The Great White North
Despite a successful rollout in Ontario, Canadian provinces are taking a cautious approach to online gambling legalization, but there is hope Alberta will take the plunge.
The Bulletin Board
NEWS: Following a trip to ICE in London, online gambling hopes rise in Alberta.
BEYOND the HEADLINE: Ontario clarifies advertising standards.
VIEWS: The industry is disappointed with how the mainstream press frames sports betting, but its complaints are ignored.
NEWS: ESPN Bet purchases WynnBet’s New York mobile betting license.
QUICK HITTER: Maryland bill would geofence college campuses to prevent students from accessing online and mobile betting apps.
AROUND the WATERCOOLER: Two excellent long-form stories.
STRAY THOUGHTS: What about the Super Bowl numbers?
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Is Alberta the Next Legal Online Gambling Province?
Ontario’s foray into online gambling has been a success, but other Canadian provinces are still sitting on the sidelines… at least for now.
There is some excitement in the air after Dale Nally, the Minister of Service Alberta and Red Tape Reduction, was spotted at the ICE conference in London.
Per Gaming News Canada (the best information hub for news North of the border), Nally met with a handful of operators at ICE. He also met with suppliers and regulators, according to Canadian Gaming Association President and CEO Paul Burns.
Nally’s office offered the following statement to Gaming News Canada:
“Alberta can be a leading hub for iGaming, with a strong emphasis on openness and a free market. We have low corporate taxes, streamlined regulations and high disposable incomes. These conditions will allow us to establish ourselves as a premier destination for the iGaming industry.”
Where Alberta stands is still unclear (the Gaming News Canada crew thinks 2025 is a better bet than 2024). The next update will likely be the government’s budget proposal.
Beyond the Headline: AGCO Clarifies Ad Standards
Staying in Canada and once again leaning on the excellent reporting from the Gaming News Canada team, the Alcohol and Gaming Commission of Ontario (AGCO) has updated its advertising standards, which are slated to go into effect on February 28.
There are two significant changes [bolded] - the complete guidance and clarity on the following points can be found here.
Requirements – At a minimum, materials and communications shall not:
Use or contain cartoon figures, symbols, role models, social media influencers, celebrities, or entertainers who would likely be expected to appeal to minors. [This requirement has been changed]
Use active or retired athletes, who have an agreement or arrangement made directly or indirectly between an athlete and an operator or gaming-related supplier, in advertising and marketing except for the exclusive purpose of advocating for responsible gambling practices. [This requirement is new]
A Losing Argument: The Legal-Illegal Distinction
In the wake of coverage by 60 Minutes and Outside the Lines, FanDuel CEO Amy Howe is the most prominent person pointing out the lack of attention the mainstream press is paying to the illegal offshore markets. But she is far from the only one.
“We found it incredibly disappointing because it didn’t acknowledge what has actually happened in the last five years since the market opened up. You have taken an illicit market just shy of 50% of the US population and brought it into light,” Howe told Sports Handle. “As one of many regulated operators, we’re adhering to a certain set of standards that the illegal market isn’t in protecting minors. We have very strict controls around anti-money laundering, our marketing is scrutinized, and we’ve invested a tremendous amount of resources in responsible gambling.”
Dustin Gouker, who has been sounding the illegal, offshore betting klaxon for years, said the following on X:
“This is the problem I have: Media simultaneously crushes legal sports betting while largely ignoring the offshore industry. Some of this reporting is legitimate, some of it is borne of lazy journalism, and some is a failing of the messaging and storytelling by the industry."
“On top of the fact that many media outlets cite offshore outlets as if they are legal in positive ways and none of the negative ways.”
This has been a point of contention for more than a decade, but as I’ve said, it doesn’t seem like anyone is interested in the story the industry is selling.
That could be because it’s an uninteresting story, or as Richard Schuetz tweeted:
ESPN Bet Secures Access to New York
ESPN Bet has had its sights set on a New York sports betting license for several months, and a clear path opened up for the company following WynnBet’s announcement that it was winding down its US online operations.
In a press release, Penn announced it is acquiring Wynn’s New York online sports betting license for $25 million, pending regulatory approval.
“This is an important development that will bring ESPN BET to the largest regulated online sports wagering market in North America,” said PENN Entertainment CEO and President Jay Snowden. “Together with ESPN, we’re building a brand that is synonymous with sports betting, and operating in the New York market is key as we grow ESPN BET across the US.”
Despite its 51% tax rate making profitability unlikely, access to New York is critical for any major operator trying to build a national brand.
As investor Lloyd Danzig told Legal Sports Report, “While ESPN enjoys significant brand recognition, the success of ESPN Bet hinges on both effective marketing and a compelling product. It remains uncertain whether ESPN Bet can gain significant market share at the expense of established competitors who currently hold stronger product loyalty and affinity among users.”
And, as I wrote in my deep dive into ESPN Bet, “Penn lacks market access to what is currently the largest sports betting market in the US, and while it’s trying to remedy the situation, it will take time, and its absence in New York will tamp down its national market share.”
That dichotomy can be seen in comments by Penn CEO and President Jay Snowden, the first from November 2021 and the second from August 2023:
“… I feel really mixed about New York because of the way the gaming law is structured and the fact that the tax rate is being self-imposed with a minimum of 50%… I don’t think anybody’s going to make money operator-wise… I think, objectively speaking, you’d probably rather be in than not be in… but I think it’s just going to be a margin killer. I think it’s going to be an EBITDA detractor.”
“No one loves the tax rate in New York. But there could be opportunities in the short-term, medium-term to gain access to New York creatively, and those are the things we’re working on behind the scenes.”
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Quick Hitter: First-Of-Its-Kind Policy In MD Bill
As reported by Mike Mazzeo, with a h/t to Heather Fletcher over at Bonus.com, a new piece of legislation in Maryland (HB 1087) would make college campuses a no-go zone for online and mobile sports betting.
Per the bill summary:
“Prohibiting online gambling while on campus at an institution of higher education in the State; requiring by August 1, 2024, each institution of higher education to establish a geofence around the perimeter of the campus that prevents access to online gambling within the campus property; and requiring each institution of higher education in the State to publish a written policy online that is consistent with the provisions of the Act.”
The question is, if passed, will other states follow Maryland’s lead?
Around the Watercooler
Social media conversations, rumors, and gossip.
Two recent articles have received a ton of praise on social media. Both are worth a read.
The first story was in SI and discussed one of the original online sportsbooks, World Sports Exchange, or WSEX. The report will bring back memories for those of us who have been around for a while. For you younger bettors, it offers a glimpse into how things used to be.
The second was a WPT story focused on Sean Perry, one of the most polarizing figures in the sports betting universe. Perry became a household name (in sports betting circles) following his deep run in the Circa Survivor Pool. He was already somewhat known in the poker community.
Stray Thoughts
If you’re wondering where my Super Bowl coverage is, you will find it in Froday’s feature column. Rather than report it piecemeal, I put it all together in a single package.