Decision day in the US with Missouri the only vote that matters – kinda.
In +More: Alexander and Fenton sue the UK Gambling Commission.
Musk $1m sweepstakes winners ‘not random.’
VGW legal troubles spiral as a Connecticut resident sues the company.
Sweden has joined the Macolin Convention.
Vote for Mr Rhythm, I'm voting twice.
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Down to the wire
Vote early, vote often: The online operators have poured millions of dollars into a pro campaign to persuade voters in Missouri to back the vote on Amendment 2, which would regulate sports betting in the Show Me state, as late support came in from prominent politicians.
If approved, Missouri would see betting operations launch before the end of December next year and would add 1.8% of the total population to the US sports-betting TAM.
Tax would be set at 10% of NGR, which as the analysts at Jefferies noted is at the lower end of the spectrum.
Contrary to previous understanding of the licensing details, the Missouri Gaming Commission announced that land-based operators would get one OSB platform license per land-based location, not one per operator.
Winningest: DraftKings and FanDuel have led the way in terms of the ‘yes’ campaign, funding the Winning for Missouri Education group to the tune of over $10m between them.
The money was set to work on a TV advertising push.
Fractures: To counter that, rival Caesars put its weight behind a ‘no’ campaign led by Missourians Against the Deceptive Online Gambling Amendment.
The company’s three casinos in the state contributed $4m between them to that anti-sports-betting effort.
Do it clean: Caesars CEO Tom Reeg defended his company’s stance on the Q3 earnings call with analysts last week, saying it was “important” the opening up of sports betting was “done in a manner that makes sense for the operators and for the state.”
“You’ve got a well-established path of legalizing and licensing through the operators that have invested substantial amounts of capital, employed thousands of people and paid hundreds of millions, billions of dollars in taxes,” he added.
“We think it’s important that it continues on that path.”
Bridge over troubled water: Local politicians weighed into the debate in the final days of campaigning as the mayors of St Louis and Kansas City, respectively Tishaura Jones and Quinton Lucas, endorsed Amendment 2.
“Every time a Missourian has to drive across the river to Illinois to place a sports bet is a missed opportunity for our city, our state and our passionate sports fans,” Jones said.
“Missourians are betting on sports; we just aren’t getting any of the benefits.”
Jones and Lucas were adding their names to a long list of state senators and representatives endorsing the measure.
Now or never: The analysts at Truist noted that if this vote should fail, then the next opportunity to get OSB voted in in Missouri would be 2028. The team added that a complicating factor was another gaming measure vote on the same ballot over the potential development of a land-based casino in the Ozarks by Bally’s.
The team cited the opinion of Brendan Bussman at B Global, who suggested that historically two votes on the ballot tend to both attract ‘no’ votes.
The Jefferies team also noted other votes taking place across the country. In Arkansas voters are being asked to decide on a measure to revoke the authorization for a casino license in Pope County that was granted to Cherokee Nation Entertainment in 2018.
And in Petersburg, Virginia, a local referendum will decide on whether a casino development by Cordish/Bruce Smith Enterprises should go ahead.
What we’re reading: Presidential betting odds closer to toss-up as election day nears.
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+More
That’s private: Former CEO at Entain Kenny Alexander and former chair Lee Feldman have launched a legal action against the UK Gambling Commission alleging the “misuse of private information.”
The online debut of the Massachusetts lottery has been delayed until 2026 after the operator admitted at a public meeting held in Boston that progress towards launching a product had been slow.
The Finnish-ing line: Finland has published its draft law, which the team at Nordic Gaming said “suggests a robust and practical framework for a well-regulated gambling market.”
The team added that Finland was “leaning heavily” on regulatory models from Denmark and Sweden.
“Operators knowing these jurisdictions will find many elements familiar, like a regulatory approach akin to Denmark’s SAFE system and Sweden’s emphasis on advertising moderation,” the team added.
For more on Finland, see Thursday’s C+M edition.
Musk lottery go-ahead
Chances are: The “winners” of Elon Musk’s $1m-a-day voter sweepstakes are not chosen by random, but rather paid “spokespeople” in swing states for the tech titan’s political action committee (PAC), a court heard Monday.
GOP lawyer Chris Gober, defending Musk in the case brought by Philadelphia district attorney Larry Krasner, also said the recipients this week will come from Arizona and Michigan, rather than Pennsylvania.
Recipients are selected based on their personal stories, rather than chance, and they sign a contract with the political organization, America PAC, Gober said.
Krasner argued that as Musk used the words “chance” and “randomly,” the giveaway amounts to illegal gambling and is in contradiction to state election law.
“[Randomly is] not the word I would have selected,” said Chris Young, the PAC’s treasurer.
