Sports betting – Page 22

May 31, 2024

Illinois’ proposed high sports betting tax rate could backfire on lawmakers

Illinois' general assembly made a money grab earlier this week, but gambling stakeholders say it could backfire. Lawmakers sent a FY2025 budget that includes a progressive tax rate topping out at 40% to Governor JB Pritzker.

On the face of it, raising the sports betting tax rate seems like a good way for any state to bring in more revenue. But stakeholders say Illinois consumers will likely be the recipients of unintended consequences. During the house budget debate, one Republican representative suggested an appropriations line for funds to treat the Democrats’ unchecked “spending addiction”.

The budget bill is now headed to Pritzker’s desk and it seems like a slam dunk that he will sign it. That, stakeholders say, will seal the fate of Illinois bettors.

“Players are probably going to see fewer promotions and that is not good for the consumer,” West Virginia lawmaker and government affairs chief for Play ‘n Go Shawn Fluharty told iGB. “It could impact the lines and that is ano..

May 31, 2024

Key Penn shareholder: Sell ESPN Bet to save face and prop up share prices

The Donerail Group, a shareholder of Penn Entertainment, is calling for the company to sell assets amid strategic interest.

Significant shareholder Donerail sent a letter to the Penn board of directors and board chair David Handler. In the letter, Donerail urged the company to sell assets to generate “meaningful and certain” value creation for investors.

Donerail stated its belief that Penn’s casino assets alone are valued at over double the company’s current market capitalisation.

The hedge fund manager noted heavy criticism of Penn from the investment community over its capital allocation strategy. It highlighted that Penn’s shares are down more than 80% over the last three years.

Donerail said: “The growing pattern of guidance misses, alongside a demonstrated unyielding appetite to continue to invest in the company’s fledgling interactive projects, irrespective of past results and without a clear return framework, has significantly damaged the credibility of this management team..

May 31, 2024

State of the Union: A look back at the week that was in North America

Welcome to iGB's State of the Union, a look at the biggest North American sports betting stories we've covered over the week and briefs on others we found interesting.

SCOTUS sets conference Florida wagering case date

The US Supreme Court will conference on 13 June to discuss West Flagler Associates (WFA) Ltd vs Deb Haaland. The case could change the course of legal sports betting in Florida. WFA earlier this year filed a writ of certiorari. The focus of the case is whether or not US Department of the Interior Secretary Haaland should have allowed the 2021 compact between the state of Florida and the Seminole tribe to become “deemed approved”.

The compact allows for the Seminoles to offer retail and digital wagering throughout Florida. Bets placed anywhere in Florida that run through a tribal server are considered to have been placed on tribal lands, according to the compact. This scenario is not used anywhere else in the US. WFA argues that the compact violates the Indian..

May 30, 2024

Nevada gambling revenue declines again in April

Total gambling revenue in Nevada amounted to $1.24bn (£977.0m/€1.15bn) during April, an increase on last year but the second consecutive month of decline in the Silver State.

The monthly total was 6.9% ahead of $1.16bn in April last year but 3.9% less than $1.29bn in Nevada in March this year. March was also lower than February’s total, with February having been boosted by Nevada’s hosting of the NFL’s Super Bowl.

Once again, slots proved to be the primary source of revenue for operators, generating a total of $886.8m. This is 5.9% higher than in April last year. Multi-denomination slots drew the most revenue at $586.8m during the month, a rise of 26.4%.

High-stakes slots also saw more revenue, with increases across both $25 (up 137.6%) and $100 machines (up 14.5%). In contrast, revenue from all lower-stakes machines was down year-on-year.

Blackjack and baccarat drive growth

Looking elsewhere in Nevada, revenue from table, counter and card games – including sports betting – climb..

May 30, 2024

LiveScore Bet launches new UK and Ireland sportsbook with Kambi

LiveScore Group has rolled out its new LiveScore Bet online sportsbook in the UK and Ireland in partnership with sports betting solutions provider Kambi Group.

The launch builds on the LiveScore Bet platforms already live in Nigeria and the Netherlands. Kambi is replacing a third-party supplier to power the new sportsbook.

Confirmation of the roll-out comes after LiveScore and Kambi entered into a new sportsbook partnership in October of last year. The deal covers both the LiveScore Bet and Virgin Bet brands.

Kambi is providing its sports betting product suite for the new-look sportsbook. This offering includes a sports betting platform, managed services, AI-powered trading and Bet Builder.

In addition, the LiveScore in-house product teams will utilise Kambi’s open APIs, incentives tools and bespoke bet offer specials.

“We are delighted to have launched in the UK and Ireland with our enhanced sportsbook product ahead of the Euros and Copa América,” LiveScore Group CEO Sam Sadi sai..

May 29, 2024

Fanatics goes live in Wyoming

On Wednesday (29 May) Fanatics Sportsbook became the fifth operator to launch in the smallest US state. Fanatics is now live in 21 states.

Fanatics, which purchased PointsBet’s US assets last summer, went from being live nowhere in the US in January 2023 to now being in 21 states. The deal gave Fanatics access to 20 US markets.

