Gambling in the USA
Awaiting Supreme Court decision on gambling, pro sports leagues prepare for legal betting
Across Florida and Arizona, professional baseball teams are prepping for the inevitable surprises of a 162-game season. Players and coaches use spring training to limit the unknown variables, and this year so is Major League Baseball.
By the season’s midpoint, fans in certain states might be able to place legal bets on baseball games, and MLB officials knew they couldn’t afford to wait to start preparing. So players from every team are getting an enhanced education this spring on sports gambling, as are coaches and umpires.
Some time before July — perhaps as early as Tuesday — the Supreme Court is expected to make a ruling that could drastically alter sports gambling in the United States, possibly striking down the 25-year-old federal law that largely prohibits sports bets outside of Nevada or maybe allowing individual states to decide for themselves whether fans should be permitted to wager on games.
“We’re realistic that sports betting in all likelihood is going to expand in the United States,” MLB Commissioner Rob Manfred said on a conference call with reporters last week.
The four major U.S. sports leagues have been bracing for all possibilities, both ready and in some cases eager for the new world that could be waiting on the other side of the court’s decision. To varying degrees, the leagues have been educating players, have started studying analytics that monitor betting data and have researched the partnerships and business opportunities that surely will open new revenue streams.
While the leagues historically have considered sports betting a serious threat to business and banded together a quarter-century ago to encourage Congress to pass the Professional and Amateur Sports Protection Act, some attitudes have changed. Manfred recently said sports gambling “can be a form of fan engagement; it can fuel the popularity of a sport. We all understand that.”
While the Supreme Court could opt to maintain the status quo, many sports gambling analysts and court-watchers anticipate a ruling that lays out some sort of path to legal sports wagering. At oral arguments in December, a majority of justices seemed receptive to New Jersey’s argument.
While the NFL and NHL have been less public or vocal about their planning, the NBA and MLB have teamed together and have been actively lobbying state legislatures, helping them craft bills that address their myriad concerns. At least 18 state legislatures have some form of legislation in the works in anticipation of the Supreme Court giving them a path to legalized sports betting, and NBA and MLB officials have been crisscrossing the country to share their preferred model.
“We were happy to sit with legislators and look at the economics and talk about what is the best system,” NBA Commissioner Adam Silver told reporters during last month’s All-Star Weekend.
According to research by UNLV’s Center for Gaming Research, legal sports betting in Las Vegas has nearly doubled in the past decade, totaling nearly $5 billion. Football, both college and professional, accounted for $1.76 billion of that last year, followed by basketball at $1.5 billion and baseball at $1.14 billion. Experts estimate that illegal betting in the U.S. is significantly higher, likely topping $100 billion.
The NBA has been particularly aggressive in this space and last year promoted an executive to the newly created position of “vice president, head of fantasy and gaming.” Dan Spillane, the NBA’s senior vice president and assistant general counsel, told a New York state Senate committee that legalized sports wagering will require leagues to do more — “more in compliance and enforcement, including bet monitoring, investigations and education.”
“We have studied these issues at length,” Spillane told the committee. “Our conclusion is that the time has come for a different approach that gives sports fans a safe and legal way to wager on sporting events while protecting the integrity of the underlying competitions.”
The model encouraged by the NBA and MLB goes further than simply opening betting windows, building in safeguards and potentially discovering a big revenue stream for the leagues. They’ve been lobbying states to encourage consumer protection requirements, such as a licensing program and measures to address problem gambling; authorizing betting on the Internet and mobile platforms that might further discourage illegal channels; allowing leagues to restrict the types of bets permitted (for example, not offering a line on whether a player will commit the first foul of a game or whether the first pitch of a game is a ball or strike); and urging sports books to share betting data that might identify unusual activity.
“One of the primary benefits of a regulated sports betting industry would be increased transparency into what is currently a black box: the betting data in the illegal market,” Bryan Seeley, MLB’s senior vice president and deputy general counsel, told the Kansas legislature last week. “This would provide access to billions of points of data, which could be aggregated, analyzed and acted upon in real time to protect games from outside influences.”
Perhaps most notably, under their proposal, each league would receive 1 percent of every dollar wagered on its games. Silver likens this to an “integrity fee,” or a “royalty to the league.”