Free speech for the dumb: Musk, who did not appear, failed in a bid to move the case to federal court, instead it is being presided over at Philadelphia City Hall.
Krasner said he is still mulling criminal charges given his remit to protect the integrity of both lotteries and elections.
“This was all a political marketing masquerading as a lottery,” Krasner testified. “That’s what it is. A grift.”
More than 1m people registered for the sweepstakes by signing a petition saying they support the right to free speech and to bear arms; Krasner said it was “a scam” to obtain their personal details.
VGW in more hot water
Don’t you lie to me: Sweepstakes juggernaut VGW is in more bother after being sued by a Connecticut resident who alleges the operator is fraudulently claiming to be a legalized social casino.
The suit, filed at the Hartford Superior Court, states that VGW spent millions on advertising the likes of Chumba Casino and Sweepstakes Casino as if they were regulated offerings.
The court will hear evidence provided by the Connecticut Department of Consumer Protection (CDCP), which holds records of VGW’s advertising spend.
It is one of more than 10 lawsuits faced by the operator, most of which relate to gambling losses.
In February, the CDCP issued a cease-and-desist letter to VGW, accusing the company of engaging in illegal gambling activities.
The operator eventually pulled out of Connecticut in October.
Read ’em and sweep: Several other sweeps operators, including DoubleDown, Playtika, PlayStudios, SciPlay and SpinX, are also battling legal action as opposition from within the sector continues to snowball.
States issuing cease-and-desist letters is grist for the mill of federal action further down the line, according to American Gaming Association (AGA) senior VP for government relations, Chris Cylke.
Cylke appeared on the National Indian Gaming Association’s The New Normal webcast to expand on the AGA’s push for regulators to crack down on sweeps operators.
“When these companies come in and say they are innovating it resonates like manifest destiny. But you’re starting to see a public change,” he said.
Cylke said sweeps operate in a “legal gray area,” where issues of anti-money laundering, responsible gaming and consumer protection issues all overlap.
The embattled sector is developing its own self-regulatory code of conduct as part of a fightback against broader gambling industry hostility.
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Sweden signs up
Non-joined up thinking: Sweden has joined the Macolin Convention, the Council of Europe’s effort to corral national efforts with regard to sport match-fixing.
In a memorandum from the Ministry of Social Affairs, the Swedish Government has proposed that Sweden sign and ratify the so-called Macolin Convention.
Not in our name: However, the Swedish bookmakers’ trade association, BOS, said the exclusion of non-state owned bookmakers is “unreasonable” and weakens the efforts at trans-national anti-corruption measures in sport.
BOS said it is only right that it points out private and listed gambling companies should have access to the Council of Europe bodies responsible for any match-fixing efforts.
As it stands, only state betting companies have full access, meaning a large part of the market is denied input. BOS secretary general Gustaf Hoffstedt said in a statement that this exclusion was “outdated and unjustifiable.”
More info needed
A polite request: Brazil’s ministry of justice and public security has contacted 17 betting operators requesting clarification over their plans to protect vulnerable consumers.
The authorities have demanded more detailed information on advertising, bonuses and restrictions on access by underage persons and to explain their monitoring and blocking systems.
The 17 names include some of the biggest operators in the market, including Betano, Flutter’s Betfair, Betnacional and EstrelaBet.
They will have until 11 October to respond with the requested information.
According to Wadih Damous, Brazil’s national secretary for consumer affairs, the aim of the request is to ensure companies are acting within the restrictions of the law.
“The increase in promotional practices and bonuses can make consumers vulnerable and expose minors to a universe of risk,” Damous said.
A clamor: Meanwhile, concerns over the rise in problem gambling continue to take on a greater prominence after Senate president Rodrigo Pacheco joined President Lula in voicing fears that the government had “made a mistake” in liberalizing online gambling.
Pacheco said the government needs to invest in tougher rules and try to reverse any harmful impact of online gaming, according to SBC News.
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Events calendar
Event highlight: The 2024 Gaming in Germany Conference, being held today at the Hotel Adlon Kempinski in Berlin, will feature a raft of speakers who will give an overview of where the German market stands at this time. They include Christian Heins, director iGaming at Tipico; Stanisław Szostak, CEO of Astral Forest; Britt Boeskov, non-executive director at Mindway AI; and Annika Lindberg, psychologist and trustee at Gordon Moody.
Nov 5: Gaming in Germany, Berlin
Nov 11: RG Symposium, Malta
Nov 18: Problem Gambling Prevalence webinar
Nov 27-28: Eastern European Gaming Summit, Sofia
Dec 2-4: Thai Entertainment Complex Summit, Bangkok
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