An Offer He Can't Refuse
With very few legalization candidates in 2024, it's clear that states are not buying what online casino and online poker supporters are selling.
The Bulletin Board
NEWS: Online casino legalization efforts are still on the outside looking in, but don’t write everyone off just yet.
NEWS: Gaming News Canada examines the chances of online gambling regulation in three Canadian provinces: Alberta, British Columbia, and Quebec.
NEWS: New York’s online casino push is imminent, but is 2024 different?
BEYOND the HEADLINE: New York’s online casino supporters want to legalize fixed-odds horse racing.
QUICK HITTER: Utah lawmaker introduces a bill to authorize a state lottery.
AROUND the WATERCOOLER: Thrive Fantasy customers cry foul.
STRAY THOUGHTS: The delivery service pecking order.
SPONSOR’S MESSAGE - Underdog: the most innovative company in sports gaming.
At Underdog we use our own tech stack to create the industry’s most popular games, designing products specifically for the American sports fan.
Join us as we build the future of sports gaming.
Visit: https://underdogfantasy.com/careers
The Slow-Burn of Online Casino Legalization
“If we don’t get a piece of that action, we risk everything we have. Not now, but ten years from now.”
That was Tom Hagan (Robert Duvall) relaying his thoughts on the Corleone family’s possible entry into the narcotics trade in The Godfather, and that’s the main talking point being lobbed at legislatures as they consider legalizing online casinos and poker.
The problem is that much like The Don’s thoughts on drugs, states (and many in the land-based industry) are very concerned about online casinos.
Whether you agree or disagree with land-based cannibalization fears and the notion that online gambling will turn an entire generation into gamblers (a casino in every pocket!), they are proving to be very sticky arguments.
Two of the best candidates, Indiana and New Hampshire, have already taken online casino legalization off the table in 2024. A third candidate, Maryland, received a favorable report from The Innovation Group, but the section everyone is focusing on is TIG’s conclusion that online casinos cannibalize retail gambling by as much as 10%, including organized labor, which opposes online gambling.
In an episode of the newly launched Lawyers, Lines & Money podcast, hosts Daniel Wallach and Justin Mader spoke with Howard Glaser, the Global Head of Government Affairs and Legislative Counsel at Light & Wonder, about online casino prospects in 2024.
According to Glaser, the big difference is sports betting was seen as an “adjunct” to sports, whereas with internet casinos, it’s betting for betting’s sake. Glaser said that difference strikes people, especially lawmakers, differently.
According to Glaser, the key is to be empathetic to the fears and answer them with data and facts. Glaser made the case for online expansion with the usual mutually beneficial argument but with a new Taylor Swift analogy. The question I wanted to hear was, where does Glaser see daylight in 2024?
Glaser said his New Year’s resolution was “to not make any predictions.” But he did offer up some generalities.
“The landscape of states that might be ready to move in the next 24 months is relatively narrow, and the landscape after that is pretty broad,” Glaser said.
I focused on his use of a 24-month window, which indicates he’s bearish in 2024.
Over the next 24 months, Glaser noted New York as a big target and mentioned Maryland as another candidate. He also noted a state I’ve had on my radar, Louisiana, which I made the case for back in August.
Glaser believes that the much-discussed Illinois, Iowa, and Indiana are likely not in the first group but will eventually come around.
You can see my latest online casino candidate list here.
Sponsorship opportunity
Want to sponsor the fastest-growing newsletter in the gambling space? Straight to the Point has multiple sponsorship opportunities available.
Reach out to Steve at iGamingPundit.com for more details.
What About North of the Border?
The Monday edition of the Gaming News Canada Show saw Steven McAllister, Amanda Brewer, and Kris Abbott look ahead to 2024 for the Canadian market, including the possibility of another province regulating mobile sports betting and online gambling.
Steven McCallister started the conversation by saying he is “really skeptical that we will see regulated gambling in Alberta in 2024,” despite some in the industry expressing confidence it would happen in 2023.
“There’s nothing I’ve seen or read” that leads me to believe otherwise, McCallister said.