“I would only say, from the NBA’s standpoint, we will spend this year roughly $7.5 billion creating this content, creating these games,” he said. “Those are total expenses for the season. So this notion that as the intellectual property creators that we should receive a 1 percent fee seems very fair to me.”
He also noted that the leagues will take on added expenses, in monitoring data, providing education and possibly conducting investigations and enforcement. While the leagues have implied that 1 percent figure is negotiable, others have expressed concern that the fee could backfire. Geoff Freeman, the president of the American Gaming Association, said unlike others types of gambling, sports betting is a low-margin business, and even 1 percent could cost a sportsbook 20 percent of its revenue. The net result could be bookmakers installing tighter odds that aren’t competitive with what’s offered on the illegal market.
“This isn’t slot machines, where you can put a tax rate of 50-plus percent and still make money,” Freeman said.
While legalized sports betting surely will open up new partnerships, sponsorships and business opportunities – for starters, DraftKings already has announced its intention to take sports bets if the federal law is struck down entirely – the leagues would stand to reap huge revenue from any states that ultimately agree to kick back any portion of its sports wagering money. Since the leagues are the ones that assume the risk, MLB’s Seeley told the Kansas legislature, they’re the ones that must protect themselves — “as the damage from even a hint of scandal will hurt the sports leagues far worse than anyone else.”
Less vocal, the NFL and NHL have studied many of the same issues. The NHL added an expansion franchise in Las Vegas this season, and the NFL’s Oakland Raiders are relocating there as early as next year. Both moves prompted league officials to weigh all the implications and potential consequences of doing business in the gambling capital of the United States. Neither league is committed publicly to any new measures based on the Supreme Court’s pending decision.
“We all will be guided by what the Supreme Court ultimately decides,” NHL deputy commissioner Bill Daly said in a statement to The Washington Post. “Things won’t change immediately or overnight. We will digest the opinion and make adjustments to our existing policies as necessary.”
The NFL consistently has expressed reservations about legalizing sports wagering.
“Regardless of the outcome, we will maintain our relentless focus on protecting the integrity of the game and ensure there are no improper influences affecting how the game is played on the field,” NFL spokesman Brian McCarthy said. “If there are changes, we will work with regulators, operators, the clubs, players and others to ensure that our fans and the game and the people who play, coach, and officiate it are protected.”
Whatever happens after the Supreme Court ruling, it could happen quickly. Monmouth Park in New Jersey already has a sportsbook facility ready to go, though the state may have to tweak its legislation further before bets start coming in. Pennsylvania has signed legislation into law in anticipation of legalizing sports wagering. In West Virginia, a bill has already passed both chambers, and states such as New York and Indiana are poised to move quickly on their bills. Other states – such as Maryland, which is considering a bill that calls for a voter referendum – would have several more steps to navigate.
“It’s not as simple as signing a bill, and then you have a sports betting industry,” said Chris Grove, managing director at Eilers and Krejcik Gaming, a gambling research firm. “A lot more has to happen before licensed operators can start taking sports bets.”
Even if the Supreme Court’s ruling doesn’t drastically alter sports gambling in the United States immediately, those who’ve been monitoring the issue say the national dialogue has progressed – and leagues, fans and lawmakers have to continue taking steps to prepare for the day that sports betting is legalized.
“Sports betting happens,” Manfred said at a recent economic forum in New York. “Whether it’s legalized here or not, it’s happening out there. So I think the question for sports is really: ‘Are we better off in a world where we have a nice, strong, uniform, federal regulation of gambling that protects the integrity of sports, provides sports with the tools to ensure that there is integrity in the competition? … Or are we better off closing our eyes to that and letting it go on as illegal gambling?’ “
Source: chicagotribune.com
Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
PENN Entertainment and ESPN announced that account linking between ESPN BET and ESPN is now available for customers, creating an even more deeply integrated media and betting experience. By linking accounts, fans now have the ability to seamlessly track upcoming, live and settled bets within the ESPN app and on ESPN.com. With this product enhancement, ESPN BET will soon bring fans more personalised bets and timely promotions based on their favourite sports, teams, players and fantasy rosters.
