively provide these individuals with services, such as a confidential advisor, to help them access treatment. You should also quickly and frequently direct potential problem gamblers to transparent and easily accessible information on self-exclusion so they can remove themselves from your platform. Further, I demand you end any promotions or marketing practices that encourage "high-value" gamblers to continue spending money through exploitative bonuses, credits, and enticements. Instead, you should divert the resources spent on these problematic practices to programs dedicated to treating individuals with gambling addiction.

Rather than leveraging data collected on users to identify those who may be gambling beyond their means, and then intervening to help, gambling companies instead use this data to entice frequent gamblers - including problem gamblers - to continue placing bets. A common practice engaged in by major sports betting websites assigns VIP Hosts to frequent bettors. These are customer representatives whose job it is to provide those high-value bettors with promotions and credits to entice them to continue gambling, often at their own financial peril.

VIP Hosts have access to real-time data of a customer's betting activity, and they can monitor when the customer used the app, how frequently they've been betting, and whether they are winning or losing money.[2] The strategy for VIP Hosts is to get their most-valued gamblers to continue gambling - even providing them with payment options that give gamblers access to funds they wouldn't otherwise be able to cover. Unsurprisingly, the most valued gamblers are those who lose money most frequently - and those most at risk to become addicted to gambling.

A recent Wall Street Journal investigation profiled a psychiatrist who fell victim to one of these exploitative programs.[3] As she spent more and more, recognizing that she was becoming addicted, she received dozens of texts and emails from a customer representative enticing her to keep spending. She continually received ten of thousands of dollars in credits, keeping her in the game long after she wanted to stop. She attempted to self-exclude from several platforms to prevent further financial losses but was unable. Finally, six figures in debt, she was able to successfully self-exclude and seek help.

It is clear that these marketing practices are abusive and cannot exist alongside an alleged desire to promote responsible gambling. Therefore, you must end any marketing practice that uses hosts, promotions, credits, and other enticements encouraging gamblers to bet beyond their means and instead use the data you collect and monitor to proactively identify potential problem gamblers and meaningfully engage with them on available resources - such as self-exclusion funds - and treatment options. Further, funds spent on these exploitative marketing practices should be directed towards treatment services.

Finally, when one of your users recognizes that they are gambling beyond their means, you have an obligation to make it as easy as possible for them to self-exclude from your platform. The option to self-exclude cannot be buried in the depths of your app or website. It must be front and center, simple to navigate, and proactively provided to individuals who are potential problem gamblers.

Betting is known to be a highly addictive activity, and cognitive distortion can often take place within people who have lost large amounts of money due to gambling. This leads to a dangerous habit of "chasing losses," or trying to recoup money lost by placing more bets. As a gambling company, you have a responsibility to your users to be transparent about how addictive betting can be, and to use every tool at your disposal to identify and assist those who are gambling beyond their means.

Given the seriousness of the matter, I request a written response to the following questions by April 8, 2024:

1. What is the process on your site or application for a player to self-exclude?

2. How many times must a player click starting at your homepage to access a page where they may self-exclude?

3. Do you proactively provide information on self-exclusion to users?

4. How does your company ensure that it applies the same standards for self-exclusion across all states in which your platform operates, and how do you define those standards compared to your competitors and other market practices?

5. Please explain what data you collect on players and how you utilize that data.

6. Does your software identify high-risk players or others who may be at risk for problem gambling? If so, do you prompt those players to self-exclude or offer other assistance?

7. If you do use data to identify to high-risk players, what do you do to provide those players with assistance? Do you provide dedicated staff to help them navigate the process of getting help or treatment? Will you commit to doing so?

8. Last year, New Jersey began requiring mobile betting operators in the state to utilize certain player data to intervene and to offer the player assistance if the player engages in specific, potentially troublesome, behaviors. Has your company complied with this mandate? Have you expanded this practice to any other state, specifically where it is not required by law? If not, why not?

9. Have you ever proactively shut down an account of a high-risk player? If so, what percentage of accounts have you shut down for high-risk behavior?

10. Does your company offer a "VIP host" or customer representative program designed to get frequent bettors to continue to bet? If so, will you commit to ending this practice?

11. Does your company share self-exclusion requests with other properties, affiliates, third-parties, joint operators, and related firms? If so, how does your company accomplish this?

