NY’s Addabbo files anti-sweeps, expansion bills
New York state senator Joe Addabbo filed two gambling-related bills in the last week. The latest, S5935, seeks to ban unregulated sweepstakes platforms. Operators of these platforms have been targeted by several state legislatures and the gambling industry, which say the platforms are pulling business from the regulated industry. Sweepstakes platforms operate in a grey area – they are unregulated and do not pay taxes.
Addabbo’s bill clearly defines what sweepstakes are, calling them games that “simulate casino-style gaming”. The list of casino-style games includes everything from blackjack to keno to sports betting. The bill would also make it illegal for licenced suppliers and vendors to work with unregulated platforms. The bill was filed 4 March and referred to the senate racing, gaming and wagering committee.
Also referred to that committee is Addabbo’s S6013, which, among other things, would increase the number of digital wagering licences available in New York. The cap is currently nine. Addabbo proposes to raise that to 14 by 31 January 2026 and 16 by 31 January 2027. The proposal would allow operators who originally applied for licences in 2021-22 to reapply and be given preference. Bet365 and Fanatics Sportsbook are among those that applied but did not get licenced.
The bill also seeks to change the tax rate based on the number of licenced platforms. While the rate would drop if the number of operators increases, it would rise if the number of operators falls below nine.
The tax rate could not drop below 12% of adjusted gross revenue. New York currently charges operators a 51% tax.
From the proposal:
4-5 operators – 64%
6 operators – 62%
7 operators – 60%
8 operators – 58%
9 operators – 51%
10-12 operators – 50%
13-14 operators – 35%
15 or more operators – 25%
Pretty pennies spent in NYC
A 1 March report from the New York City clerk’s office revealed that bidders for three downstate casino licences spent a combined $6 million on lobbyists last year. The New York Post reported 4 March that six of the top 10 spenders on lobbying were among the 11 companies bidding for licences. More than $138 million (£107 million/€127 million) was spent on lobbyists across all industries.
Leading the pack for gambling lobbyists was New York Mets owner Steve Cohen, who along with partner Hard Rock and his Queens Future firm, spent $2 million. Cohen and Hard Rock are bidding to put an integrated resort adjacent to Citi Field in Queens. Next in line was Resorts World ($990,000) and Bally’s ($914,000). Resorts World is looking to put a casino next to the Aqueduct Racetrack. Bally’s has plans for a casino resort on a former Trump golf course in the Bronx. Four other casino companies spent between $162,000-$613,000.
Bids for the casino properties are due to the New York state gaming facility location board 27 June. All must pitch local boards before the bid deadline. Some also need local agencies to grant variances that would allow them to build. The New York State Gaming Commission is set to issue licences by 31 December.
BetMGM leverages MGM in online ad
BetMGM 4 March released an online ad that shows the relationship between gambling on BetMGM and MGM’s physical casino resorts. The 30-second spot features Jamie Foxx on the Las Vegas Strip. The ad aims to crystalise the connection between earning rewards points online and using them for physical experiences.
FitzDares pulling out of Ontario
UK-based sports betting platform FitzDares is pulling out of Ontario and will cease taking bets 24 March at 11:59pm. The final day to withdraw funds from accounts will be 31 March.
First reported by Covers, FitzDares posted a notice on its Ontario website 4 March, alerting customers to the news. “After serving our customers in Ontario for the past two years we have taken the difficult decision to exit the Ontario market. FitzDares Ontario will be ceasing operations effective midnight on 31 March 2025. Thank you for being a FitzDares customer and for trusting us with your business”, the notice reads.
Ontario has a population of 16 million, which would make it the fifth-biggest US state behind California, Texas, Florida and New York. There are about 50 platforms live in the province – more than are live in any one U.S. state. Competition has been fierce since launch.
theScore still scoring in Ontario
As ESPN Bet struggles to gain market share in the US, there is a wagering bright spot for Penn Entertainment. The company’s theScoreBet brand continues “to be a very good story,” CEO Jay Snowden said on the company earnings call 28 February.
“Ontario is our number one market in North America in terms of revenues, gross profit, and contribution margin today and we delivered another strong year of performance in 2024”, he said. “We believe the strength in Canada will only grow once we launch in Alberta, pending all requisite approvals, given the affinity for and loyalty to the Score brand across the country”.
According to Gaming News Canada, revenue, adjusted gross profit and monthly active users for theScoreBet were all up in the fourth quarter.
Indian Country debuts comprehensive self-exclusion
Tribal gaming leaders across the US 3 March introduced a “Tribal-Wide Self-Exclusion Program”, which will allow gambling consumers to “voluntarily exclude themselves from all participating tribal casinos in sovereign nations and territories in one step”.
