You're Gonna Have Some Union Problems
You're Gonna Have Some Union Problems
My client could make them disappear. Labor unions have become one of the biggest obstacles facing legal online casino gambling.
The Bulletin Board
NEWS: Labor unions oppose online gambling in New York and Maryland.
LOOSE ENDS: RI online casino debuts next week; WSOP 2024 schedule; DC can’t quit Intralot; MGC Chair retiring; Clarion acquires GGB
NEWS: Illinois Gov. J.B. Pritzker’s budget proposal would raise the sports betting tax from 15% to 35%.
NEWS: Caesars boosts its Michigan presence after acquiring WynnBet’s market access and database.
BEYOND the HEADLINE: Wynn’s US online gambling exit is nearly complete.
AROUND the WATERCOOLER: Apple Sports has entered the chat.
STRAY THOUGHTS: The Talking Shop Podcast is set to launch.
SPONSOR’S MESSAGE - SUBSCRIBE NOW to Zero Latency, the new podcast from Eilers & Krejcik Gaming that provides unparalleled insight into the U.S. online gambling industry through interviews with industry insiders and analysis from EKG experts.
Is Organized Labor an Impediment to Online Casino?
Online gambling legalization has run into numerous obstacles in the US.
Fifteen years ago, it was land-based casinos. That opposition receded a decade ago, but several influential firms, notably Sheldon Adelson, continued the fight (with tremendous success). Many regional casinos continue to carry the “no online gambling” torch today.
And, of course, there was and is the anti-gambling crowd, as well as other pockets of opposition, including labor unions, who see a shift to online gambling as a job killer.
In a letter signed by 700 employees at Resorts World casino at Aqueduct denouncing New York’s online casino bill, the Hotel & Gaming Trades Council union said:
“We find it appalling that you are pushing legislation that would hurt workers like us and our industry in order to benefit a handful of companies who are seeking massive profits at our expense.”
“This iGaming proposal undercuts the best thing about casino gaming in New York: permanent, high-quality jobs that New Yorkers can live and retire on, Tibrewal said. “We’ve stated and re-stated our opposition to iGaming to Senator Addabbo and now it’s time for him and other legislators to start hearing it directly from casino workers.”
Similar sentiments were expressed in Maryland.
In a November opinion article in the Baltimore Sun, Tracy Lingo, the president of UNITE HERE Local 7, and Paul Schwab, the executive secretary-treasurer of UNITE HERE Local 25, said of online casinos:
“The expansion of online gambling would eliminate casino jobs and reduce the incentive to invest in or expand Maryland’s casinos. It will harm thousands of Maryland workers who rely on in-person gaming and tips. It will undermine the promise of good jobs and economic development that the industry made to Maryland’s voters in 2008.”
Loose Ends: RI Online Casino Debuts Next Week; WSOP 2024 Schedule; Intralot Staying in DC; MGC Chair Retires; Clarion Acquires GGB
RHODE ISLAND iGAMING LAUNCH: In what is perhaps the quietest launch since Maine’s foray into online sports betting, Rhode Island’s online casino games go live next week, on March 1, with live dealer table games and online slots available in a soft launch phase. Why so quiet? First, Rhode Island is a small state. Second, as a lottery-run monopoly (with games offered by the state’s sole casino operator, Bally’s), there’s no money in it for gambling affiliates, which deliver most of the news in the space.
2024 WSOP SCHEDULE: The 2024 World Series of Poker schedule has been released. The series will run from May 28 to July 17, 2024, with 99 live bracelet events. The big question is, after a record-setting 2023 with 10,054 entries, can the WSOP Main Event surpass 10,000 entrants for the second year?
DC-INTRALOT DEAL: It appears DC will keep Intralot as its mobile sports betting supplier, at least in the near term, according to a scathing report in the Washington City Paper. “Executives at the Office of Lottery and Gaming have now told the Council on two different occasions that they plan to keep the existing deal in place at least for the near future… but it’s likely to be at least a year as officials evaluate whether to solicit bids from other companies hoping to run the city’s sports betting operation and then evaluate new potential partners.”
