DraftKings (DKNG) - Get DraftKings Inc Class A Report will invest more than $1.5 million over three years in a program it calls the State Council Funding Program to support state and local efforts to promote responsible gambling.
The sports betting company will offer each state council $15,000 a year for three years to bolster services and programs for individuals and families.
“Having spent several years of my career working with the state council in my home state, Massachusetts, I have seen first-hand how these organizations are a tremendous resource for individuals and families, and serve as a critical stakeholder and partner for gaming operators,” Christine Thurmond, director of responsible gaming for DraftKings, said in a statement.
States will have broad discretion on how to use the program funding, including applying it to training, conferences, help lines and general capacity building.
“State councils provide a first line of defense for addressing the needs of people impacted by problem gambling,” Keith Whyte, executive director of the National Council on Problem Gambling, said in the DraftKings statement.
“While it’s well established that these organizations provide critical assistance in the community, they don’t always have the resources and funds to take treatment and prevention to the next level. This significant initiative by DraftKings shows their commitment to and knowledge of the importance of the work state councils provide.”
The $1.5 million investment is a fraction of the dollars DraftKings and its rivals like BetMGM and Caesars Sportsbook (CZR) - Get Caesars Entertainment Inc Report have plowed into marketing as more states have legalized gambling. BetMGM is a joint venture of MGM Resorts (MGM) - Get MGM Resorts International Report and London's Entain GMVHY.
Legal sports betting is available in 11 states and, according to Morning Consult, nearly 1 in 5 U.S. adults said they bet on sports at least once a month.
The raw number of sports bettors will certainly increase now that New York state has its legalized betting apparatus in motion.
DraftKings is expected to report fiscal 2021 revenue of $1.27 billion, according to FactSet.