Navigating the Odds: FanDuel’s Strategies Amidst Diverse Legal Landscapes

Matt Boyle, Morgan Jamison, Paul Nicholas, Raphael Pfister, & Nolan Rentz

This study will focus on sports betting, specifically sports betting using FanDuel
as it relates to location. FanDuel is an online sports betting and gambling company that
is only available in states where they have been approved for use; they also have in-
person retail locations in select states. Exploration into user demographics and legality
metrics reveals that location—specifically the user's state within America—is pivotal,
providing diverse variables that enable more comprehensive results. Consequently, this
study primarily explores the impact of location on the marketing strategies employed to
expand the use of FanDuel and sports betting. Several additional factors and variables
will be considered to interpret the results accurately and comprehensively.

Industry Summary

I. FanDuel

FanDuel is a monolith in the world of online and in-person sports betting.

Generating $3.23 billion in revenue in 2022, with $29 billion being wagered on FanDuel.
Founded in July of 2009 in New York City as a subsidiary of Flutter Entertainment,
FanDuel has soared in popularity as recently sports betting has become legalized in
many states. They now currently own 43% of the market, shared with DraftKings and
BetMGM as their biggest gambling competitors. Flutter Entertainment, formerly Paddy
Power Betfair plc, has a majority stake in the company, however, FanDuel is also
owned in part by Fox Corporation and Boyd Gambling with minority stakes at 17.6%
and 5% respectively.
 Source: Company Data

FanDuel has generated such vast amounts of revenue in part due to its
awareness within the United States. Partnering with leagues like the NFL has allowed it
to gain massive popularity among NFL fans, further boosting their reach. In 2022,
FanDuel had three million active users and was installed 7.8 million times. Along with
this online activity, FanDuel also supports in-person gambling, with many locations
around the country. This allows them to leverage the younger and older generations of
sports gamblers and betters.

Source: iGB

FanDuel has also benefited from reliability. With a market saturated with
unreliable and unregulated sports books and independent bookies, consumers are
naturally skeptical of many organizations. FanDuel uses secure transactions and
operates with local gaming licenses.

While FanDuel commands a considerable share of the market, it does face

certain limitations. The legality of sports betting, being state-dependent, determines the
availability of FanDuel’s services. In states permitting sports betting, users enjoy
unrestricted access to all FanDuel’s offerings. However, in states with strict sports
betting laws or where FanDuel is yet to gain approval, access to certain features like
wagering is restricted. Moreover, in states where sports betting remains illegal,
FanDuel's services are completely inaccessible.

II. Sports Betting

Since the overturning of the Professional and Amateur Sports Protection Act in
2018, numerous states have leveraged this development to bolster their economies
through job creation, increased tax revenue, and partnerships between betting apps and
various companies or sports teams. As of February 2022, legislation enabling sports
betting is either in place or under consideration in 39 states. Despite the variance in
rules and regulations pertaining to sports betting among these states, it is anticipated
that most will eventually permit and even promote sports betting. Currently, in the states
where sports betting is legal, prominent apps facilitating sports betting are generating
significant revenue, due in part to the limited number of market leaders.

The repeal of the Professional and Amateur Sports Protection Act has led to the
rising trend of sportsbook apps like FanDuel and DraftKings, which serve as convenient
alternatives to traditional bookmakers or bookies. These apps have significantly
expanded the sports betting industry over the last four years by offering unprecedented
convenience. Historically, live betting from home was practically impossible, but
advancements in technology, coupled with legislative changes, have made sports
betting more accessible than ever, causing a surge in the industry’s market. A bookie,
traditionally, is an individual who sets the odds and the bets, charging a fee—known as
the vigorish—on each placed bet. The newfound accessibility and convenience have
not only fueled the industry’s growth but have also opened doors for emerging
organizations to establish themselves as notable and thriving sports betting providers.
 To understand the history of sports betting, Nevada legalized gambling,
specifically sports betting, in 1931 to attract tourists (i.e., Las Vegas). Nevada was the
only state to allow gambling for decades after that. Then, in 1992, George W. Bush
signed the Professional and Amateur Sports Protection Act into law, making sports
betting federally illegal for all states that did not already have it legalized (every state
excluding Nevada). PASPA was then repealed in 2018 for being unconstitutional, which
resulted in about 7 states legalizing sports betting by the end of that same year. Today,
30 states, and Washington D.C., have legalized sports betting, paving the way for
FanDuel and their competitors to spread their awareness and accessibility.

The sports betting industry is dominated by men, aged 22-44, as shown in Table
1. However, young women are similarly interested in sports and are a potential market
for the industry. The main reason most women have an issue with betting is their lack of
knowledge in terms used by platforms. According to Mintel, many women would be
willing to learn more about sports betting or listen to an influencer explain sports betting
to increase their knowledge in terminology. While young men are still a profitable target
market, young women are proving to be a market that have experienced large growth.
In 2021, 4.6 million women joined sports betting apps which was a 115% raise from
2020. The male population still dominates by 250% but only grew 63% in the same year
(GWS). More specifically, FanDuel brought in 1.7 million women in 2021. These
statistics show the possibility behind marketing sports betting apps to women and not
just men.