The platform was created by responsible gambling technology company idPair.
“This initiative reflects our unwavering commitment to the health of our people and communities”, Ivory Kelly, CEO of the Tribal Council for Responsible Gaming said via press release. “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 who are looking to take a break or stop gambling do so for the amount of time they need”.
The program is set to debut this month in Wisconsin and will include all participating tribal gaming commissions. Tribes interested in the program or that want more information can attend a presentation 2 April at the Indian Gaming Association conference in San Diego.
Digital sports betting moving in MS
House lawmakers in Mississippi used a procedural move to advance a proposal to legalise digital sports betting to the senate 4 March, according to Mississippi Today. It’s unlikely the issue will get much support in the senate, which previously killed its own gambling-expansion bill.
But members of the house gaming committee were able to insert language from a bill that had gotten out of the house into senate bills. Per Mississippi Today, senate gaming chairman David Blount isn’t in support. But representative Casey Eure, who has tried to get a gambling expansion passed for several sessions, said “This shows how serious we are about mobile sports betting. I’ve done everything he’s asked for … I’ve done everything they’ve asked for plus some”.
Crossover day in Mississippi was 4 March, meaning that any bill that did not get sent from one chamber to the other would die. The legislative session is set to end 6 April.
NJ bill barring college-wagering deals moves
A bill that would prohibit New Jersey public colleges and universities from partnering with sports betting operators was sent to the senate 3 March. HB 4113 unanimously passed the house 27 February.
While the bill would ban university partnerships, it would allow for higher-education foundations to partner with such companies, as long as there is no “direct advertising” or marketing to students.
The bill has been referred to the senate’s higher education committee.
NC could get gambling tax break
The North Carolina commerce and economic development committee approved a bill that will allow bettors to write gambling losses off their taxes. The committee approved HB 14 on 4 March, and it now moves to the finance committee. The full house has until 8 May to send the bill to the senate.
The one-page bill allows for an itemised or standard deduction. If it passes, taxpayers would be able to claim losses dating to 1 January 2024.
BetMGM laying off 83 in NJ
BetMGM has plans to lay off 83 workers from its Jersey City, New Jersey headquarters 27 May, NorthJersey.com reported 3 March. The company pointed to slow growth as the reason. According to the American Gaming Association (AGA), sports betting revenue was down 29% in December for the 38 U.S. states that have live, legal sports betting.
BetMGM is the third-biggest digital wagering operator in the US, behind FanDuel and DraftKings.
“The flurry of jurisdictions legalising and launching sports wagering has slowed — slowing the rapid growth of the industry overall as much of the population has now gained access to legal sports wagering channel”, Jane Bokunewicz told NorthJersey.com. Bokunewicz is an associate professor with Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, which studies New Jersey’s casino market.
YouTube cracking down on illegal gambling
Social media platform YouTube 4 March announced that it will now ban content that attempts to drive its users to unregulated or black-market sports betting and gambling platforms. Per CNN, YouTube will “no longer allow content that directs users to ‘unapproved’ gambling websites through links, images, text, logos or verbal references. YouTube defines unapproved gambling sites as those that don’t meet local legal requirements and haven’t been reviewed by YouTube or parent company Google”.
YouTube spokesperson Boot Bullwinkle also told CNN that the platform will begin to age-restrict content related to online casinos. Those under the age of 18 who are not logged in will be unable to see content about online betting sites.
In other news …
The Michigan Gaming Control Board (MGCB) issued five cease-and-desist letters to offshore operators. It sent letters to BetWhale Casino, Black Lotus Casino, Coins Game Casino, Love2play Casino, and Orion Stars 777 Player. In a 5 March press release, the MGCB wrote that the platforms have 14 days to shutter or it will pursue further action through the state attorney general.
Caesars Sportsbook partnered with IC360 to integrate its ProhiBet product, the companies announced 4 March. The technology allows users to monitor prohibited bettors in real time, in addition to offering other integrity monitoring tools.
Hard Rock Digital joined the International Betting Integrity Association (IBIA), the companies announced 4 March. IBIA now works with more than 70 companies and 140 sports betting brands in its global integrity monitoring network.
DraftKings closed on a $600 million Term Loan B, per Seeking Alpha 4 March. The loan was initially approved at $500 million, but was increased due to “strong demand”. The loan will mature in 2032 and may be used for “general business purposes”.
ICYMI on iGB
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Original article: https://igamingbusiness.com/sports-betting/online-sports-betting/new-york-casino-state-of-the-union/