MGC CHAIR STEPPING DOWN: The Chair of the Massachusetts Gaming Commission, Cathy Judd-Stein, has announced her retirement from the MGC, effective March 21, 2024. Judd-Stein has chaired the MGC for five years, leading it through the pandemic and the launch of sports betting.
CLARION SCOOPS UP GGB: One of the industry’s longest-running publications, Global Gaming Business (GGB), has been acquired by Clarion Gaming. Clarion will use the acquisition to increase its North American footprint as the deal encompasses GGB magazine’s annual publications and online assets. Congrats to GGB Founder Roger Gros.
Illinois Gov. Proposes Massive Sports Betting Tax Increase
Yesterday, I mentioned Jeremy Kudon’s remarks that he is “bullish about prospects in Democratic-controlled states over the next 24 months” because of “rapidly growing budget shortfalls and a lack of alternative revenue sources.
Enter Illinois.
“I wish we had big surpluses to work with this year to take on every one of the very real challenges we face,” Illinois Gov. J.B. Pritzker said during the annual State of the State address, per a story from the AP.
One of the ways Pritzker is seeking to fill the budget hole is through tax increases, including bumping the tax on sports betting from 15% to 35%, which would add some crumbs to the proposed $52.7 billion budget (about $200 million).
The move is not without precedent. Last year, Ohio doubled its sports betting tax rate from 10% to 20%.
Meanwhile, sitting on the sidelines waving its hand, trying to get someone’s attention is online gambling. Online casinos would bring in more than $270 million annually, and more critical to the current budget, several hundred million in upfront licensing fees.
On Tuesday, I mentioned DraftKings CEO Jason Robins mentioning Illinois as a 2024 dark horse. “There are a few states that I think are getting momentum on iGaming, and it will be hard, but I think we’re going to get at least one or two this year,” Robins said during the company’s earnings call.
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Caesars Acquires Wynn’s Market Access & Database in MI
Caesars is acquiring WynnBet’s Michigan online gambling assets and has signed a long-term market access extension deal with the Sault Ste. Marie Tribe of Chippewa Indians.
The deal increases Caesars’ Michigan footprint in two ways:
It will take over WynnBet’s customer database, which CEO Tom Reeg called “slot-centric.”
It adds three potential online casino brands to its Michigan portfolio (each licensee can launch up to three brands).
According to the press release, the company will transition WynnBet customers to a well-known Caesars brand in Michigan. The company currently offers Caesars Casino and Caesars Palace Casino in Michigan and has several other brands in its pocket.
As Chris Grove said on X following the Caesars announcement: “Multi-brand matters a lot for online casino. It will matter for online sports betting as well, but it matters more for online casino.”
Grove made similar comments on X and LinkedIn following the acquisition of Jackpocket by DraftKings:
“Why is Jason Robbins the only executive who gets the value of multiple brands in the online casino market?”
“This slide validates my "more" thesis (that the winner of the U.S. online gambling market will be the company that offers the most mores - more products, more brands, more price points, and more options for more consumers)...”
Beyond the Headline: Evaluation Complete
Except for its Nevada online sports betting app, Wynn Entertainment is officially done with online gambling in the US, at least for now.
Wynn announced in August that it was pulling the plug on its online operations in eight states. The company also said it would evaluate its New York and Michigan operations. It’s now exiting both states, having sold its New York license to ESPN Bet last week.
Wynn also submitted a notice of intent to cease operations in Massachusetts. The Massachusetts Gaming Commission granted that request.
Around the Watercooler
Social media conversations, rumors, and gossip.
The talk of social media on Wednesday was the launch of Apple Sports. According to Front Office Sports, DraftKings is supplying the live odds. “The app provides an up-to-date scoreboard on all major leagues and connects users to streaming apps that broadcast the games,” FOS reports.
However, per Eilers & Krejcik Gaming’s Chris Krafcik, there’s no there there, yet.
Underwhelming reception aside, as EKG’s Alun Bowden noted, there are some knock-on effects to consider.
Stray Thoughts
The Talking Shop Podcast will debut next week. I have recorded multiple episodes on a wide variety of topics. The episodes will go live on Sundays. Anyone interested in sponsoring the podcast can contact me here.