III. Leaders of the Industry

In 2022, sports betting apps generated $7.26 billion in revenue, approximately

$22 per person in the US, with the predominant share attributed to leading apps such as
FanDuel and DraftKings, which enjoy higher recognition than any other sports betting
apps. The favored sports among Americans for betting are football and basketball,
spanning both college and professional leagues, occupying the top spots in betting
preferences. Additionally, horseracing and boxing maintain their popularity in the betting
industry, reflecting a rich history of wagering, even before it became convenient or
legally sanctioned. These traditional forms of sports betting persist in today’s culture of
instant accessibility, and it will be intriguing to observe their evolution in the future.

Table 1: Sports Betting in the Past 12 Months, 2023

IV. Gambling Methods: Online, In-person, Live, and Mobile

In this digital age, mobile sports betting proves to be the preferred choice. In
person and live betting, however, give an experience that some of the older generation
desires. 54% of people ages 55+ primarily bet in person while 64% of people ages 22-
34 bet via mobile apps or the internet. As more states are legalizing betting, the mobile
betting percentages are expected to rise.

Statement of the Business Problem

The sports betting and gaming industry is currently navigating through an

intricate web of diverse legal landscapes across various states, each possessing its
own set of laws and regulations that govern the operation of platforms like FanDuel. It is
imperative, considering the competitive and legislative climate, that entities within this
sector understand and adapt to the multifaceted environments they operate in. The
regulatory discrepancies from state to state not only pose challenges to uniform service
delivery but also create varying market dynamics and consumer behaviors that are
pivotal to understand for optimized market penetration and user satisfaction.
 An integral goal of this study is to unravel the interaction between the different
legal frameworks in various states and the resultant user engagement and preferences
on FanDuel’s platform. This is crucial to uncover the adaptations and strategies that are
essential for aligning FanDuel’s operations with state-specific regulations and consumer
expectations. For instance, the study intends to decipher whether the strict or lenient
legal environments in different states reflect distinct user behaviors, preferences, and
engagement levels on FanDuel, exploring the adaptive strategies employed by FanDuel
to resonate with the state-centric consumer and legal landscapes.

FanDuel, as highlighted in subsequent sections, holds a significant stance in the

sports betting market. Its operational and marketing strategies are critical illustrations of
the adaptability required to navigate the diverse state legislations and consumer
landscapes. The insights from this study are not only pivotal for FanDuel but also for
other current and prospective entities in the sports betting and gaming industry, offering
a lens through which to view the intricate interplay between legal frameworks and
operational strategies in diverse market environments. By exploring the state-specific
adaptations of FanDuel and their resultant impacts, this study aims to shed light on the
strategic alignments and innovations that can drive success in the varied legal and
consumer landscapes across states in the sports betting industry.

Sample

Data for this study was collected using Prolific. Prolific parameters specified that
subjects be drawn from the United States and use online gambling games with the
criteria “race and sports book”. After the data was cleaned, there were 166 complete
responses.

Subjects were divided between women, 29, and men, 136, with one data point
having an unspecified sex. Other demographic information, such as Religion,
Education, Location, and Politics is reported in the following table.

Table 2

Religion Education Location Politics

Irreligious 20 <High School 1 Rural 24 Very Liberal 17
 Somewhat Irreligious 63 High School Graduate 20 Suburban 88 Liberal 44
Neither Religious nor Some College 31 Urban 53 Somewhat Liberal 20
Irreligious 20 2-year Degree 9 Unspecified 1 Moderate 40
Somewhat Religious 23 4-year Degree 80 Somewhat Conservative 19
Religious 39 Professional Degree 22 Conservative 17
Unspecified 1 Doctorate 1 Very Conservative 7
With many of the individuals in the data we collected having demographics of being
Somewhat Irreligious (63), 4-year degree (80), Suburban (88), and Liberal (44), this
sample is very close to the majority demographics for the population of the United
States. Therefore, we hope this dataset has very minimal sample error, and will justly
report results that closely relate to potential results if we collected data from the entire
population.

Hypothesis and Results

We performed numerous statistical tests as part of our efforts to identify factors

influencing attitudes toward FanDuel. These hypotheses can be categorized into two
main groups: a priori hypotheses, which are grounded in theory or prior experience, and
post hoc exploratory hypotheses. A Priori hypotheses are more likely to yield results
that are not due to chance, as they are rooted in established theory or experience. On
the other hand, post hoc hypotheses, while useful for uncovering relationships between
variables, carry a higher risk of producing chance findings because they are not
formulated in advance based on theory or experience. Given the number of tests we
conducted, it's important to acknowledge that approximately 5 out of every 100 tests
may show significant differences or relationships purely by chance. Therefore, readers
of this report should exercise caution and maintain some skepticism regarding the
validity of post hoc hypothesis tests.

In the following sections, we conducted various statistical tests, including independent

samples and paired samples t-tests, Mann-Whitney U tests for independent samples,
Wilcoxon W tests for related samples, Pearson and Spearman correlations, CHI Square
Crosstabs, CHAID, and regression analysis. These tests involved a wide range of
independent and dependent variables.

I. Independent Samples T – test

A Priori Hypothesis:
 H1: People who are or are not aware of betting laws in their state differ in how
many times a week they bet on sports.

Post Hoc Exploratory Hypotheses:

There is no significant evidence to state that people who are or are not aware of
betting laws in their state differ in how many times a week they bet on sports.

