Industry News of the Day for August 9, 2023
Industry News
- Legal Sports Report: ESPN BET App To Launch This Fall With Penn As Barstool Brand Axed
- The sleeping giant of global sports finally entered the US sports betting space Tuesday as ESPN announced plans to launch ESPN BET in partnership with PENN Entertainment. The entrance of ESPN BET also brings the exit of Barstool Sportsbook. In concert with its announcement of the ESPN sports betting deal, PENN announced a full sale of Barstool Sports back to founder Dave Portnoy. PENN will pay ESPN $1.5 billion over the term of a 10-year contract. ESPN also receives warrants to purchase up to 31.8 million shares of PENN stock valued at $500 million, with potential performance incentives unlocking another 6.4 million common shares in the future.
- SBC Americas: Fliff wants customer lawsuit taken to arbitration
- Two months after Bishoy Nessim filed his California class action lawsuit against sweepstakes sports betting site Fliff, Fliff has filed its response in the case. The primary thrust of the motion is that, upon setting up his account, Nessim agreed to Fliff’s terms and conditions. Within those terms, customers agree that any legal challenges from the customer need to be handled not in the courts, but through arbitration.
- American Gaming Association: AGA Announces Gaming Hall of Fame Class of 2023
- The American Gaming Association (AGA) announced the Gaming Hall of Fame Class of 2023, honoring four leaders for their significant contributions to the industry: Bill Anoatubby, Governor, Chickasaw Nation, Robert Miodunski, Former CEO, American Gaming Systems; Former President & CEO, Alliance Gaming and President, Bally Gaming, Jim Murren, Former Chairman and CEO, MGM Resorts International, and Ellen Whittemore, Executive Vice President, General Counsel and Secretary, Wynn Resorts.
- iGaming Business News: Churchill Downs Reports 32% Increase in Net Revenue for Q2 2023
- Churchill Downs Incorporated (CDI) has released its financial results for Q2 2023 revealing a 32% increase in net revenue to $768.5 million. Despite reporting a record-breaking quarterly revenue figure, CDI also reported a significant drop in net income year-on-year. According to the report, revenue growth was primarily driven by significant gains in both its live and historical racing and gaming segment. Reported earnings before interest, taxes, depreciation and amortization (EBITDA) were all-time records that contributed to an adjusted EBITDA of $363.7 million for Q2.
Massachusetts
- Gaming Today: Massachusetts Gaming Regulator Hints at DFS
- Single-player DFS may seem like an oxymoron to old-school DFS fans who enjoy peer-to-peer play through DraftKings and FanDuel. But it’s real. So real, in fact, that states are cracking down on sites they think may be operating outside the law. Wyoming got the attention of DFS operators PrizePicks and Underdog Fantasy early this year when the state sent the operators cease-and-desist letters regarding their pick’em games.
Missouri
- PlayUSA: Hoskins Warns He Is Not Only Barrier To Legalizing Missouri Sports Betting
- Missouri Sen. Denny Hoskins gets a lot of blame for the failure to pass legislation legalizing sports betting. But for those who think it will be easy to pass Missouri sports betting as soon as he’s out of office, Hoskins says to think again. “Am I the only one standing in the way of sportsbook passing? No, I am not. Do I get all the blame? Yes, I do. And that’s fine. It doesn’t bother me. But there are a lot of people who feel the same way I do.”
New York
- PlayNY: Daily Fantasy Sports Regulations Ban Prop Contests Because They Mimic Sports Betting
- Gaming regulators in New York have decided that those daily fantasy sports contests that look and feel an awful lot like NY sports betting are, in fact, a bit too much like the real thing. In an Aug. 2 update to the public Register, the NY State Gaming Commission determined that the proposition contests found on certain interactive fantasy sports sites are “essentially sports betting.” Accordingly, the commission rejected a commenter’s request to amend proposed DFS regulations banning prop contests “that have the effect of mimicking proposition betting.”