FanDuel Hires 2 Heavy Hitters Ahead of Shifting Gaming Landscape

Several changes could be impacting the sports betting, iGaming, and DFS markets in America, and FanDuel has made a pair of impressive hires for its public and federal affairs teams to contend with those challenges.

Gaming Landscape Shifting

The federal bill, PASPA, was overturned in 2018, paving the way for states to decide whether to license online gaming companies in their states. Thus far, 39 of 50 states have passed legislation to allow mobile or retail sports betting in their states, with most opting to legalize both forms of betting.

The additional flow of tax revenues from the sportsbooks has allowed states to generate more money, with mobile betting proven to be a far more lucrative form of sports betting, while online casino gaming is only allowed in sevens states, including:

• New Jersey
• Delaware
• West Virginia
• Pennsylvania
• Michigan
• Connecticut
• Rhode Island

Florida also allows online casino gambling, but that is controlled by only one company, Hard Rock Bet, via a compact its owner, the Seminole Tribe, made with the state. Online casino gambling has proven to be an even bigger moneymaker than mobile sports betting, but legislatures have been reticent about passing a bill due to fears of addictive behavior and the possible cannibalization of land-based casinos.

Illinois Hits Bets With Fees

However, the gaming industry has been struck by increasing tax rates, and Illinois recently adopted a 25-cent fee for the first 20 million wagers taken and upped it to 50 cents for every bet taken above 20 million.

FanDuel and DraftKings, being the most popular sportsbooks in the nation and controlling over 70% of the market, are the most adversely impacted and have decided to pass that cost onto the consumers by charging a 50-cent per bet charge regardless of the outcome. Both companies have vowed to rescind the charges should the Illinois legislature eliminate the fee as well.

Moreover, sports betting prediction markets like Kalshi, operating under the Commodity Futures Trading Commission (CFTC), have recently expanded into the sports betting market despite being sued by state regulators who believe they should be licensed and governed by them. The states also contend they pay no state tax and have sent a bevy of cease-and-desist letters, as well as taking them to federal court.

As of this writing, the prediction markets have scored early legal victories and continue to operate with impunity, eroding the market of licensed sports betting operators like FanDuel, DraftKings, Caesars, bet365, et al.

FanDuel Responds

The threats posed to existing mobile sportsbooks are alarming, and FanDuel has decided to take action. The NFL’s Jonathan Nabavi and Columbia University’s Shailagh Murray have been hired by FanDuel to join its public and federal affairs teams.

FanDuel president Christian Genetski noted these changes and said, “As we look to the future, we understand the important role FanDuel must play in policy discussions that will address how we build and shape the online gaming industry over the long term. Shailagh and Jon bring decades of experience navigating difficult policy issues in a thoughtful, collaborative manner.

“We are confident they are the right leaders to work alongside key stakeholders to grow our industry responsibly and sustainably.”

Moreover, President Trump’s “Big, Beautiful Bill” stipulates that only 90% instead of the previous 100% of gambling losses would be able to be deducted from taxes, which is another alarming trend for sportsbooks and could alienate those who use them.