With the Alpha set to 0.1, the p-value for this test was 0.286. There exists an
expectation that those who bet more would be more aware of betting regulations,
however, the p-value is larger than Alpha, therefore, the alternative hypothesis cannot
be supported, as there is not sufficient data from the sample of the population, so we
must reject the Alternative and the A Priori Hypothesis and accept the null hypothesis.
II. Paired Samples T – Test
A Priori Hypotheses:

H2: FanDuel’s Sportsbook feature and their Fantasy Sports feature differ in their
degree of popularity.

H3: FanDuel’s Sportsbook feature and their Casino Games feature differ in their
degree of popularity.

H4: FanDuel’s Fantasy Sports feature and their Casino Games feature differ in
their degree of popularity.
 Post Hoc Exploratory Hypotheses:
With all p-values less than 0.001, the data is significant enough to reject the null
hypothesis and support the alternative hypothesis of the FanDuel features differing in
their degree of popularity. As we explore the FanDuel platform in greater detail in later
tests, we notice that the sportsbook feature is more popular among those spending
more time on the platform. This Paired Samples test serves as an initial confirmation
that there are differences in popularity between the features. FanDuel advertises and/or
promotes their sportsbook feature the most compared to Fantasy Sports and Casino
games, because it increases users and brand loyalty. Our significant evidence in this
test proves that there is more to uncover regarding FanDuel’s features and their impact
on users.

III. 2 Independent Samples (Mann-Whitney U)

A Priori Hypothesis:
H5: Urban and Rural people differ in which form of betting they prefer.
 Post Hoc Exploratory Hypotheses:
Our 2 Independent Samples t-Test was run with the highest population of respondents
residing in Urban areas. Of the forms of sports betting available, ‘Parlay’, ‘Money Line’,
‘Single Bet’, ‘Live Betting’, ‘Point Spread’, and ‘Over/Under’, only ‘Parlay’ and ‘Money
Line’ returned p-values less than our given Alpha. Upon analyzing the ‘Parlay’ and
‘Money Line’ results we discovered a surprising result. Those living in Rural areas have
a higher preference average than those living in Urban areas. The expectation of sports
betting regarding location is that no matter where the sports bettor lives, the preference
would be, on average, even across the board. However, through the 2 Independent
Samples t-Test, there is significant evidence to back this claim. Given that the rest of
the sports betting preferences are not significantly relevant, there would need to be
further analytical research in order to provide a more developed picture on whether or
not location truly impacts sports betting preferences.

IV. 2 Related Samples (Wilcoxon Signed Ranks)

A Priori Hypothesis:

H6: FanDuel’s various promotional efforts differ in their degree of appeasement.

Variables Positive Differences Negative Differences Alpha

Free bets – Deposit 62 84 0.004
Bonus
Risk Free Bets - 0.258
Deposit bonus
Loyalty Program – 115 31 0.000
Deposit Bonus
Free Bets - Loyalty 19 127 0.000
Program
Risk Free Bets- 31 115 0.000
Loyalty Program
Free bets – Risk Free 45 101 0.000
Bets

Post Hoc Exploratory Hypotheses:

The 2 Related Samples Wilcoxon Signed Ranks test returned results that were
expected. Sports bettors prefer bets in which they do not have to spend money, thus
eliminating any risk of potential loss. This concept explains the second most appealing
promotional effort of ‘Risk Free Bets’. Bettors are constantly seeking bets in which they
lose the least money and have the most chance of winning. Free and Risk-Free bets
are expectedly the two most appealing choices. FanDuel’s Loyalty Program and Deposit
Bonus came in last in appeasement. Bettors are less likely to indulge in programs in
which they are unsure of the results. They are more inclined to side with definite
outcomes to minimize risk. Therefore, the A Priori Hypothesis, “FanDuel’s various
promotional efforts differ in their degree of appeasement”, is proven to be true and thus
accepted.

V. Pearson Correlation
A Priori Hypothesis:
H7: There is a connection between age and what motivates someone to sports
bet.

Age and: Correlation p-value

Fun and .115 .159
Entertainme
nt
Financial .015 .857
Gains
Social .016 .849
Interaction
Passion for .116 .156
Sports

Post Hoc Exploratory Hypotheses:

Our Pearson test returned results that were not expected. Between the age
variable and the motivation to bet on sports, each result had minimal correlation, as well
as high P-values that would not fall under any reasonable Alpha value. This test proves
the variability of sports betting motivations. Bettors of any age are inclined to bet on
sports for any number of reasons. This concept is evident from our Pearson Correlation
test as there was no correlation between the motivation variables of, ‘Fun and
Entertainment’, ‘Financial Gains’, ‘Social Interaction’, and ‘Passion for Sports’. While
there is a certain expectation that sports bettors are on FanDuel in order to make
money, this test returns results that are not significant in proving this assumption. Age
along with prior assumptions of sports bettor is not a factor as well. From our p-values,
and the large possibility of sampling error, it is evident that there is no correlation
between age and the motivation behind sports betting.

VI. Spearman Correlation

A Priori Hypothesis:

H8: A high percentage of time of sports betting on FanDuel is positively

correlated with using FanDuel’s Sportsbook feature.

