The Dark Horse Rises
2024 was shaping up to be a down year for online gambling legalization, but optimism is growing as several dark horse candidates emerge.
The Bulletin Board
NEWS: Wyoming emerges as a dark horse online casino candidate.
NEWS: Alabama’s sports betting effort is gaining steam.
WEEKEND CATCHUP: West Flagler files petition at SCOTUS; Betr and WynnBet approved to leave MA
NEWS: A second online casino bill filed in Maryland has several significant differences.
AROUND THE WATERCOOLER: Barstool’s post-Super Bowl announcement.
STRAY THOUGHTS: How to make slow fast.
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WY Throws Its (Cowboy) Hat Into the Sports Betting Ring
I’ve been saying online casino legalization will get blanked in 2024 for several months. But, as I’m wont to do, I left the door open for a dark horse candidate:
“The best online casino candidates are being taken off the board one by one, with online casino efforts in New York, Indiana, and New Hampshire all but dead in 2024. Unsurprisingly, eyes are turning to potential dark horse candidates.”
That candidate may have emerged: Wyoming.
As reported by US Bets, three Wyoming representatives have introduced legislation to legalize online casino gambling. House Bill 120 would license no fewer than five operators, with the Wyoming Gaming Commission providing oversight.
The bill is operator-friendly, with a $100,000 licensing fee and a 10% tax rate.
Of note, the bill allows anyone 18 or older to create an account and gamble online, which, if passed as-is, would make Wyoming an extreme outlier, as every other online casino state (and most online sports betting states) is 21+.
Still, it won’t be smooth sailing across the finish line. Wyoming has multiple stakeholders to appease (two tribes that operate four tribal casinos, three racetracks, a dozen off-track betting parlors, and four mobile betting operators).
Tribes were already cut out of mobile betting, with geofencing in place to prohibit the four mobile operators from offering online betting on tribal lands. Online casinos would work the same way.
The big difference is the tribes didn’t offer retail sports betting when the state legalized retail and mobile betting. They do offer casino games, which will likely cause far more pushback against the online casino efforts, and I don’t think geofencing tribal lands will be enough.
The state also has one of the shortest legislative sessions in the country, as it meets for just 40 days in odd-numbered years. In even-numbered years, “the legislature convenes in a Budget Session… which typically lasts 20 legislative days. Except for the budget bill, all other bills require a two-thirds vote from the Senate or House for introduction during a Budget Session.”
In 2024, it is set to convene on February 12 and adjourn on March 8.
Alabama Is Serious About Legalizing Sports Betting
Speaking of dark horses, Alabama Gov. Kay Ivey is supporting efforts to expand gambling in the state.
Per 1819 News:
“This year, when Alabamians make their way to the ballot box, I hope they will be voting on another issue: Gaming," Ivey said in her State of the State address last week. "I believe the current proposal being contemplated by the Legislature is good for Alabama, and I will be carefully watching it move through the process… Now is the time for Alabama voters to have another say on this issue."
Ivey is referencing a recently introduced comprehensive gambling reform package (HB 152) that would bring casinos, a lottery, and retail and mobile sports betting to the state.
You can find STTP’s previous coverage of Alabama’s 2024 sports betting effort here.
Rep. Chris Blackshear, one of the bill’s sponsors, spoke to 1819 News after Ivey’s remarks.
“No matter what your stance is on gaming in the state, it’s existing. It’s unregulated. It’s not controlled, nor is it taxed. I think that’s something you’ll see in the legislation as the session progresses that we’ve looked to tackle all three of those areas,” Blackshear said. “There’s no perfect legislation, especially if you’re talking about a topic like gaming, but I think we’ve got a piece of legislation that we can be proud of to present to our colleagues.”
The measure requires a constitutional amendment, a 60% vote in both chambers, and a voter referendum on the November ballot. And the impediments don’t stop at a constitutional amendment. We are talking about Alabama here, and several groups and lawmakers have been public with their opposition and concerns.
Weekend Catchup:
As expected, West Flagler has submitted its petition for writ of certiorari to the Supreme Court, asking the SCOTUS to review a federal appeals court ruling in favor of the State of Florida and the Seminole Tribe.
Massachusetts regulators have signed off on Betr and WynnBet exits. Betr received approval to cease operations on February 16 and WynnBet on February 23. Customers have until March 16 and 23 to withdraw funds. Patrons will be contacted about any unresolved bets.
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Maryland Gets a Second Online Casino Bill
There are choices to be made in Maryland, and if you’re an online casino supporter, choice may not be a positive thing.
State Rep. Vanessa Atterbeary has filed a second online casino bill, HB 1319. The legislation is similar, but not identical, to a bill filed by State Sen. Ron Watson, SB 603.
Watson has been at the forefront of Maryland’s online casino efforts, but as Play USA points out, Atterbeary chairs the House Ways and Means Committee, which could help move a bill along, at least in the early stages.
Both bills would require a constitutional amendment and have significant tax burdens, which has cooled industry support.
There are three significant differences between the two bills, as Atterbeary’s bill:
Makes up to 12 untethered online casino licenses available through a bidding process.
Calls for different tax rates on table games (minimum of 55%) and live dealer games (minimum of 20%) through the bidding process.
Copied the diversity requirements from the state’s sports betting law.
Those differences could divide support, and if Maryland has a chance at legalizing online casinos in 2024, it will need every supporter on the same page, as there is also plenty of opposition in the legislature and beyond.
Around the Watercooler
Social media conversations, rumors, and gossip.
Seconds after the Super Bowl ended, Barstool Sports officially announced its new deal with DraftKings - Its non-compete with Penn ran through the 2023 NFL season.
We’re also getting our first look at the type of content we can expect to see.
Portnoy then spent the rest of the night pulling up receipts:
“Assuming the deal goes through, the first thing to address is the seemingly short noncompete term. First, this did not surprise me. I’m on record that Barstool would be back in the US sports betting space in short order, considering the divorce with Penn was brokered in two weeks.
“And I’m not the only one. Vanity Fair reported the noncompete running through the end of the current NFL season”
Stray Thoughts
I have used a saying in several different contexts lately, “Slow is smooth, and smooth is fast.” Make of that what you will.