Least Shocking Results Of All Time
A new survey tells us what we already know, college kids are betting on sports, and it doesn't matter if it's legal or illegal.
The Bulletin Board
THE LEDE: Shock Survey: College students bet on sports, even if it’s not legal.
ROUNDUP: Arizona regulators send C&Ds; Fanatics’ upgrades loyalty program; Poker legend passes; Quintenz rallies support.
PREDICTION MARKET ROUNDUP: Robinhood adds football markets; Kalshi v. NJ & Kalshi v. NV case updates; Crypto.com hires industry vet.
VIEWS: Was Roger Goodell right all along?
AROUND the WATERCOOLER: The slippery slope we are currently traversing.
STRAY THOUGHTS: I discussed the Kalshi situation on Bostonian Vs. The Book.
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The Lede: College Students, Like Everyone Else, Don’t Care
A while back, I titled a newsletter entry Nobody Cares:
“This is essentially what lawmakers are telling the industry when they raise concerns about the dangers of increasing financial burdens on them: We don’t care. As I’ve said many times in this newsletter, no one is going to cry about sportsbooks paying too much in taxes or having their advertising restricted. Does it help the black market? Probably. But guess what, nobody cares.”
The phrase "nobody cares" is becoming a catchphrase for the newsletter. It’s what the masses are telling professional gamblers when it comes to the gambling loss deduction cap:
“When it comes to arguing against the gambling loss deduction cap, most of the country doesn’t look at gambling winnings as income, they look at it as a decision someone has made with their money: and a foolish one at that. It's not seen as earned wages deserving relief—it's viewed as self-inflicted leakage from your wallet.
“As previously noted, less than 1% (.4% to be precise) of tax filers itemize gambling wins and losses, so you’re asking 99%-plus of the country to care about your betting results. And if your argument is you’ll be forced to go to the black market, most people will say good riddance — again, they don’t care.
“If gambling's a personal vice or thrill, fine, but don't expect sympathy or subsidies for the fallout. Whether you like it or not, that's the unspoken reality: in the eyes of many, betting isn't an investment to protect; it's a waste to discourage.”
And then there is the recent survey on the gambling habits of University of Mississippi students, which concludes (SURPRISE!), they don’t care.
“Of the 1,600 Ole Miss students surveyed, 60% of those who bet said they do it online and were doing it on “legal” platforms — even though digital wagering isn’t legal in Mississippi… “Our students are showing similar patterns to those identified by the NCAA and seen nationally, including that legality doesn’t make a difference with college students,” Dan Durkin, an associate professor of social work, told Mississippi Today.”
I’m not sure what the story is here (water is wet?), as the legal drinking age in the US is 21, and we all know under-21s adhere to that law at all times [sarcasm font].
This week’s feature column will continue the “Nobody cares” theme.
Roundup: Arizona C&Ds; Fanatics’ Upgrades Loyalty Program; Poker Legend Passes; Quintenz Update
Arizona sends C&Ds to four sweepstakes operators [KVOA.com]: Arizona has sent out four cease-and-desist letters to sweepstakes operators: “The Arizona Department of Gaming (ADG) has taken action against four unlicensed gambling operators targeting Arizona residents: Fliff, Thrillzz, BettySweeps Casino, and Pulsz Casino.” The ADG also recommended anyone who suspects they are using an unlicensed site “document all information associated with the platform or operator, stop all activity on the game, and report identity theft to the Federal Trade Commission.”
Fanatics announces enterprise-wide loyalty program [Sports Business Journal]: Fanatics is launching a tiered loyalty program called Fanatics ONE, which rewards customers with Fanatics FanCash across the company’s entire ecosystem — trading cards and collectibles, sports betting, events, and its core vertical, apparel. The new program will launch in the US through the Fanatics app with plans to add the Fanatics Sportsbook and Casino and a rest-of-world rollout in the future.
