SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 6/25/25:
- JP Morgan Names PENN, Caesars, Red Rock as Top Gaming Stock Picks in New Coverage
- DraftKings Launches PAC to Shape Gambling Policy as U.S. Oversight Tightens
- Iowa State Inks Landmark NIL Partnership With Elite Casino Resorts
- Public Health Group Sues Caesars Over Allegedly Misleading $2,500 Bonus in PA
- New Jersey Senate Moves Closer to Banning College Player Props to Protect Athletes
- Delta Explores Inflight Sports Gambling as Survey Gauges Passenger Interest
- ACMA Threatens Heavy Fines for Influencers Promoting Illegal Gambling Platforms
- FanDuel Pursues Kalshi Deal in Bid to Break Into Nationwide Prediction Market
JP Morgan Names PENN, Caesars, Red Rock as Top Gaming Stock Picks in New Coverage
JP Morgan has initiated formal coverage of the U.S. gaming sector, highlighting PENN Entertainment, Red Rock Resorts, and Caesars Entertainment as its top stock picks. The bank’s report, authored by new lead gaming analyst Daniel Politzer, describes the sector as “high risk, high reward” given macroeconomic uncertainty and shifting consumer trends. JP Morgan expressed a preference for stable, drive-to regional casinos over discretionary Las Vegas Strip resorts, citing mixed room rate and visitation data. PENN was praised for its $1 billion in new projects and ESPN Bet momentum, Red Rock for earnings visibility and market positioning, and Caesars for its projected $3 billion in net cash flow through 2027 and profitable digital business. The bank warned of risks from regulatory challenges and market saturation, especially for land-based operators, while describing digital gaming as both resilient and exposed to tax and regulatory pressures.
DraftKings Launches PAC to Shape Gambling Policy as U.S. Oversight Tightens
DraftKings has formed a new corporate political action committee (PAC), officially registered with the Federal Election Commission as the DraftKings Inc. Political Action Committee. This strategic move comes as lawmakers and regulators increase scrutiny over the fast-growing U.S. online gambling and sports betting industries. Led by DraftKings’ senior director of federal affairs Lauren Pfingstag Vahey and SVP and deputy general counsel Griffin Finan, the PAC joins similar efforts by major operators like MGM Resorts, Caesars, and PrizePicks. DraftKings’ PAC launch signals a bid to shape policy amid regulatory concerns about consumer protection, addiction, market concentration, and tax burdens. The company’s political engagement follows recent challenges, such as Illinois’ new sportsbook transaction tax that led DraftKings to impose fees on bettors. Federally, calls for antitrust investigations and stricter advertising rules are growing louder, with bills like the SAFE Bet Act and scrutiny from Senators Mike Lee and Peter Welch. DraftKings, already active politically through prior donations and lobbying, is now formalizing its advocacy as part of this broader regulatory battle.
Iowa State Inks Landmark NIL Partnership With Elite Casino Resorts
Iowa State University’s We Will Collective has secured a multi-year partnership with Elite Casino Resorts to offer NIL opportunities for Cyclone student-athletes, marking a notable shift given the school’s prior betting-related controversies. Announced in June 2025, the collaboration will see athletes participate in appearances at casino events and promotional campaigns, while Elite Casino Resorts gains sponsorship assets at select Iowa State athletic events. Dan Kehl, CEO of Elite Casino Resorts, praised the alignment with Iowa State’s “standards of excellence” and community support. The deal provides a financial and promotional boost for athletes, with Brent Blum of the We Will Collective calling it a major success. The move follows a turbulent history: in 2023, 35 student-athletes from Iowa State and Iowa faced criminal charges or eligibility losses over sports betting violations, including football players like Hunter Dekkers betting on Cyclone games. This partnership represents a significant evolution in the school’s relationship with the gambling sector.
Public Health Group Sues Caesars Over Allegedly Misleading $2,500 Bonus in PA
The Public Health Advocacy Institute (PHAI) has filed a lawsuit against Caesars Online Casino and Harrah’s Philadelphia, alleging that a $2,500 deposit match promotion is deceptive, predatory, and violates Pennsylvania law. Filed in the Philadelphia Court of Common Pleas, the suit claims the bonus offer’s fine print requires customers to risk at least $375,000 within just seven days to unlock the full bonus—an impossible feat under normal play conditions. Mark Gottlieb, PHAI’s executive director, called the promotion “one of the worst” he has seen, accusing Caesars of designing an offer intended for players to fail while risking their financial and mental health. The legal action follows PHAI’s recent challenges against other gaming entities, including DraftKings and the Massachusetts Gaming Commission, and reflects growing concern over aggressive, high-risk gambling incentives. This lawsuit aims to set a precedent in curbing what advocates see as dangerous industry practices that exploit consumers under the guise of attractive bonus offers.