Brewer said 2024 might provide some insights into how Alberta is thinking about online gambling in 2024 but doesn’t expect any push until at least 2025, with the caveat that there will be plenty of lobbyists in Edmonton this year. One glimmer of hope is a visit to ICE in February by Alberta regulators, which could help make some inroads.
British Columbia also came up in the discussion. According to Abbott, BC has begun the process, but “it’s something that is going to take education, lobbying, and prioritization inside the government.” Abbot added that there are a lot of other more significant issues going on, which might push online gambling to the side in multiple provinces.
And, of course, as everyone on the show mentioned, the lottery has a monopoly, and relinquishing that is a big ask.
And then there is Quebec. “I have zero thoughts on Quebec,” Brewer said, adding that it will be a slow, tough slog in the province.
NY Online Casino Push Will Start Fresh in 2024
After killing last year’s online casino legislation last week, New York State Sen. Joseph Addabbo Jr. will start over in 2024 with a new online casino bill.
As reported by Bonus.com, Addabbo struck the required introductory phrase “The People of the State of New York, represented in Senate and Assembly, do enact as follows…” from S4856, thereby killing the legislation. Another lawmaker could sponsor the bill and reinsert the clause, but that is unlikely.
Steve Bittenbender spoke with Addabbo for NYCasinos.com and was told that the new bill could be introduced as soon as this week. Addabbo continues to pin online casino legalization hopes on the state’s looming budget deficit - the exact amount of the deficit is disputed.
So what’s new? Nothing official, but based on previous comments and a recent interview with Bonus.com, expect some form of the following to be added:
The legalization of online lottery
A multi-million-dollar fund for casino workers - $25 million
Increased problem gambling funding - $11 million
Tweaked tax rate, set at 30.5%
As many as 20 licenses, with tethered and more expensive untethered licenses
Beyond the Headline: Fixed-Odds Horse Racing on the NY Menu
Online casinos aren’t the only thing New York State Sen. Joseph Addabbo Jr. and Assemblyman Gary Pretlow are interested in legalizing in 2024. The pair have also filed bills in their respective chambers to legalize fixed-odds horse racing, including self-service kiosks.
In recent years, there has been a push to legalize fixed-odds horse racing in several states, and this will be New York’s third bite at the apple. Thus far, only Colorado and New Jersey have crossed the finish line.
As reported by Legal Sports Report in June, fixed-odds betting has been a lifeline for the Australian racing industry, with fixed-odds bets accounting for 75% of the country’s total betting handle.
Quick Hitter: Utah Enters the Gambling Expansion Conversation
Yes, there is a news item about Utah in the newsletter.
Utah is one of two non-gambling states - Hawaii is the other - but that could change if State Rep. Kera Birkeland gets her way. In an interview with KSL.com, Birkeland said she plans to introduce legislation authorizing a lottery via the November ballot.
The legislation faces an uphill battle. Not only is gambling anathema in the Church of Jesus Christ of Latter-day Saints (the Mormon religion), but the creation of a lottery would require a constitutional amendment in Utah, which means passing both chambers of the legislature by a 2/3 majority and a ballot referendum.
Finding that level of legislative support is a tall task, considering in 2021, 89 of the 103 state lawmakers were members of the Church of Jesus Christ of Latter-day Saints.
Around the Watercooler
Social media conversations, rumors, and gossip.
Thrive Fantasy isn’t thriving. Per Mike Mazzeo, the DFS company is ghosting customers and appears insolvent (full story at Legal Sports Report):
Mazzeo noted how these smaller (often unlicensed) operators are a black eye for the entire industry.
Dustin Gouker, who has been casting a critical eye at DFS for nearly a decade, also weighed in on X and in his Closing Line newsletter:
Stray Thoughts
UPS and FedEx arrived at my house at precisely the same time yesterday. The encounter was uneventful (UPS apparently has the right of way), and I’m a little embarrassed to say I was hoping for an Anchorman-style brawl, with Amazon arriving right in the thick of it. Instead, all I got was a friendly wave between the drivers.