12. What percentage of players request to be self-excluded? Of that number, how many of those requests have you honored? If all players who have requested self-exclusion have not had their request honored, please explain why.

13. Once a player's self-exclusion period has expired, do you proactively contact them, via email or other means, to market your product to them? Does this practice vary by state? If so, why?

14. Given that 38 states and Washington, DC now have legalized sports betting, and others have additional forms of gambling such as casinos or state lotteries, would your company support a national self-exclusion registry that allows players to self-exclude in one state and choose to have it apply nationally?

15. How much does your company direct towards treatment services for problem gambling or other problem gambling help services? Will you commit to increasing that amount as gambling grows in popularity?

Sincerely,

____

[1] American Gaming Association, "68 Million Americans to Wager on March Madness," press release, March 12, 2023, https://www.americangaming.org/new/68-million-americans-to-wager-on-march-madness/

2 Katherine Sayre, "A Psychiatrist Tried to Quit Gambling. Betting Apps Kept Her Hooked." The Wall Street Journal (New York, New York), February 18, 2024, https://www.wsj.com/business/hospitality/gambling-addiction-sports-betting-apps-4463cde0

3 Ibid

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Ahead of March Madness, Blumenthal Demands Sports Betting Companies Stop Targeting Problem Gamblers | U.S. Senator Richard Blumenthal of Connecticut

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HARTFORD, CT] - This week, U.S. Senator Richard Blumenthal (D-CT) wrote eight major sports betting...

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There's been a long-held view in the sports betting world that daily fantasy is all well and good, but its main purpose is to help drive users into sportsbook apps. This long-held view has been held, well, since PASPA was overturned in 2018 paving the way for legalized sports betting in the U.S.

This is fueled by a number of variables. Consider that FanDuel and DraftKings were the kings of the daily fantasy era here in the U.S., and both companies undoubtedly prioritize their online sportsbooks over fantasy offerings in today's landscape.

Sports betting is a more lucrative business than traditional daily fantasy contests. While big daily fantasy tournaments do produce revenue, some have compared these contests to the poker rooms of brick-and-mortar casinos. Fun and interesting for a segment of users, and useful for getting people in the door... but getting them over to the table games and better yet, slot machines, is the primary goal. It's no surprise you have to walk through hundreds of slot machines to find the poker room (if they even have a poker room anymore).

But daily fantasy has evolved, and DFS "picks" style games have closed the gap. Probably because these games more closely resemble prop betting even while following the rules and regulations that define what fantasy contests are and aren't.

Underdog Fantasy has been one of the top companies in recent years with this new wave of innovative daily fantasy companies. It's notable that Underdog is rolling out its sportsbook product for the first time in the North Carolina sports betting launch next month. While Underdog boasts an impressive community of users that love Underdog for its fantasy products and contests, it will be interesting to watch as Underdog rolls out sports betting in more and more states in the years ahead.

Will the company abandon its daily fantasy user base similar to what has been described at various times with DraftKings and FanDuel? Will the fantasy user base mainly exist simply as a lead generation tool for the more lucrative sports betting business?

There's likely at least some degree of truth here, but Underdog's CEO Jeremy Levine has been clear that he does envision a world where betting is more akin to "games" than it is to traditional European-style sportsbooks. Levine likes to remind folks that Americans grew up playing games with respect to sports and fandom, not necessarily traditional betting.

What's this mean exactly? Is this reflected in the sports betting interface that Underdog will introduce to the world in North Carolina? Or is there truly a new way to "bet" on games that Underdog can pioneer? This remains to be seen.

Regardless of these answers, it still begs the question whether or not daily fantasy as we know it today can co-exist in a ubiquitous and mature sports betting market across the U.S. For me personally, I've found immense satisfaction in some of Underdog's best ball contests. At times, even more than placing traditional spread bets and various prop bets on particular games.

Perhaps it's the extra elements of strategy that are part of the equation in best ball. Or the fact that it's a big longer in duration than a single game bet. Or the fact that there are huge winnings potential (e.g. Underdog's Best Ball Mania contest this past season awarded $3 million to first place). Or the fact that you're competing against other people like yourself, rather than the house (remember the poker analogy?).