Correlations
What
percent
age of
the
How
time
often
are you
do you
sports
use the
betting
followin
on the
g
followin
FanDu
g
el
sites?
feature
0%-
s? -
never,
Sports
100%-
book
everyd
ay -
FanDu
el
Spearman's rho What Correlation 1.000 .344**
percentage of Coefficient
the time are Sig. (2- . <.001
you sports tailed)
betting on the N 155 151
following sites?
0%-never,
100%-
 everyday -
FanDuel
How often do Correlation .344** 1.000
you use the Coefficient
following Sig. (2- <.001 .
FanDuel tailed)
features? - N 151 151
Sportsbook
**. Correlation is significant at the 0.01 level (2-tailed).

Post Hoc Exploratory Hypotheses:

Our hypothesis for this test was proven true. Individuals who spend a lot of time on
FanDuel are more likely to prefer the sports book than the other betting options that
FanDuel offers. In addition to FanDuel sports book being the most popular form of
betting on FanDuel, the amount of time spent on FanDuel increases the likelihood of a
given person spending most of their time on the sportsbook feature. The sportsbook is
the most advertised feature for the company, as it is the most common form of betting,
therefore, it brings in the most consumers. FanDuel provides other forms of betting such
as minigames, however, they are not nearly as popular as the sportsbook. The
sportsbook offers many more features and a much more realistic opportunity to make
money for the bettor. FanDuel, along with many other sports betting platforms, spend a
lot of time and money perfecting the sportsbook feature, making sure that it is fun and
attractive for existing and new customers.

VII. CHI Square Crosstabs Test

A Priori Hypothesis:

H9: How people describe where they live is related to how often someone bets
on sports.
 Post Hoc Exploratory Hypotheses:

Due to the p-value (0.553), we cannot assume and adopt the alternative hypothesis of
the type of place people live affects how often they participate in sports betting. We
must retain the null hypothesis that there is no connection. FanDuel has a large share of
the sports betting market. This market is especially prevalent in America, because of
this, it is expected to be seen that the location of a sports bettor is not correlated with
how much time they spend on sports betting. Through our 2 Independent Samples t-
Test, we were able to discover that Rural areas prefer ‘Parlay’ and ‘Money Line’ bets,
indicating that where bettors live has an impact on what they do on the platform.
However, we cannot say that a specific area is more likely to spend more time on the
platform.

VIII. CHAID:
A critical variable for FanDuel marketers is whether the people using their
services are aware of the legal restrictions within the state they reside in. To identify
factors that predict this variable, our group ran a CHAID analysis, which is below. Our
sample was small regarding the size of FanDuel’s customer base, so we set the
minimum number of subjects per child to three and the parent subjects to seven. Our
test was performed using an alpha of 0.05.
In our CHAID analysis, after establishing that awareness of legal restrictions is a
critical variable for FanDuel's market strategy, we identified Q20.3 as the most
influential predictor. This question probes the extent to which betting activities are
associated with baseball. We discovered that among those who do not bet on baseball
(Q20.3 <= 0.000), a notable 25.9% are not aware of betting regulations within their
state. In stark contrast, for those engaged in baseball betting (Q20.3 > 0.000), only
5.7% lack this awareness, showcasing the heightened legal consciousness in this
subgroup.

Progressing to the second level of our tree, for individuals who bet on baseball,
the subsequent significant predictor is Q04.1, which asks respondents what their
ethnicity is. Node 5 focuses on responses <= 3.0, which include the following ethnicities:
Latino or Hispanic (1), White (2), and Black or African American (3), while Node 6
focuses on responses > 3.0, which include the following ethnicities: Asian (4), American
Indian or Alaska Native (5), Native Hawaiian or Pacific Islander (6), and Other (7).
Intriguingly, among those who bet on baseball and are either Latino or Hispanic, White,
or Black or African American (<= 3.0), awareness of legal restrictions is 96.9%.
However, among those who bet on baseball and are either Asian, American Indian or
Alaska Native, Native Hawaiian or Pacific Islander, and Other (> 3.0) awareness of legal
restrictions drops to 60%. This may suggest that ethnicities associated with Node 5 and
who bet on Baseball are linked with higher legal awareness.
 Conversely, for those not betting on baseball, we turn our attention to Q14.8,
which examines the percentage of time respondents spend betting on online sites. In
this branch, those who dedicate less than 50% of their betting time on other websites
(Q14.8 <= 50.000) demonstrate a 78.1% awareness of state betting laws, which
contrasts with a 37.5% awareness among those who allocate more than 50% of their
betting time to other gambling websites (Q14.8 > 50.000). This finding may suggest that
the respondents who use gambling websites other than FanDuel, Draft Kings, Bet
MGM, Bet 365, Points Bet, Caesars Sportsbook, Barstool Sportsbook, and Fox
Sportsbook are significantly more unaware of betting regulations than respondents who
use the listed gambling websites.

In summary, the CHAID analysis has highlighted several key insights into the
awareness of legal betting regulations among FanDuel users. Firstly, a significant
predictor of this awareness is the degree to which users' betting activities are related to
baseball, with those actively betting on baseball exhibiting greater awareness than
those who do not. This suggests that the context of betting—specifically, its connection
to baseball—plays a crucial role in shaping users' legal knowledge.