Poker Hall of Famer Jack McClelland passes [Poker News]: Sad news in the poker world, as legendary tournament director Jack McClelland passed away. From Poker Go’s X account: “We are deeply saddened by the passing of Jack McClelland (1951-2025). The poker world has lost a giant. A legendary tournament director and Hall of Famer, Jack's impact shaped the game we all love, and he leaves behind a legacy that will live on forever. We send our heartfelt condolences to his family and friends.”
Quintenz nomination picks up key support [Eleanor Terrett, X]: According to Crypto America’s Eleanor Terrett, Brian Quintenz, the nominee to head the Commodity Futures Trading Commission (CFTC), “Has been reaching out to members of the crypto industry for meetings as his nomination remains in limbo, according to three people familiar with the matter.” According to Terrett, several prominent crypto trade groups have “sent a letter of support for Quintenz to President Trump,” that reads in part: “Each of our organizations has had the privilege of knowing and working with Mr. Quintenz firsthand, and we can attest to his deep expertise, sound judgment, proven leadership, and integrity.” STTP recently wrote a timeline of key events in the Quintenz saga.
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Prediction Market Roundup: Robinhood Adds Football; Kalshi v. NJ & Kalshi v. NV; Crypto.com Hire; and More
A lot of bits and pieces to get to today:
Robinhood adds football markets [Press Release]: “Today, Robinhood Derivatives, LLC (RHD) announced the launch of pro and college football prediction markets directly within the Robinhood app. Available through the Prediction Markets Hub, customers can now trade on the outcomes of the most popular pro and college football games, including all regular-season pro matchups, and all college Power 4 schools and independents.”
Oral argument in Kalshi v. New Jersey is set for September 10 [Daniel Wallach on LinkedIn]: Per Daniel Wallach on LinkedIn, “15 minutes of oral argument per side. Note: Audio of the oral argument will be posted on the Court’s website shortly after the conclusion of the argument.”
Kalshi calls Nevada’s disclosure requests utterly irrelevant [InGame]: “Kalshi has argued that Nevada’s effort to require discovery in the two parties’ lawsuit is a distraction, and that the state is asking it to produce documents and information that is “utterly irrelevant” to the question at the heart of the case.” Previous STTP coverage of the Nevada disclosure request.
Crypto.com adds former DK Director of Operations [Chris Fargis, LinkedIn]: To say a lot is happening in the prediction market space is an understatement, as virtually everyone is jumping while the water is warm, evidenced by Crypto.com ramping up its sports offerings with the hire of industry veteran Chris Fargis: “I've joined Crypto.com, where I'm leading our work on Sports and Prediction markets. This category is red hot, and there are very exciting things happening at the company. I'm hiring for Product roles, and the company is generally hiring in this space as well.”
Of note:
Robinhood files suit against Nevada and New Jersey [Daniel Wallach, X]: From attorney Daniel Wallach’s X account: “Robinhood sues Nevada, New Jersey gaming regulators in separate federal lawsuits challenging sports betting cease-and-desist orders, moves for immediate TRO and preliminary injunction, and seeks assignment of cases to same judges who preliminarily ruled in Kalshi's favor.”
DraftKings, Underdog, and PrizePicks register with the NFA [SBC Americas]: According to the database of the National Futures Association (NFA), DraftKings, Underdog, and PrizePicks have registered with the NFA (the self-regulatory organization for the US derivatives industry), which “is an important preliminary step in ultimately obtaining the regulatory approval and licensure necessary to be regulated as a futures and derivatives market by the Commodity Futures Trading Commission (CFTC).” Recall that DraftKings previously registered (and later pulled) with the NFA.
Views: Was Roger Goodell Correct?
In 2012, NFL Commissioner Roger Goodell warned, “If gambling is permitted freely on sporting events, normal incidents such as bad snaps, dropped passes, turnovers, penalties and play-calling inevitably will fuel speculation, distrust and accusations of point-shaving and game-fixing.”