If Levine has his way, it's likely that users have options for season-long best ball contests as well as a myriad of sports betting markets for tonight's game. Ideally all in a single interface and app. Note that Underdog sportsbook will be a separate app from its fantasy app in North Carolina. Though, likely a single wallet and account that sits across both apps.

While perhaps there has been criticism of former DFS kings DraftKings and FanDuel, it's worth noting that DraftKings recently rolled out its Pick6 product and bet365 released a free to play product in a few states recently. Is this a sign that these operators are investing in more and more product offerings for users? Or simply trying to find that next lead gen tool? It's hard to say, but it's better than nothing.

It's probably worth mentioning online casino at this point and how it fits into this ecosystem. It's no secret that when it comes to profitability, online casino is really the priority for the major sportsbooks. There's a reason why markets like Pennsylvania online casino and New Jersey online casino are major priorities for a myriad of sportsbooks. In one sense, we can extend our "marketing funnel" illustration to understand that daily fantasy leads to sportsbook users which leads to online casino users. At least in the states where this is possible. But one can argue that daily fantasy and sports betting innovation is where sportsbooks can truly serve the user and build loyalty. In some respects, online casino is a cash grab.

We're still in the early innings of legal sports betting in the U.S., and this world will continue to evolve. Hopefully the sports fan is at the center of the evolution as companies invest in new and better products, contests and markets to enhance the overall fandom experience.
The Atlanta Journal-Constitution is not an online gambling operator or gambling site. We provide this information about sports betting for entertainment purposes only.

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Daily fantasy vs. sports betting: Can they coexist in the future?

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There's been a long-held view in the sports betting world that daily fantasy is all well and good, but its main purpose is to help drive users into sportsbook apps. This long-held view has been held, well, since PASPA was overturned in 2018 paving the way for legalized sports betting in the U.S.

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In this commercial, PrizePicks suggests that betting is about testing your sports knowledge to cash in on your fandom. The rise of “Skill-Based Gaming” has fueled the growth of companies like PrizePicks. The central argument hinges on distinguishing games of chance from games of skill. Gaming companies have spent years on marketing and lobbying efforts to classify daily fantasy sports as a skill-based game.

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“They argue that DFS is comparable to chess, bowling leagues, spelling bees, or even the stock market, rather than traditional gambling.” (Great.com)

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“Delaware sports gambling market below. There was a huge bump in usage when sports gambling first became legalized, but Delaware hasn’t seen constant growth in its market, just spikes that seem to coincide with the beginning of the NFL season.”

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(Krauss)

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In this commercial, featuring comedians Chico Bean and Funny Marco, PrizePicks is showcasing how it aims to revolutionize the “Daily Fantasy Sports” game. The platform offers sports enthusiasts an easy and potentially lucrative experience, where the opportunities seem limitless. Whether you're a seasoned bettor or a beginner, this commercial encourages you to see how simple it can be to multiply your funds with a quick and straightforward bet.

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"🏈 Up Your Excitement with PrizePicks! 🎉

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Sorry, I didn't realize how long it was while recording in GarageBand.

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A survey of 3,527 18- to 22-year-olds examined sports wagering behaviors and the impact of advertising. It included both college students and non-students, here are some of the findings:

58% have engaged in sports betting.

67% of on-campus students bet, often frequently.

41% of college bettors wager on their school's teams, and 35% use student bookmakers.

63% of on-campus students recall betting ads, with 58% more likely to bet after seeing them.

16% exhibit risky gambling behaviors, with 6% losing over $500 in a single day.

70% of these risky gamblers believe they will earn money through consistent betting.

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Media Center Saquandra Heath

Betting prevalent among young adults amid rise of online platforms, advertising

The NCAA today released survey results that show many young adults are wagering on sports, often despite age or geographic restrictions on legal sports betting. NCAA President Charlie Baker commissioned the survey weeks after taking over to establish a new baseline of sports betting activity, given the proliferation of online betting platforms and advertising consumed by young people.

"We needed a new baseline so we can better understand what student-athletes are experiencing on their campuses and among their peers so we can best help them deal with the potentially disruptive dynamic of legal sports betting," Baker said. "Sports betting has increased interest in sports of all kinds, including college sports, which is great for our fans, but the NCAA and everyone from coaches to athletics department staff and college presidents must better understand what impact sports betting may have on student-athletes."

