A DraftKings Sportsbook logo is posted on the right field wall at Wrigley Field in Chicago before a game between the Chicago Cubs and the Philadelphia Phillies on Sept. 27, 2022.
John J. Kim | Tribune News Service | Getty Images
Sports betting continues to integrate itself into modern sports culture and industry leaders do not expect this growth to slow down anytime soon.
FanDuel, Fanatics executives, DraftKings and Sportradar, a company that provides data to sportsbooks, spoke at CNBC x Boardroom's Game Plan sports business event on Tuesday afternoon, discussing state taxes, new betting trends and companies' obligations to police safe betting practices.
Of those three companies with sportsbooks, Fanatics is the youngest in the sector. The company led by Michael Rubin launched its sportsbook last year and then acquired PointsBet's US assets as it tried to catch up with the others, which is not cheap.
“The great thing about Michael Rubin is that he's not afraid to make material investments when it's something he believes in, and that's why our view is that we want to be a top three player,” Fanatics Betting and Gaming CEO Matt King told CNBC's Contessa Brewer on stage.
Sportsbook executives said they are also noticing that bettors are increasingly interested in placing bets on individual players, as well as placing real-time wagers during whatever sporting event they are watching.
“I think we'll continue to see sports fans become more engaged, they'll see us focus and serve them more with more personalized bets and markets,” said DraftKings chief commercial and growth officer Marie Donoghue.
Despite the boost that sports betting companies have received thanks to the growing legalization and popularity across the country, taxes and ethical concerns have presented difficulties.
Several states have a 51% tax on sports betting companies, and Illinois recently passed a tax increase on sports betting revenue. DraftKings attempted to implement a surcharge on winning bets in some states, but the company quickly backed down after competitor FanDuel's parent company Flutter He said he wouldn't do the same.
Sports betting has also been in the news in recent months, as professional sports leagues have struggled to effectively prevent players from breaking betting and gambling rules. Former NBA player Jontay Porter received a lifetime ban earlier this year for violating the league's betting policy.
Speakers also addressed widespread concerns about whether the nature of sports betting companies' business models discourages them from providing adequate safeguards to stop problem gambling.
“We want to have a sustainable business for the long term and if we're creating negative real-world impacts for our customers who have people who love them and are important to them in their lives and who they depend on, that's not good for business,” said FanDuel President Christian Genetski.