Delving deeper, we find that ethnicity also correlates with legal awareness
among baseball bettors. Users identifying as Latino or Hispanic, White, or Black or
African American show a high awareness of 96.9%, while those identifying as Asian,
American Indian or Alaska Native, Native Hawaiian or Pacific Islander, or Other have an
awareness of 60%. This disparity indicates potential cultural or community-based
differences in the dissemination or reception of information regarding legal betting
regulations.

For those not betting on baseball, the CHAID analysis sheds light on the impact
of online betting habits. Users who spend less than half of their betting time on websites
other than major gambling platforms are markedly more aware of the regulations than
those who spend most of their time on such sites. This may reflect the quality and
accessibility of legal information provided on different platforms, with major gambling
websites possibly offering more resources to educate their users on legal matters.
 Q19 Are you aware of the specific
betting laws and regulations in your
state?

Node 0
Category % n
Yes 83 .4 126
Yes No 16 .6 25
No
Total 100 .0 151

Q20.3 What percentage of your

betting is connected to the
following sports? (E.g., 0%-none of
it, 100%-all of it) - Baseball (MLB)
Adj. P-value=0.004, Chi-square=11.
103, df=1

<= 0.000 > 0.000

Node 1 Node 2
Category % n Category % n
Yes 74 .1 60 Yes 94 .3 66
No 25 .9 21 No 5.7 4
Total 53 .6 81 Total 46 .4 70

Q14.8 What percentage of the time Q04.1 What is your ethnicity? -

are you sports betting on the Selected Choice
following sites? 0%-never, 100%- Adj. P-value=0.002, Chi-square=11.
everyday - Other 748, df=1
Adj. P-value=0.026, Chi-square=6.
183, df=1

<= 50.000 > 50.000 <= 3.0 > 3.0

Node 3 Node 4 Node 5 Node 6

Category % n Category % n Category % n Category % n
Yes 78 .1 57 Yes 37 .5 3 Yes 96 .9 63 Yes 60 .0 3
No 21 .9 16 No 62 .5 5 No 3.1 2 No 40 .0 2
Total 48 .3 73 Total 5.3 8 Total 43 .0 65 Total 3.3 5

Q20.1 What percentage of your Q18.2 How often do you use the
betting is connected to the following FanDuel features? -
following sports? (E.g., 0%-none of Fantasy Sports
it, 100%-all of it) - Soccer (MLS) Adj. P-value=0.004, Chi-square=14.
Adj. P-value=0.018, Chi-square=6. 702, df=2
787, df=1

<= 25.000 > 25.000 <= 24.0 (24.0, 25.0] > 25.0

Node 7 Node 8 Node 9 Node 10 Node 11

Category % n Category % n Category % n Category % n Category % n
Yes 82 .8 53 Yes 44 .4 4 Yes 100 .0 43 Yes 75 .0 6 Yes 100 .0 14
No 17 .2 11 No 55 .6 5 No 0.0 0 No 25 .0 2 No 0.0 0
Total 42 .4 64 Total 6.0 9 Total 28 .5 43 Total 5.3 8 Total 9.3 14

Q17.2 Which form of betting do you Q8 What is the highest level of

prefer the most? - Single Bet school you have completed or the
Adj. P-value=0.009, Chi-square=12. highest degree you have received?
960, df=2 Adj. P-value=0.049, Chi-square=5.
760, df=1

<= 2.0 (2.0, 3.0] > 3.0 <= 5.0 > 5.0

Node 12 Node 13 Node 14 Node 15 Node 16

Category % n Category % n Category % n Category % n Category % n
Yes 85 .3 29 Yes 50 .0 6 Yes 100 .0 18 Yes 80 .0 4 Yes 0.0 0
No 14 .7 5 No 50 .0 6 No 0.0 0 No 20 .0 1 No 100 .0 4
Total 22 .5 34 Total 7.9 12 Total 11 .9 18 Total 3.3 5 Total 2.6 4

Q9 Employment status Q18.1 How often do you use the

Adj. P-value=0.016, Chi-square=7. following FanDuel features? -
082, df=1 Sportsbook
Adj. P-value=0.024, Chi-square=8.
571, df=1

<= 3.0 > 3.0 <= 26.0 > 26.0; <missing>

Node 17 Node 18 Node 19 Node 20

Category % n Category % n Category % n Category % n
Yes 90 .3 28 Yes 33 .3 1 Yes 85 .7 6 Yes 0.0 0
No 9.7 3 No 66 .7 2 No 14 .3 1 No 100 .0 5
Total 20 .5 31 Total 2.0 3 Total 4.6 7 Total 3.3 5
IX. REGRESSION:
In conducting a regression analysis using the Enter method on the variables
related to sports betting expenditure, several coefficients emerged. The results indicate
that the degree of religiosity among participants yielded a coefficient of 14.653
suggesting a positive association, however, not statistically significant, between
increased religiosity and higher average spending on sports betting. Conversely, one's
political views demonstrated a coefficient of 1.634 indicating an extremely weak and
statistically insignificant relationship between political views and sports betting
expenditure. The descriptor for the place of residence showed a negative coefficient of -
3.424 implying an inconclusive and negative association between the type of locality
and sports betting expenditure. Further investigation or a larger sample size might be
necessary to draw definitive conclusions regarding the influence on betting habits.

