Industry News of the Day for June 16, 2021
iDEA Growth News:
- Gambling Compliance, 6.15.21: Pennsylvania, France And A Rapper’s Riff For Online Gambling (Jeff Ifrah & iDEA Growth mentioned) Full text at the bottom of report
- A basic misunderstanding of economics is making countries like France and states like Pennsylvania leave money on the table when it comes to internet gambling, according to a leading online gaming attorney in Washington, D.C.
iDEA Growth Member News:
- MI Bets, 6.15.21: FanDuel, DraftKings, And BetMGM Continue To Dominate Michigan Sportsbook Scene
- To give some idea as to how big the big three sportsbooks — FanDuel, DraftKings, and BetMGM — are in Michigan, know this: In May, the three of them combined for $189.48 million in handle.
- Play NJ, 6.15.21: New Gambling App Connects U.S. Players To Tools, Resources (Entain & Martin Lycka mentioned)
- Gamble Responsibly America launched Tuesday by the Entain Foundation U.S. The not-for-profit organization that promotes responsible gambling. The free gambling app was produced by EPIC Risk Management and RG24/7.
Overall Industry News:
- Maryland Matters, 6.16.21: “Sports Betting 101” Event Draws Full House of Would-Be Bookmakers
- The “Sports Betting 101 educational summit” was billed as an opportunity for companies to learn about the legislation that will shape the new industry here, get an introduction to the “sports betting ecosystem” in Maryland, and get an explainer on the application process that will determine which potential vendors get a coveted license.
- SBC, 6.16.21: SBC Digital North America: Turning Sports Betting Content Into Returns
- Sports betting content, as viewed through the eyes of the media, was given a high-profile platform at last week’s SBC Digital North America conference during a dedicated panel discussion titled “Betting on homegrown content – how do operators win with new content?”.
- Sports Handle, 6.16.21: Sports Betting Bill Left In Committee As Maine Session Set To Close
- After multiple committee hearings, work groups, and discussion about amendments, it appears that the Maine state legislature will close on Wednesday with no action on sports betting.
- Boston Globe, 6.16.21: Sports betting is back on the Massachusetts Legislature’s agenda. Let’s catch up on where things stand (subscription paywall)
- Cincinnati Enquirer, 6.16.21: Bill To Legalize Sports Betting In Ohio Set For A Senate Vote Wednesday
- Lawmakers in the Ohio Senate are poised to vote on legalizing sports betting in Ohio following a last-minute overhaul.
- IGB, 6.16.21: Committee Approves Ohio Betting Bill, Launch Delayed To April 2022
- Ohio’s Senate Gaming Committee has unanimously approved a bill to allow sports betting in the state, after including an omnibus amendment that would delay the market opening to 1 April but increase the number of licensees.
- SBC, 6.16.21: Michigan Sports Betting Slumps As Casinos Edge Closer To A $100m Month
- Michigan’s sportsbooks have been “hit by the seasonality of sports betting and struggling local teams” throughout May, while its online casinos fell slightly shy of a $100 million revenue month.
- The Daily Advance, 6.15.21: Sponsors Hope To Move Sports Betting Bill
- Sports betting legislation hasn’t seen much movement in North Carolina, although sponsors are hopeful to see action this month.
- Legal Sports Report, 6.16.21: Plenty Of Interest In Remaining VA Sports Betting Licenses
- There is once again an abundance of applicants for the remaining VA sports betting licenses.
- Play WV, 6.15.21: West Virginia Sports Betting Handle Falls Again, Hits Just $25 Million In May
- West Virginia sportsbooks endured another sluggish month in May. In total, they combined for just over $25 million in handle. Betting figures reduced another $3 million from the Mountain State’s production in April.
- News Talk Florida, 6.15.21: Florida Is Getting Closer To Sports Betting But Questions Remain.
- In May when the Seminole Tribe and Governor Ron DeSantis agreed to a new gaming compact, and it was approved by the state legislature.
Pennsylvania, France And A Rapper’s Riff For Online Gambling
A basic misunderstanding of economics is making countries like France and states like Pennsylvania leave money on the table when it comes to internet gambling, according to a leading online gaming attorney in Washington, D.C.
It was the late rapper, The Notorious B.I.G., who said: “More money; more problems.”
Jeff Ifrah, founder of the U.S. online gaming industry association iDEA Growth, has a different take on Biggie’s immortal quote.
“Fewer brands, more problems,” Ifrah said during a panel appearance at last week’s SBC North America digital conference.
“Every time you add another person, the pie gets bigger,” he said. “So when you go from four slices to six slices, you’re not making everyone’s share smaller; you’re growing the denominator, and when you grow the denominator, everyone gets more. “
For example, the French Gambling Act of May 2010 prohibits casino games on the internet in France to protect traditional brick-and-mortar casino and lottery operations.
The UK, on the other hand, has a far less restrictive regulatory regime for online gambling and is producing significantly more revenue with a comparable population, Ifrah said.
A similar comparison can be drawn between New Jersey and Pennsylvania.
New Jersey is the nation’s leader in revenue from online gaming and mobile sports betting. The effective tax rate in New Jersey for sports betting online is 14.25 percent compared with 36percent, before deductions, in Pennsylvania.
New Jersey also allows up to three skins for each casino and racetrack for sports betting, whereas Pennsylvania is a single-skin state.
“Pennsylvania should be doing way, way better than New Jersey,” Ifrah said.
The population of Pennsylvania is 12.8m compared with 8.9m in New Jersey.
But in the first quarter of the year, New Jersey led the nation with gross online sports wagering revenue of $173.5m on handle of $2.36bn, while Pennsylvania came in third with $113.1m in revenue from $1.56bn in total online wagers. Illinois placed second with $122m in revenue from$1.67bn in online handle.
Higher tax rates and more stringent licensing requirements in Pennsylvania make it harder for start-ups to compete, according to Ifrah. Doug Harbach, a spokesman for the Pennsylvania Gaming Control Board, on Monday declined to comment specifically on Ifrah’s remarks, but said his state’s sports-betting figures “have remained healthy once major sports re-launched from COVID dormancy.
“More skins enhance the diversity of an online gambling product and provide additional choices for customers, according to Laila Mintas, who is CEO of PlayUp US, the Australian betting operator that recently launched in Colorado.
“For an operator, you want as many skins as possible because the more skins that are available, the easier it is to get them, the cheaper it is to get them and I don’t really see any disadvantage to that,” said Mintas, who appeared on the same panel as Ifrah and David Rebuck, director of the New Jersey Division of Gaming Enforcement.
Rebuck said sports betting is expanding not only in the United States but in Canada, creating golden opportunities for internet gambling companies in Europe.
“It’s a wonderful world for an online gaming operator if you can be good at what you do,” Rebuck said. “Now, your company has no place to go but up because of what’s happening in North America.