We Need To Nip This In The Bud
To prevent more states playing follow the leader, the industry is pushing back against several efforts to increase tax rates on licensed sportsbooks.
The Bulletin Board
NEWS: The industry is pushing back against Illinois Gov. JB Pritzker’s plan to increase the sports betting tax rate.
LOOSE ENDS: Arkansas casino; NIGC appointments; New sportsbook at Monmouth; Colorado campaign highlights legal market.
QUICK HITTER: Are Iowa online casino efforts already dead in 2025?
VIEWS: The latest news from the SBC Summit North America conference.
AROUND the WATERCOOLER: 40 is the new 20.
STRAY THOUGHTS: A beautiful line.
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Sports Betting Industry to Illinois: No New Taxes
The Sports Betting Alliance, which represents most of the major players in the US sports betting space, is trying to prevent Illinois from increasing its online sports betting tax rate from 15% to 35% and, in the process, keep other states from doing the same. Ohio doubled its tax rate from 10% to 20% last year, and New Jersey is also considering a tax rate bump.
According to Legal Sports Report, the group is urging bettors to contact Illinois lawmakers and let them know they oppose the tax rate increase. According to an SBA spokesperson, “a combined 25,000 emails have already been sent to the Illinois legislature and Gov. Pritzker.”
The SBA is framing the tax rate increase as bad for bettors on three counts:
More taxes mean worse odds for players
Customers will have access to fewer promotions and bonuses
A tax hike will increase illegal offshore sports betting (they pay 0% taxes)
During DraftKings Q1 earnings call, CEO Jason Robins said the industry would have to pass off any additional burdens on the customer:
“I mean in the end, the cost has to get absorbed by the consumer if the government raises taxes…
“I think that states do understand that any sort of negative impacts to the consumer offering that companies would have to take where tax rates increase would really be counter to the notion that we're trying to drive activity from the illegal market to the legal market.”
On the heels of Ohio, a tax increase in Illinois or another state could cause a ripple effect. The real fear is threefold:
Other legal states with low(ish) tax rates will follow suit.
States with high tax rates, like New York, will no longer consider lowering their rate.
States that have yet to legalize will implement a higher tax rate (which has already been ticking up).
LOOSE ENDS: Arkansas Casino; NIGC Appointments; New Sportsbook at Monmouth; Colorado Campaign
Fourth casino coming to Arkansas: The licensing process for Arkansas’ fourth and final casino has been approved by the Arkansas Racing Commission. The casino, which will be located in Pope County, has been a nightmare process, “with local efforts opposing the casino and multiple casino operators interested in the license,” per local reporting. Of note, Arkansas mobile betting licenses are tethered to casinos.
NIGC appoints two associate commissioners: The National Indian Gaming Commission has announced the “reappointment of Vice Chair Jeannie Hovland and appointment of NIGC Associate General Counsel Sharon M. Avery as associate commissioners.” The NIGC is still looking for a chairperson after E. Sequoyah Simermeyer stepped down after eight years to take a role at FanDuel.
Monmouth Park breaks ground on new Sportsbook: A new 16,000 sq. ft. trackside Caesars Sportsbook is coming to Monmouth Park. The project will have indoor and outdoor viewing, a Shake Shack and full bar, and all the usual bells and whistles of a modern sportsbook. There is no official opening date for the new sportsbook.
A new campaign against illegal gambling: The Colorado Department of Revenue (CDOR) is trying to educate residents on the difference between licensed and unlicensed sports betting sites. The campaign “Play Legit. Gamble Only Where Legal” explains the risks of the black market.
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Quick Hitter: Iowa Already Nixes Online Casino in 2025
Several 2024 online casino candidates were taken off the board in late 2023 and early 2024, but Iowa may be the new leader in the clubhouse when it comes to preemptively killing legalization efforts. We aren’t even halfway through 2024, and lawmakers are already throwing in the towel on 2025.
According to Bonus.com, Iowa State Rep. Bobby Kaufmann, who is leading Iowa’s efforts to legalize online casino gambling, said that while more people are receptive, “I think it’s accurate that 2025 is an unlikely year.”
Bonus also sourced Wes Ehrecke, the president and CEO of the Iowa Gaming Association (IGA), who also said 2025 is not looking good.
Ehreke said the IGA remains neutral on online casinos, as some stakeholders support legalization while others oppose it. Does this sound familiar?
Dispatches from the SBC Summit North America
I’m not at the SBC Summit in New York, but several quality reporters are, and they are relaying information via X. Here are some of the highlights from Ryan Butler, Robert Linnehan, and John Brennan.
Ryan Butler (who recently moved to Covers.com) comes in with the latest from Cordish Gaming’s Rob Norton:
And in the, they must subscribe to STTP because I’ve been saying this for quite some time category, we have comments from Playtech CCO Marcus Yoder and an entire panel discussing online casino expansion:
And in the random but interesting category:
Around the Watercooler
Social media conversations, rumors, and gossip.
This isn’t a gambling-related entry, but the below tweet is very accurate.
I was an exercise-aholic in my twenties. I was strong, toned, and athletic. I felt great.
I spent my thirties raising two kids and trying to carve out a career. There was little time for exercising.
Because I started them in great shape, the first half of my thirties just passed by. In the second half, I started feeling old. My physique was gone, my back always hurt, and I didn’t want to do anything physical. I chalked it up to getting old but promised I would get active again before turning 40.
I kept the promise. I got back into martial arts and still work out sporadically. I feel way better now (in my late 40s) than in my 30s, and I know I can feel even better in my 50s. I just have to put in the work.
Stray Thoughts
There’s a scene in the movie Beautiful Girls that pops into my head whenever I’m told about the next big trend. In the movie (which is very underrated, in my opinion), Paul buys his longtime girlfriend, who recently broke up with him, an engagement ring with a brown diamond in an effort to win her back.
Tommy: “the fu**ing thing is brown.”
Kev: It’s a trend in diamonds. Champagne. It’s a nice stone.
Willie Conway: Yeah, no, I heard about this. It’s a new trend in the diamond trade, they’re trying to create a new market.
Tommy: Oh, right, right. yeah. They were callin’ ’em “piss,” but they weren’t moving any units.”