Summary and Conclusion

The exploration of FanDuel's strategies amidst diverse legal landscapes reveals

several key insights into the sports betting market. With a revenue of $3.23 billion in
2022 and a significant user base, FanDuel has established itself as a dominant force in
the industry, partly due to strategic partnerships and reliable operations. However, the
study highlights that the company's success and market strategies are heavily
influenced by the varying legal frameworks across different states.
 The analysis of FanDuel's user demographics indicates a strong male dominance
in the sports betting industry, especially among those aged 22-44. However, an
emerging market among young women suggests an opportunity for growth, as
evidenced by a 115% increase in female users in 2021. This demographic shift
underscores the potential for more inclusive marketing strategies.

The study's statistical tests, including T-tests, Mann-Whitney U, Wilcoxon Signed

Ranks, and Pearson and Spearman correlations, did not provide strong evidence for
some anticipated correlations, such as the relationship between betting frequency and
awareness of state betting laws. However, significant findings emerged in the popularity
of FanDuel's various features, with the Sportsbook feature being particularly popular.

Moreover, the study's CHAID analysis revealed that awareness of legal betting
regulations among FanDuel users varied significantly based on factors like engagement
in baseball betting and ethnicity. This suggests the importance of targeted educational
efforts about legal restrictions in different demographic segments.

In conclusion, FanDuel's position in the sports betting market is influenced by a

complex interplay of legal environments, user demographics, and market dynamics. The
company's adaptability and strategic marketing to different demographic groups,
including women and various ethnicities, appear crucial for continued growth and
market penetration. Future research could focus on deeper insights into these
demographic segments and the impact of changing legal landscapes on user behavior
and preferences in sports betting.

Appendix: Study Survey

Project Survey Submission
Start of Block: Informed Consent
Informed Consent
Identification of Investigators & Purpose of Study
You are being asked to participate in a research study conducted by (Matthew Boyle,
Morgan Jamison, Paul Nicholas, Raphael Pfister, and Nolan Rentz) from James
Madison University. The purpose of this study is to learn about how various
demographic and psychographic attributes affect consumer preferences. This study will
contribute to the researchers’ completion of a data analysis class project.

Research Procedures
This study consists of an online survey that will be administered to individual
participants through Prolific and Qualtrics (an online survey tool). You will be asked to
provide answers to a series of questions related to (FanDuel).

Time Required
Participation in this study will require about [5] minutes of your time.

Risks
The investigators do not perceive more than minimal risks from your involvement in this
study (that is, no risks beyond the risks associated with everyday life).

Benefits
Potential benefits from participation in this study include compensation paid through
Prolific.

Confidentiality
The results of this research will be presented in a written report that meets a class
requirement. While individual responses are anonymously obtained and recorded online
through Prolific and Qualtrics, data is kept in the strictest confidence. No identifiable
information will be collected from the participant and no identifiable responses will be
presented in the final form of this study. All data will be stored in a secure location only
accessible to the researchers. The researchers retain the right to use and publish non-
identifiable data. At the end of the study, all records will be destroyed. Final aggregate
results will be made available to participants upon request.

Participation & Withdrawal

Your participation is entirely voluntary. You are free to choose not to participate. Should
you choose to participate, you can withdraw at any time without consequences of any
kind. However, once your responses have been submitted and anonymously recorded
you will not be able to withdraw from the study.

Questions about the Study

If you have questions or concerns during the time of your participation in this study, or
after its completion or you would like to receive a copy of the final aggregate results of
this study, please contact:

Researcher's Name: [Paul Nicholas]

Department of Marketing
James Madison University
Email Address: [nicholpf@dukes.jmu.edu]

Advisor’s Name: Val Larsen

Department of Marketing
James Madison University
Email Address: larsenwv@jmu.edu
Telephone: (540) 568-3858

Questions about Your Rights as a Research Subject

Dr. Lindsey Harvell-Bowman
Chair, Institutional Review Board
James Madison University
Email Address: Harve2la@jmu.edu
Telephone: (540) 568-2611

Giving of Consent
I have been given the opportunity to ask questions about this study. I have read this
consent and I understand what is being requested of me as a participant in this study. I
certify that I am at least 18 years of age. By clicking on the link below, and completing
and submitting this anonymous survey, I am consenting to participate in this research.

This study has been approved by the IRB, protocol # 24-4511 .

Q1 Informed Consent

o I consent, begin the study (1)

o I do not consent, I do not wish to participate (2)

Skip To: End of Survey If Identification of Investigators & Purpose of Study You are
being asked to participate in a resea... = I do not consent, I do not wish to participate
End of Block: Informed Consent

Start of Block: Block 5

Q2 Please enter your unique Prolific ID.

