The New Sports Gambling Gold Rush: Who Owns Athlete Data?

In 2025, the United States saw a record surge in legalized online sports betting. This was for no other reason than the fact that major betting platforms such as DraftKings, FanDuel, and BetMGM started using real-time performance and biometric data. This includes the athletes' heart rate, speed, fatigue levels, and even stress levels to increase fan engagement and betting. These advancements have changed the interaction between fans and athletes into something that may be a little too close for comfort. Now, instead of merely watching sports for spectacle, viewers can track athletes’ bodies as both entertainment and information streams. 

Traditional laws such as HIPAA (which protects medical records) and FERPA (which protects student educational records) were never designed to govern the use of biometric data in gambling, as this was never a concern before 2025. Today, Name, Image, and Likeness (NIL) laws grant athletes endorsement rights, but do not address the monetization of their performance or biometric data. This loophole allows betting companies to profit from athlete data with little to no athlete consent. This ultimately exposes players to misuse, gambling pressure, and privacy risks. 

Courts are now beginning to test the boundaries of data ownership. A clear example of how data collection and sports gambling intersect can be seen in the ongoing Iowa sports betting investigation. More than two dozen athletes from the University of Iowa and Iowa State have filed a federal civil lawsuit against state investigators, claiming that law enforcement has illegally accessed and tracked their geolocation through a sports betting app. 

The athletes have also filed a lawsuit against the sports betting app used to track their location. The players argued that the investigation violated their privacy rights and due process protections, exposing how easily sensitive data can be misused in the name of regulation. The controversy revealed the blurred boundaries between personal data and public information in the age of sports analytics. This case not only demonstrated how the rise of online sports gambling created new vulnerabilities for athletes but also brought this problem to light and led to a new wave of state reforms and regulations. 

Indeed, some states are beginning to act on this invasion of privacy. In 2025, California proposed amendments to the California Consumer Privacy Act (CCPA) to include athlete performance and biometric data under protected “biometric information.” New Jersey and Nevada introduced Athlete Data Protection Acts after countless high-profile data leaks involving betting platforms were brought to light. California, New Jersey, and Nevada’s initiatives aim to balance innovation in sports analytics with player protection, models that could shape future federal standards. 

The sports industry as a whole is also changing in response to these problems. Contracts between athletes, leagues, and universities are beginning to include specific clauses on data collection, protections, and revenue sharing. Professional organizations like the NBA and NFL are negotiating with betting companies over the extent of player data that can be sold or licensed. Meanwhile, universities and collegiate athletic departments are developing “data ethics policies” (such as Ohio State) that regulate internal monitoring and prohibit unauthorized third-party access. These initiatives signal that both public institutions and private entities are realizing the stakes, not just in monetary terms but also in maintaining trust between athletes and the system built around them.  

The 2025 sports-betting boom has created a new frontier where data is currency, and athletes are the producers. Without federal regulations on athlete data ownership, consent, and compensation, athletes, especially collegiate, are at risk of exploitation. Stronger national and international reforms are critical to ensure sports innovation doesn’t undermine athletes' privacy, integrity, or human rights. 

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