State of the Union: Nebraska slow down, Penn eyes Alberta, FanDuel sued
Legal digital wagering stalled in Nebraska
Nebraska lawmakers don’t seem ready to introduce digital sports betting, although the state’s traditionally anti-gambling governor is now supportive. Gambling proceeds are earmarked for property tax relief, which is a priority for lawmakers.
Legal digital sports betting is stalled in Nebraska. The state legislature has been in special session since 25 July. The General Affairs Committee held a hearing on the subject last week. But since then, lawmakers appear divided.
One source said that Governor Jim Pillen, traditionally anti-gaming, now supports an expansion. Pillen previously said that he plans to introduce legislation in January. He appears open to any gambling expansion to increase state tax revenue. Friday is day 10 of the special session, which does not have a firm adjournment date.
In 2020, Nebraska voters legalised “games of chance.” At that time, it was unclear if sports betting fell under that umbrella – it is defined as a “game of skill” in some other states – but lawmakers later determined wagering was part of the expansion. However, the legislature limited legal sports betting to in-person wagering. Gambling proponents are now pushing to add digital gambling. Ninety per cent of gambling tax proceeds in Nebraska go to property tax relief.
The median property tax in Nebraska is 1.61%. It is one of the 10 most expensive property tax states in the US.
Penn hopes to “replicate” Ontario success in Alberta
During the second-quarter earnings call on Thursday (8 August), Penn executives enthusiastically talked about the opening of the Alberta market. Penn bought Toronto-based theScore and theScore Bet in 2021, in part to gain a foothold in Canada. CEO Jay Snowden said he believes Alberta officials are looking to open the market in late 2024 or early 2025.
“We would anticipate that the success that we’ve seen in Ontario with theScore and theScore Bet, we would be able to replicate that in Alberta,” Snowden said. “TheScore is a very popular brand throughout Canada, it’s not just a Toronto or Ontario thing. So, given the success we’ve had in Ontario and given that Alberta will have very similar tax rates as we understand it and be both OSB and icasino, we think it’s going to be a really important North American market for us, probably a top three or four market for us.”
iGaming Ontario does not release revenue numbers by operator. In its Q1 earnings call, Snowden said Ontario continues to perform “really well”.
FanDuel sued for alleged data-privacy violation
Covers is reporting that FanDuel has been sued in federal court in California for improperly sharing consumer data. A lawsuit contends that consumer data is sent to TikTok before FanDuel customers can make a cookie decision regarding data sharing. When the data is sent, according to Covers, TikTok uses “fingerprinting”. Data is collected from anonymous sources visiting the site and then integrated with existing data on file to create a profile. TikTok then sends targeted ads to consumers.
FanDuel’s parent company, Flutter, isn’t the only well-known corporation being sued for using TikTok software. Wagering competitor DraftKings, WebMD and United Health Care have also been sued.
ESPN Bet rebranding eight retail locations
On Thursday (8 August) ESPN Bet announced that it is rebranding eight brick-and-mortar sportsbook locations in five states. August openings are set for the Hollywood Casino Kansas Speedway, L’Auberge Casino & Hotel in Baton Rouge and Plainridge Park, Massachusetts. Five locations are set for September openings: in Louisiana at the the L’Auberge-Lake Charles and Margaritaville Resort-Bossier City; in Ohio at the Hollywood Casinos in Columbus and Toledo; and in Maryland at the Hollywood Casino in Perryville.
Study: Betting bad for financial health
In a UCLA-USC study released late last week, researchers found more credit problems and bankruptcy issues in legal gambling states than in non-legal states. The study is called “The Financial Consequences of Legalized Sports Gambling”. According to the study, four years after legalisation, the “likelihood of bankruptcy filings” increases up to 30%.
The researchers also discovered that in legal betting states, credit scores are 0.3% lower than states without legal betting. That number increases to 1% in states with legal online gambling. They also found that the use of consolidation loans rose in legal betting states and that debt collectors took over more and higher debt.
The researchers “leveraged” data from the University of California Credit Panel. The UCCP includes credit scores, credit card balances and loan delinquencies for seven million US adults.
The results of the study surprised the researchers.
“I thought they were, I guess, a bit stronger than I was even expecting,” USC’s Poet Larsen told Front Office Sports. “Our data is at the average, looking across all individuals. The concerns about problem gambling are oftentimes considered to be a small proportion of the population. And so for us to be able to pick up fairly strong effects with population data suggests that it’s a pretty strong outcome to be seeing across the board.”
New place to bet in Kentucky
On Thursday (8 August) Circa Sports revealed that it will open a temporary brick-and-mortar sportsbook at The Mint Gaming Hall at Kentucky Downs on Monday (12 August). The book will have three betting windows, five kiosks, 10 TVs and four odds boards. There will be an additional kiosk inside the Oasis Side Bar. Circa partners with The Mint to offer digital sports betting in Kentucky.
Circa Sports is live online in five states.
In other news…
Bally’s on Thursday (8 August) announced that its Chicago casino continues to “outpace” other Illinois casinos in terms of revenue. According to the release, overall casino revenue dropped 1.7% in June, Bally’s had a 5.6% increase at its temporary site at Medinah Temple.
The East Coast Gaming Conference (ECGC) on Tuesday (6 August) announced that it is awarding Hard Rock International (HRI) chairman and Seminole Gaming CEO, Jim Allen, a lifetime achievement award at its April event.
Sports betting reporter David Purdhum signed a multi-year contract extension, ESPN announced on Monday (5 August). Purdhum has been covering sports betting since 2008 and is among the most prominent wagering news reporters in the US.
Daily fantasy provider PrizePicks on Monday announced that Mike Ybarra will replace Adam Wexler as CEO immediately. Wexler, one of the company’s founders, will stay on as executive chairman of the board.
On Tuesday, War Horse Casino Omaha opened the doors to its permanent casino amid protests from the anti-gambling lobby, according to the Omaha World Herald. The new casino has 800 slot machines, 20 table games and a new restaurant and bar.
The US Attorney’s office in Southern California on Monday (5 August) announced it had arrested four men in San Bernardino County for running a cockfighting ring. According to an affidavit, cockfighters paid a $1,000 entry fee and fans paid a $40 per person entry fee and there were often 100 attendees.
The Massachusetts Gaming Commission cancelled a Wednesday (7 August) agenda-setting meeting during which it had planned to set a new date to discuss bet limits with operators. The issue has been contentious and most operators boycotted an initial meeting on the topic. It’s unclear why the meeting was cancelled or when the bet-limits issue will again be considered.
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