________________________________________________________________

End of Block: Block 5

Start of Block: SURVEY INSTRUCTION

Q3.1 Sex What is your sex?

o Male (1)
o Female (2)
Q3.2

o Other (Please Specify) (3)

__________________________________________________
Q4.1 Ethnicity What is your ethnicity?

o Latino or Hispanic (1)

o White (2)
o Black or African American (3)
o Asian (4)
o American Indian or Alaska Native (5)
o Native Hawaiian or Pacific Islander (6)
Q4.2

o Other (please specify) (7)

__________________________________________________

Q5 Age Age (in years)

18 26 34 43 51 59 67 75 84 92 100

Click to write Choice 1 ()

Q6.1 Marriage Marital status

o Single (never married) (1)

o Married (2)
o Divorced (3)
o Separated (4)
o Widowed (5)
o In a domestic partnership (6)
Q6.2

o Other (please specify) (7)

__________________________________________________

Q7 Income Total household income (in thousands of dollars) up to $175,000+

0 18 35 53 70 88 105 123 140 158 175

Income ()
Q8 EdDegree What is the highest level of school you have completed or the highest
degree you have received?

o Less than high school (1)

o High school graduate (2)
o Some college (3)
o 2 year degree (4)
o 4 year degree (5)
o Professional degree (6)
o Doctorate (7)
Q9 Employment Employment status

o Employed full time (1)

o Employed part time (2)
o Unemployed looking for work (3)
o Unemployed not looking for work (4)
o Retired (5)
o Student (6)
o Disabled (7)

Q10 Location The place where I live is best described as ...

o Urban (1)
o Suburban (2)
o Rural (3)
Q11 Religiosity Degree of religiosity

Neither
Somewhat
Irreligious religious nor Somewhat Religious
irreligious
(1) irreligious religious (4) (5)
(2)
(3)
Rate your
degree of
religiosity o o o o o
(1)

Q12 Ideology Which descriptor best fits your political views?

Very Somewh Somewhat Very

Liber Moderat Conservati
Liber at Liberal Conservati Conservati
al (2) e (4) ve (6)
al (1) (3) ve (5) ve (7)
Politic
al
views
o o o o o o o
(1)
Q13.1-13.5 Personality:ACENO I see myself as someone who is ...

Neither
Somewh Strongl
Strongly Agree Somewh
Disagre at Agre y
Disagre nor at Agree
e (2) Disagree e (6) Agree
e (1) Disagre (5)
(3) (7)
e (4)
...
sympathetic o o o o o o o
, warm. (1)
...
disorganize
d, careless. o o o o o o o
(2)
... is
extraverted,
enthusiastic o o o o o o o
. (3)
... anxious,
easily o o o o o o o
upset. (4)
...
conventiona
l, o o o o o o o
uncreative.
(5)

End of Block: SURVEY INSTRUCTION

Start of Block: Block 3

Q14.0-14.9 What percentage of the time are you sports betting on the following sites?
0%-never, 100%-everyday

FanDuel : _______ (0)

Draft Kings : _______ (1)
Bet MGM : _______ (2)
Bet 365 : _______ (3)
Points Bet : _______ (4)
Caesars Sportsbook : _______ (5)
Barstool Sportsbook : _______ (6)
Fox Sportsbook : _______ (7)
Other : _______ (8)
Total : ________ (9)

Q15 How many times a week do you bet on sports?

0 10 20 30 40 50 60 70 80 90 100

Times ()

Q16 How much money per week on average do you spend on sports betting?

0 200 400 600 800 100 1200 140 1600 180 2000
0 0 0

Dollars ()
Q17.1-17.6 Which form of betting do you prefer the most?

______ Parlay (1)

______ Single Bet (2)
______ Money Line (3)
______ Over/Under (4)
______ Live Betting (5)
______ Point Spread (6)

Q18.1-18.3 How often do you use the following FanDuel features?

Sometimes About half Most of the

Never (1) Always (5)
(2) the time (3) time (4)
Sportsbook
(1) o o o o o
Fantasy
Sports (2) o o o o o
Casino
Games (3) o o o o o

Q19 Are you aware of the specific betting laws and regulations in your state?

o Yes (1)
o No (2)
Q20.1-20.8 What percentage of your betting is connected to the following sports? (E.g.,
0%-none of it, 100%-all of it)
Soccer (MLS) : _______ (1)
Football (NFL) : _______ (2)
Baseball (MLB) : _______ (3)
Hockey (NHS) : _______ (4)
Basketball (NBA) : _______ (5)
Horse Racing : _______ (6)
Other : _______ (8)
Total : ________

Q21 How did you first learn about FanDuel?

o Friends/Family (1)
o Advertisement (Tv, Radio) (2)
o Online (Social media, Online ads) (3)
o Other (4)
Q22.1-22.4 Rank the following from 1 most appealing to 5 least appealing promotional
efforts.

______ Deposit Bonuses (1)

______ Free Bets (2)
______ Risk-Free Bets (3)
______ Loyalty Program (4)
Q23.1-23.4 Please rate the following.

Neither
Extremel Moderat Slightl Moderat Extrem
Slightly satisfied
y ely y ely ely
dissatisfi nor
dissatisfi dissatisfi satisfi satisfied satisfied
ed (3) dissatisfi
ed (1) ed (2) ed (5) (6) (7)
ed (4)
Your
overall
experien
ce with o o o o o o o
FanDuel
. (1)
Your
experien
ce with
custome
r support
provided
o o o o o o o
by
FanDuel
. (2)
Your
overall
experien
ce with
other
o o o o o o o
betting
sites (3)
Your
experien
ce with
custome
r support
provided
o o o o o o o
by other
betting
sites (4)
Q24.1-24.4 Please rate how likely you are to do the following on a sports betting
website

