DraftKings – Page 2

August 2, 2024

Bettors, analysts say “no thanks” to DraftKings’ surcharge idea

US sports betting operators have long been grappling with ways to navigate increasingly high tax rates. But DraftKings' new idea isn't sitting well with bettors or analysts.
DraftKings spurred debated among the wagering community on Thursday (1 August) when it announced plans to implement a gaming surcharge for players in high tax states.

In its Q2 business update, the company said it has “plan to address high tax states”. That is to “roll out a gaming tax surcharge” starting 1 January 2025. This will be applied to winning bets “in any state with a tax rate above 20% that has multiple sports betting operators”. Those criteria currently apply to New York, Illinois, Vermont and Pennsylvania.

New York’s tax rate is 51%, Pennsylvania is 36% and Vermont is 20%. Illinois recently implemented a sliding scale that caps out at 40% for the highest-earning operators. The bottom of the scale is 20%.

DraftKings asserted the surcharge will be “fairly nominal to the customer”. The only ..

August 1, 2024

Ohio: FanDuel passes DraftKings to retake the lead in June

Flutter Entertainment’s FanDuel retook the lead in the Ohio online sports betting market in June, a month in which statewide revenue and handle fell to a calendar-year low.
Players in Ohio spent a total of $529.8m (£413.6m/€490.7m) across online and retail during June. This is 46.4% ahead of last year but 13.4% behind May and lower than any month so far in 2024.

Online betting accounted for $516.1m of all bets in June, with retail contributing $13.7m.

Players won $473.6m while $5m worth of wagers were voided. This left $51.2m in gross gaming revenue, up 57.1% from last year but 24% less than May’s total.

Of all gross gaming revenue in June, $50.5m came from online betting and $724,376 retail sportsbooks.

June’s results mean for the year-to-date, gross gaming revenue in Ohio stands at $435.6m. This includes $428.5m from the online market and $7.1m the retail sector.

FanDuel leads the Ohio pack in June
Looking at individual operators, FanDuel recovered from its second-placed finish ..

July 23, 2024

DraftKings announces plans for DC sports betting launch

The pool of sports betting operators in Washington, DC got a little bit bigger on Tuesday (23 July) when DraftKings announced intentions to launch its platform in the newly opened competitive market.
With the addition of DC, DraftKings will have launched in 29 North American jurisdictions.

“We would like to thank the DC Council for creating a path to bring DraftKings’ top-rated sportsbook to the nation’s capital,” DraftKings’ North American president, Matt Kalish, said in a statement.

“Together with DC United, we look forward to delivering fans a best-in-class experience through our customer-friendly product.”

DraftKings will join FanDuel, BetMGM and Caesars Sportsbook in offering mobile sports betting throughout the District. The latter two operators went live in the nation’s capital on 17 July.

They had expected to launch two days earlier. But there was a short delay related to the city’s FY2025 budget, which included the provisions needed to open the marketplace from a monop..

July 23, 2024

DraftKings sells VSiN to Musburger Media

DraftKings has sold the Vegas Sports Information Network (VSiN) to Musburger Media for an undisclosed price after first acquiring the network for $70m in March 2021. The deal was announced on Monday (22 July).
As part of the deal, VSiN’s original founders, Brian Musburger and Bill Adee, will take back control of the company. The two men founded the sports betting network in 2017 and guided it through the original 2021 sale to DraftKings. The network features 18 hours of daily original betting-focused content and streams 24/7.

In a statement on Monday, Musburger said the “original vision for VSiN still holds” despite the relatively quick sell-off.

“We truly appreciate the work we’ve done with DraftKings and look forward to continuing to collaborate on future projects,” he said. “Bill and I couldn’t be more excited about leading VSiN into the future and cementing our position as a trusted authority in sports betting.”

DraftKings thanked VSiN “for a great relationship” and said it “..

