Welcome to iGB’s State of the Union, a look at the biggest North American sports betting stories we’ve covered over the week and briefs on others we found interesting.
Massachusetts wants Bovada gone
The state of Massachusetts became the latest this week to send a cease-and-desist letter to offshore operator Bovada. The company is not licensed, but is offering online casino, pari-mutuel wagering and sports betting in the Bay State. The attorney-general’s office on Thursday (3 October) sent a letter that reads in part:
It is illegal in Massachusetts to engage in commercial gambling except where expressly
authorized by the Commonwealth. Mass. G.L. c. 4, sec. 7 (definition of “illegal gaming”); G.L.
c. 23K. Bovada offers an online casino that includes among its games slots, blackjack, roulette,
baccarat, and poker, without any license issued by the Commission under Mass. G.L. c. 23K.
Moreover, Mass. G.L. c. 23N, § 5(a) prohibits engagement in “any activity in connection with
sports wagering in the commonwealth unless all required licenses have been obtained.” Bovada
has no such licensure, and yet offers sports betting on its platform. Similarly, Bovada’s website
permits betting on horse races, but Bovada does not maintain any horse racing licenses under
Mass. G.L. c. 128A or under Mass. G.L. c. 128C.
So far this year, Bovada has shuttered its platform in multiple US states, including Michigan and New York, after receiving cease-and-desist letters. The Massachusetts AG is demanding that Bovada shut down immediately or face penalties of up to $5,000 per violation.
In other news, the Michigan Gaming Control Board – the first to send a cease-and-desist letter to Bovada – sent a cease-and-desist letter on Thursday to offshore operator Papaya Gaming.
Hmmm, that’s not working
An NCAA committee on Tuesday (1 October) released a brief report in which it revealed that “prohibitions are ineffective at stopping unwanted gambling behaviours and there is little evidence to suggest that current prohibitions have effectively prevented student-athlete gambling.” Essentially, the committee wrote that banning student-athletes from gambling doesn’t stop the problem.
The Committee on Competitive Safeguards and Medical Aspects of Sports discussed the “deregulation” of betting bans and allowing student-athletes to bet on professional sports. The committee plans to continue exploring the topic.
Gaming revenue slowing?
On Tuesday (1 October), in a survey of industry executives, the American Gaming Association shared that 88% say the current state of the industry is either “good” or “satisfactory”. But those polled were split on the future of gaming revenue. Expansion slowed this year and 28% of those surveyed say they expect a decrease in customer activity in the next three to six months.
Compared to Q1, the percentage of executives expecting a decrease is up 24%. Despite that, the survey showed that 34% project net positive balance sheets in the coming months. In addition, 19% of those surveyed said access to credit is now easier. Most operators say they will focus on physical expansions, like hotel or food-and-beverage, while 13% of suppliers said they expect capital investment and game sales to slow. Many are also concerned about the current economic climate, including inflation.
That’s interesting…
At least one wagering operator is concerned enough about the potential for federal regulation to take action. Per Ryan Butler this week:
Ad buys down in Canada
Covers reported last week that a Canadian senate committee learned that wagering advertising is on the decline in the country. Kevin Desjardins, president of the Canadian Association of Broadcasters, told the senate transport and communications committee on 26 September that some private-sector channels have instituted their own limits on the amount of ads they will run. In addition, sportsbook operators are spending less.
The hearing was around S269, a bill that proposes to put strict curbs on betting advertising. Those include restricting or possibly banning betting advertising on television. Desjardins said instituting such restrictions would be “premature” and that the federal government “overreach” is not needed. His comments came on the heels of a Canadian Gaming Association report that revealed that betting-ad regulations in Canada are evolving more quickly and reactively than might be necessary.
Canada’s parliament will continue to consider the issue with additional hearings this month.
More help for veterans in gaming
Chalkline CEO Daniel Kustelski shared via LinkedIn that he is part of a group that will launch VeteransInGaming.org, which will offer support services to veterans who work in the gambling industry. Kustelski, a West Point graduate, wrote that he has met many veterans who work in gaming and he feels it’s time to create a formal space for vets and those who support them to trade information, stories and offer support.
He wrote: “Core values – candour, resourcefulness, responsible gaming, member growth” will be the tenets of the organisation. The group will sponsor Chalkline’s G2E fun run in Las Vegas on 7 October and will host a happy hour at the conference.
Broncos decimate Circa Survivor pool
The Denver Broncos have wreaked havoc on the Circa Survivor pool. When the Broncos beat the New York Jets, 10-9 on Sunday (29 September), 110 entries were eliminated. But that was less damage than the Broncos did in Week 3, when their upset of Tampa Bay eliminated 667 contestants. That number was 25% of the remaining contestant pool. Last week also marked the first week that the most-picked team – for Week 4 it was San Francisco – advanced.
Four weeks into the season, 480 players remain and the winner-take-all pot is $14.2m (£10.8m/€13m).
Bet365 putting down roots in Colorado
UK-based Bet365 this week opened a North American office in Denver, the Denver Post reported on Monday (30 September). The company has plans to hire 1,000 new employees, including 300 in the first year. The new location is 120,000 square feet in a live/work building between Lower Downtown and the Lower Highlands neighbourhood.
The company will get $14m in tax breaks and credits over eight years, per the Colorado Economic Development Commission. Bet365 must meet certain job creation and salary benchmarks to take advantage of the credits.
Bet365 is live in 11 US states. It is not the first international wagering company to select Denver as a US home base. PointsBet North America in 2019 opened a second US office in Denver. The company has since been purchased by Fanatics Sportsbook.
Check out ESPN Bet’s latest ad drop
Less than a week after going live in New York State, ESPN Bet debuted two new ads:
In other news…
The NCAA announced on Thursday (3 October) that Las Vegas has been selected to host its first women’s college basketball regional in more than 30 years. The city will host in 2027, along with Philadelphia, per the Las Vegas Sun.
Sporttrade announced on Friday (4 October) that it is adding strategic investor SIG Sports Investments Corp, which previously made two capital investments in the startup. The new funding will be used for US expansion and customer acquisition as well as to continue to improve technology. In addition, SIG will work to “enhance Sporttrade’s key markets by providing additional liquidity and improved pricing to high volume markets across a variety of sports and contract types in the coming months.”
Deutsche Bank analysts are standing with their “buy” rating for Caesars Entertainment ahead of investor days in Las Vegas next week. On Thursday (3 October) the firm wrote that, while nothing specific has changed, “we continue to like Caesars.”
BetMGM announced on Monday (30 September) that it has expanded its partnership with Major League Baseball and will be the official bullpen sponsor of the playoffs. BetMGM will also launch its $50,000 Bullpen Jackpot. If a player hits a homer into a bullpen, any bettor who placed a qualified wager on that player to hit a home run that day gets a share of a $50,000 pot of bonus bets.
Worth the read
Our partners at Casino Reports this week debuted a new resource for the industry, a clearinghouse for US online casino data. The page includes market share, GGR and tax information and will be updated monthly. Take a look here.
ICYMI on iGB
SAFE Bet Act isn’t popular in any corner of the industry
Kalshi wins right to offer election betting
Jontay Porter co-conspirator pleads guilty
Imprisoned ex-Jaguars employee wants FanDuel to pay up
BetMGM violations revealed in Massachusetts
Remembering Rose for his passion, not his transgressions
Drop the Trop will make room for A’s to raise the roof
