Industry News of the Day for October 27, 2023

By iDEA | October 27, 2023

Industry News

  • Legal Sports Report: Sports Betting Lobbyist Asked For Wyoming Inquiry Into Pick’em Fantasy Sports
    • A lobbyist with ties to lobbying group Sports Betting Alliance had communication with Wyoming regulators before some daily fantasy sports operators were ordered to leave the state, documents obtained by LSR indicate. In February, emails marked “Illegal OSW in Wyoming” with the names and addresses of companies offering pick’em DFS, including Underdog Fantasy and PrizePicks, came to the Wyoming Gaming Commission. Five months later, those companies were mailed cease and desist letters that they say never physically arrived, but later were delivered electronically.
  • Gaming Today: PointsBet Reports Slight Decrease In Q1 Turnover Following Fanatics Acquisition
    • PointsBet, the renowned sports betting and iGaming firm, has released its Q1 financial report for the 2024 fiscal year, covering the trading period ending on Sept. 30. The report discloses a slight decline in the company’s turnover. During this quarter, PointsBet reported a total sports betting handle of $387.5 million. This figure represents a 3% decrease compared to the same period in the 2023 fiscal year. Notably, this report marks the company’s first financial statement since its recent US acquisition by Fanatics, a deal valued at approximately $225 million, almost double Fanatics’ initial offer.
  • SBC Americas: First NHL Sports Betting Suspension Has More Questions Than Answers
    • Five years into the repeal of PASPA, the NHL has suspended its first player for activities related to sports betting. The league announced today that it will be suspending restricted free agent Shane Pinto for 41 games, which is equivalent to half of an NHL season. Here is the entirety of the league’s statement regarding Pinto: “The National Hockey League announced today that it has suspended NHL Player Shane Pinto for 41 games for activities relating to sports wagering. The League’s investigation found no evidence that Pinto made any wagers on NHL games. The NHL considers this matter closed, absent the emergence of new information, and will have no further comment.”
  • Des Moines Register: NCAA Issues Two-Week Delay On Vote For Potential Changes To Sports-Wagering Reinstatement Guidelines
    • There was hope in both Ames and Iowa City that several student-athletes would soon be reinstated from gambling suspensions, specifically, those who bet on their own school but not their own sport. Instead, the wait marches on. The Division I Council Coordination Committee announced Wednesday that it has delayed its vote on proposals for changes to athlete reinstatement related to sports gambling violations for two weeks, until Nov. 8. That means players like Iowa’s Noah Shannon and Iowa State’s DeShawn Hanika will not be active to start November as had previously been anticipated.

Florida

  • Play FL: Supreme Court Rules In Lawsuit; Sports Betting Could Resume In Florida
    • The runway has been cleared. With a U.S. Supreme Court’s decision late Wednesday, the Seminole Tribe has been given the green light to relaunch mobile sports betting in Florida any time it chooses. Chief Justice John Roberts’ decision is the latest turn in a federal case that was filed by West Flagler and Associates against the U.S. Department of Interior in April 2021, challenging the legality of a gaming compact between the Seminoles and the state. WFA argues that it violates the Indian Gaming Regulatory Act (IGRA). Later that year a federal judge agreed with WFA, nullifying the terms of the compact. In June of this year, a U.S. appeals court vacated that ruling.

Maryland

  • US Bets: Report Assessing Legalization Of ICasinos In Maryland Nears Completion
    • A report about online casino legalization is on track to be submitted to the Maryland General Assembly by Nov. 15, the Maryland Lottery shared this week. The study, conducted by The Innovation Group, is designed to give Maryland legislators a better idea of the potential economic impact of iCasino legalization. Currently, Maryland allows for legal retail casino wagering as well as retail and mobile sports betting, but online casino games are illegal. The Maryland Lottery shared that its staff members meet weekly with The Innovation Group to “get updates on its research methods, data gathering, and interview scheduling with representatives of iGaming states.”

New Hampshire

  • Play USA: New Hampshire Gambling Revenue Skyrockets 85% In September
    • The start of the NFL season was kind to New Hampshire sportsbooks. The New Hampshire Lottery’s latest revenue report reveals that the state’s three retail and one online sportsbook took home $6.17 million in September, up 84.8% over August. However, sportsbook revenue was down around $1.18 million compared to September 2022. New Hampshire gaming regulators report sports gambling revenue in three categories: online, retail, and combined. This past month, online books saw their revenue jump from around $3 million to just over $5.5 million. Retail sportsbook revenue lept from around $270,000 to just under $610,000.

Tennessee

  • Sports Handle: Early Questions Arise About Tennessee’s Betting Tax Structure
    • Tennessee generated $1 million less in tax revenue from mobile sports betting in September 2023 than during the same period a year prior. The decrease comes despite Tennesseans wagering $83 million more in September 2023 than in September 2022. Tennessee also saw a $400,000 decrease in tax revenue in August 2023 compared to August 2022, despite $37 million more being wagered in August 2023 than in August 2022. The revenue dips come shortly after the state’s mobile sports betting tax structure changed on July 1, shifting from a 20% tax on adjusted gross income to a 1.85% handle tax. The taxation structure was changed because operators were missing the state’s controversial 10% hold mandate, willingly accepting a $25,000 financial penalty instead of meeting the hold requirement.
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