So Long, Farewell, Auf Wiedersehen, Goodbye
North Carolina's efforts to include more gambling expansions in its budget are no longer on the table, according to an email sent by Republican leadership in the House.
The Bulletin Board
NEWS: It appears it will be “there’s always next year” for North Carolina gambling expansions, including online casino and poker.
NEWS: A typo in a Forbes article sent Responsible Gambling Twitter into shock and disbelief last week, but thankfully, it turned out to be a false alarm.
NEWS: In a recent appearance on CNBC, Fanatics Betting & Gaming CEO Matt King laid out the company’s expedited path to profitability.
NEWS: Ballot initiatives to legalize sports betting filed in Missouri.
AROUND the WATERCOOLER: Crypto casino hacked.
STRAY THOUGHTS: Why we can’t have nice things.
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That’s That for NC Online Casino Legalization?
An email sent by North Carolina House Speaker Tim Moore seems to put the final nail in the coffin of land-based or online casino legalization. One glimmer of hope is Senate Republicans are “dug in” on including gambling expansions, per Matt Kredell.
An email sent Wednesday evening by North Carolina House Speaker Tim Moore states that there are not enough Republicans to vote on a budget that includes gaming.
Speaker Moore states in his email that “there are not 61 Republicans willing to vote for the budget if it includes gaming.”
Moore also says they will hold a caucus meeting next week to discuss a state budget without it.
There is strong support for commercial casinos and, to a slightly lesser extent, online gambling in the North Carolina legislature. Still, that support isn’t overwhelming enough to push through more gambling expansions via the state budget.
Moore has also previously expressed concerns about online gambling. "I've got real concerns with the iGaming right now,” Moore said in August. “I really do. I need to hear more data to know 100% where I am. But everything I hear right now causes concerns."
Beyond Moore, the rapid change to the gambling landscape in North Carolina seems to be catching up to lawmakers. As I previously wrote, “It’s hard to envision a conservative-leaning state legislature deciding to take the state from three tribal casinos and limited retail sports betting to commercial and tribal casinos, VLTs, and a full suite of online offerings in one year.”
The Typo Heard ‘Round the World
For a brief instance, responsible gambling advocates were handed a smoking gun example of the industry’s willingness to target any and every demographic.
But the smoking gun was shooting blanks. The paragraph in question, from a Forbes article on sports betting ads on non-sports programs, reads Paw Patrol Live.
But the iSpot report the article is based on reads (in three locations) On Patrol: Live.
As I mentioned in a previous column, we have to be careful sharing columns that fit a narrative we support, even if they come from very credible sources like Forbes. I’ve been burned before and know to go to the source. If something seems very out of place, it’s most likely because it is.
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Can Fanatics Be the Fastest to Profitability?
In a 3-minute segment on CNBC’s Squawk on the Street, Fanatics Betting & Gaming CEO Matt King said the company believes it can reach profitability faster than any other business in the US sports betting space.
“They’ll get their first because we started later… [but] look at the period of unprofitability, it’ll be the shortest in the industry,” King said.
According to King, the Fanatics model is “very different,” allowing it to acquire customers at an 80% discount, thanks to its database and well-known brand.
“Our unit economics are phenomenal, and we’re already acquiring users at scale,” King told CNBC. That allows Fanatics to spend money on rewards rather than on acquisition.
Reading between the lines, King appears to be saying Fanatics believes it can shortcut the costly acquisition and brand-building period and move straight to retention.
Whether Fanatics can retain customers who have proven anything but sticky is the big question.
4 Sports Betting Petitions Filed in Missouri
As I previously reported, the legislative stalemate in Missouri has sports betting proponents considering an alternative path to legalization: a ballot initiative.
As reported by local news, “Four separate petitions were submitted Friday to the Missouri Secretary of State's office with the aim of getting the matter placed on the 2024 ballot.”
Sports Handle’s Jill Dorson wrote an excellent summary of the proposals, noting:
“The proposals, numbered 2024-135 through 138, outline key details, including funneling $5 million per year to a new Compulsive Gambling Prevention Fund, setting the application fees at $250,000 for a retail license and $500,000 for a digital license, prohibiting targeting minors and those on exclusion lists in advertising, and allowing for sportsbook operators to deduct up to 25% of promotional play.”
The next steps are as follows:
A public comment period
Approval of the petition by the Secretary of State
The collection of 8% of registered voters’ signatures in six of eight districts
Approval to be placed on the November ballot
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Around the Watercooler
Social media conversations, rumors, and gossip.
According to reports, North Korean hackers were able to make off with some $41 million from a popular crypto casino.
The leading cryptocurrency, Bitcoin, had a brief jump in price in late August (jumping more than $1,000 to $27,000) before falling back below $26,000 through the first week-plus of September.
Stray Thoughts
Per PokerNews, “On the latest episode of The Nick Vertucci Podcast, the host was joined by Hustler Casino Live regular Nikhil "Nik Airball" Arcot where the latter revealed he was on a downswing of around $8 million.”
It’s hard to sell the skill-game argument when someone is down $8 million. Yes, the downswing could be (is?) skill-related, but it’s hard to get past the number. It also reopens the old Sheldon Adelson talking point that poker pros clean people out.
this isn’t to say the story shouldn’t have been covered, just that poker and poker players don’t do themselves a lot of favors. Stories like this allow the anti-gambling crowd to make a strong case against online poker legalization.