New York sweepstakes ban bill, Cohen spends on lobbying, more

Welcome to iGB’s State of the Union: A Weekly Overview of Major Developments in North American Sports Betting

New York Senator Joe Addabbo Advocates for Anti-Sweepstakes and Expansion Legislation

In a significant legislative move, New York State Senator Joe Addabbo has introduced two key bills targeting gambling regulations. The first, Senate Bill 5935, aims to prohibit unregulated sweepstakes platforms, which have garnered scrutiny from both state officials and the regulated gaming industry for siphoning revenue away from licensed operators. These sweepstakes, operating in a legal grey area, evade taxation and regulatory oversight.

This legislative proposal clearly delineates sweepstakes as games that “simulate casino-style gaming,” encompassing a range of offerings from blackjack to keno and sports betting. The proposed measure would also render it illegal for licensed suppliers and vendors to engage with these unregulated platforms. It was introduced on March 4 and has been referred to the Senate Racing, Gaming, and Wagering Committee for further consideration.

Addabbo’s second initiative, Senate Bill 6013, seeks to increase the cap on digital wagering licenses from nine to 14 by January 31, 2026, and to 16 by January 31, 2027. This adjustment would permit operators that initially applied for licenses during the 2021-2022 period to reapply, with priority given to those like Bet365 and Fanatics Sportsbook, which were unsuccessful in their initial attempts.

Additionally, the bill proposes a dynamic tax structure for licensed operators, where the tax rate decreases as the number of licensed platforms increases but rises if it drops below nine. The base tax rate cannot fall below 12% of adjusted gross revenue, significantly lower than New York’s current rate of 51%.

Significant Lobbying Expenditure for Downstate Casino Licenses

A report released on March 1 by the New York City Clerk’s office disclosed that bidders for three downstate casino licenses collectively spent $6 million on lobbying efforts last year. Notably, six of the top ten lobbying spenders are among the eleven companies seeking licenses. Overall, across various sectors, more than $138 million (£107 million/€127 million) was dedicated to lobbying activities in New York.

Leading the charge is Steve Cohen, owner of the New York Mets, who, alongside Hard Rock and his Queens Future firm, expended $2 million in pursuit of an integrated resort adjacent to Citi Field in Queens. Following Cohen are Resorts World and Bally’s, which invested $990,000 and $914,000 respectively, with the former aiming for a casino adjacent to the Aqueduct Racetrack and the latter planning a resort at a former Trump golf course in the Bronx. Several other casino companies reported expenditures ranging from $162,000 to $613,000.

All bids for the casino properties are due by June 27, with prospective operators required to secure local board approval and potentially additional variances. The New York State Gaming Commission is expected to announce licenses by December 31.

BetMGM Capitalizes on Brand Synergy in New Online Campaign

On March 4, BetMGM unveiled a strategic online advertisement designed to showcase the synergy between its digital gambling platform and MGM’s renowned physical casino resorts. The 30-second commercial features actor Jamie Foxx prominently on the Las Vegas Strip, emphasizing the direct connection between earning rewards points through online betting and redeeming them for in-person experiences at MGM properties.

FitzDares Exits Competitive Ontario Market

In a strategic shift, UK-based sports betting platform FitzDares announced its withdrawal from the Ontario market, with operations set to cease on March 24 at 11:59 PM. Customers will have until March 31 to withdraw their funds. This decision stems from fierce competition in Ontario, which features over 50 active platforms in a region with a population of 16 million, making it one of the largest markets in North America.

The announcement, made on March 4 via a notice on FitzDares’ Ontario platform, expressed gratitude to customers while highlighting the challenges faced in maintaining operations. Competition has proven to be a critical factor affecting profitability in this crowded market.

TheScoreBet Flourishes in Ontario Amidst U.S. Competition

While competition intensifies for U.S. sports betting market share, Penn Entertainment’s TheScoreBet brand continues to thrive in Ontario. CEO Jay Snowden reported robust performance metrics during the earnings call on February 28, indicating that Ontario remains the company’s number one market in North America for revenues, gross profit, and contribution margin. With plans to launch in Alberta pending regulatory approvals, the company anticipates further growth, fueled by consumer loyalty to the Score brand.

