Happy Monday, folks. Last week was one of the busiest for sports betting news since the end of PASPA in May 2018.
The LSR Podcast did a pretty good job at recapping all the news that happened through most of last week, but news continued to break even after recording.
This week shows little sign of slowing down as there are still plenty of big moments scheduled on the calendar. Keep tabs on everything going on by following @LSPReport on Twitter.
Top sports betting news this week: Keeping track of New York
Everyone knew all eyes would be on New York, but not many expected this much news so early.
The New York State Gaming Commission released the names of all the bidders last Monday after the application period closed. That was followed by the release of redacted applications around noon Friday. Sandwiched between those releases was the resignation of Gov. Andrew Cuomo, though that is unlikely to impact the rollout of mobile NY sportsbooks.
There are three key takeaways from the applications:
- The FanDuel-led consortium that includes Bally Bet, BetMGM and DraftKings Sportsbook wants no one else in the market.
- The other large consortium – Caesars, Kambi, PointsBet, Resorts World, Rush Street and WynnBET – sees plenty of room in the market for nine operators at a 51% tax rate.
- Fanatics, partnered with Penn National and Kambi, outlined an aggressive marketing plan. That bid could have legs if the proposed revenue share is just as aggressive.
Now, the public gets to hear from the NYSGC for the first time concerning mobile sports betting. The proposed regulations will be considered by the commission at 1 pm Monday. Oral presentations from the six bidders before the commission could begin as early as Sept. 1.
New Jersey, Pennsylvania should report July numbers
Two of the biggest US sports betting states should report their July figures this week.
Results for NJ sportsbooks are scheduled to drop Monday. There is potential for a steep drop in sports betting revenue compared to June, which saw strong parlay hold carry revenue to $71.3 million. A similar drop could be seen in Pennsylvania as well, which held 10.1% in June for $42.5 million in revenue.
Handle in both states will likely dip because of fewer sports betting choices in July compared to June. New Jersey had $767 million bet in June while Pennsylvania sportsbooks reported $420 million in handle.
Multiple sports betting meetings in Tennessee
The work to switch sports betting regulators in Tennessee continues this week.
The rules committee of the new regulator, the Sports Wagering Advisory Committee, will meet Wednesday afternoon to vote on proposed rule changes to go before the full committee.
That meeting will come after the full gathering of the Tennessee Education Lottery, which still regulates the industry until Jan. 1. The TEL should also approve more TN sportsbooks that likely will push to be live before the start of the NFL season Sept. 9.
Last week’s top sports betting news: More California dreamin’
Sports betting in California is an annual hot topic, but it looks ready to really heat up next year.
A second proposal to legalize California sports betting will try to hit the November 2022 ballot. This proposal is more inclusive and expansive than the tribal initiative already approved for the ballot.
The latest proposal would allow mobile CA sports betting for basically any land-based licensed gambling operation, as well as major sports teams. That sets the market up for more than 100 licenses, all of which would allow mobile sportsbooks.
DraftKings buys GNOG for $1.5 billion
DraftKings spending $1.5 billion to buy Golden Nugget Online would have dominated sports betting news for days if it happened during a slower week.
DKNG will acquire GNOG in an all-stock deal that should close in the first half of 2022. The rationale makes sense as DraftKings is looking for more non-sports betting customers. Golden Nugget’s database is a nearly 50/50 male-female split, DraftKings CEO Jason Robins said.
The deal should lead to $300 million in cost savings and revenue enhancements at maturity.
Connecticut market settled as Lottery partners with RSI
The Connecticut Lottery announced it will partner with Rush Street Interactive for the state’s third and final license.
DraftKings Sportsbook and FanDuel Sportsbook round out the market. Rush Street beat four big names to win the license:
- Penn National
Rush Street cannot use the BetRivers brand since it is too close to its Rivers-branded casinos. The Lottery is comfortable with the SugarHouse brand but there are ongoing conversations about others, Chairman Rob Simmelkjaer told LSR.
RSI had the strongest financial bid and will share a majority of net gaming revenue with the lottery. The three online CT sportsbooks should be approved to launch during the early NFL season.
Plenty more important stories
Check out the rest of LSR‘s coverage from last week’s busy news run:
- There were more applications submitted than licenses available for Arizona sportsbooks. New market-access agreements announced last week include BetMGM and the Arizona Cardinals, BetFred, BlueBet and MaximBet.
- Legal single-game Canada sports betting will be live Aug. 27.
- FanDuel expects to hit US profitability in 2023, which includes its involvement in the mobile NY market.
- Bally’s is halting the rollout of Bally Bet to new states until the Gamesys acquisition closes in the fourth quarter.
- The Massachusetts Senate continues to play the waiting game instead of legalizing MA sportsbooks.
- Meadowlands and Tioga Downs owner Jeff Gural told LSR he did not bid for a mobile NY betting license because no one will make money.
- FuboTV showed the first demo of its Fubo Sportsbook, which will be synced to show odds for whichever event the sportsbook user is streaming over Fubo.
- US sports betting fraud attempts jumped 114% in the second quarter of 2021 compared to the same quarter last year.
- Handle from Indiana sportsbooks was $194.5 million in July, the first month of sub-$200 million handle since August 2020.
Press release roundup
- DraftKings’ VSiN added former NFL quarterback Shaun King.
- PointsBet launched in West Virginia and continued its hiring spree with the addition of Aonghus Mulvihill as VP of global sportsbook trading.
- Unibet is now an official betting partner of the Pittsburgh Steelers.
- WynnBET added NBA legend Shaquille O’Neal as a brand ambassador.