State of the Union: DraftKings under fire, AGA reports record Q3 for gaming revenue

DraftKings under fire in MA, OH

The Ohio Casino Control Commission (OCCC) Wednesday (20 November) levied a $425,000 (£335,028/€408,042) fine on DraftKings for two separate violations. The OCCC said DraftKings took college-player prop bets, which are banned in the state. It also said the company allowed accounts to be funded at “unauthorised” locations.

With regard to the college-player prop bets, DraftKings took bets 14-19 March, after the ban went into effect 1 March. In terms of account funding, the OCCC revealed that DraftKings took $2.5 million — on 40,985 deposits — at “non-gaming retail locations.”

Following the violations, the OCCC said DraftKings removed player-prop bets from its Ohio bet menu and stopped taking deposits at unapproved locations. The commission is requiring DraftKings to train its employees on these laws and regulations relating to the matters.

Also on 20 November, the Massachusetts Gaming Commission (MGC) spent seven hours discussing DraftKings allowing credit-card deposits, which are banned in the state. It was the second of two adjudicatory hearings on the matter. The MGC did not reveal a penalty for the actions, but will do so in the future.

The issue occurred at least twice, and commissioners were clearly exasperated at the company’s inability to quickly correct the problem. DraftKings first self-reported the issue in May 2023, and assured the commission that the issue was resolved. But it happened again.

During the hearing, DraftKings executives said they misinterpreted the rule as meaning that only credit-card deposits made in Massachusetts were banned.

US gambling revenue continues to soar

The American Gaming Association (AGA) yesterday (21 November) reported that commercial gaming revenue reached a record $17.71 billion for the third quarter. That beat the previous record of $17.67 billion, set in the first quarter of 2024. Revenue at brick-and-mortar casinos was down 1% year-over-year while sports betting revenue was up 42.4% YoY. Online gambling revenue was up 30.3% YoY. Through the first nine months of the year, commercial gambling revenue is $53.2 billion, up 8% against the same period in 2023.

Online gambling accounted for 29% of all gaming revenue.

“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth,” AGA vice president of research David Forman said via press release. “At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue.”

ROGA opens RFP tech provider

The Responsible Online Gambling Association (ROGA) 19 November announced that it is building an interested parties list for an upcoming request for proposal (RFP). The group will be searching for a technology company to run its data clearinghouse, which it hopes will power a national voluntary exclusion list available to all. 

Bally’s, Bet365, BetMGM, DraftKings, Fanatics Sportsbook, FanDuel, Hard Rock Digital and Penn Entertainment are members. When the new nationwide self-exclusion list is live, ROGA members will share it within their group, meaning that if a player self-excludes in Florida on Hard Rock Bet, then the player would also be self-excluded on Fanatics Sportsbook in New York. 

Companies interested in the bid process must sign and return a non-disclosure statement by 25 November. 

October revenue: Handle up, hold down in CO, WY, DC

The Colorado Division of Gaming yesterday (20 November) released wagering numbers for October. According to the report, handle was up year-over-year and month-over-month, while tax payments were down against last month and October 2023. For the fiscal year to date, both handle and tax revenue were up. In October, bettors laid down $601.2 million in wagers. It was the second time handle exceeded $600 million since launch in May 2020. Operator hold was 6.54%.

Bettors in Wyoming laid down a record $24.5 million in wagers in October, according to the Wyoming Gaming Commission’s October 2024 report. But gross gaming revenue (GGR) was $1.9 million and adjusted gross revenue (AGR) was $878,128. Those numbers are down significantly year-over-year and month-over-month. The drop in AGR is likely due to promotional writeoffs. BetMGM showed a loss of $78,004 in AGR while DraftKings had GGR of $1 million, but AGR of $466,963.

During the first October in which Washington, DC bettors had access to multiple sports betting platforms, the DC Lottery reported a record $65.8 million in handle, but month-over-month decline in GGR with operators taking in a combined $6.6 million. The revenue decline can be attributed in part to low hold of 2.35% for Caesars Sportsbook. October was the first full live month for Fanatics Sportsbook, which took $2.2 million in bets.  

In other news …

Jay Kornegay, Westgate SuperBook vice president of operations, is retiring from that role, but will stay on as vice president of marketing in an ambassador/advisor role, the Las Vegas Review-Journal reported yesterday (21 November). John Murray has been promoted to vice president of race and sports. Kornegay has been in the industry for four decades and the Review-Journal referred to him as among the most “influential” people in the business.

Back-end technology provider IGT was hacked, according to an Insurance Journal story 20 November. According to the story, there were disruptions in some of IGT’s internal information technology systems and applications.

Delaware North revealed 19 November that it has partnered with Playtech to operate its Betly Sportsbooks. The switch will start with the Ohio platform, which replaces MVGBet. The company will migrate other platforms in the future. 

Caesars Sportsbook has placed 48 kiosks at small businesses around Washington, DC, the company announced 18 November. The kiosks replace the GambetDC kiosks operated by Intralot. The company also launched its Horseshoe Online Casino in New Jersey, its fifth US jurisdiction.

Wind Creek Hospitality, the business arm of the Poarch Band of Creek Indians 18 November purchased Alabama’s Birmingham Race Course, according to AL.com. Terms of the deal were not disclosed. In a Wind Creek Press release, the tribe wrote that it plans to turn the track “into a premier entertainment destination in the Southeast and will continue to offer parimutuel and historical horse racing games currently in operation.”

Wilton Rancheria Chairman Jesus Tarango Jr. 18 November announced that his tribe became the first in the country to own a stake in a US professional sports team. The tribe is now the majority owner of the USL Championship soccer team, Sacramento Republic FC.

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