A Fanatical Ascent
Thanks to VIP players, Fanatics has jumped ahead of DraftKings in New Jersey, but can it hold on to that ranking?
The Bulletin Board
NEWS: Fanatics moved into the #2 spot in New Jersey in March, besting DraftKings for the first time.
BEYOND the HEADLINE: Who will claim the Rolex of sports betting title?
WEEKEND CATCHUP: NCAA picks up an ally; Tribes ready for online gambling; GuardDog paying dividends; New Talking Shop Podcast episode.
NEWS: Michigan regulator cites successes in battling illegal gambling.
QUICK HITTER: Are new online poker sites coming to Nevada by April 2025?
AROUND the WATERCOOLER: Sports betting misconceptions.
STRAY THOUGHTS: Acheivement unlocked.
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Fanatics Jumps to the #2 Spot in New Jersey
Fanatics was the second-ranked online sportsbook in New Jersey in March, overtaking DraftKings but falling short of FanDuel.
Eilers & Krejcik Gaming (a newsletter sponsor) believes a minimal number of VIPs, perhaps even a single user, is the catalyst for Fanatics’ sudden rise in January.
EKG pointed to Fanatics’ monthly volatility as another indicator that VIP money is behind its ascent, noting its GGR has been on a three-month GGR rollercoaster: $28 million in January, $7 million in February, and $20 million in March. Nor has Fanatics replicated its New Jersey success in other locales.
EKG also believes the VIP activity came from DraftKings, which saw its market share drop to 20%, while FanDuel maintained its market share.
It’s important to note that Fanatics’ rise in New Jersey occurred before its dustup with DraftKings over VIP executive Michael Hermalyn.
“It’s clear that Fanatics is making an intentional decision to focus on VIP acquisition efforts,” Dillon Borgida, a former VIP leader who spent time at FanDuel and DraftKings, told STTP. “This is a different approach than what we’ve seen from other “2nd tier” operators in the past. I think it’s the right move and one of the only ways to compete with FanDuel and DraftKings in today’s landscape. That said, I’m interested to see how sustainable the New Jersey market share is since I don’t believe it’s a large group of players that are making the impact.”
Beyond the Headline: The Rolex of Sportsbooks
Somewhat connected, Borgida has wondered aloud about the strategies of second-tier sportsbooks, tweeting, “[I’ve] been saying this for a while and just said it on a call, too… no company has positioned its brand as the Rolex for sports gambling.”
I have also been perplexed by the strategy of second and third-tier operators for quite some time. They utilize the same strategies as DraftKings and FanDuel but without the product or the war chest to compete.
Weekend Catchup: NCAA Picks Up an Ally; Tribes Ready for Online Gambling; GuardDog Paying Dividends; Podcast
NCAA picks up a powerful ally: In a letter sent to the NCAA, Brian O’Dwyer, the chairman of the New York State Gaming Commission, endorsed a nationwide ban on prop bets on college athletes. O’Dwyer noted New York’s existing ban on these wagers and called on other states to follow its lead. “We continue to believe the prohibition of college proposition betting on student-athletes is appropriate,” O’Dwyer said. “New York State appreciates your efforts to help implement this important protective measure nationwide.”
Tribes ready to enter iGaming: As I’ve reported, the new Department of Interior rules could fundamentally change the online gambling landscape in the US. Per The Innovation Group (TIG), this was one of the key takeaways from the recently concluded Indian Gaming Association Tradeshow: “DOI specifically calls out the portion of an online wager that takes place off Indian Lands as something that can be governed by compact. The big picture here is that we can expect a huge tribal push for compact amendments to include exclusivity for tribal operation of statewide sports betting and iCasino in states that haven’t yet authorized them, just as the Seminoles did in Florida.”
GuardDog grant producing results: The first recipient of Underdog’s GuardDog grant (Underdog is a newsletter sponsor), idPair has announced its plans to launch the National Voluntary Self-Exclusion Program (NVSEP), beginning in New England this Summer. Per the press release, the initiative is guided by two concepts: “(1) Individuals needing seamless access to a National Voluntary Self-Exclusion list irrespective of geographical location; and (2) alignment of data sets for a single portal of current regulatory information and evolving public health resources.”
New podcast episode: My conversation with game designer Kim Lund is now available to all. Kim and I chatted about our lengthy time in the industry and where current trends are missing the mark.
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Michigan’s Crusade Against “Illegal” Gambling
Michigan is leading the way when it comes to cracking down on what the state and regulators are classifying illegal gambling.
At the International Masters of Gaming Law 2024 Spring Conference, Michigan Gaming Control Board executive director Henry Williams said the MGCB has a zero-tolerance policy toward illegal gambling:
“If people choose to ignore the law and don’t do what’s legal, we’re going to find them and hold them accountable for their actions. In Michigan, the Michigan Gaming Control Board has made it a priority to do everything we can to protect our state’s citizens from illegal gambling market operators and our legitimate gaming industry from being tarnished by its illegal counterparts.”
Williams said that “in partnership with the Michigan Attorney General’s Office, 79 machines used for illegal gambling were seized, nine individuals received criminal gambling convictions, and 24 individuals were arraigned on illegal gambling charges.”
And its crusade goes beyond physical gaming machines. Michigan is the only state that has taken action to prohibit sweepstakes casinos and sportsbooks. In November, the state sent cease-and-desist letters to Golden Hearts Games and Virtual Gaming Worlds (Chumba Casino).
In a January press release, the MGCB cited several sweepstakes online gambling companies as in violation of Michigan gaming laws. The release also says the three companies have “taken steps to prevent Michigan residents from gambling on their websites.”
As I said in a 2024 look ahead, “Sweepstakes are one of the more complex areas of gambling. The strange legal area it resides in has created a loophole of sorts, and some states, like Michigan, are looking at closing that loophole. Expect more of this in the coming years.”
The state also targeted DFS 2.0 contests, updating its rules in November 2023 to read, “Unless otherwise approved by the board, a fantasy contest operator or licensed management company may not offer or allow…proposition selection or fantasy contests that have the effect of mimicking proposition selection.”
PrizePicks announced it would remove the games from its Michigan catalog - Sleeper and Underdog (a newsletter sponsor) were not offering these contests in Michigan.
Quick Hitter: New Nevada Online Poker Sites?
Nevada online poker players are hoping 14 times is the charm. With just a single online poker option, WSOP.com, Nevada poker players have long clamored for more choice, and fingers crossed they will have it by next year.
According to the Las Vegas Review-Journal, the Nevada Gaming Commission approved another waiver extension (the 14th) for Z4Poker LLC and MGM Resorts Interactive LLC. Both companies told the NGC they plan to be live by April 2025.
Everyone is familiar with MGM but may not be familiar with Z4, which has been building a mobile-focused online poker product for a decade. I had the opportunity to chat with some of the people involved in the project ten years ago in an article that gives you a glimpse of what online poker in the US was supposed to become.
From my 2014 column:
“Nevada’s current online poker operators are going to have quite a bit of company in the near future, as no less than three new online poker sites are expected to launch within the next year.
“In the coming months 888 and Treasure Island (TI) are expected to join forces with WSOP.com and form the All American Poker Network in Nevada, as they battle against the two other current operators, Ultimate Poker and Real Gaming, for market share.
“The third site expected to launch is more of a wildcard, HDPoker.”
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Around the Watercooler
Social media conversations, rumors, and gossip.
The following two tweets demonstrate the massivee disconnect between how people think sports betting works behind the counter and how it actually does.
Stray Thoughts
#200!!!
Today is my 200th Substack post, and I’m somehow hurtling toward the newsletter’s first Anniversary (August 17th).
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