Accel Entertainment Inc. has announced that it has completed the acquisition of 85% of the ownership interests of Toucan Gaming LLC and LSM Gaming LLC, two Louisiana-based route operators and owners of multiple licensed video poker establishments (collectively, “Toucan”), for approximately $40 million. The combined business will operate as Toucan Gaming throughout Louisiana and will be led by Stan Guidroz, an industry-leading gaming executive and current CEO of Toucan Gaming. Mr. Guidroz owns the remaining 15% of Toucan’s ownership interests and will lead the Accel team supporting Toucan’s continued growth.
INTRALOT S.A. has announced the undertaking of a new project between the British Columbia Lottery Corporation (BCLC), the sole lottery operator for the Government of British Columbia in Canada, and INTRALOT, its US subsidiary, for the provision of an online lottery platform. The project also includes the digitalisation of the existing land-based network. The solution will be based on the Player X platform, part of the Lotos X ecosystem, and adds to the company’s overall partnership with BCLC, which has been extended until 2028.
BetMGM Poker has become the third US operator to offer multi-state online poker. The company has merged its player pools in Michigan and New Jersey. Both states are a part of the Multi-State Internet Gaming Agreement, which allows online poker networks to share liquidity and players in participating markets. The two-state network went live Wednesday afternoon after morning maintenance.
Betsson Group has celebrated its success at the SBC Awards Latinoamérica 2024, winning two prestigious awards: Sportsbook Operator of the Year and Leader of the Year, which was awarded to Kevin Saliba, Commercial Director (Business Development) for Latin America. This marks the second consecutive year Betsson has earned the Leader of the Year accolade, following Andrea Rossi’s win in 2023 – an achievement that underscores Betsson’s consistent leadership in the region.
Partnerships
Play’n GO has announced a new operator partnership with renowned gaming brand Hard Rock Digital for their top-rated Hard Rock Bet online casino platform in New Jersey. The Hard Rock brand is synonymous with entertainment worldwide, and this partnership will see Hard Rock Bet players in New Jersey gain access to hit Play’n GO titles such as Piggy Blitz, Book of Dead and Rise of Olympus 100.
SCCG Management, a global leader in gaming innovation and advisory, has announced a strategic partnership with Chata.AI, a technology provider specialising in self-service, proactive analytics that enables businesses to access real-time insights without requiring extensive technical expertise. This partnership introduces Chata.AI’s technology to the gaming industry, providing operators with powerful tools to streamline decision-making and increase operational efficiency.
Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
Elray Resources Inc. has announced a significant milestone in the company’s growth strategy. The company has completed the sale of proprietary technology to 180 Life Sciences Corp. (NASDAQ:ATNF), a NASDAQ-listed company in exchange for preferred stock convertible into a 40% stake in ATNF and warrants to purchase 3 million shares of ATNF common stock, the conversion/exercise of which is subject to stockholder approval. The technology stack contained within Elray’s technology package will assist ATNF in launching an iGaming Blockchain casino.
PrizePicks, the largest daily fantasy sports operator in North America, has announced that it has been awarded Daily Fantasy Sports Operator Licenses in Delaware and Missouri. The company will launch Arena, its innovative peer-to-peer fantasy sports contest, in both states. With these new state launches, Arena will now be available in 15 states across the US.
The Pennsylvania Gaming Control Board (Board) unanimously voted to renew the Category 2 stand-alone casino license of Wind Creek Bethlehem LLC, operator of Wind Creek Bethlehem casino in Northampton County. In making the decision, the Board determined that Wind Creek Bethlehem LLC had fulfilled the obligations under its previously approved casino operator’s license and therefore qualified to have its license renewed for an additional five-year period.
Aristocrat announced that the company was the first international slot and online technology company to be granted a Gaming-Related Vendor license by The General Commercial Gaming Regulatory Authority (GCGRA), the federal entity overseeing commercial gaming activities in the United Arab Emirates (UAE). This announcement grants Aristocrat the ability to provide the company’s land-based electronic gaming machines (EGMs) and online games and technology solutions to commercial gaming operators licensed by the GCGRA.
