The Never-Ending Stories
The latest on Florida's multi-front sports betting war. MA Regulators fascination with Barstool and 21+. New York changes its DFS rules. And more.
The Bulletin Board
NEWS: Florida sports betting is slowly, methodically, weaving its way through federal and now state courts.
NEWS: Massachusetts regulators get their first look at ESPN Bet.
BEYOND the HEADLINE: The MGC is hung up on Barstool, and the term 21+.
VIEWS: New York dips its toe in the DFS debate.
QUICK HITTER: Fanatics approved for a New York license.
AROUND the WATERCOOLER: The recipe for online gambling success.
STRAY THOUGHTS: Shiny objects.
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The Florida Sports Betting Slog
things were looking up for Florida sports betting last week when the DC Circuit Court of Appeals denied a request by West Flagler to stay the mandate in the Florida sports appeal.
But in the legal system, there are procedures, a lot of procedures, and those procedures take time.
Attorney Daniel Wallach laid out the next steps in the federal case thusly, “with no extra time afforded to pursue the same relief before SCOTUS. West Flagler will likely file an emergency application with SCOTUS imminently.” Wallach only half-jokingly tweeted, “Only 32 more rulings to go.”
For those crossing their fingers that Florida sports betting will return, the Seminole Tribe chose not to use the DC Circuit Court’s latest ruling to relaunch its Hard Rock sports betting app. Rather, it appears the Tribe will let the court cases play out.
Per Robert Linehan, "It’s another positive development, but it will have no immediate effect on the Seminole Tribe’s plans," a Seminole Tribe spokesperson said of the DC Court ruling.
And then, there is the newly launched state court case, which is in the response and response to the response phase.
The next steps, which will play out over several weeks, are procedural.
As Wallach tweeted on Friday, we are weeks away from any significant update: “The Florida Supreme Court has issued a briefing order in the sports betting case. Governor DeSantis is “requested” to file a response to West Flagler’s petition for writ of quo warranto on or before Nov. 1, and West Flagler’s reply is due on or before Nov. 21.”
While everyone is clamoring for updates, Law Professor John Holden pointed out the recent and upcoming news isn’t really news, tweeting, “The Florida Compact case filing is procedural pursuant to the Florida Rules of Appellate Procedure. When you raise a constitutional question you are required to A. identify what allegedly violates the FL. Constitution, and B. Serve the notice and petition on the AG. That’s all this is.”
ESPN Bet Changes Will Be “Cosmetic”
PENN Entertainment let the Massachusetts Gaming Commission and the 14 people who diligently watch every minute of MGC live streams (you know who you are) know what it can expect from its soon-to-launch ESPN Bet platform.
In a nutshell, what you see now is what you will get when it says ESPN instead of Barstool; nothing will change. The only changes will be “cosmetic.”
Per Sports Handle, “PENN assured the regulator that there will be no change in the management structure related to the new sportsbook. Nor will ESPN have a role in sportsbook operations, which will remain under PENN’s purview.”
PENN did note it would be scaling up certain departments (customer support, anti-money laundering, fraud, and responsible gambling) as it anticipates a high level of interest in the product.
Beyond the Headline: MGC Stuck on Barstool and 21+
During the meeting, the MGC spent an inordinate amount of time on two issues:
The vestiges of PENN’s relationship with Barstool Sports
What branding requires 21+ logos at stadiums
The MGC revels in circling back to topics and going into the weeds, and the 21+ issue is a great example of this. Commissioner Jordan Maynard even noted the amount of time (he guessed 50+ hours) that has been spent on this trivial topic.
Responsible gambling consultant Jamie Salsburg has also highlighted the trivial nature of 21+ logos, “Once again, I'll highlight that we are spending hours and hours on this display of "21+" next to a logo...while there is a growing list of issues that are much more worthy of attention going unnoticed.”
Or, as I only half-jokingly tweeted:
And speaking of Barstool - one of the MGC’s all-time favorite time-sinks. At several points, PENN was asked about Barstool branding still attached to its sportsbook as it transitions to ESPN. As Jessica Welman aptly called it, “Zombie Barstool.”
“I’m concerned about this interim period where Penn is still utilizing this Barstool brand on its sportsbook platform,” Commissioner Nakisha Skinner said.
With the company back in the hands of Dave Portnoy, the big concern is Barstool’s Gameday shows are now open to the public, where previously they were restricted to 21+, per an order from the MGC.
These conversations will soon be dead and buried, but there is little PENN can do until the ESPN transition is finalized. Everyone involved wants the Barstool brand removed, but they can’t rebrand it as Penn Sportsbook Team as a stop-gap.
Until it says ESPN, the Barstool branding will overhang its sports betting properties much like the Trump name sat on the side of casinos in Atlantic City long after the man himself had left.
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New York Takes Aim at DFS Operators
Florida isn’t the only state that has questions for DFS 2.0 operators. Yesterday, the New York State Gaming Commission held a hearing on fantasy sports products that "have the effect of mimicking proposition betting.”
The meeting went as most expected, with New York “unleashing the fury,” as Tom Green would say.
the NYGC approved new rules that state:
“… a requirement that contests shall not be based on proposition betting and shall not have the effect of mimicking proposition betting. Contests in which a contestant chooses whether an individual athlete or a single team will surpass an identified statistical achievement would be prohibited.”
Both Underdog Fantasy (a newsletter sponsor) and PrizePicks have stated they will work with the NYGC to get some clarity and bring their products in line with the new rules.
Opponents have called the contests sports betting in fantasy clothing, while proponents point to the letter of the DFS laws and regulations around the country. A deep dive into this debate can be found here.
One aspect of this battle between old-school and new-school DFS operators is innovation, as some see the assault on DFS 2.0 as stifling competition by pricing competitors out.
Alex Kane, the CEO and founder of Sporttrade, summed up that argument quite well, tweeting, “Millions of players clearly like the new DFS offerings. There must be a solution that allows companies to continue to innovate DFS-like or even sports betting offerings that doesn’t involve $25m licensee fee, $5m/yr, and 60%+ effective revenue tax. That just doesn’t work.”
And there is a good X discussion on the new rules from Steve Brubaker and Daniel Wallach here.
I’d argue both passages aren’t super-clear, as the first doesn’t mention peer-to-peer competition, just compared to others, and the second says “one or more contestants.”
Quick Hitter: Fanatics Approved in New York
At the same meeting, the NYGC approved the transfer of the PointsBet license to Fanatics.
“We would like to thank the commissioners and staff of the New York State Gaming Commission for their time and effort in delivering us some great news today,” Fanatics said in a statement. “We look forward to working with the staff of the New York State Gaming Commission to bring the Fanatics Sportsbook to the largest sports wagering state in the U.S.”
Around the Watercooler
Social media conversations, rumors, and gossip.
Chris Grove’s brilliant thread on the departure of Thomas Winter from Golden Nugget and the recipe for success in the space (this aligns with my Hierarchy of Effectiveness, which I plan on revising and posting in the near future).
And this is precisely how I feel.
Stray Thoughts
Alun Bowden pointed out on X that online casino is the biggest piece of the online gambling pie, but it’s also the least talked about. According to the report he worked from, online casino represented 28% of all gambling spend in the UK in 2021, “And yet you almost never meet anyone who does it,” Bowden said.
This is one (but a very good one) example of how we tend to focus on shiny objects.