Revolutionary Self-Exclusion Program Launched in Indian Country

On March 3, tribal gaming leaders across the country unveiled a new “Tribal-Wide Self-Exclusion Programme,” allowing gambling consumers to voluntarily exclude themselves from all participating tribal casinos in one streamlined process. Developed in partnership with responsible gaming technology company idPair, this initiative emphasizes tribal commitment to community health and responsible gambling.

Ivory Kelly, CEO of the Tribal Council for Responsible Gaming, stated, “By tribes coming together to offer a streamlined process for self-exclusion with a technology partner that shares our values, we help people in our communities looking to take a break or stop gambling.” The program is set to launch in Wisconsin and will be accessible to all participating tribal gaming commissions, with presentations scheduled at the Indian Gaming Association conference in San Diego on April 2.

Momentum for Digital Sports Betting Legislation in Mississippi

On March 4, House lawmakers in Mississippi advanced a proposal aimed at legalizing digital sports betting to the Senate. While the Senate has historically shown reluctance towards gambling expansion, advocates within the House gaming committee successfully integrated favorable language into existing Senate bills.

Despite Senate Gaming Chairman David Blount’s opposition, Representative Casey Eure, a vocal proponent of gambling expansion, remarked, “This shows how serious we are about mobile sports betting.” Crossover day marked a critical deadline for legislative passage, intensifying efforts to ensure the proposal’s survival as the session approaches its conclusion on April 6.

New Jersey Bill Prohibiting College Sports Betting Partnerships Advances

A notable legislative development occurred on March 3 as a bill was forwarded to the Senate which would prohibit New Jersey’s public colleges and universities from entering into partnerships with sports betting operators. House Bill 4113 received unanimous approval in the House on February 27.

While the bill prohibits direct partnerships, it does allow higher education foundations to collaborate with sports betting companies, provided they ensure that no marketing directly targets students. The bill has since been referred to the Senate’s Higher Education Committee for further evaluation.

Potential Gambling Tax Deduction in North Carolina

On March 4, the North Carolina Commerce and Economic Development committee approved House Bill 14, which would allow gamblers to deduct their losses from income taxes. This one-page bill enables taxpayers to opt for either an itemized deduction or a standard deduction. Should it pass, individuals will be able to claim losses dating back to January 1, 2024.

BetMGM Announces Layoffs Amidst Slow Growth

On March 3, BetMGM disclosed plans to lay off 83 employees from its headquarters in Jersey City, New Jersey, effective May 27. The decision is attributed to a slowdown in industry growth, with a reported 29% decrease in sports betting revenue for December across the 38 states with legal sports betting.

As the third-largest digital wagering operator in the United States, trailing only behind FanDuel and DraftKings, BetMGM’s response reflects broader trends within the industry where rapid growth has tempered as more jurisdictions have legalized sports betting, saturating the market.

YouTube Implements Ban on Illegal Gambling Promotions

In a decisive move for responsible gambling practices, YouTube announced on March 4 that it will ban any content that directs users to unregulated or black market gambling sites. According to CNN, the platform will enforce strict measures against links, images, or verbal references that point to “unapproved” gambling websites, defined as those lacking compliance with local laws or that have not been vetted by YouTube or its parent company, Google.

Additionally, YouTube will age-restrict content associated with online gambling, making it inaccessible to users under 18 who are not logged into their accounts.

In Other News…

The Michigan Gaming Control Board (MGCB) issued cease-and-desist letters to five offshore operators, including BetWhale Casino and Black Lotus Casino, warning them to cease operations within 14 days or face legal consequences.

Caesars Sportsbook has partnered with IC360 to incorporate its ProhiBet product, an innovative tool designed to monitor prohibited bettors in real-time and enhance overall betting integrity.

Hard Rock Digital has officially joined the International Betting Integrity Association (IBIA), which collaborates with over 70 companies and 140 sports betting brands globally to foster integrity within betting markets.

DraftKings recently secured a $600 million Term Loan B, a significant increase from its initial $500 million approval, aimed at strengthening its operational capacity and supporting general business activities.