The survey queried 3,527 18- to 22-year-olds to better understand the prevalence of various sports wagering behaviors, as well as how attitudes toward wagering are being impacted by external forces, such as advertising. Opinion Diagnostics conducted the survey by using a national online panel that mirrored the total population of that age group and included both college students and young adults not attending college. Current or former NCAA athletes may have been in the pool of respondents but not in sufficient numbers to examine their data separately. The NCAA will conduct a student-athlete-only survey in the coming months.

Overall, the present survey found that sports wagering is pervasive among 18- to 22-year-olds, with 58% having engaged in at least one sports betting activity.

Sports wagering activity is widespread on college campuses - 67% of students living on campus are bettors and tend to bet at a higher frequency. 41% of college students who bet on sports have placed a bet on their school's teams and 35% have used a student bookmaker.

Advertisements have a major influence on betting activity: 63% of on-campus students recall seeing betting ads. This is a higher rate than that found in the general population or those that commute/virtually attend college, and 58% of those students indicate they are more likely to bet after seeing the ads.

Problem gambling shows up in this population, with 16% having engaged in at least one risky behavior and 6% reporting that they have previously lost more than $500 on sports betting in a single day. 70% of these risky gamblers believe consistent sports gambling will increase their monetary earnings.

This population places bets in a variety of ways, but the accessibility of mobile sports betting has made that the preferred choice, with 28% choosing the mobile app method for their wagering. Live in-game betting is the most popular type of bet for those that use betting apps or visit in-person sportsbooks, surpassing more traditional forms of sports betting like money line or over/under.

State legality and age restrictions do not pose much difficulty, as areas where betting is legal versus those where it is illegal have nearly the same rate of engagement. Betting is pervasive across the country: the Northeast has the largest portions of bettors with 61%, while the West has the lowest, with 54%.

The NCAA continues to work with industry leaders, mental health experts, law enforcement and regulators, actively monitoring, researching and analyzing this landscape to devise effective ways to protect student-athlete well-being and minimize gambling harm.

"We have built strong relationships with industry experts in this space, and we are in constant communication about various issues, everything ranging from integrity monitoring to mental health resources," said Clint Hangebrauck, managing director of enterprise risk management. "The world of sports wagering is vast and complex. The NCAA is diligently gathering data, reviewing processes and procedures and creating initiatives to educate student-athletes and protect the integrity of college athletics."

Click here to read key findings from the survey and to learn more about the survey methodology.

Later this fall, the NCAA will conduct a national survey of student-athlete sports wagering attitudes and behaviors that has been undertaken every four years since 2003-04.

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NCAA releases sports wagering survey data - NCAA.org

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The NCAA today released survey results that show many young adults are wagering on sports, often despite age or geographic restrictions on legal sports betting.

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In this paid ad by PrizePicks, comedian Druski shows the elation associated with hitting big, especially at the big game. He was one of many other influencers that suspiciously won big on PrizePicks that Super Bowl Sunday.

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PrizePicks on Instagram: "@druski just cashed a milly 🤣💰"

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19K likes, 394 comments - prizepicks on February 11, 2024: "@druski just cashed a milly 🤣💰".

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Women's athletics have seen a surge in popularity over the last few years, driven by increased media coverage, sponsorship deals, and investment in female sports leagues and events. This growing interest is also reflected in the rising viewership numbers and attendance at women's sporting events, signaling a significant shift towards gender equality in the sports industry. This growth in women's sports has also been partly fueled by the legalization of sports betting, which has opened new revenue streams and heightened visibility for female athletes and leagues. This expansion is also driven by the increasing participation of women in sports betting, breaking traditional stereotypes and expanding the market.

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Does the sports betting industry target African-Americans?

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Does the sports betting industry target African-Americans?

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“Is the sports betting industry consciously and specifically targeting African-Americans as potential customers? Absolutely,” he said. “You see it in Black content creators becoming paid promoters from Joe Budden to Shannon Sharpe to Gilbert Arenas. The gambling industry runs national commercials with Kevin Hart and Jamie Foxx nonstop. This in my opinion is to target a core audience found in Black homes.” Antonio Moore (toledoblade.com)

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Sports betting companies are increasingly sponsoring popular entertainment properties such as podcasts and internet shows like the Pat McAfee Show and the Dan LeBatard Show, using these platforms to promote and normalize gambling to diverse audiences. By stepping in when traditional entertainment companies cut back, these betting companies provided financial backing that allowed popular journalists, commentators, athletes, and celebrities to produce their content independently of traditional sports media executives. This shift enabled content creators to develop and sustain their shows with the support of  these sports gambling companies, which continues to amplify the reach and acceptance of sports betting across various segments of society.

