Two Steps Forward; One Step Back
A Georgia sports betting bill has advanced out of the Senate, but an amendment now requires an additional step, a voter referendum.
The Bulletin Board
NEWS: The Georgia sports betting bill passed the Senate, but a new step in the process has been added.
WEEKEND CATCHUP: Quote of the Week; An End to the NH Casino Controversy; Jackpocket Casino App is Live.
QUICK HITTER: The benefits of retail sports betting.
NEWS: Underdog breaks ranks with industry and throws support behind the GRIT Act.
BEYOND the HEADLINE: Underdog’s commitment to responsible gambling.
AROUND the WATERCOOLER: Outside the Lines and 60 Minutes served up two nothingburgers.
STRAY THOUGHTS: Phase 2 of Straight to the Point.
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Visit: https://underdogfantasy.com/careers
GA Sports Betting Bill Advances With an Extra Step Added
The Georgia Senate passed an amended bill to legalize mobile sports betting on Thursday. The bill, SB 386, initially sought to legalize sports betting without a constitutional amendment. The amended version that passed the Senate requires the measure to go before the voters - assuming it passes the House and is signed by the governor.
Should the bill pass, the need for a constitutional amendment pushes the timeline for launch back several months, likely into H2 2025.
During the hearing, State Sen. Bill Cowsert was the most vocal opponent of the original measure, calling it “disingenuous at best and just sneaky” to bypass voters.
SB 386 would authorize up to 16 mobile sportsbooks. Seven licenses would be untethered. Five would be set aside for Atlanta’s pro sports franchises: the Braves, Falcons, Hawks, United, and Dream. And four would go to NASCAR, the Georgia Lottery, the PGA, and Augusta National.
The measure calls for a $1 million licensing fee and a tax rate of 20%.
The House is the real obstacle. As Sports Handle’s Jill Dorson noted, “While sports wagering legislation has occasionally moved out of the Senate in previous years, no Georgia sports betting bill has ever passed through the House.”
But Rep. Ron Stephens, a longtime proponent of legalizing sports betting, thinks 2024 might be the year, telling Play USA:
“We need to go ahead and move on this. Two-thirds of the country is doing some form of sports betting. We’ve been talking about this stuff too long. My grandmother used to tell me, it’s either time to pee or get off the pot. I think a whole bunch of us in the House think it’s time to do this.”
Weekend Catchup: Quote of the Week; NH Casino Controversy; Jackpocket Casino App is Live
Quote of the week: “It can’t come soon enough. But that said, I hope to God [DC] they do it right,” Brendan Bussmann of B Global Advisors on the possible end of GamBet’s DC sports betting experiment.
Case closed? Embattled Concord Casino owner Andy Sanborn has not filed an appeal after his gaming license was suspended for alleged misuse of COVID relief funds. Sanborn is now required to sell his ownership within six months. His wife, Laurie Sanborn, chairs the House Ways and Means Committee, where online casino legislation hit a brick wall in 2023.
The Jackpocket casino app is officially live in New Jersey. The company’s first foray into the online casino business had been in an extended soft launch until January 31, when Jackpocket CEO Peter Sullivan posted on LinkedIn, “I’m extremely excited to announce the official launch of Jackpocket Casino… Early testing data suggests this is going to be a major disruption in the igaming world.”
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Quick Hitter: Retail Betting Is More Than Revenue
Retail sports betting is often overlooked. It’s a blip on revenue reports and entirely overshadowed by mobile betting. But direct revenue isn’t the only measure of success.
Case in point, according to MGM Springfield’s Vice President of Casino Operations, Robert Westerfield, sports betting has breathed new life into the property.
“They go out to get a bite to eat in one of the restaurants, they’ll go to MassMutual to see a gymnastics show or a comedy show, and all the things we have on property here,” Westerfield told Spectrum News. “Tap, ROAR! Comedy Club, the movie theater. So it really brings another group of people here, and it spreads throughout the whole property.”
To that point, MGM Springfield, and every other casino with a retail sportsbook, will be packed next Sunday, and those visitors will spend money before and after the game.
Underdog Throws Support Behind the GRIT Act
Underdog Fantasy (a newsletter sponsor) has broken with the industry and come out in support of the GRIT Act. “There is a need for dedicated federal resources to aid problem gambling prevention, research, and treatment,” said Underdog VP of Responsible Gaming Adam Warrington in a statement to Sports Handle. “As there are currently no federal funds allocated for problem gambling, we at Underdog support directing existing tax dollars as online sports gaming and wagering grows.”
Underdog is a fantasy sports company that will soon segue into sports betting. Its first foray into sports betting will occur in North Carolina, where it has partnered with Sedgefield Country Club.
The GRIT Act has become an extremely divisive issue.
On one side are responsible gambling and problem gambling advocates, and on the other is the industry that would like to see the federal sports betting excise tax, a .25% tax on all sports wagers, repealed. That’s an already tall order that would become an impossibility if the money was explicitly earmarked for a good cause - it is currently rolled into the government budget with no specific use.
A second facet of the excise tax was highlighted by Sporttrade’s Alex Kane, who has expressed frustration that the excise tax takes a heavier toll on low-hold, customer-friendly sportsbooks.
The question is, will others follow Underdog’s lead, or is the company on an island?
As Dustin Gouker said on X, “I will admit this is a very good PR move. As we sit here, the chances of the excise tax being repealed in the short and long term are pretty small. Why not differentiate yourself from the rest of the gambling industry and support money for responsible gambling?”
Beyond the Headline: Underdog’s RG Focus
Underdog’s support of the GRIT Act isn’t the first major responsible gambling initiative the company has taken.
In October, Underdog announced GuardDog, “an investment initiative that supports the growth of tomorrow’s responsible gaming startups and tools that will keep future generations of fantasy sports players, bettors, and all other gamers safe.”
Underdog seeded the project with $1 million and brought on Brianne Doura-Schawohl, Adam Warrington, Chris Grove, Dan Hartman, and Sara Tait as advisors, mentors, and investors.
As I said at the time of the announcement:
For far too long, I and others have lamented the lack of innovation in the RG space. As I recently wrote, “RG-PG discussions are stagnant and, by their own metrics, ineffective.” GuardDog seems like a good remedy, as it will bring in new voices and ideas to the otherwise stale RG space.
Anyone interested in applying can do so at the GuardDog website.
Around the Watercooler
Social media conversations, rumors, and gossip.
There was a lot of consternation when ESPN and 60 Minutes announced they would air segments on the rise of sports betting in the US, but the four-part Outside the Lines segments (one seen below) and the 13-minute-long segment on 60 Minutes were far from needle-movers.
Supporters of legal sports betting can breathe a sigh of relief. There was no new information as problem gambling advocates walked across already well-trodden ground.
In fact, both sides likely agreed with the bulk of the segments:
Stray Thoughts
This week marks six months of newsletters.
As I said on X and LinkedIn, “It’s been a hell of a ride so far, but I couldn’t be happier and am extremely grateful for the outpouring of support I’ve received.”
The good news is I’m way ahead of schedule when it comes to subscribers and reach.
The great news is I’ve sold most of my sponsorship slots for the year, allowing me to focus more on new content, particularly for the growing list of paid subscribers.
Podcasts are being recorded and will become available to all (paid subscribers will receive early access). My goal is casual and candid conversations with interesting people that are hopefully unlike anything else out there.
I will also be sending paid subscribers my Q1 Online Gambling Temperature Check in the near future. This is a short and long-term US online casino and poker legalization outlook.