Industry News of the Day for February 16, 2024

By iDEA | February 16, 2024

Industry News

  • iDEA: Cannibalization Argument Debunked By Detailed Report Into Casino Revenues
    • iDEA Growth (iDevelopment and Economic Association), the leading trade association for online gaming in the U.S., has commissioned groundbreaking research from Eilers & Krejcik Gaming (EKG), which reveals that, in addition to adding a revenue stream for land-based casino operators, iGaming helps boost revenue from operators’ brick-and-mortar properties.  As part of the project, the EKG team dissected a research note by Deutsche Bank, which overlooked some key factors, and a study on iGaming by The Innovation Group, which used a flawed methodology when considering potential cannibalization.
  • Legal Sports Report: Penn Earnings: Stock Tumbles On Larger Than Expected ESPN Bet Loss
    • The ESPN Bet app made a much bigger splash than anyone, even the executives at Penn Entertainment, expected. Penn CEO Jay Snowden spun the Nov. 14 launch of ESPN Bet as a positive, saying bettors out of promotional funds from the beginning of the NFL season would be incentivized to try the app. He was right: ESPN Bet saw more than 1 million first-time depositors in a month and a half, which is more than they expected in the first year. That led to an interactive adjusted EBITDA loss of $333.8 million for the fourth quarter, a stark difference from the $100 million to $150 million in losses Penn guided to in its third-quarter call.
  • SBC Americas: DraftKings Agrees $750m Deal To Acquire Digital Lottery Supplier Jackpocket
    • DraftKings has agreed to acquire digital lottery supplier Jackpocket in a deal that is set to be worth $750m. The total consideration of $750m breaks down to $412.5m which will be paid in cash and approximately $337.5m in DraftKings class A common stocks which will be issued to Jackpocket shareholders. DraftKings expects the deal, assuming no additional online sport betting  and igaming legalization in the US, to drive between $260m to $340m in incremental revenue and $60m to $100m incremental adjusted EBITDA in the 2026 fiscal year. It expects these figures to rise to $350m to $450m and $100m to $150m respectively in 2028.
  • TheLines: GeoComply Reveals How Often Those Without Legal Sportsbooks Tried To Bet On The Super Bowl
    • Super Bowl 58 was the most wagered-on event in history, with a record-setting $185.6 million in bets placed in Nevada alone. Many markets reaped the benefits of the influx of Super Bowl wagers. However, unregulated markets have missed out on potential millions in action. GeoComply released a breakdown showing how Super Bowl betting would have affected some unregulated markets. Let’s break down the findings from GeoComply. The appetite for legal online sports betting is strong and growing, according to GeoComply. Bettors in markets without local sportsbooks still attempted to wager at the best sports betting sites.

Alabama

  • PlayUSA: Alabama House Passes Sports Betting, Casino, Lottery Legislation To Senate
    • One-half of one of the most conservative legislatures in the nation approved legislation Thursday to embrace legal and regulated gambling. The Alabama House voted 70-32 (HB 151) and 67-31-1 (HB 152) to legalize Alabama sports betting, casinos, and lottery. If the Senate approves, Alabama voters will have the chance to decide whether they want gambling in the November election. Gov. Kay Ivey backs the expansion. Alabama is one of just six states in the nation without any form of legal lottery, casinos or sports betting. Despite its conservative reputation, the Alabama House easily approved the gambling expansion.

Massachusetts

  • Sports Handle: Massachusetts Sportsbooks Rout Public For $72.7 Million In January Winnings
    • Massachusetts bettors performed almost as poorly as Ben Affleck and Matt Damon’s “Dunkings” track suits looked in January, as the state’s Gaming Commission reported $72.7 million in gross sports betting revenue for operators on Thursday. The record figure breezed past the previous high of $62.1 million in house winnings set in December. DraftKings set a Bay State record with $36.9 million in revenue, the fourth time in 11 months the Massachusetts-based operator surpassed $30 million. Statewide gross revenue increased 17% compared to December, as the 11.1% hold was up more than 1.7 percentage points.

Minnesota

  • Gaming Today: Minnesota Governor Vows Support For Sports Betting Bill In 2024
    • It’s no news that the gaming industry has turned out to be one of the most lucrative and biggest revenue generators in the United States. Hence, states that have yet to legalize sports betting are moving up to speed with their respective legislatures to ensure they benefit from this thriving market. This leads us to the North Star State, where Minnesota Governor Tim Walz has revealed that he would lend his full support and approval to a sports betting bill if it were brought up in the 2024 legislative session.

Nevada

  • The Nevada Independent: Did The Door To Nevada Slightly Crack Open For ESPN Bet?
    • Penn Entertainment said Tuesday it was paying Wynn Resorts $25 million to acquire the company’s mobile sports betting licenses in New York. Pending approval by New York gaming regulators, Penn expects to launch ESPN Bet in the state later this year. ESPN Bet, which Penn unveiled last year through a 10-year $1.5 billion agreement with the sports and entertainment network, replaced the casino operator’s Barstool Sportsbook and currently operates in 17 states. Could Nevada be next?

North Carolina

  • NC Sharp: Betting Ads Arrive In North Carolina Ahead Of Online Sports Betting Launch
    • Prominent sportsbooks have begun advertising legal sports betting apps in North Carolina across various media platforms. With the North Carolina Lottery Commission permitting the launch of online sports betting on March 11, 2024, DraftKings, FanDuel and Underdog Sports have begun competing to capture the attention of potential bettors across the state. With the launch coinciding with both the ACC Men’s College Basketball Tournament and March Madness, North Carolinians can expect a whirlwind of sports betting activity in the first month of legal action.

Quebec

  • PlayCanada: Coalition Responds To Québec’s Condemnation Of Regulated Online Gambling
    • The Québec Online Gaming Coalition says the Québec government is misguided to completely dismiss an open online gambling industry. The spokesperson for the group lobbying to legalize online gambling in the province told PlayCanada that the government’s arguments against regulation are out of touch with today’s reality. “If you look at the statement, it’s so out of date,” said Nathalie Bergeron. “It’s completely disconnected from the current reality. When they’re talking about the increase in use of cell phones, well, cell phones exist in every regulated market and everybody else has caught on that this was a time to react.

Wyoming

  • Bonus.com: Wyoming Online Casino Bill Dead Due To ‘Failed Introduction’
    • The Wyoming online casino bill state Rep. Bob Davis sponsored is dead because it “failed introduction” on Feb. 15. Twenty-five House members voted in favor of bringing HB120 to the floor, and 36 were among the “nays.” Davis, R-Baggs, talked to Bonus about his Interactive Gaming bill on Feb. 7, when the Wyoming House of Representatives “received” the proposed legislation. He explained to Bonus that the session wouldn’t begin until Feb. 12. On Feb. 15, the bill didn’t make it onto the floor.
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