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State of the Union: Congressional hearing on tap, FanDuel making noise in MI, more

31st December 1969

FanDuel rallies customers against proposed MI tax hike

FanDuel this week sent a letter to Michigan customers encouraging them to oppose two bills that would raise tax rates on digital sports betting and icasino, according to Casino Reports. One bill would increase the tax rate on digital wagering by 0.1%. Another would raise the rate on online casino 1%. The idea is to generate more tax dollars for state and local governments.

FanDuel’s e-mails point customers to a form on the Sports Betting Alliance’s (SBA) website. The SBA also has tabs to click through to encourage consumers in Georgia and Texas to tell lawmakers they want legal digital gambling.

The SBA is a trade group comprised of BetMGM, DraftKings, Fanatics Sporstsbook and FanDuel.

Congress to discuss legal sports betting

The US Senate Committee on the Judiciary set a hearing date to start discussion about federal involvement in legal digital wagering. When the Professional and Amateur Sports Protection Act (PASPA) was overturned in 2018, it became a states rights’ issue. But lawmakers and problem and responsible gambling advocates are among those who believe the federal government should have some say.

Senator Richard Blumenthal and Representative Paul Tonko in September filed the Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act). That bill calls for a federal framework around problem and responsible gambling. It also sets stringent advertising guidelines and would require states — even those already offering legal digital betting — to get federal approval to offer wagering.

Among the most well-known politicians on the committee are senators Ted Cruz, Lindsey Graham and Amy Klobuchar. Senator Mike Lee, who last week sent a letter to the Federal Trade Commission requesting an inquiry into possible collusion by DraftKings and FanDuel, is also on the committee.

The hearing is set for 10 a.m. ET Tuesday (17 December).

Prime Sports gets Kentucky approval

Prime Sports will become the ninth wagering platform available to Kentucky bettors. The Kentucky Horse Racing Commission (KHRC) 10 December approved it for a service provider licence. The company will partner with Churchill Downs to offer digital sports betting. Prime Sports is live in New Jersey and Ohio. Its back-end partner Plannatech was awarded a licence in Arizona in August. The platform differentiates itself by promising not to limit bettors and welcoming sharps.

At its meeting, the KHRC also approved renewals for the eight existing platforms in the state — bet365, BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics Sportsbook and FanDuel.

In addition, the commission shared that from launch in September 2023 through 31 October 2024, bettors laid down $2.9 billion (£2.29 billion/€2.76 billion) in wagers. The state has reaped $46.1 million to help fund its depleted pension program.

William Hill fined in NJ

William Hill and back-end provider Amelco were fined in New Jersey, the Associated Press reported 9 December. The company’s Atlantic City casino sportsbook allowed $25,000 in bets on games that were already completed, according to the AP. The Division of Gaming Enforcement (DGE) said the sportsbook took wagers on college basketball games, hockey games and boxing matches that were contested over a two-day period in February and June 2022. According to the DGE 42 bets on college basketball were accepted.

Owned by Caesars Entertainment, the William Hill sportsbooks paid out on 12 winning college basketball bets. The rest were voided. William Hill was fined $20,000.

In other action, the DGE fined sports betting technology provide Amelco $10,000 for allowing PlayUp to take a bet in 2022 on Transportation Secretary Pete Buttigieg becoming the next U.S. president. Election betting through sportsbooks isn’t legal in the US, though a court recently allowed that derivatives exchanges could take such bets.

FanDuel introduces new RG tool

FanDuel 10 December rolled out its latest responsible gambling tool, called “MySpend.” Consumers can use the personalised dashboard to track spending and “net wins,” according to a company press release. Conceptually, the idea is that players will be able to track their spending patterns and manage budgets. Bettors are also encouraged to use FanDuel’s other RG tools. These include ways to monitor time spent betting, set their own bet limits and more.

“FanDuel believes our customers should always have a budget and plan in mind when they engage with our products, and we are thrilled to introduce My Spend to help customers track their spending and manage their play,” Alison Kutler, VP for responsible gaming and community impact at FanDuel, said via press release. “As we look to continuously raise the standard for what it means to be a responsible operator, we look forward to continuing to bring new and innovative ways support our customers.”

California card rooms flex political might

California’s card rooms were behind the defeat of three state politicians who supported a bill that allows the tribes to sue the card rooms. Cal Matters 10 December reported that the card rooms spent $3 million to defeat Cupertino assemblyman Evan Low and Fullerton assemblyman Josh Newman, both of whom lost re-election bids. The card rooms also targeted assemblyman Brian Maienschein, who had termed out but was running for San Diego city attorney. He lost that race.

“We really don’t want to be the sort of, you know, the Rodney Dangerfield of industries. We want to be respected,” Keith Sharp, a lawyer for the Hawaiian Gardens Casino, told Cal Matters.

All three, as well as Laurie Davies, who won her race, voted for SB 549 in September. That bill allows the tribes to sue the card rooms over the legality of their use of third-party providers of proposition player services (TPPPS). The tribes contend that the system violates their right to exclusivity for casino gaming. Card rooms can offer player-banked games, but the tribes say that the system all but makes the games house-banked. Because of its sovereignty, Indian Country has not been allowed to sue, but the law allows for a one-time lawsuit that must be filed by 1 April 2025.

Worth the read …

Maybe don’t take DraftKings to the woodshed quite yet? At least that’s what Jeff Edelstein, from our partners at Casino Reports, wrote 9 December. Edelstein took what will no doubt be the unpopular view of the lawsuit accusing the company shepherding along a New Jersey resident who allegedly stole from his family to fund an unhealthy gambling spree. Read the full story here.

In other news …

At its final meeting of the year, the Illinois Gaming Board (IGB) yesterday (12 December) awarded a casino and sports betting licence to Wind Creek Chicago Southland. Wind Creek is Illinois’ 16th land-based casino, according to an IGB press release.

The NBA was the most popular US professional league to bet on, according to a new report from bet-tracking app Pikkit. The company released its “Instant Replay,” a look back at the year 9 December. According to the report, 34% of all bets among its 600,000 users were placed on the NFL, followed by 22% on Major League Baseball and 19% on the NFL.

The state of New Jersey awarded $720,000 for problem and responsible gambling initiatives, northjersey.com wrote 10 December.

WagerWire secured “high-profile” investors for its recent funding round, the company announced yesterday (12 December). The sports betting marketplace added investor Danny Moses, former Pinnacle CEO Paris Smith, Pinnacle Co-Founder George Molsbarger and GoodPaper Ventures. Consumers on WagerWire can buy and sell existing sports bets.

IC360 10 December announced that is has appointed lobbyist Bill Pascrell III as a special advisor. Pascrell played key roles in the repeal of PASPA and the legalisation of igaming in New Jersey in 2013.

According to a Pennsylvania television station, the state collected a record $2.3 billion in betting taxes in 2023. That is the most for any US state. New York collected the second-most at $2 billion, and Nevada was a distant third at $1.2 billion.