Partnerships
SCCG Management, a leading global advisory and consulting firm in the gambling industry, has entered into a strategic partnership with Slot Machines Unlimited, a premier provider of refurbished slot machines and gaming equipment. The partnership between SCCG Management and Slot Machines Unlimited leverages both companies’ strengths: Slot Machines Unlimited’s expertise in refurbished gaming equipment and SCCG’s deep industry insight, global network and strategic growth capabilities. The collaboration will enhance Slot Machines Unlimited’s international sales and service operations, ensuring gaming establishments worldwide have access to high-quality slot machines and support.
Galaxy Gaming Inc. has announced that the Galaxy Operating System (GOS) is now live on over 50 ships worldwide with Carnival Corporation & PLC, the world’s largest leisure travel company. Since the installation, tables powered by GOS have awarded over $5 million in jackpot payouts to players. GOS is the jackpot progressive system for all Carnival Corporation ships, including Carnival Cruise Line, Holland America Line and Princess Cruises. Launched in 2024, GOS is the next-generation game management system developed by the industry’s leading table game experts.
The hottest new game from Aristocrat Gaming, Phoenix Link, is now live on casino floors, with Yaamava’ Resort & Casino being the first in North America to offer the highly-anticipated game. As the next evolution of the international hit game, Dragon Link, Phoenix Link features player-favourite mechanics from top games with all-new themes, features and bonuses.
Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
Bally’s Interactive, the digital and sports betting division of Bally’s Corporation, announced the official launch of the Bally Bet Sportsbook app in Tennessee, marking its expansion into the tenth state. This milestone comes on the heels of recent successful Bally Bet launches in Massachusetts and Maryland. Sports enthusiasts across the Volunteer State can now revel in the comprehensive offerings of the Bally Bet sportsbook app. With a wide array of betting options, including spread, money line and total bets, as well as in-game betting and same game parlays, Tennessee sports fans will have an unparalleled wagering experience.
ESE Entertainment Inc., a gaming company that provides a range of services to leading video game developers and publishers, has announced that it has acquired Bombee Global Entertainment (Bombee Americas), the North American arm of Bombee Event Production AB, (Bombee), a global production company specialised in live production, special effects, broadcast and event management for the gaming sector. Bombee has successfully collaborated with ESE to bring its premier event production services and world class customer service to North America and beyond. The North American arm of Bombee, Bombee Americas, will continue to grow and scale in this new organisational structure under ESE, while maintaining its entire team and global support.
Matthew Wantman has become the overall champion of the PokerGO Tour PLO Series II presented by PLO Mastermind. Wantman secured the prestigious honor after an impressive showing at PokerGO Studio in Las Vegas, outperforming a talented field of the best PLO players in the world to earn the $10,000 PGT Passport bonus. The PGT PLO Series II featured a series of high-stakes pot-limit Omaha tournaments. Wantman’s consistent performance set him apart from the competition and solidified his spot atop the leaderboard.
Partnerships
SYNOT Games has announced its further expansion into the Colombian market through a partnership with BetPlay. This alliance highlights SYNOT Games’ commitment to increasing its presence in Latin America and providing its engaging and innovative games to a wider audience. Through this partnership, BetPlay’s online platform will feature a curated selection of SYNOTGames’ top-performing titles, including fan favourites like Aztec Jaguar, Diamond Fever, Realm of Lions.
Internet Sports International, a global provider of turnkey race and sportsbook software solutions, announced its partnership with the We-Ko-Pa Casino Resort in Fort McDowell, Arizona. Through this consultancy, ISI is powering the casino’s sportsbook and retail sports wagering operations on its gaming floor with its award-winning system. WKP Sportsbook is currently operating, allowing patrons to elevate their excitement by wagering on their preferred sporting events with up-to-the-minute odds and live action. The automated sportsbook kiosks provide access to a wide range of sports propositions for both the beginner and expert bettor.
Aristocrat Gaming, a leading designer, manufacturer and distributor of regulated slot games, announced it is now a promotional partner for Princess Cruises, one of the world’s most iconic cruise lines. Through this exciting collaboration, Aristocrat Gaming will design innovative gaming experiences for guests onboard Princess ships as well as create promotions with land-based casinos that offer Princess cruises as rewards.
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