Michigan Exodus
Michigan cracks down on daily fantasy sports and sweepstakes gambling sites. Retail sports betting will go live on December 7 in Florida. ESPN Bet launch date announced. And more.
The Bulletin Board
NEWS: DFS and sweepstakes gambling sites are leaving Michigan following the adoption of new rules and a crackdown on “illegal gambling.”
NEWS: Stories and updates from around the gambling universe.
NEWS: Retail sports betting will return to Florida in December. The timeline for an online relaunch remains unclear.
VIEWS: Prime Sports has evidence to back up its claims.
AROUND the WATERCOOLER: A social media faux pas.
STRAY THOUGHTS: The duality of man.
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Michigan Takes Aim at Gray Market Operators
Michigan regulators are taking aim at DFS and sweepstakes operators, with new rules resulting in the departure of several operators in both categories.
DFS Rules
Earlier this month, the Michigan Gaming Control Board updated its rules to prohibit fantasy sports contests that mimic prop betting or sports betting.
The new rules state, “Unless otherwise approved by the board, a fantasy contest operator or licensed management company may not offer or allow…proposition selection or fantasy contests that have the effect of mimicking proposition selection.”
Because of the change, PrizePicks announced it would remove the games from its Michigan catalog as of November 10 - the company will still offer free-to-play games in Michigan.
PrizePicks’ peers, Sleeper and Underdog (a newsletter sponsor), are unaffected as they were not operating in Michigan.
Sweepstakes Crackdown
The MGCB, with an assist from Michigan Attorney General Dana Nessel, ordered Golden Hearts Games to leave the state, calling the sweepstakes casino “illegal gambling.”
“Unlicensed gaming robs our schools and our government of essential funding and leaves consumers unprotected,” Nessel said in a September press release. “When companies like Golden Hearts attempt to circumvent Michigan’s gaming laws, they create the false impression that their games are legal and safe for consumers. My office is committed to ensuring that our gaming laws are strictly enforced and those who violate those laws are held accountable.”
This week, Virtual Gaming Worlds, which operates the sweepstakes sites Chumba Casino, Global Poker, and Luckyland Slots, has announced it will exit Michigan, phasing out its presence by February 2024. No new coins can be purchased after November 1, but players can use their balances until December 1. Withdrawals will continue to be available until February 1, 2024.
“Following careful consideration and analysis, we have made the decision to no longer offer our products in the State of Michigan,” a VGW spokesperson told PokerFuse on Thursday. “We have not done this lightly and are 100 percent focused on ensuring all impacted customers are well informed about the changes and supporting them through this transition.”
Sweepstakes is something I plan on taking a closer look at in the coming weeks.
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ICYMI: Bally’s Donates, ESPN Bet, App Downloads, Maine Launch
Bally’s has donated over $1 million to the International Center for Responsible Gaming (ICRG) over the last two years. The money has been used to fund two projects: $402,500 to the University of Sydney, Australia’s humbly named Center of Excellence in Gambling Research, and $172,500 to the University of Washington, Research on Young Adult Sports Wagering.
We should learn more about ESPN Bet during Penn’s Q3 earnings report, which began at 9 AM EST today (the exact time this newsletter is published). One tidbit that came out before the call is the official launch date for ESPN Bet.
Per the press release, “We are excited to announce that we plan to simultaneously launch ESPN BET on November 14 across the 17 states in which we operate online sports betting, subject to final approvals.”
Per JMP Securities (via Sam McQuillan), DFS and sports betting app download data during Week 8 of the NFL season.
DFS: PrizePicks: 879k, Sleeeper: 568k, Underdog: 524k, Betr: 348k, DraftKings: 347k, FanDuel: 213k.
Sports Betting: FanDuel: 1.69M, DraftKings: 1.68M, BetMGM: 693k, Fanatics/PB: 371k, Bet365: 334k, Caesars: 314k, Barstool: 122k, BetRivers: 99k.
Maine sports betting launches at 9 AM EST tomorrow (a very popular time, it seems). Three of the state’s four tribes are expected to go live with their mobile apps, all powered by Caesars.
Retail Sports Betting Coming Soon in Florida
Retail sports betting will debut in Florida on December 7. The news comes on the heels of several legal victories, which the Seminole Tribe highlighted in its press release.
