Industry News of the Day for May 5, 2023

By iDEA | May 5, 2023

Industry News

  • SBC Americas: Rush Street Q1 Shows Digital Losses Shrinking Amid Reduced Marketing Spend
    • The Q1 earnings report from Rush Street Gaming and Rush Street Interactive show that, like many competitors, the group’s online gambling business is curbing losses and trending closer and closer to profitability. The numbers were up across both the land-based and online businesses, but as Rush Street Interactive CEO Richard Schwartz noted, full profitability is still a couple of quarters away.
  • CDC Gaming Reports: Penn Entertainment’s First Quarter Earnings Call Elicits Questions About Barstool Personality
    • Penn Entertainment’s 2023 first-quarter report revealed revenue of $1.67 billion, a year-over-year increase of 6.8%.  Net income increased from $52 million in the first quarter of 2022 to $514.5 million, a jump of 897%. But Thursday’s earnings call with analysts, media, and investors was at least partially overshadowed by another controversy concerning a Barstool Sports personality.
  • Sports Handle: Dave Portnoy Fumes Over Decision To Fire Ben Mintz, Points To Regulators
    • The Barstool-PENN Entertainment marriage — now really more of a one-sided affair, as PENN has assumed full control of the Dave Portnoy-founded brand — faced its toughest test Wednesday when PENN fired Ben Mintz, host of the popular Wake Up Mintzy show, for uttering a racial slur while singing along to recorded music. Mintz was rapping to “1st of Tha Month” by Bone Thugs-n-Harmony when he uttered the N-word while singing along.
  • Gambling News: Morgan Stanley: Top Five Sportsbook Operators To Grow Via Acquisitions
    • After expressing their belief that gambling in Macau is on the right track for recovery thanks to optimistic 2023 estimates, gambling experts at Morgan Stanley have made fresh speculation on the rising number of sportsbook-related deals that will be sealed in 2023 and beyond. In a note issued to their clients, the analysts working for the New York-based global leader in financial services discussed the fast-paced acquisitions and mergers that took place in the sports betting industry in the past years.

Michigan

  • PlayMichigan: MGCB Joins Six States In Urging DOJ To Address Offshore And Illegal Gambling
    • The Michigan Gaming Control Board continues to make combating illegal gambling a priority in the state. Last week, the MGCB joined a coalition of seven gaming states’ regulators in urging the U.S. Department of Justice to make combating illegal, offshore sportsbooks and online casinos a priority. A letter was sent on April 28 to Attorney General Merrick Garland to address the threats of offshore gambling that state regulators are unable to tackle alone.

Minnesota

  • PlayUSA: Senator Reveals Minnesota Sports Betting Proposal That Benefits Horse Racing Tracks
    • A Minnesota senator offered the horse racing industry a way to benefit from Minnesota sports betting. But it wasn’t enough to end the opposition from Minnesota’s two horse racing tracks. Sen. Matt Klein proposed four amendments to his SF 1949 Wednesday in the Senate State and Local Government Committee. One dedicated 30% of the state’s intake from online sports betting to the horse racing industry.

New York

  • PlayNY: High New York Sports Betting Tax Rate Is Here To Stay. What That Means Going Forward
    • Despite legal efforts to lower it, New York’s 51% tax rate on sports betting is here to stay. And bettors are already feeling the pain. Representatives from NY sportsbooks have been vocal about their desire to lower the punitive tax rate. In February, executives from DraftKings Sportsbook and FanDuel Sportsbook met with lawmakers to discuss lowering the rate. The pair told lawmakers that getting the sportsbook tax rate down to 35% would allow DraftKings, FanDuel and other NY sports betting operators to avoid taking dramatic cost-cutting measures.

North Carolina

  • NC Sharp: Senate Runway Clear For North Carolina Sports Betting Bill
    • Thursday was Crossover Day in the North Carolina General Assembly – a soft deadline for all bills to clear at least one chamber – and once it passes, sports betting legislation should pick up speed in the state Senate. House Bill 347 has been sequestered in the Senate Rules and Operations Committee since March 30. This bill is likely in store for a few Senate committee stops before it advances to the Senate floor. HB 347 cleared four House committees before advancing to the House floor for debate.

Vermont

  • Legal Sports Report: Amended Vermont Sports Betting Bill Passes Senate, House Expected To Sign Off
    • Vermont is on the precipice of becoming the 38th state to legalize sports betting, after the Senate passed a sports betting bill Thursday. The VT sports betting bill (H.127) passed on third reading in the Senate. That approval comes a day after making a series of amendments to the House-passed version. The House is expected to concur and send the bill to Gov. Phil Scott, according to sources in the legislature.
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