The company most recently launched sports betting and online gambling platforms in New Jersey in May. That launch marked the completion of the PointsBet deal.

Fanatics first launched in four states in beta mode in August 2023. From there, the company has launched across the US, including in Arizona, Illinois, New York and North Carolina.

BetMGM, Caesars Sportsbook, DraftKings and FanDuel are all live in the state. Lawmakers in Wyoming legalised digital sports betting in April 2021 and the Wyoming Gaming Commission launched two operators on 1 September 2021, ahead of the NFL season.

Fanatics Sportsbook cross markets

According to a Fanatics press release..

May 29, 2024

The “Caitlin Clark Effect” goes beyond the basketball court

Few athletes have the ability to captivate a sport and send its popularity soaring almost on their own, but basketball player Caitlin Clark certainly appears to be one of them.

Clark’s meteoric rise is sending ripples beyond the basketball court. In early April, she played her last college basketball game and retired with the highest points total in men’s and women’s National Collegiate Athletic Association (NCAA) history. Her Iowa Hawkeyes got to back-to-back national championship games after having previously reaching the final only once in programme history.

Eight days later, she was the WNBA’s number one pick. She has played five games for the Indiana Fever and has already made quite a splash in the professional game. The fans’ desire to see her play is evident.

Both of the Fever’s home games were played in front of sold-out Gainbridge Fieldhouse crowds. Additionally, the Fever’s road game at the Connecticut Suns was the first sell-out home opener since 2003. Their trips to the..

May 29, 2024

US round-up: Arizona grows in March, Rhode Island April betting revenue dips

Casting an eye over the latest monthly US state results, iGB analyses growth in the Arizona sports betting market in March and a decline in revenue despite steady spending in Rhode Island during April.

Arizona reported year-on-year growth across revenue and handle in March. However, Rhode Island saw revenue slip to an eight-month low in April.

Starting with Arizona, which reports its monthly results at a delayed rate compared to other states. All other US states are currently publishing results for April, whereas Arizona has just released an update for March.

During March, player spending amounted to $759.8m (£595.7m/€700.3m). This is 17.8% up from $644.8m in the same month last year. It is also 19.2% ahead of $637.5m in February of this year.

Players wagered a total of $752.4m online and $5.3m at retail sportsbooks. A further $2.1m was bet through limited event wagering (LEW) operators in Arizona.

In terms of revenue, gross event wagering before the impact of free bets hit $57.5..

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 28, 2024

If election were today, Missouri sports betting initiative would fail

Missouri Scout, a private news service covering state politics, earlier this month released a poll that shows legal sports betting doesn't have voter support. The poll, which showed voters also oppose legal abortion, reenforces Missouri's conservative stature.

If the November election were held today, the Missouri sports betting initiative proposal backed by the state’s professional sports teams would fail. The poll showed it has the least amount of support of four potential initiative questions.

Overall, 60% of those polled say they are against legalisation, 36% are in favour and 4% are undecided. Remington Research Group, on behalf of Missouri Scout, surveyed 684 likely voters over two days between 8-9 May.

At issue is an initiative proposal that would allow for statewide digital wagering requiring platforms to be tethered to professional sports venues or existing casinos. The proposal is a departure from bills that have failed in the state legislature. And it likely ..

May 27, 2024

Illinois senate passes “penal”, progressive sports betting tax

Late on Sunday (26 May), Illinois senators passed a FY2025 budget that includes a sports betting tax hike that will most affect the state's biggest operators.

The Sports Betting Alliance (SBA) called the budget an “extremely disappointing decision that will cause real harm”. The proposal nearly triples the tax rate for the most successful operators.

Sunday’s version of the budget, passed by the senate, is different from the house proposal. It would make Illinois the second-most expensive state for wagering operators to do business in.

At the highest end of the scale, the operators with the highest adjusted gross revenue would pay a 40% tax. Only New York’s 51% is higher for a state with a competitive market.

The vehicle for the tax is HB 4951, which did not include the progressive sports betting tax when the house approved it. The bill now goes back to the house for concurrence.

Even smallest operators will pay more

Late Saturday (25 May), the house adjourned until after th..

May 26, 2024

No deal yet: Illinois lawmakers consider step-up wagering tax rate that would punish biggest operators

With the biggest sports betting operators reportedly threatening to leave the state over the latest proposed tax-increase plan, the Illinois general assembly adjourned for the weekend at about 10pm local time on Saturday (25 May). It plans to reconvene and continue work on the budget “next week”.

The latest budget proposal on Saturday afternoon included a graduated wagering tax structure that would set rates between 20% and 40%, depending on an operator’s adjusted gaming revenue (AGR).

Those with AGR of $30m per year or less would be taxed at 20% while those with AGR of $200m or more would be taxed at 40%.

Here’s a look at the proposed breakdown:
20% tax on AGR up to $30m

25% on AGR of revenue between $30m-$50m

30% on AGR of revenue between $50m-$100m

35% on AGR of revenue between $100m-$200m

40% on AGR of revenue over $200m

Top operators would see taxes nearly triple

Companies like DraftKings and FanDuel, the biggest operators in Illinois, would easily fall into the 40% tax ..

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Tag: Sports betting