A philanthropic organization is giving $2.6 million in newly announced grants to universities that will study the negative effects of online sports betting.
Key Takeaways
- Americans wagered $167 billion on sports in 2025.
- The grants will only be used to study sports betting, not prediction market trading.
- Grants will be awarded to schools including Princeton, UPenn, and Texas, among others.
Arnold Ventures cofounder John Arnold - a former hedge fund owner and energy trader - said he has seen enormous changes since the federal ban on state-authorized sports betting was struck down in 2018. He claimed he wants officials and lawmakers to become more proactive in regulating gambling markets.
“Being able to bet over the phone has dramatically increased access and lowered friction,” Arnold said. “It has changed what the product is. You can bet on every pitch. You can bet with a speed that was never possible when you had to place a call to put a bet down.”
Even with sports betting’s prevalence, operating companies are still growing. The $167 billion national betting handle was up 11% year over year.
Arnold and his wife, Laura, hope their grants will be used to assess and understand the effects of the continued spread of gambling and gambling-related harm. Universities receiving the grants include Princeton, Pennsylvania, and Texas, and others.
“These research projects will shed light on the impacts of this new reality and help policymakers weigh important decisions about whether to legalize gambling, how to regulate it, and how to effectively reduce harm for their constituents.”
Today Arnold Ventures awarded 12 new research grants to build evidence on how legalized sports betting is affecting individuals, families, and communities.
— Arnold Ventures (@Arnold_Ventures) July 7, 2026
The projects will help fill critical evidence gaps as states weigh questions around legalization, regulation, and harm… pic.twitter.com/BVqOFySxjF
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No prediction markets
While sports betting has become increasingly ingrained in sports since 2018, headlines over the last year have been dominated by prediction markets.
Platforms, which include Kalshi and Polymarket, allow users to buy and sell “Yes” and “No” contracts associated with different outcomes in sports. Many state gaming regulators and officials believe these platforms act as unlicensed gambling platforms, including those in states without legal sports betting.
The rise of controversial sports event contracts has also helped grow the gambling industry, even if prediction operators insist they do not represent gambling.
Arnold called the difference between sports betting apps and prediction platforms “almost indistinguishable” but said the research will only include online sportsbooks. A spokesperson for Arnold Ventures explained that was partly because prediction market data is limited and doesn’t include state-by-state comparisons, like sportsbooks. Grants will only be used to understand the “causal impact of sports betting legalization.”
Betting, trading take hold
Sports betting and prediction market trading are already prominent parts of American sports culture.
An April survey by the Siena Research Institute of Siena University found 27% of Americans had an active online sports betting account, easily surpassing the 19% that was recorded in 2024.
Siena also announced 15% of Americans had purchased a sports event contract, meaning that prediction markets were already about 55.5% as popular as sportsbooks, based on user base.