New Jersey Senate Moves Closer to Banning College Player Props to Protect Athletes
New Jersey is moving closer to banning sportsbooks from offering individual player prop bets on college athletes after Senate Bill S3080 advanced unanimously (5-0) through the Government, Wagering, Tourism, and Historic Preservation Committee. The bill aims to combat rising harassment of student-athletes tied to prop wagers, following NCAA President Charlie Baker’s calls for states to eliminate these markets. If passed, NJ will join over a dozen states with similar bans, prohibiting bets on individual player statistics like rebounds or passing yards. The legislation was championed by Sen. Kristen Corrado, who highlighted reports of student-athletes facing online abuse and even payment demands from frustrated bettors. With recent examples from high-profile players like Armando Bacot and Chandler Prater, lawmakers stress that removing prop markets is vital to safeguard athletes and uphold game integrity. The bill now heads to the full Senate for consideration.
Delta Explores Inflight Sports Gambling as Survey Gauges Passenger Interest
Delta Air Lines has begun surveying passengers on their interest in sports gambling during flights, as part of its developing partnership with DraftKings, signaling ambitions to tap into what could be a billion-dollar opportunity if inflight gambling laws are ever relaxed. Announced at CES 2025 by CEO Ed Bastian, the deal could integrate DraftKings offerings into Delta’s inflight entertainment system, potentially allowing passengers to engage in fantasy sports and betting-related content while airborne. However, current U.S. laws—specifically the Gambling Devices Act of 1962 and Gorton amendment—prohibit gambling on flights to and from the U.S., creating a significant hurdle. Historically, foreign airlines have tested inflight gambling, but efforts largely failed or were discontinued due to technical and regulatory challenges. Delta’s survey appears to test customer appetite while positioning the airline for potential legislative change. If legal barriers fall, Delta could generate billions annually from onboard betting, capitalizing on the massive untapped inflight gambling market.
ACMA Threatens Heavy Fines for Influencers Promoting Illegal Gambling Platforms
The Australian Communications and Media Authority (ACMA) has formally warned social media influencers that endorsing illegal gambling sites will result in significant financial penalties, ranging from AU$59,400 to AU$2.5 million. The move follows a rise in influencers using platforms like TikTok, Instagram, and Facebook to promote unlicensed online casinos, poker, blackjack, and slot-style games, which are all illegal under Australian law. ACMA emphasized that these unauthorized sites lack consumer protections, exposing users—especially vulnerable groups like minors—to financial and mental health risks. The regulator noted that even sharing hyperlinks to these sites could trigger the highest tier of fines. The warning comes amid ACMA’s broader crackdown, including the blocking of 61 illegal gambling sites in April 2025. ACMA urged influencers to recognize their responsibility and avoid putting followers at risk, adding that they are actively monitoring promotional activities tied to gambling.
The Full Story Here.
FanDuel Pursues Kalshi Deal in Bid to Break Into Nationwide Prediction Market
FanDuel, a leading U.S. sportsbook under Flutter Entertainment, is reportedly negotiating a partnership with Kalshi, a federally regulated prediction market platform, in a move that could revolutionize sports betting by enabling FanDuel to enter all 50 U.S. states—including major untapped markets like California, Texas, and Florida. Kalshi, overseen by the Commodity Futures Trading Commission (CFTC), offers event-based contracts spanning sports, elections, and pop culture, and the deal could allow FanDuel to sidestep state-level barriers. While Kalshi has faced legal challenges in several states, it has won key rulings and continues expanding. FanDuel’s CEO Peter Jackson has hinted at strategic ventures like this during earnings calls, and the partnership would significantly boost Kalshi’s liquidity through FanDuel’s 12 million+ users. The agreement promises to disrupt the traditional sports betting landscape but faces ongoing regulatory hurdles as courts and the CFTC determine jurisdictional boundaries.
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