16 Aug

Gambling News

State of the Union: DraftKings' errors, Missouri ballot initiative

Welcome to iGB's State of the Union, an overview of the most significant North American sports betting narratives we have reported on this week, along with summaries of other noteworthy topics.
condition of the union
DraftKings possesses “no justification” to contemplate a surcharge as a “cash grab.”
Shortly after the conclusion of Flutter's second-quarter earnings call on Tuesday, DraftKings declared that it will retract its intentions to implement a winners' surcharge in response to user complaints. The corporation proposed the proposal in early August, receiving prompt and unfavourable feedback. 

Wall Street responded well on Wednesday. DraftKings’ shares reached a peak of $33.50 before concluding at $32.06, reflecting an increase of over 2%. Although Rush Street Interactive and Penn Entertainment earlier indicated they would not emulate DraftKings, the company was evidently awaiting FanDuel's response. 

We do not intend to implement a premium for winners', stated CEO Peter Jackson during the Q&A segment of the call. He subsequently refused to engage with the matter further when others enquired.

David Katz of Jefferies stated in a note that: “Our perspective has gradually shifted to perceive the initiative as a means to stimulate discussion and awareness rather than to recover margins.” Truist has previously discussed "adjusting OSB pricing" and said that analysts feel DKNG has less capacity to do so compared to FanDuel.

However, industry professionals were less lenient. It might be asserted that DraftKings was at the forefront of endorsing or advocating for elevated tax rates. In 2019, it proposed to remit 51% of revenue to the state of New Hampshire in exchange for a monopoly. 

“Upon the initial legalisation of mobile sports betting in New York, DraftKings, in conjunction with FanDuel, spearheaded the advocacy for legislation imposing a 51% tax on winning bets,” stated Fantasy Advocates for New York Sports on Wednesday. “They had no justification for employing these tax rates as a means to rationalise what could have amounted to a $32 million windfall for their players.”

DraftKings' erroneous email concerns bettors.
On the same day it announced its withdrawal from the planned winners’ tax, DraftKings inadvertently dispatched an email that alarmed consumers regarding potential account hacking, according to Sports Handle.

The email, sent under the Jackpocket logo, elucidated the "dead heat" rule in golf. Bettors received a singular promotional offer as a result of the dead-heat decrease. Only individuals whose bets were impacted by the reduction will get the bonus. 

DraftKings subsequently issued a social media post clarifying the error and sent an apologetic email. DraftKings reps informed Sports Handle that the matter was to email, rather than security. 

Sports wagering will be included on the Missouri ballot.
On Tuesday, the Secretary of State of Missouri announced the approval of a retail and digital sports betting proposition for the November ballot. The plan is supported by the state's professional sports teams and operators DraftKings and FanDuel, but not by its casinos. 

The idea mandates that digital wagering systems be linked to professional sports stadiums. Casino enterprises and professional sports facilities would constitute a unified betting platform. Legislative efforts for legalisation would have permitted casino firms one license per location, with a maximum of three licenses.

The ballot in Missouri will include a contentious abortion matter. An initiative permitting abortion till foetal viability outside the womb was also sanctioned. The initiative question is anticipated to increase voter turnout significantly. 

Fanatics launches in Louisiana
On Thursday, August 15, Fanatics Sportsbook launched in Louisiana, marking its 22nd state. It is affiliated with the Boomtown Casino & Hotel in the suburbs of New Orleans. Fanatics Betting and Gaming commenced operations in 2021 and currently serves 95% of the "addressable market," as stated in a firm news release. Consumers can accumulate FanCash to be exchanged for extra bets, team items, and more rewards. 

In Louisiana, the available platforms include Bet365, BetMGM, BetRivers, Caesars Sportsbook, DraftKings, ESPN Bet, and FanDuel.

The Premier of Ontario advocates for cross-border poker pools.
Ontario Premier Doug Ford endorses the concept of permitting internet gambling across provincial boundaries. The proposal would enable Canadians to participate in poker pools and fantasy contests alongside global participants, as reported by the CBC on Monday, August 12.

The Ford administration seeks a response to the following inquiry:  

“Would legal online gaming and sports betting continue to be permissible under the criminal code if users were allowed to engage in games and betting with individuals outside of Canada?” 
“Would legal online gaming and sports betting continue to be permissible under the criminal code if users were allowed to engage in games and betting with individuals outside of Canada?” 
Advocates of the concept contend that there may be tens of millions of dollars involved. It is asserted that Ontarians are currently engaging with uncontrolled international venues. This indicates that tax revenue that could benefit the province is being diverted elsewhere, leaving consumers unprotected.

Significant gambling media development in Canada
The Lazarus Agency Limited announced via Twitter on Tuesday, August 13, that it has signed a letter of intent to acquire Parleh Media Group for $5 million. Parleh encompasses the media brands Gaming News Canada, Homestand Sports, and The Parleh.

An Arkansas casino suggests an innovative method to finance NIL agreements.
Saracen Casino in Pine Bluff, Arkansas, is pursuing the legalisation of 50/50 internet raffles to generate revenue for name, image, and likeness (NIL) agreements for athletes at the University of Arkansas. 

The Arkansas Democrat Gazette reports that the state's department of finance and administration stated that "the proposed NIL raffle is not authorised under current Arkansas law and cannot be implemented solely through a rule change." A statutory prohibition on internet raffles is established under Arkansas Code Section 23-114-401.

Carlton Saffa, chief marketing officer for Saracen, has projected that the new games may generate an additional $24 million in state taxes during the inaugural year. Executives at Oaklawn, another casino in the state, expressed their opposition to legal online casinos while endorsing the initiative to generate funds for the University of Arkansas athletic program.

Detroit casinos report a decline in wagering revenue.
Detroit's three commercial casinos recorded a sports betting revenue deficit of $399,229 for July, as per the Michigan Gaming Control Board. The total income amounted to $105.9 million, comprising $106.3 million from table games and slot machines.

MGM secured 48% of the market share, succeeded by MotorCity with 29% and Hollywood Casino at Greektown with 23%.

Merits reading
Eric Raskin of Casino Reports says that DraftKings' suggestion to impose taxes on wins in areas with elevated sports betting taxes was not the most egregious concept, but it approached that threshold. Recall the "integrity fee"?

Additionally…
VSiN will provide fans with an exclusive look at a prominent football survivor pool through “Circa Survivor: The Quest for $9.2 Million,” premiering on Monday, August 19, at 9 PM ET, as revealed by the firm. The docuseries will be accessible through VSiN's YouTubeTV channel, VSiN.com, and live on X (previously Twitter) @VSiNLive.

One week following its grand debut, War Horse Omaha temporarily ceased operations on Thursday, August 15, due to air conditioning complications. The casino did not specify its reopening date.

ESPN announced the hiring of former Yahoo! Sports wagering analyst Pamela Maldonado in a press release on Wednesday. The specifics of the contract were not disclosed. Maldonado will be a vital enhancement to ESPN's sports betting coverage during college football season, utilising sophisticated analytics and a profound comprehension of the game to deliver astute, perceptive analysis for viewers intending to place wagers, as stated in the release.

Bally's Corp inaugurated a VIP lounge on August 12 at its temporary Chicago casino located in Medinah Temple. The venue is situated on the third level of the casino adjacent to the table gaming section and accommodates up to 30 individuals. A VIP Player Services portal has also been established. 

On Wednesday, August 14, Mississippi's Gold Strike casino announced a new wagering deal with DraftKings. The business will install 10 sports betting kiosks in the sportsbook, which also features four teller windows.