State of the Union: Books stung by sport headwinds; updates in Florida, Alberta
Books dented by unfavourable outcomes from March Madness
Besides macroeconomic issues on consumer spending and the global trade war, another topic dominated first-quarter earnings calls this week for top sportsbook operators.
Executives from three leading companies – Flutter Entertainment, DraftKings and PENN Entertainment – were inundated with questions related to a series of unfavourable sports outcomes. The questions surfaced after the operators blamed the negative trends for denting earnings for a second straight quarter.
On previous calls, the executives had bemoaned the patterns over the final quarter of 2024 when NFL favourites covered at a high clip. For the three-month period ending 31 March, the operators now report taking a hit due to an unprecedented trend in March Madness when underdogs largely failed to advance.
In 2025 year-to-date, the adverse outcomes have provided a negative impact of $170 million to revenue and $111 million to adjusted EBITDA, DraftKings reported on Friday’s first-quarter earnings call. Flutter, the parent company of FanDuel, incurred larger damage, noting that the outcomes resulted in a $230 million hit to US revenues. Moving forward, Flutter lowered its fiscal year US revenue guidance from $7.7 billion to $7.4 billion.
Penn Entertainment, the operator of ESPN BET, indicated Thursday that the outcomes provided a negative impact of $15 million to its revenue, as well as a $10 million impact on EBITDA in the first quarter.
While DraftKings’ risk-management team studied various pricing strategies in response, CEO Jason Robins does not believe the outcomes will be a recurring trend.
“Our analyses provide us strong confidence that the recent volatility we’ve experienced is random in nature,” Robins said.
Florida shelves non-tribal online sports betting bill
Despite extending the current legislative session into June, the Florida Legislature withdrew two key gambling bills this week, handing a slight victory to opponents of the Seminole Tribe of Florida.
One bill, SB 1404, sought to criminalise mobile sports betting platforms not covered under the state’s gaming compact with the tribe. The bill was viewed as an avenue to potentially augment the tribe’s stranglehold on online sports wagering via Hard Rock Bet. The legislation also contained a broad definition of online gambling, classifying the categories as cash games of chance, including video poker, digital slots and online table games.
Since the bill also aimed to create prohibitions on sweepstake casino products, the withdrawal received high marks from the Social and Promotional Games Association, a sweepstakes industry trade group.
A companion bill, CS/HB 1467, addressed the criminalization of illicit sports betting platforms across the state. One provision sought to revise criminal penalties involving renting a house for gambling purposes. In February, two former employees of the US Sports Specialty Association filed a motion asking a Florida judge to compel the organization to hand over documents in a longstanding civil lawsuit. The whistleblowers filed a RICO suit over a series of illegal sports wagering improprieties.
The USSSA, the nation’s largest multi-sports agency, placed CEO Donald DeDonatis III on administrative leave late last year.
Among the accusations, the plaintiffs alleged that several executives “doctored” the USSSA’s books while moving funds from several youth baseball events to certain non-company accounts linked to an unidentified employee.
Both bills can be revived in future legislative sessions.
Alberta bill on sports betting expansion advances
As the Edmonton Oilers move closer to a possible return to the Stanley Cup Finals, Alberta took considerable steps this week to expand legalised sports betting.
The Alberta Legislature’s Committee of the Whole passed the Alberta iGaming Act, also known as Bill 48. While the bill received a third reading Wednesday evening, it still requires Royal Assent for passage.
Sports wagering is currently legal in Alberta, but only on a limited basis. Operated by the Alberta Gaming, Liquor and Cannabis Commission, Play Alberta is the only legal online gaming and sports betting platform in the province. The launch of a commercial sports betting market in Alberta could result in annual gross gaming revenue of $700 million, according to JMP Securities.
The framework closely mirrors the market for online gaming in Ontario. As of this week, the Ontario market had more than three dozen operators. Ontario is the nation’s most-populous province with more than 14.2 million residents, while Alberta ranks fourth with 4.3 million.
An official date for the launch of the market has not been set. Addressing the timing of the Alberta launch on Thursday’s first quarter earnings call, Penn Entertainment CEO Jay Snowden expressed confidence that the market will go live over the next several quarters.
The Oilers entered Friday’s slate as the favorite at FanDuel to hoist the Stanley Cup. Edmonton defeated Vegas on Thursday night to take a 2-0 series lead in the Best-of-7 Western Conference semifinals. With the overtime victory, the Oilers’ championship odds moved to +300 at FanDuel.
Son of ex-NYC mayor Giuliani to head World Cup task force
As the one-year countdown to the 2026 FIFA World Cup nears, the son of former New York City Mayor Rudolph Giuliani received a high-profile position this week.
On Tuesday, US President Donald Trump appointed Andrew Giuliani as head of the World Cup task force. During Trump’s first term, Giuliani served as associate director to the Office of Public Liaison and as an assistant to the president. Since then, he failed in an election bid to become governor of New York.
Ahead of last December’s Congressional hearing on sports betting, two US senators urged the Justice Department to examine the nexus between illegal sports wagering and transnational organised crime. Senators Marsha Blackburn of Tennessee and Catherine Cortez-Masto of Nevada are seeking additional information on the potential crime connection, prior to two major international events. Following the World Cup, Los Angeles will host the Summer Olympics in 2028.
The US will host the World Cup along with Mexico and Canada. Of the 11 sites on US soil, five are in states that will likely offer mobile sports betting by the start of the event. The availability of in-game betting inside the venues may bolster handle considerably in those states.
At the same time, there are expectations that the gambling industry will monitor illegal data scouting closely throughout the tournament, an industry source told iGB. While France and Spain are presently the World Cup co-favorites at FanDuel (+550,) the US remains a longshot at +3400.
Defy The Odds unveils partnership with EDGE Markets
A startup run by several prominent female gambling executives is partnering with the company behind EDGE Boost, one of the first debit card products designed specifically for responsible gaming.
On Tuesday, Defy The Odds announced a strategic partnership with EDGE Markets, a company that provides bettors with a financial skillset to augment their gambling appetite. EDGE Markets emerged out of stealth mode last month after completing a $17.2 million funding round. Since the start of 2024, EDGE Boost processed over $300 million in transactions.
“EDGE Boost is focused on providing bettors with financial tools that enhance their experience while keeping responsible gaming at the forefront,” said Seni Thomas, founder and CEO of EDGE Markets.
By offering a comprehensive suite of services — including community building, mentorship and networking opportunities — Defy The Odds aims to bridge the gap between groundbreaking ideas and tangible opportunities in the gambling industry. Former Pinnacle Sports CEO Paris Smith launched Defy The Odds last year alongside industry veterans Sue Schneider and Kelly Kehn.
“For operators, it identifies responsible players without adding extra costs or complexity,” Smith said in a press release. “We’re excited to partner with Seni and the EDGE Markets team and help drive EDGE Boost to the next level.”
The EDGE Boost bank account is FDIC-insured up to $250,000, providing financial security for users, while their personal banking data is safeguarded on a private, encrypted platform.
ICYMI on iGB
DraftKings treads water in Q1 but pricing questions persist as favourites’ bug bites books
Flutter buoyed by strong US results in Q1 as CEO Jackson expounds on prediction markets
MGM pens new employment agreement with CEO Bill Hornbuckle
CFTC stands down, seeks dismissal in Kalshi election betting appeal
HG Vora launches legal challenge against Penn Entertainment over board changes
Penn still bullish on ESPN BET while remaining mum on proxy battle
Genius Sports confident on long-term growth after cutting net loss in Q1
Wynn sees revenue fall nearly 9%, delays projects as CEO Billings downplays tariff impacts