End of Sports Betting Monopolies: Analysts Demand Market Opening in the US

The debate over the structure of sports betting markets is reaching a new boiling point. In the United States, calls for a departure from state-mandated monopolies are growing louder, as current data proves that exclusive partnerships stifle competition and keep tax revenues for states artificially low. A prominent example is Oregon, where DraftKings enjoys an exclusive position through a contract with the state lottery. Critics point out that the supposed security of a monopoly for consumers often only exists on paper, as illegal offshore providers and prediction markets continue to see heavy traffic. The reality shows that players in Oregon are moving to unregulated platforms despite legal alternatives because of a lack of choice.

Market dynamics are changing rapidly through technological partnerships. FanDuel recently announced an exclusive collaboration with the social sports app Real App to integrate live odds and betting markets directly into conversations of over 1.5 million monthly active users. This development illustrates that the modern market demands interaction and variety, which is difficult to map in rigid monopoly structures. At the same time, companies like VGW are struggling with legal hurdles, as shown by the recent settlement with the New York Attorney General on September 9, 2026, in which the social games provider withdrew from sweeps coins operations in New York.

Numbers and facts

Statistical evaluations speak a clear language against closed markets. In Washington DC, per capita handle stood at $591 in 2024, just before the district abandoned its single-operator model. After opening the market to multiple providers, this value nearly doubled. In Oregon, by contrast, estimates for 2025 show that per capita handle would be around $263, even if betting on college sports were allowed. This would leave the state far behind in a nationwide comparison. Other monopoly states like New Hampshire, Rhode Island, and Delaware struggle with similar issues and regularly find themselves in the bottom half of revenue statistics.

An important aspect is the responsibility of the providers. Lori Kalani, Chief Responsible Gaming Officer at DraftKings, emphasizes the importance of prevention measures directly at the customer level. DraftKings, in collaboration with Mindway AI, introduced the Gamalyze American Football tool to playfully analyze player decision-making behavior. Such innovations are more common in competitive markets, as providers must compete for user trust.

"Major moments on the sports calendar give us an important opportunity to meet customers where they are with timely and relevant responsible engagement resources." - Lori Kalani, Chief Responsible Gaming Officer at DraftKings

Background

Since the Supreme Court overturned the federal ban on sports betting in May 2018, more than 30 U.S. states have enacted their own laws. Since there are no national standards, states are experimenting with different models. While states like New York generated $63 million in taxes in January 2022 through mobile apps alone, monopoly markets are stagnating. The Financial Action Task Force (FATF) also recently warned in a report that unlicensed offshore platforms are increasingly being used for money laundering, a problem exacerbated by a lack of legal diversity in monopoly states.

Why it matters for German players

In Germany, the situation is clearly regulated by the State Treaty on Gambling 2021 (GlüStV 2021), but the parallels to the U.S. debate are recognizable. The German model relies on a controlled opening of the market through the Joint Gambling Authority of the States (GGL) instead of state monopolies. For German players, this means they can choose from a variety of licensed providers listed on the GGL whitelist. Important here is the monthly cross-provider deposit limit of 1,000 euros, which is monitored via the LUGAS system. In addition, a stake limit of 1 euro per spin applies to virtual slot machines.

German bettors benefit from competition that produces not only better odds but also stricter safety standards. In contrast to the U.S., where some states still rely on exclusive lottery partnerships, the German licensing model offers protection against migration to the black market, provided the channeling works. Players should always check whether a provider has a GGL license to be legally protected and to be able to use player protection mechanisms such as the OASIS exclusion database.

What it means for GGL-licensed casinos

For operators with a German license from the GGL, looking at the U.S. shows how essential technical integrations and collaborations are. The partnership between FanDuel and Real App is a pointer to the future: betting is becoming increasingly social. However, German providers must strictly ensure that such marketing measures do not violate the strict advertising guidelines of the GlüStV 2021. The U.S. data also proves that an open market with several legal competitors is more stable in the long run than monopolies, as it keeps users within legality more effectively. The GGL monitors this process closely to effectively combat money laundering and gambling addiction.