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Pat McAfee Reacts To Dan Le Batard's $50 Million DraftKings Deal 

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Pat McAfee Reacts To Dan Le Batard's $50 Million DraftKings Deal 

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Pat McAfee Reacts To Dan Le Batard's $50 Million DraftKings Deal

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How’d We Get Here? (Historical Background)

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How’d We Get Here? (Historical Background)

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Check out this insightful video essay by Wendover Productions on how the government and the sports betting industry have gradually allowed sports gambling to take over America. It's a thorough exploration of the strategies and impacts of this growing phenomenon, and a must-watch for anyone interested in the intersection of policy, business, and sports culture. It provides great context for this subject matter.

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How the Sports Betting Industry Quietly Consumed America

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This survey, conducted in April 2023 with U.S. residents aged 18-22, shows that over 58% of respondents have placed at least one bet, and 27% have used mobile apps to gamble on sporting events.

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The rapid growth of sports gambling in professional and college sports, fueled by targeted marketing strategies that exploit the economic vulnerabilities of young people and minorities, highlights how ”Daily Fantasy Sports” companies capitalize on systemic socio-economic issues to drive their profits, revealing a troubling intersection of race, class, and predatory financial practices. Also, how these practices leave another vulnerable demographic, athletes, holding the bag when fans don’t cash in on the gaming companies’ big promises.

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Article Excerpt: “While the championship season is still underway, some trends the data already shows includes:

One in 3 high-profile athletes receive abusive messages from someone with a betting interest.

Higher-profile events with sports betting markets attract increased volumes of abuse or threats.

Ninety percent of harassment is generated online or through social media.

In sports with high volumes of betting, 15%-25% of all abuse surrounding that competition is betting related.

During March Madness, Signify covered nearly 1,000 Division I men's and women's basketball student-athletes, 64 teams, over 280 coaches and 120 NCAA match officials.

Across the Division I Men's and Women's Basketball Championships, over 54,000 posts/comments were flagged by Signify's AI for potential abuse or threats and reviewed by human in-house analysts.

Of those 54,000, 4,000 were confirmed as abusive or threatening and reported to the relevant social media platforms, with some elevated to law enforcement.

More than 540 abusive betting-related messages were directed at men's and women's basketball student-athletes, including death threats.

Women's basketball student-athletes received approximately three times more threats than men's basketball student-athletes.

Student-athletes are not the only group experiencing these threats and abuse. Game officials, administrators and other athletics employees have been harassed related to their respective involvement in competitions.”

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Imagine playing a sport you love, giving it your all in every game. In addition, you're balancing your academic studies as you pressure yourself to succeed in the classroom and on the field. If that weren't enough pressure, you also have strangers harassing you via social media, spouting abusive threats because they've lost money based on your performance or that of your team.

It's a mental health nightmare.

Harassment related to sports betting can cause serious harm to student-athlete mental health and well-being. The NCAA is doing more than ever to address the rise of sports betting - including monitoring and flagging abusive social media content, providing e-learning content, educating on campuses and even lobbying states to change sports betting laws. The NCAA believes bets placed on individual college athletes' performances, known as prop bets, should be eliminated. These types of bets target the individual for harassment and are more easily manipulated, threatening competition integrity. That's why the NCAA is advocating for elimination of player-specific prop bets in collegiate competitions. The NCAA's efforts are paying off.

For example, in Ohio, student-athletes, campus leaders, athletics administrators and the national office collaborated with gaming regulators to remove prop bets from their books across the state. Since Ohio's action, Vermont, Maryland, Louisiana and others have moved to prohibit prop bets. The NCAA is also urging states to implement antiharassment measures, including implementation of a reporting system to allow states to place certain bettors who harass student-athletes on a list that excludes them from being able to place bets. West Virginia has taken action in this space, creating a framework that other states are interested in modeling. Student-athletes are speaking out about this issue and working to create awareness about the detrimental impacts of harassment. Their voices are critical to this effort.