July 15, 2024

Weekend Report: DraftKings to divest VSiN, Bermuda’s banks slow casino launch and more

Welcome to the Weekend Report, where iGB covers the news you may have missed over Friday, Saturday and Sunday. This week we’ve got news of DraftKings cashing out of its big media bet, Bermuda’s casinos struggling for acceptance in the banking sector and more.

DraftKings turns off VSiN?

DraftKings could be preparing to sell off its sports betting media specialist Vegas Sports Information Network (VSiN), according to Eilers & Krejcik Gaming.

Original owner Brent Musburger is allegedly set to take back control of the TV and radio network, which was acquired by DraftKings for $70m back in 2021. Active since 2017, VSiN broadcasts 18 hours of content a day, across multiple markets and streaming platforms, at one time showing Betting Across America, a BetMGM-backed sports betting programme.

While the sale is not confirmed it would take a significant media asset out of DraftKings’ stable, although it still maintains a distribution deal with Meadowlark Media, as well as its own streaming..

July 9, 2024

NJ DGE slaps DraftKings with $100,000 fine, stern words

The New Jersey Division of Gaming Enforcement (DGE) has smacked DraftKings with a six-figure fine and a verbal undressing for reporting inaccurate sports wagering numbers over several months, the Associated Press reported on Monday (8 July).

In a letter sent to DraftKings on 16 June, DGE’s acting director Mary Jo Flaherty wrote, “These types of gross errors and failures cannot be tolerated in the New Jersey gaming regulatory system.” Flaherty, not mincing words, described DraftKings’ conduct as “unacceptable”.

The DGE levied a $100,000 fine against the company for the offence, wrote the AP.

Every month, each of New Jersey’s 16 licensed mobile sportsbooks has to report its financials in a number of categories. Included are handle (amount wagered) and revenue, broken down by sport, with multi-leg parlay bets separated out. According to the DGE, the Boston-based company over-reported the amount wagered on parlays and under-reported in other categories.

The company has consistently bee..

June 7, 2024

Maine sports betting revenue dips despite handle recovery in May

Sports betting revenue in Maine declined 19.5% month-on-month during May despite the Pine Tree State reporting an increase in handle.

Adjusted gross receipts from sports betting in May amounted to $3.3m (£2.6m/€3.0m). This is less than the $4.1m posted in Maine during April.

Maine calculates adjusted gross receipts by subtracting voided and cancelled bets, federal excise tax and player winnings from handle.

On the subject of player spending, total handle for May amounted to $39.9m. In contrast to the revenue decline, total wagers were up 4.2% month-on-month from $38.3m in April.

Consumers won a total of $36.3m from sports betting during May while Maine collected some $331,279 in tax.

DraftKings the clear leader in Maine

At present, Maine is home to just two approved online sports betting operators in the form of DraftKings and Caesars. The former has led the market by some distance since it opened in November last year.

For May, DraftKings posted $2.9m in adjusted gross receip..

June 5, 2024

Leaving on a jet plane? Man tied to Porter betting scheme busted at JFK

Banned NBA player Jontay Porter intentionally removed himself from games as a way to pay back “large gambling debts” according to a complaint filed in US District Court for the Eastern District of New York. One of Porter's “co-conspirators” was arrested on Monday (3 June) and appeared in court the following day.

Long Phi Pham, also known as “Bruce,” was ordered held in custody until trial, according to a US Attorney’s Office press release. Per the NY Daily News, Pham was identified as one of the top 1% of poker players in the world at his arraignment on Tuesday.

He was arrested at JFK Airport on Monday after booking a one-way ticket to Australia. Pham is being charged with wire fraud. Pham was carrying about $92,000 in cash and cashier’s cheques, three cell phones and betting slips, according to the complaint.

Three more participants at large

Three other co-conspirators have not yet been arrested. Porter is not named in the complaint, although there is reference to a “Playe..

