State of the Union: DC’s new open market, bye-bye SaharaBets, FanDuel fine
On Monday in DC, bettors will have more options
After four years of being limited to offering their digital platforms within a two-block radius in Washington DC, on Monday BetMGM and Caesars Sportsbook plan to take off the geofence. Last month, the DC Council passed a new budget that allows for a competitive wagering marketplace. Because BetMGM and Caesars have been live with digital platforms with limited reach for several years, they’ll be the first to join lottery partner FanDuel in offering citywide access.
Under the new law, commercial operators can apply to offer their platforms in the District. FanDuel, which took over the lottery’s offering in April, will continue to be available. But the company, which subcontracted with lottery provider Intralot to offer its platform, will shift to being tethered to Audi Field. Intralot’s sports betting contract with the DC Lottery expires on Monday. In the new landscape, the lottery will no longer offer a sports betting platform.
FanDuel has a partnership with Audi Field and, as such, has market access in DC. FanDuel is currently paying a 40% tax rate for the privilege of having a monopoly. Operators in the new DC competitive wagering marketplace will pay a 20% tax rate.
All launches are pending regulatory approvals.
SaharaBets shutters in Arizona
Two weeks after businessman Alex Meruelo announced that he was unwinding what was left of the NHL Arizona Coyotes, he announced the shuttering of SaharaBets:
New DFS marketplace available on FantasyWire
On Tuesday (9 July) Wire Industries, the parent company of WagerWire, announced that it is breaking out two new verticals for daily fantasy sports and sports betting media. According to a company press release, FantasyWire will have the industry’s first DFS pick ‘em marketplace.
The new media vertical will include The Sports Influencers, launched in 2023 to provide original betting content.
Fanatics, FanDuel fined for taking illegal wagers
On Wednesday (10 July) the Associated Press reported that the New Jersey Division of Gaming had fined FanDuel $2,000 for offering bets on MMA fights that were already over. On April Fool’s day, the digital sportsbook took 34 bets on fights that were completed March 25. FanDuel paid out more than $230,000 to settle the bets.
On Thursday (11 July) the Massachusetts Gaming Commission fined Fanatics $15,000 for taking a bet on a Massachusetts college basketball team. The wager was part of a $2 parlay that lost. In Massachusetts, operators can only offer bets on local college teams if they are playing in a tournament.
Worth the read
Operators use bonuses as a way to sign up new players, but Steve Ruddock writes in his “Straight to the Point” substack that, while bonuses are necessary, operators may not be using them properly. Or that they put too much stock in them. His arguments are worth the read.
In other news…
Hard Rock International chairman Jim Allen headlines the American Gaming Association’s 2024 Hall of Fame class. On Wednesday (10 July) the organisation also announced that Alan Feldman, a UNLV International Gaming Institute director of strategic initiatives and distinguished fellow in responsible gaming, and Debi Nutton, Everi Holdings board member and former MGM and Wynn resorts executive, will also be inducted.
North Carolina’s legislative session adjourned in late June and a bill that would have banned college-player prop bets was left stuck in committee.
West Virginia in late June became the latest state to send offshore book Bovada a cease-and-desist letter. The Mountaineer state followed the leads of Colorado, Connecticut and Michigan.
ICYMI on iGB
Jontay Porter pleads guilty to conspiracy to commit wire fraud
Wyoming Gaming Commission: Harassment a problem, but is college-player prop ban the answer?
Colorado tribe sues state for right to offer digital sports betting
NJ DGE hits DraftKings with $100,000 fine for improperly reporting data