At the time, legal sports betting was confined to Nevada, and New Jersey’s efforts to overturn PASPA were in their infancy. Goodell’s words were seen as the usual lip service from a commissioner protecting his league’s pristine image from some minuscule threat that barely existed.
Fast-forward to 2025: The landscape has flipped. The 2018 Supreme Court decision in Murphy v. NCAA opened the floodgates, and the player props and bets on every pitch that seemed so far-fetched in 2012 have exploded in popularity. As Goodell warned, they are turning every fumble or flag into potential conspiracy fodder.
Goodell’s prophecy appears eerily prescient amid a wave of scandals.
As I noted earlier this week, betting scandals are becoming a serious problem:
“Yesterday’s newsletter had several stories in the roundup section on betting scandals that I feel need to be connected and further fleshed out, as the slow trickle of admissions, allegations, and rumors — Jontay Porter, Shohei Ohtani, Malik Beasley, Terry Rozier, Tucupita Marcano, Emmanuel Clase, Luis Ortiz, Kayshon Boutte, Hysier Miller, John Mateer, and Shane Pinto, to name some of the bigger names — look a lot worse when they are packaged together.”
These incidents validate Goodell’s fears: Every day, plays now spark distrust, eroding fan trust. Leagues are ramping up monitoring and education, but the genie’s out. As betting integrates deeper into sports, we must ask— was Goodell right all along? The evidence suggests yes, and the integrity of the game hangs in the balance.
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Around the Watercooler
Social media conversations, rumors, and gossip.
A few quotes that paint a very vivid picture of the slippery slope we are currently on.
“Bringing these markets under CFTC oversight gives consumers the same level of protections as Wall Street traders and institutions.” Kalshi CEO Tarek Mansour.
“People are adults, and they’re allowed to spend their money however they want it, and if they lose their shirt, that’s on them.” Josh Sterling, a lawyer from Milbank and former Commodity Futures Trading Commission (CFTC) employee, who represented Kalshi at the NCLGS conference.
STTP Thoughts: Proper gambling regulation goes beyond ensuring your money is safe and the markets are on the up-and-up. CFTC regulation prioritizes market integrity, anti-fraud measures, and financial safeguards, but lacks the specialized consumer protections embedded in state gambling regulations. There are no marketing restrictions, and nothing is preventing Kalshi from self-certifying any market at the moment — we just have to cross our fingers and hope they don’t offer a WNBA-sex toy or Little League market.
STTP Bonus Thoughts: Recall that the company briefly offered a market on Luigi Mangione and Shohei Ohtani being arrested. Does anyone really think there is going to be self-restraint if Kalshi wins in court?
“There were a lot of allegations in the beginning that we weren’t regulated, which was obviously … just very misinformed.” Sara Slane, Head of Corporate Development at Kalshi.
STTP Thoughts: I would ask this: Is CFTC oversight closer to a state gambling control board or the oversight of licensees in Curacao or Costa Rica? When industry folks point to a lack of regulation, they clearly mean the difference between run-of-the-mill regulations and the more onerous regulations gambling operators must abide by.
And as Sportico recently reported:
“As the Commodity Futures Trading Commission (CFTC) faces the prospect of additional regulatory duties involving new sports prediction markets, the federal agency’s whistleblower program may be in peril. That concern compounds the CFTC’s broad enforcement limitations, which also include a depleted staff and White House mandate to reduce punitive actions.”
This is something I brought up in the past. Does the CFTC have the capacity to oversee what is essentially 50-state sports betting?
“No matter how on board the CFTC is with sports contracts, one has to wonder if it’s equipped or has the appetite to handle it. Is hiring hundreds of experts to oversee sports contracts, which at the top-end might account for $100 billion of the $300 trillion in trades you oversee, worth it?”
Stray Thoughts
I went on the Bostonian Vs. The Book Show yesterday to discuss Kalshi’s foray into point spreads, totals, and prop bets, and the above-mentioned slippery slope we are on (the segment starts at around the 16:00 minute mark.