Just 12 days after North Carolina legalized sports betting, including player prop bets on college competitions, North Carolina men's basketball student-athlete Armando Bacot publicly reported receiving betting-related abuse via private social media direct messages after his performance.

"It's terrible. Even at the last game, I guess I didn't get enough rebounds or something. I thought I played pretty good last game, but I looked at my DMs, and I got like over 100 messages from people telling me I sucked and stuff like that because I didn't get enough rebounds," Bacot said.

Since these remarks and NCAA outreach, North Carolina lawmakers have filed bills to ban college player prop bets. State legislators in New Jersey have also filed a bill, which has bipartisan support, that would ban college prop bets.

Earlier this year, Cody Shimp and Morgan Wynne, chair and vice chair of the Division I Student-Athlete Advisory Committee, joined NCAA President Charlie Baker in writing a memo to college athletics leaders about the severity of online harassment. They urged campus stakeholders to use their voice to effect change and increase safeguards to protect student-athletes from abuse.

"The sports betting landscape in America is rapidly evolving and requires careful consideration of all involved stakeholders," Shimp, Wynne and Baker said in the memo. "The NCAA will continue to do its part to lead in this space to identify practical solutions to guard against the dangers of sports betting, such as harassment. Your role is critical in driving change locally. Together, we can help our student-athletes compete in a safer college sports atmosphere."

The NCAA has launched several initiatives to address harassment, including engaging Signify Group. Its Threat Matrix artificial intelligence service supports the Association in studying and responding to online abuse and threats directed at NCAA championship participants, including student-athletes, coaches, officials and committee members for the 2023-24 championship season. This unique initiative is intended to further promote the mental health and well-being of the college sports community through data collection and analytics.

While the championship season is still underway, some trends the data already shows include:

One in 3 high-profile athletes receive abusive messages from someone with a betting interest.

Higher-profile events with sports betting markets attract increased volumes of abuse or threats.

Ninety percent of harassment is generated online or through social media.

In sports with high volumes of betting, 15%-25% of all abuse surrounding that competition is betting related.

During March Madness, Signify covered nearly 1,000 Division I men's and women's basketball student-athletes, 64 teams, over 280 coaches and 120 NCAA match officials.

Across the Division I Men's and Women's Basketball Championships, over 54,000 posts/comments were flagged by Signify's AI for potential abuse or threats and reviewed by human in-house analysts.

Of those 54,000, 4,000 were confirmed as abusive or threatening and reported to the relevant social media platforms, with some elevated to law enforcement.

More than 540 abusive betting-related messages were directed at men's and women's basketball student-athletes, including death threats.

Women's basketball student-athletes received approximately three times more threats than men's basketball student-athletes.

Student-athletes are not the only group experiencing these threats and abuse. Game officials, administrators and other athletics employees have been harassed related to their respective involvement in competitions.

Insights from the initial set of championships covered by the service will be released later and will be used as a benchmark for monitoring efforts at future NCAA championships. Furthermore, Signify's unique DM risk management service will also be offered to student-athletes and officials to protect them from the type of abuse experienced by Bacot.

Additionally, the NCAA has expanded programming through e-learning content and with EPIC Global Solutions to educate student-athletes not only about how to handle abusive threats, but more broadly on the risks of sports betting and problem gambling. The program won Player Protection Initiative of the Year at the 2024 SBC Summit, a conference and trade show focused on the online betting and gambling industry.

To date, more than 55,000 student-athletes have been educated through EPIC Global Solutions lived-experience sessions, leaving a lasting impact:

"This seminar really changed my perspective on gambling and the severity of it. ... It was very educational and informative on the risks, factors and harm betting can do," said one student-athlete in an anonymous survey following an EPIC session. "Really caught my attention on how this can really be a problem. I've seen people with betting addiction but just never knew how to help."

Increasing education and growing awareness of the complexities of sports betting fueled the NCAA's Draw the Line campaign, launched at the start of March Madness.

The campaign prioritizes student-athlete education on the effects of sports betting while also addressing responsible gambling for all who consume and participate in college sports.