“The Seminole tribe thanks the state of Florida, the US Department of the Interior, and the US Department of Justice for defending our compact,” Seminole tribe chairman Marcellus Osceola Jr said. “By working together, the tribe, state, and the federal government achieved a historic legal victory.”
In the press release, the Seminole Tribe also laid out the timeline for the debut of retail sportsbooks, along with craps and roulette tables, at its six Florida casinos beginning on December 7.
December 7:
Seminole Hard Rock Hotel & Casino Hollywood
Seminole Classic Casino in Hollywood
Seminole Casino Coconut Creek
December 8:
Seminole Hard Rock Hotel & Casino Tampa
December 11:
Seminole Casino Immokalee
Seminole Brighton Casino
Absent from the release was any mention of mobile betting. However, one local reporter went viral with his “scoop” that indicated a mobile launch would occur before the retail launch.
Prime Sports Delivers
With the release of the September revenue numbers in Ohio, Prime Sports is taking a well-deserved victory lap… even though it finished dead last in handle.
As Prime Sports co-founder Joe Brennan Jr. tweeted, “Take a good look, last time we hold up the bottom on monthly numbers.” Brennan highlighted that the company’s $366,001 in handle (see the chart Brennan tweeted below) was generated in two weeks while the company was in soft-launch. Further, Prime Sports accomplished that with zero marketing and zero promotional dollars spent.
According to Brennan, October will be even better, even though Prime is still in soft launch with no marketing.
So why does this matter? As I noted in September, the Prime Sports model is “putting the “bettors are price-sensitive” argument to the test.” Or, at the least, that a segment of bettors is price-sensitive and large enough to sustain a sportsbook.
Exhibit A is Prime’s promotional deduction in Ohio, which was $0.
As Brennan said on the Zero Latency podcast, the plan is to give the consumers the best value, not the best promotion:
“You guys know I hang out on betting Twitter, and there’s been a raging debate for about a century on there on the sharp sportsbook model vs. the recreational sportsbook model, and really, it’s a misnomer. We’re not looking to only book to sharps… we’re willing to take a bet from anybody. We don’t discriminate. A dollar bet from Billy Walters is the same as a dollar bet from Alun and Brad.”
Around the Watercooler
Social media conversations, rumors, and gossip.
The below was posted by the BetMGM Twitter account, and while it’s not the most egregious error we’ve seen by a long shot, it is a good example of a marketing blind spot the industry has.
For all the attention paid to advertisements (put 21+ on your logo, add the 1-800-GAMBLER number, make sure it says this and there is clearly visible fine print), that all goes out the window on social media.
Stray Thoughts
Private Joker: I think I was trying to suggest something about the duality of man, sir.
Pogue Colonel: The what?
Private Joker: The duality of man. The Jungian thing, sir.
People are complicated.
The passing of legendary and controversial basketball coach Bobby Knight is a perfect example of just how complicated we all are. Depending on what aspects of his career are highlighted, Knight could be framed as an abusive villain or a tough guy with a heart of gold.
Knight was a winner. His goal was to create strong men prepared for the harsh realities of the world. Many times, he went too far and crossed lines. We are all flawed.
Former IU player Quinn Buckner had this to say on Knight’s passing (the article has many reactions from former players and peers):
"I think it's important for people to realize that. It was a special opportunity to have been coached by him, and an equally special opportunity to have him as a friend. Because as great a coach as he was, he was an infinitely better friend. He's a big part of who we are, and we were very fortunate to have had him in our lives."
The one stat that always jumps out at me is a stat more colleges should care deeply about, his player graduation rate (John Thompson Jr. at Georgetown is another example of making this a priority).
Knight could boast a 98% graduation rate for his student-athletes (Thompson’s graduation rate at Georgetown was 97%).
A high-profile player who left Indiana after their junior year was Isiah Thomas. Thomas initially didn’t want to play for IU. His mother made the decision for him after Coach Knight promised three things, “he would teach everything he knew about basketball, guaranteed Thomas would graduate from college, and that Thomas would be a gentleman.” Thomas graduated from college after taking correspondence courses during his summer breaks from the NBA - promise kept.
RIP Coach Knight.