Warnings of differential odds or market exits are risible, suggest experts.
In +More: Caesars community support, Buenos Aires’ pause.
The German regulator makes doubtful black market claims.
Two-thirds of UK consumers are in favor of further gambling curbs.
But what a fool believes, he sees.
Tax hike takes
Misfire: The Sports Betting Alliance’s Jeremy Kudon has warned lawmakers about what could happen if a state raises the tax rate on sports-betting operators, to the point of suggesting companies might “reevaluate their level of investment and participation in that state.” Yet, experts believe that is unlikely in any significant market.
“Don’t walk into the room [and] say you’re going to push the nuclear button,” B Global’s Brendan Bussmann said during an episode of the Indian Gaming Association’s New Normal webcast in June.
“It only hurts you down the road. At some point, somebody is going to say, ‘You were going to do this, and you didn’t’.”
Passing the buck: The SBA’s more nuanced argument is that a tax hike leads to “worse products, worse promotions and, inevitably, worse odds for Illinois customers.”
“There’s no impetus for the customer to go over the border from New York to New Jersey to get better odds” because sportsbooks don’t currently have the capability to offer different odds in different states, Kudon told Sports Business Journal.
Kudon said Illinois, which recently raised its tax rate, may have accelerated the “process of differentiating odds.”
“That’s one option on the table. In a year or two, you’ll see different odds and real changes.”
Easier said than done: Yet, without industry-wide collusion, which operator will be the first to take the plunge?
“The betting industry and its lobbyists often threaten that higher revenue (GGR) taxes would force companies to increase odds to compensate, but this is both commercially and economically self-defeating,” said Paul Leyland at Regulus Partners.
“There is nearly always enough competition in US markets to ensure at least some operators won’t.”
Shave and a haircut: Jordan Bender at JMP Securities believed operators would adjust to higher tax rates, noting they have “control of many aspects of the gross margin structure” and could “shave off basis points (as a percentage of revenue) from promotions, platform, processing and revenue-sharing fees.”
Leyland suspected a more likely outcome was less bonusing and “more dangerously R&D will suffer over time, meaning the regulated product will be less attractive than the black market product.”
The JMP team suggested operators could renegotiate their original revenue-sharing agreements from 2018-19, which have been devalued given the current market conditions “as demand for sports-betting licensees is declining as companies are leaving the industry faster than new entrants.”
NJ freeze
New Jersey lawmakers this week unveiled a state budget proposal for the 2025 fiscal year that does not include increased internet gaming tax revenue from sports betting and NJ online casinos, according to PlayUSA.
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Caesars Entertainment has promised $250m worth of community support to the Midtown and Hell’s Kitchen neighborhoods as part of its bid with Roc Nation and SL Green to win one of the downstate casino licenses in New York.
Argentina: The government of Buenos Aires is putting a pause on awarding online gambling licenses as it tries to fix underage gambling problems in the city, according to Yogonet. Only the 11 operators that already have a license will be allowed to legally operate.
Betr has been awarded an OSB license in Maryland. No date has been given for a launch.
Netherlands-facing Betnation has joined the International Betting Integrity Association.
The Philippines remains on the Financial Action Task Force’s gray list of jurisdictions despite recent efforts to improve its AML practices. FATF said the country still needs to address strategic deficiencies.
The online gambling service provider Bee-Fee and Veterans Services Corporation has launched the mobile sports betting app and website LetsBetMD in Maryland.
+More careers
Peter-Paul de Goeij is to step down as director of the Netherlands Online Gambling Association at the beginning of July. De Goeij has been with NOGA since 2019. Eric Konings will serve as interim director following De Goeij’s departure.
Black forest fudge
Really? The black market accounted for a mere 4% of the total gambling market in Germany in 2023, according to the annual report from the regulator GGL, which estimated illegal GGR at between €400m and €600m for the year.
This compares with total gaming market revenues of €13.7bn, which was up 2% on the year.
Block and tackle: The report made much of the regulator’s efforts to shut down the online black market, saying that it blocked 133 illegal websites over the course of the year with half of the identified sites calling a halt to their offerings after pressure from the authorities.
The regulator also imposed two €50,000 fines over the period.
“Those providers who do not discontinue their services despite prohibition orders are often based in countries outside the EU,” the regulator said.
Foot loose: At the same time, the regulated iCasino market struggled to establish more than a foothold among players, with total GGR for the year coming in at ~€400m. Sports betting was worth €1.8bn over the period.
The regulator admitted to delays in getting more iCasino operations up and running, blaming a logjam in the games testing process.
“Resources were temporarily hired to provide temporary support with game testing. This led to a substantial improvement within the first two quarters of 2024,” the regulator said.
GGL appointment
Meanwhile, the GGL has appointed Reiner Moser as chair with immediate effect. Moser will be leaving his current position as head of department for the Ministry of the Interior, Digitization and Local Government of Baden-Württemberg.
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UK survey
Censorious: Two-thirds of UK consumers believe there should be more curbs on gambling advertising, according to a new survey from Ipsos conducted on behalf of GambleAware.
Large majorities were in favor of bringing in tighter regulations for social media (74%) and TV advertising (72%),
61% were against gambling advertising on football merchandise collected by children, while two-thirds “expressed concern” around the impact of gambling advertising on children.
Can’t get no satisfaction: The survey also found that gambling advertising acts as more of a prompt for those experiencing gambling harm than it does for the rest of the population of gamblers.
Over three-quarters of problem gamblers said they have been involved in a “gambling-related action” due to seeing a gambling advertisement.
In comparison, 24% of the general gambling population have bet because of an ad.
Around half of those experiencing problem gambling agreed that adverts about gambling would make it hard for them to cut down their betting (54%) or watch a professional football game without wanting to place a bet (51%).
Stigma: The survey also revealed that those who were experiencing gambling harm found it difficult to open up about their problems, with 64% saying they had never spoken to anyone about the issue due to feeling shame and guilt or feeling like they would be judged.
No logo
Spread the love: The shirt sponsor at English Championship side Sunderland, sports spread-betting firm Spreadex, has said it will allow fans to buy replica shirts without its name emblazoned on the front.
Andy MacKenzie, head of marketing at Spreadex, said the firm recognized that “some supporters may want the choice of having non-branded shirts to buy.”
Recall, the Premier League’s ban on shirt sponsorship by gambling companies begins as of the start of the 2026/27 season.
US roundup
Delaware: The mobile sports-betting monopoly in Delaware will continue after a bill proposing the introduction of a multi-operator system died in committee. The only operator in the state under the current system is Rush Street Interactive.
The state’s House Appropriations Committee elected not to take up the bill within the required 12-day period after it advanced from the House Administration Committee.
The bill had proposed two sports-betting skins for each of the state’s three casinos, alongside RSI’s BetRivers.
The state lottery was apparently against the move.
Ohio: The prohibition of promos or bonuses tied to non-gaming transactions unless specifically targeted at customers that are 21 or over will not be allowed in Ohio after an amendment to the state’s regulations was submitted by the Ohio Casino Control Commission to the state’s Common Sense Initiatives Office.
The rule change came in response to a promotion issued by Fanatics last year, which tied bonus bets to merchandise purchased through the operator.
What we’re reading
No California shortcuts: The idea that the Florida SCOTUS ruling paves the way for the tribes in California to ‘simply’ amend their compact to allow sports betting is “unlikely to be a viable option,” according to a tribal legal expert speaking to LegalSportsReport.
Calendar
Jul 17-20: National Council of Legislators from Gaming States, Pittsburgh
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