While the campaign is focused on social media promotion to reach student-athletes where they are, it also includes a membership toolkit for member schools and conferences to access resources that extend the campaign for on-campus education.

All these initiatives have been developed and implemented to help protect student-athlete well-being and mental health to safeguard the overall student-athlete experience in a rapidly evolving landscape.

If you are a student-athlete or campus administrator and want to learn more about the resources the NCAA is making available, click here. If you are a student-athlete, you live in a state that permits prop bets and you want to help get these bets pulled from the market, please email governmentrelations@ncaa.org.

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Sports betting culture negatively impacts mental health; NCAA works to support student-athletes - NCAA.org

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Imagine playing a sport you love, giving it your all in every game. In addition, you're balancing your academic studies as you pressure yourself to succeed in the classroom and on the field. If that weren't enough pressure, you also have strangers harassing you via social media, spouting abusive threats because they've lost money based on your performance or that of your team.

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As a Black student and former Division-1 athlete, I have personally witnessed and experienced the aggressive marketing tactics aimed at financially vulnerable populations. These gambling companies exploit the allure of quick financial gain, often preying on the limited financial resources and higher risk-taking behaviors prevalent among college students and people with less financial resources. This predatory behavior not only amplifies financial instability but also increases the likelihood of gambling addiction, academic decline, and mental health issues. Moreover, student athletes, who are already under immense pressure to perform as players, but now they serve as pawns in a game played by millions wagering billions on their every move. That’s quite a bit more pressure. Addressing these negative impacts is crucial for fostering a more equitable and supportive environment for these communities, all in which I’m a part of.

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Krauss, B. (2024, January). Sports Gambling Needs Reform. Slow Boring. https://www.slowboring.com/p/the-sports-gambling-industry-needs

NCAA.org. (2023, May 24). NCAA releases Sports Wagering Survey Data. https://www.ncaa.org/news/2023/5/24/media-center-ncaa-releases-sports-wagering-survey-data.aspx

NCAA.org. (2024, May 17). Sports betting culture negatively impacts mental health; NCAA works to support student-athletes. https://www.ncaa.org/news/2024/5/17/media-center-sports-betting-culture-negatively-impacts-mental-health-ncaa-works-to-support-student-athletes.aspx

Staff (2024, March 19). Ahead of march madness, blumenthal demands sports betting companies stop targeting problem gamblers: U.S. senator Richard Blumenthal of Connecticut. U.S. Senator Richard Blumenthal. https://www.blumenthal.senate.gov/newsroom/press/release/ahead-of-march-madness-blumenthal-demands-sports-betting-companies-stop-targeting-problem-gamblers

Stokes, B. (n.d.). Sidelined: Ontario ban on athlete and celebrity Igaming endorsements takes effect. Blakes. https://www.blakes.com/insights/sidelined-ontario-ban-on-athlete-and-celebrity-igaming-endorsements-takes-effect/#:~:text=The%20Amended%20Standards%20prohibit%20the,)%20on%20August%2029%2C%202023.

Trumm, J. (2024, May 19). Does the sports betting industry target African-Americans?. The Blade. https://www.toledoblade.com/business/retail/2024/05/19/does-the-sports-betting-industry-target-african-americans/stories/20240516108

Wankel, B. (2024, February 2). Daily Fantasy vs. sports betting: Can they coexist in the future?. ajc. https://www.ajc.com/sports-betting/daily-fantasy-vs-sports-betting-can-they-coexist-in-the-future/NMVG3NGJJRETJCFTUD2ITFJMZU/

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Ending the Exploitation  (Suggestion #2)

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Ending the Exploitation  (Suggestion #2)

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Another suggestion I have is to implement regulations that prevent sports betting companies from using player data gathered on their apps to target problem gamblers with promotions and ads, in order to uphold ethical standards and protect vulnerable individuals. Targeting problem gamblers exacerbates their addiction, leading to severe financial, emotional, and mental health consequences. By exploiting data analytics to pinpoint and entice these individuals, companies prioritize profits over the well-being of their customers, which should lead to increased regulatory scrutiny and public backlash. We should be demanding that these companies adopt responsible marketing practices that focus on promoting healthy gambling behaviors and offering support for those at risk. This in turn, can enhance the industry’s reputation, build trust with consumers, and contribute to a more sustainable and ethical gambling environment.