Super Bowl coin flip ok, says MGC; Ohio lawmakers unhappy

Welcome to iGB’s State of the Union, where we delve into the most significant developments in North American sports betting from the past week, alongside brief insights into other notable stories within the gambling sector.

Massachusetts Regulators Reverse Stance on Super Bowl Coin Flip Bets

In a notable policy shift, the Massachusetts Gaming Commission (MGC) has approved wagers on the Super Bowl coin flip, a decision made just a year after they voted against it. This change comes as the state prepares to host the Super Bowl between the Kansas City Chiefs and Philadelphia Eagles. Commission member Paul Brodeur, who cast the deciding vote, expressed confidence in allowing such bets, citing the lack of potential for manipulation.

Moreover, the MGC is also set to conduct an adjudicatory hearing regarding Caesars Sportsbook, which placed illicit wagers on the number of red cards during the UEFA Euro 2024 series. Notably, state regulations prohibit betting on facets susceptible to manipulation, including penalties and injuries. This incident surfaced during a routine review by the MGC, revealing six separate bets totaling $8,270 (£6,661/€8,006).

Additionally, two other matters are under review by the MGC’s Investigation Enforcement Bureau. Caesars is being investigated for non-compliance with the state’s knowledge-based authentication requirements from September 2023 to April 2024. Meanwhile, Penn Sports Interactive faces scrutiny for allegedly marketing to individuals who had self-excluded, a violation it self-reported following a flag from regulators in another state.

Illinois Enacts Restrictions on Super Bowl Betting

On the eve of Super Bowl Sunday, the Illinois Gaming Board has prohibited certain bets related to player conduct and pre-determined outcomes at the request of the NFL. This strategy reflects a growing trend among states that permit sports governing bodies to influence betting markets.

The newly restricted betting categories include:

Player injuries
Player misconduct
First play (run or pass)
Missed field goals or extra points
First quarterback pass as an incompletion
Officiating assignments
Fan safety concerns

Wagers deemed harmful to consumers, players, or the integrity of the game have also been banned.

In a proactive effort to promote responsible gaming, FanDuel reported that nearly half of its users engaged with its ‘My Spend’ tool during the 2024-25 NFL season. This feature enables players to track and manage their betting behavior. Moreover, FanDuel is launching a new responsible gambling tool named ‘Deposit Alerts,’ allowing players to set monetary limits on their deposits, accompanied by notifications when limits are reached.

Ohio Lawmakers Challenge Proposed Increase in Betting Tax

Governor Mike DeWine recently proposed an ambitious plan to double Ohio’s sports betting tax, which would raise the rate to 40%—a significant jump from the current 10% and the second highest in the nation after New York’s 51%. Since last summer, Illinois has implemented a sliding scale tax ranging from 20% to 40%.

This initiative has generated skepticism among lawmakers, particularly Republicans. Representative Brian Stewart emphasized the need for thorough discussions on the potential ramifications of a tax increase, suggesting that existing conditions warrant further examination before enacting such drastic measures. Representative Bride Rose Sweeney echoed this sentiment, noting that the implications of the tax hike are not yet fully understood by the industry.

In comments to iGB, gaming consultant Brendan Bussmann highlighted a perceived inconsistency in DeWine’s approach, questioning the logic behind imposing such a tax burden on businesses. This prevailing dissatisfaction among legislators might temper the governor’s ambitious tax increase proposal.

Mississippi Takes Steps Toward Statewide Digital Betting

On February 3, the Mississippi House of Representatives passed HB 1302, a bill aimed at establishing statewide online sports betting. This legislation has now moved to the Senate, having previously stalled in 2024.

Casey Eure, the bill’s sponsor, outlined the need for regulation, citing Mississippi’s status as a leader in illegal online sports betting, as indicated by Google search data. He further highlighted the significant tax revenue loss to neighboring states with legal betting frameworks.

The updated bill stipulates the prohibition of credit card funding accounts for digital betting, while allowing each land-based casino to partner with two digital platforms instead of one. To address concerns regarding revenue cannibalization from smaller casinos, HB 1302 allocates a $6 million fund to support those experiencing declines in land-based revenue during the first five years of digital betting implementation.

The legislature is expected to be in session until April 6, providing a critical window for this transformative legislation.

Alabama Senate President Signals Openness to Gambling Expansion

On February 5, the Alabama state senate appointed Garlan Gudger as its new president pro tem, sparking speculation about possible gambling expansion in the state. Gudger acknowledged concerns regarding revenue loss to neighboring states with established gaming markets and indicated the need for a careful assessment of any forthcoming gambling legislation.

Governor Kay Ivey has previously expressed willingness to explore new gaming options in Alabama but did not address the topic in her recent state address.

Georgia Pulls Proposed Gambling Amendment

On February 5, a resolution aimed at allowing in-person sports betting and casino operations in Georgia failed to progress. This proposal sought to present the option for citizens to vote on the establishment of at least eight casino licenses, with a taxation rate set at 20% of gross gaming revenue.

The proposal would have prohibited off-site casino gambling and established a new gaming commission. If approved, the amendment would have allocated the first $2 billion in tax revenue among Georgia counties, with 5% designated for responsible gambling initiatives. This question requires a two-thirds majority to advance through both legislative chambers and reach the November 2026 ballot.

License Controversy Erupts Ahead of Super Bowl

A retail sportsbook in Maine faces a licensing dispute with the state regulator, resulting in the cancellation of its license shortly before Super Bowl Sunday, which is traditionally the peak betting day of the year. The license, associated with Michael Cianchette’s horse racing track in Cumberland, was deemed non-transferable for Oddfellahs in Portland, prompting the state’s Gambling Control Unit to invalidate it.

In Other News…

Monumental Sports Network announced the launch of odds and gamification features for the NBA Washington Wizards and NHL Washington Capitals on the Monumental+ app, marking a pioneering local media initiative outside Las Vegas.

Major League Baseball (MLB) umpire Pat Holberg was dismissed for disclosing his online gambling accounts to an associate, a violation uncovered by an MLB investigation. While it was determined Holberg did not manipulate games, the investigation revealed that his friend placed 141 bets over 18 months, totaling nearly $214,000.

The Missouri Gaming Commission has submitted draft sports betting regulations to Governor Mike Kehoe’s office for approval, aiming for a June launch pending a 30-day public comment period upon approval.

MLB and Sportradar recently announced an expanded partnership, with MLB acquiring an equity stake in Sportradar, which will provide access to ultra-low latency official data and media content.

The Connecticut Department of Consumer Protection has issued warnings regarding illegal gambling machines that offer significantly lower payout rates than regulated establishments.

Worth the Read…

An analysis by Front Office Sports reveals how prediction markets can be exploited, illustrated by a recent incident where one individual manipulated the odds of Josh Allen winning the NFL MVP award from 53% to 94% within an hour. Discover the full story linked here.