State of the Union: Mississippi senate bans sweeps, MGCB comes down on illegal operators
Mississippi senate approves sweeps ban
Mississippi lawmakers on Tuesday (11 February) became the first state in the nation to take decisive action in terms of banning digital sweepstakes. The state senate passed SB 2510, 44-1. The bill will now go to the house. The bill bans “online sweepstakes casino-style games” and operators would be fined $100,000 (£79,000/€95,000) per violation and could serve up to 10 years in prison. The level of crime was elevated from a misdemeanour to a felony.
The bill would also ban online racebooks and online sports pools. Brick-and-mortar casinos and sportsbooks and horse race tracks are legal throughout the state, but no form of digital gambling, including online casino, is.
Earlier in the session, HB 1302, which would allow for statewide digital sports betting, passed out the house and was sent to senate for consideration. A second legal sports betting bill died in committee.
Michigan to illegal icasinos: Get out
The Michigan Gaming Control Board (MGCB) on Wednesday (12 February) said that it had issued nine cease-and-desist letters to online casino operators who operate illegally in the state. According to a press release, it sent letters to BetAnySports (BAS), CoolCat Casino, Diamond Sportsbook International, d/b/a BetDSI.eu (BetDSI), My Dreams Casino, NonStop Casino, Palace of Chance, Solar Game LTD and Busan Trade Office (Go Go Gold), WagerWeb and Xbet Casino.
The MGCB wrote that the unlicensed digital casinos violated three state laws. Operators were given 14 days from the receipt of the letters to withdraw from the state. If they do not, the MGCB will “work with the Michigan attorney general’s office to pursue further legal action.”
The MGCB has previously had success using cease-and-desist letters to force illegal digital sportsbooks out of the state. It is considered a leader in the industry in pushing out illegal operators of all kinds.
South Dakota senate moves digital betting bill
South Dakota’s senate commerce and energy committee on Thursday (13 February) advanced a legal digital sports betting bill. The bill was advanced by an 8-0 vote. Retail wagering has been legal in the state since September 2021. The bill would allow for statewide digital betting, provided servers are located in Deadwood. The proposal would earmark 90% of state tax revenue for property tax relief. No tax rate is indicated in SJR 507.
Google to implement big changes
On 10 February Google released updated guidelines that include a ban on aggregators and affiliates promoting social casino games. The company says beginning in April it will only allow the promotion of legal gambling and will require aggregators and affiliates to be licenced with Google. Failure to gain proper certification could result in an “account being prohibited from running ads until you apply for and receive certification,” according to a press release.
Google defines social casinos as “online simulated gambling-style games where there is no opportunity to win something of value.”
In the US, certified companies can advertise legal horse racing, lotteries, lottery couriers, online casinos and sports betting. Any advertising must include a warning about “addictive and compulsive gambling and related assistance information on the landing page or in the creative” and cannot be targeted at those under the age of 21. In addition, according to the release, gambling advertisers may only promote gambling in legal gambling states.
The new guidelines indicate that there are 55 legal gambling countries in the world. There is a section with specific rules for each country.
Renewed push for US GRIT Act
Ahead of the Super Bowl on 9 February, Connecticut senator Richard Blumenthal and Oregon representative Andrea Salinas reintroduced the GRIT Act, which seeks to use a percentage of a federal gambling excise tax to create a national framework for problem and responsible gambling.
The federal proposal would also require the secretary of health and human services to submit a report after three years about the effectiveness of the act. The legislation would direct 75% of federal gambling tax revenue to states for problem and responsible gambling initiatives. The remaining 25% of tax revenue would be earmarked for gambling research through grants from the National Institute of Drug Abuse.
Baby boomers fueling betting growth
On 10 February TransUnion released its annual “US Betting Report” and one of the more interesting takeaways is that there was an increase of bettors in the Baby Boomer and Gen X categories, while participation by Millennials dropped by 5%. The report also revealed 25% of those polled said they had bet in Q4 2024 versus 24% in Q4 2023.
While the survey showed that betting increased overall, the number of bettors who wagered $500 or more per month decreased and the most “active” bettors surveyed had a “more volatile financial behaviour”.
While the poll reported mostly good news for the wagering industry, TransUnion cautioned that problem gambling remains a concern.
“The risks of problem gambling only increase as the industry continues to expand,” study authors wrote. “And the chorus of concern from regulators and consumer advocacy groups related to responsible gaming is growing alongside the industry.”
National Association Against iGaming debuts
On 11 February the National Association Against iGaming (NAAiG) announced its formation and released an Innovation Group study that “debunks the myth that igaming offers easy revenue for states”. According to a press release, it shows that land-based casino revenue dropped 16% “on average” after online casino was introduced in a state. The study also points to job losses when igaming is introduced as well “significant losses” in economic output.
In the press release and on its website NAAiG does not indicate who its members are. But representatives from Churchill Downs Inc (CDI), the Cordish Companies and Monarch Casino are all quoted. Executives from CDI and the Cordish Companies have testified against igaming expansion in several states over the last six months.
“Igaming is eroding our communities,” Shannon McCracken, senior director of government relations at CDI and NAAiG board member said in the press release. “This isn’t just about responsible gaming – it’s about protecting local family sustaining jobs and preventing financial harm. In Maryland alone, igaming could cost $372 million in economic output, $342.6 million in lost casino revenue and nearly $110 million in annual wages. We must act now to protect our state and local economies nationwide.”
Canada’s NorthStar Gaming sees Q4 rise
On 11 February NorthStar Gaming released preliminary fourth-quarter results. The company projects a 42% increase in handle against Q4 2023 and a 31.6% increase in gross gaming revenue (GGR) against the same quarter in 2023. NorthStar also projects a 51% increase in handle for the full year versus 2023 and a 51% increase in GGR.
The company also announced that is has secured $30 million in financing. CEO and chair Michael Moskowitz said: “We believe we have the funding in place to reach profitability based on the current business platform.” The company expects to release audited Q4 and FY 2024 results in late April.
Study: Georgians favor legal wagering
Georgians want legal sports betting, according to a poll released by the University of Georgia School of Public Affairs. Eight hundred registered voters were surveyed by phone and 63% support legal sports betting. That number rose to 79.8% if state monies from wagering were directed to the state’s HOPE program or pre-K programmes. Also 77.9% of those surveyed say the decision on whether or not to legalise should be sent to the voters.
The poll did not specify whether or not lawmakers were considering in-person or digital sports betting or both.
Georgia lawmakers have been trying for at least five years to bring legal sports betting to the state. Political issues have prevented passage. So far, no bills have been filed for this session, although several lawmakers have promised to carry the issue again.
Worth the read…
Last week, former Shohei Ohtani interpreter Ippei Mizuhara was sentenced to 57 months in prison for stealing from Ohtani to bet illegally. Forbes’ Matt Rybaltowski takes a deep dive beyond the sentencing. He looks into Mizuhara’s journey and explores all the major wagering scandals across the US. Read the full story here.
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