Industry News of the Day for March 7, 2024

Industry News

• Legal Sports Report: 888 Ends Partnership For SI Sportsbook, Reviews US Operations
  • Another sportsbook branded after a popular magazine of yesteryear will bite the dust as SI Sportsbook from 888 is no more. London-listed 888 ended its partnership with Authentic Brands Group, the owner of the Sports Illustrated brand, on Wednesday. The sports betting agreement was ended on mutual terms but leaves 888 with $50 million in early termination fees. 888 will pay $25 million from cash on hand, with the other $25 million paid between 2027 and 2029. On the plus side, the termination saves $6 million to $7 million per year in 2024 and 2025.

• PlayUSA: US Integrity, Betfred Announce Partnership To Protect College Sports Betting
  • With Problem Gambling Awareness Month in full swing, one sports betting operator is stepping up its protection of college sports programs. U.S. Integrity announced it will provide Betfred with ProhiBet, a betting monitoring platform. Betfred will use ProhiBet to prevent college athletes, coaches, and staff from placing illegal wagers. Betfred USA CEO Kresimir Spajic said: “Through our renewed partnership with U.S. Integrity, strengthened by the integration of ProhiBet technology, we reaffirm our unwavering commitment to integrity and compliance by providing a secure and transparent system that aligns seamlessly with the regulatory framework surrounding sports betting.”

• SBC Americas: New Strategic Investment Lifts Betr’s Valuation To $375M
  • Micro-betting operator Betr announced on Wednesday that it has secured $15 million in strategic equity financing in a transaction that values the company at $375 million. The influx of capital brings Betr’s total funding raised to $100 million since its launch in 2022. Last June, Betr raised $35 million in a deal that valued the company at $300 million. Betr’s latest funding round was co-led by VC firms Harmony Partners and 10x Capital. The round also included existing investors: Fuel Venture Capital, Aliya Capital Partners and Roger Ehrenberg/Eberg Capital. The firms are Betr’s three largest investors.

• AP News: Panel Says New York, Maryland And Maybe California Could Offer Internet Gambling Soon
  • With Rhode Island this week becoming the seventh U.S. state to launch internet gambling, industry panelists at an online gambling conference predicted Wednesday that several additional states would join the fray in the next few years. Speaking at the Next.io forum on internet gambling and sports betting, several mentioned New York and Maryland as likely candidates to start offering internet casino games soon. And some noted that, despite years of difficulty crafting a deal that satisfies commercial and tribal casinos and card rooms, California is simply too big a market not to offer internet gambling.

Colorado

• SportsHandle: Colorado Sportsbooks Post Record $53.5 Million Revenue Haul For January
  • The Colorado Department of Revenue reported an all-time monthly high of $53.5 million in sports betting gross revenue for January on Tuesday, furthering a strong nationwide start for sportsbooks in 2024. The revenue total eclipsed the previous record of $51.3 million established in September 2022; the only other occasion operators cleared $50 million. Most of the $596.7 million handle was wagered via sports betting apps, with mobile books posting a 9% hold while claiming $53.3 million in gross winnings from $592.2 million worth of wagers.

Louisiana

• Gaming Today: Louisiana Lawmakers Propose Increase in Free Bets and Promotional Play
  • House Bill 473, pre-filed by Republican Rep. John “Big John” Illg Jr. and Democratic Rep. Steven Jackson, proposes to increase the amount of free bets and promotional play that Louisiana’s online sportsbook operators can deduct from their taxable revenue. If approved, the increase would raise the limit to $10 million annually, potentially reducing their overall tax burden. While the rationale behind this move remains unclear, Louisiana’s current tax rates for retail and online sports betting are relatively standard at 10% and 15%, respectively. The state had previously considered lowering promotional deduction limits in 2022 but opted against it.

New Jersey

• PlayNJ: Antar Appeals Suit Dismissal In Hopes Of Shifting Burden Of Responsible Gambling To Online Casinos
  • A New York man is appealing the dismissal of his lawsuit against MGM Resorts which alleged that the company preyed on him by offering casino bonuses even though he had a gambling problem. In January, a US district judge in New Jersey tossed the NJ online casinos civil case filed by Sam Antar, citing lack of evidence that MGM, its Borgata Casino, and online betting app BetMGM Casino was guilty of any wrongdoing. “Despite the inclusion of gambling addiction as a substance addiction disorder in the DSM-5,” US District Judge Madeline Cox Arleo wrote in her decision, “the New Jersey legislature … has not yet seen fit to require casinos to prevent or stop inducing gambling from those that exhibit problem gambling behavior.”

New York

• PlayNY: Nearly Identical New York Online Casino Bills Have Equally Long Odds Of Passing In 2024
  • New York online casinos are a long shot for legalization in 2024. But the two pieces of legislation that could legalize NY online casinos are still worth exploring, particularly since they would need to be reconciled if the State Legislature ever moves on iGaming. Most are familiar with the efforts of Sen. Joseph Addabbo efforts to legalize iGaming in the Empire State. The Queens-based Democrat enthusiastically supports online casinos, online poker and internet lottery as a way to generate additional tax revenue for various purposes, including education, transportation and problem gambling services.

Pennsylvania

• PlayPennsylvania: Bill Introduced For Pennsylvania To Join Multi-State Online Poker Compact
  • Pennsylvania is one of the most robust and rich gambling states in the US. However, it’s been missing a crucial aspect in one vertical. Pennsylvania poker players are one step closer to joining the Multi-State Internet Gaming Agreement (MSIGA) as Representative George Dunbar sponsored House Bill 2078 earlier this week. It’s been a long wait for Pennsylvania online poker players, who’ve been champing at the bit to compete against those from other states. The Keystone State is one of the healthiest gambling states. It offers PA online casinos, online sports betting, Video Game Terminals (VGTs) and online poker.