May 29, 2024

DraftKings and Flutter stock falls on proposed Illinois tax hike

DraftKings and Flutter Entertainment – owner of FanDuel Group – both saw their stock price decline yesterday (28 May) as the US market reacted negatively to a proposed gambling tax hike in Illinois.

Illinois lawmakers discussed the increase during a 2025 budget meeting over the weekend. While plans are yet to be approved, the potential rise has already hit leading operators including DraftKings and Flutter.

The current proposal on the table is for a graduated wagering tax structure to replace the existing 15% flat rate. This would set rates at between 20% and 40%, depending on each operator’s adjusted gaming revenue (AGR).

Licensed operators with generated AGR of $30m (£23.5m/€27.6m) a year would pay tax at 20%. However, if an operator reports more than $200m, they would face a 40% rate – some 167% more than at present. This would be the second-highest tax rate in the US behind New York at 51%.

Other boundaries include a 25% rate for AGR between $30m and $50m, 30% for AGR ranging ..

May 17, 2024

Pennsylvania gaming again breaks $500m milestone

The Pennsylvania gaming industry generated revenue of more than $500m in April but fell just short of the previous month’s record.

Some $504.6m (€464.8m/£398.1m) of revenue was recorded for the month, according to figures published by the Pennsylvania Gaming Control Board (PGCB). That was up 5.9% compared to April 2023.

The figure was down on the record $554.6m registered in March 2024. However, the figures were close on a day-by-day basis considering the extra day in March.

Pennsylvania gaming’s biggest segment stalls

Retail slots remains the biggest generator of gaming revenue, although the $205.4m was down 3.5% compared to April 2023. The number of slot machines in operation in April 2024 was 24,890 compared to 25,555 at the casinos in April 2023. Parx Casino, the state’s most popular venue, saw a 4.9% decrease to $31.6m.

Igaming slot revenue was the second biggest segment within Pennsylvania gaming at $126.0m, which was up 31.8%.

Sports betting back to growth

Igaming tables ..

May 10, 2024

DraftKings to acquire Sports IQ Analytics

DraftKings has agreed a deal to acquire Sports IQ Analytics, a business that uses artificial intelligence and machine learning to provide software solutions to the online sports betting market.

Full details of the agreement have not been disclosed, with the acquisition having only been confirmed on LinkedIn by Sports IQ CEO Omer Dor. DraftKings has yet to comment on the news.

Based in Vancouver in Canada, Sports IQ supports companies with software for online sports betting. Solutions cover more than 12,000 events every year, offering access to hundreds of in-play markets.

“I’m excited for this next chapter in the Sports IQ Analytics journey,” Dor said. “In DraftKings, we join a team whose desire for winning and being the best matches our own.

“I feel privileged for the last six years, working alongside the incredible group of people that make the Sports IQ team. They are hardworking intelligent and passionate and I’m so excited that we get to bring our skills and energy to DraftKin..

May 2, 2024

Ohio betting revenue drops 3.8% in first month since college prop bet ban

Ohio reported total sports betting revenue of $63.8m (£51.0m/€59.6m) in March, down 3.8% on February’s total of $66.3m.

The sports betting revenue total of $63.8m in March also fell 33.1% short of the same month last year, when Ohio reported revenues of $95.3m. March 2023 was the third month after Ohio launched its sports betting market.

Ohio’s revenue drop was in spite of handle reaching $808.2m in March, significantly up from the $671.1m in bets taken in February. The NCAA Division 1 basketball tournaments are big drivers of handle in the US during the month.

The state’s March handle was also a 9.6% increase on the $737.2m in bets taken in the same month last year.

Taxable revenue stood at $64m, after $738.8m was paid out in winnings and $22.5m was written off in promotions.

Of the $808.2m in handle, online accounted for $784.8m, or 97.1% of the total. Online sports betting revenue was $62.1m, compared to $1.7m in retail.

FanDuel retains lead over DraftKings in Ohio

In terms ..

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Tag: DraftKings