Very Likely Very

Likely (2) Neutral (3) Unlikely (4)
(1) Unlikely (5)
Recommend
the sports
betting
website to a
friend or o o o o o
family
member?
(1)
Place bets
on teams or
players you
personally
o o o o o
support? (2)
Place bets
based on
the opinions
or analyses o o o o o
of sports
experts? (3)
Place bets
when
presented
with
promotions,
bonuses,
and offers
o o o o o
from the
sports
betting
website? (4)
Q25.1-25.4 The following motivate me to bet

Neither
Strongly
Somewhat agree nor Somewhat Strongly
disagree
disagree (2) disagree agree (4) agree (5)
(1)
(3)
Fun and
Enterntainmen
t (1)
o o o o o
Financial
Gains (2) o o o o o
Social
Interaction (3) o o o o o
Passion for
Sports (4) o o o o o

Q26 Click to write the question text

Very Not Very Not

Confident
Confident Neutral (3) Confident Confident At
(2)
(1) (4) All (5)
Rate your
confidence
in your
knowledge
of sports
betting
terminology o o o o o
(point
spreads,
odds,
money
lines)? (1)
Q27 Do you participate in any sports betting pools or leagues with friends or
colleagues?

o Yes (1)
o No (2)

Q28.1 Do you set a monthly budget or limit for your sports betting activities?

o Yes (1)
o No (2)
Q28.2

o If yes, how often do you exceed this budget (Frequently, Occasionally, Rarely,
Never)? (3) __________________________________________________
Q29.1-29.3 Please rate the following

Neither
Strongly Somewha agree Strongl
Disagre Somewha Agre
disagre t disagree nor y agree
e (2) t agree (5) e (6)
e (1) (3) disagre (7)
e (4)
I have
bet more
than I
could o o o o o o o
afford to
lose (1)
I have
had
financial
difficultie
s due to o o o o o o o
my
gambling
(2)
I have a
gambling
problem o o o o o o o
(3)

End of Block: Block 3

Start of Block: Block 4

Compensation Click this link to register to receive compensation.

End of Block: Block 4

 Work Cited

1. Chen, J. (n.d.). Bookie: Definition, meaning, duties, how they make money, and
fee. Investopedia. https://www.investopedia.com/terms/b/bookie.asp#toc-is-
being-a-bookie-illegal-in-the-us
2. Webber, M. R. (2023, August 21). Sportsbook: What it is, history, Legality.
Investopedia. https://www.investopedia.com/sportsbook-5217715
3. Williams, W. (n.d.). Sports betting laws by State. Investopedia.
https://www.investopedia.com/sports-betting-laws-by-state-5219064
4. Sanchez, Gabe. (2023). Sports Betting - US – 2023. Mintel.
https://reports.mintel.com/display/1155739/
5. Bonesteel, Matt. (2022). Sports betting timeline: From Las Vegas to the Supreme
Court. The Washington Post.
https://www.washingtonpost.com/sports/2022/08/29/history-of-sports-gambling/
6. Curry, David. (2023). FanDuel Revenue and Usage Statistics. Business of Apps.
https://www.businessofapps.com/data/fanduel-statistics/
7. (n.d.). Retail Locations. FanDuel.
https://support.fanduel.com/s/topic/0TO5Y000004Y1ZuWAK/retail-locations
8. Kim, Eugene. (2015). Billion-dollar sports-gambling startups Draft Kings and
FanDuel are legal because of a loophole in the law. Insider.
https://www.businessinsider.com/why-draft-kings-and-fanduel-are-legal-2015-4?
utm_source=copy-link&utm_medium=referral&utm_content=topbar
9. “Female Users Joining US Sportsbook Betting App Craze at Faster Rates than
Men.” GWS, 29 Apr. 2022, news.gwsolutions.com/2022/04/28/female-users-
joining-us-sportsbook-betting-app-craze-at-faster-rates-than-men.
10. Staff, Sportshandle. “FanDuel Online Sportsbook Information and Review.”
SportsHandle, SportsHandle, 28 Sept. 2023, sportshandle.com/fanduel-
sportsbook/#:~:text=FanDuel%20is%20legal%20and%20regulated,in%20which
%20the%20brand%20operates.
11. Statista. “Sports Betting Worldwide - Statistics & Facts.” Statista, Statista
Research Department, 7 Sept. 2023, www.statista.com/topics/1740/sports-
betting/#editorsPicks.
12. “FanDuel Sportsbook States - What States Is FanDuel Legal In?” Against The
Spread Betting Information, News, Sportsbook Reviews - ATS.Io, ats.io Inc, 10
Sept. 2023, ats.io/sportsbooks/fanduel/legal-states/#:~:text=These%20include
%20Arizona%2C%20Colorado%2C%20Connecticut,%2C%20West%20Virginia
%2C%20and%20Wyoming.
13. Kim, Eugene. “Billion-Dollar Sports-Gambling Startups Draft Kings and Fanduel
Are Legal Because of a Loophole in the Law.” Business Insider, Business
Insider, 11 Sept. 2015, www.businessinsider.com/why-draft-kings-and-fanduel-
are-legal-2015-4#:~:text=In%202006%2C%20the%20US%20Federal,and%20is
%20not%20considered%20gambling.