If You Don't Have Anything Nice To Say
A third of high-profile athletes receive abusive messages from individuals with a "betting interest," per the NCAA. But what can be done about it?
The Bulletin Board
VIEWS: Player harassment is not a new phenomenon, and the current solutions miss the mark.
LEGISLATIVE UPDATES: New York online poker bill update; Oklahoma HRC says no to Stitt proposal.
QUICK HITTER: Analysts and industry watchers weigh in on the chances the proposed sports betting tax increase in Illinois goes through.
VIEWS: With legalization slowing, is the US entering the Sports Betting 2.0 phase?
AROUND the WATERCOOLER: Sports betting taxes are back in the news.
STRAY THOUGHTS: A chef’s kiss quote on the current grandstanding.
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A Problem That Needs to Be Solved: Player Harassment
ESPN’s David Purdum is always a must-read. In a column last week, he dug into the alarming news from the NCAA that one in three high-profile athletes receive abusive messages from individuals with a “betting interest.”
Purdum spoke with several people in the industry, including Prime Sports’ Joe Brennan, who was quoted in the column as saying this is a “social media problem first and foremost.”
Brennan expanded on his quote on X, saying, “Abusive speech towards teams and players is a sad reality in competitive sports. A large percentage of sports fans have the attitude that when they pay the cost of a ticket, they can yell whatever they want, no matter how offensive. It’s unfortunate that sports betting has now also become another subject in this, but it certainly didn’t start it.”
I would add to Brennan’s point that legal sports betting also didn’t start it, although it has likely acted as an accelerant, increasing the frequency and severity of the harassment. As I noted in a recent Around the Watercooler entry, Bill Burr told an old gambling story during his appearance on Bill Maher’s podcast:
“At around the 25-minute mark, Burr starts talking about growing up in Boston and brings up an old friend who was betting sports and riding the Houston Rockets. He was losing his shirt and so frustrated he called information in Houston and asked for Olajuwon, thinking he would get Hakeem on the phone and give him hell for playing so poorly.
“The story occurred pre-legalization, even pre-internet betting. So again, it’s not a new problem.”
The big question is, what can be done about it?
Brennan said the NCAA’s effort to ban prop bets on college athletes is looking at the issue “through the wrong end of the telescope.”
I wholeheartedly agree. And, as I’ve noted regarding player harassment, “If you bet on a team and a specific player makes a mistake or misses a key shot, isn’t a deranged bettor still going to blame the player?”
The only answer is stiffer penalties for engaging in this type of reprehensible behavior.
David Purdum and I recorded a podcast episode on this topic and others yesterday that I hope to release next week.
Legislative Updates: New York Online Poker Bill Update; Oklahoma HRC Says No to Stitt
New York’s shortlived online poker bill gives false hope: There was some (overly optimistic) hope that online poker might be on the agenda in New York following the introduction of a standalone online poker bill earlier this month — the bill didn’t even rise to the level of a mention in my newsletter. That hope officially faded when the Chair of the New York Senate Racing, Gaming, and Wagering Committee and the bill’s sponsor, State Sen. Joseph Addabo Jr., said, “This is probably our last meeting for the year,” during a meeting last week. As I mentioned when the bill was introduced, Addabbo has introduced similar legislation in previous sessions.
Oklahoma Governor denied again: The Oklahoma Horse Racing Commission isn’t buying what Gov. Kevin Stitt is selling as it has rejected the Governor’s request to pass a resolution that disallows the state’s three tracks from offering “gaming machines or share in the participating tribal fund revenue starting Jan. 1, 2035, unless authorized by the governor.” In layperson’s terms, Gov. Stitt was trying to prevent the automatic renewal of tribal compact extensions, which are triggered by the agreements with the state’s tracks.
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Quick Hitter: Thoughts on the Illinois Sports Betting Tax Increase
What are the chances the Illinois sports betting tax rate will increase to 35%? Here are a few commenters on the subject:
Per the latest Eilers & Krejcik Gaming (a newsletter sponsor) Sports Betting Policy Monitor: “We maintain our bearish outlook on a 35% GGR tax rate becoming law but do not rule out the possibility of a smaller tax rise gaining momentum if the governor is willing to go to the mat for more revenue.”
Per Chris Altruda (from a forthcoming podcast episode): “I actually think that is going to go through. He [Gov. Pritzker] doesn’t present these things unless he thinks they can work. He also built up the capital during the pandemic with executive orders… Should it be 35%? That may be a bit tall. If you negotiate and get 20% or 22.5%, I think that’s fair.”
Per Roger Gros: “Apparently, sports betting companies didn’t study the history of the state of Illinois. Every type of gaming has experienced a tax rate increase. The state upped the casino tax rate to 75% at one time. But still, operators want to come to the state.”
It seems like an increase is possible, but 35% is unlikely.
Are We Entering Sports Betting 2.0?
In his SBC Summit North America recap, The Innovation Group’s Brian Wyman notes that “the gold rush for sports betting is over.”
With the pace of legalization slowing to a crawl (maybe Missouri will get it done this year via referendum?) and with Texas and California too complex to forecast precisely when mobile betting might arrive, things have, as Wyman puts it, “stabilized.”
That means attention has turned to tinkering in already legal states, with Wyman offering a couple of examples:
“In Illinois’s case, Governor Pritzker argues that the tax rate should be raised to 35% instead of 15%. The industry is up in arms at the "bait-and-switch" after investing a fortune in license fees, infrastructure, and market access deals.”
“Some states are also considering bans on college betting, college player props, certain types of advertising, etc.”
According to Wyman, “The industry needs to collaborate with the states to address the RG issues while maintaining its ability to responsibly advertise and to operate a viable business, offering products that appeal to responsible bettors” to avoid a baby with the bathwater scenario.
Wyman also expects tier 2 and 3 operators to become more focused and claim a smaller but profitable slice of the market share pie. That might include JV-type arrangements, the emergence of niche operators, and more exits.
Tier 2 is something I recently wrote about, noting:
My general thoughts on this are:
Tier 2 operators need to decide whether they are content in Tier 2 or trying to move into Tier 1. If the latter, they need to first win Tier 2 and then challenge the Tier 1 operators.
Too many are trying to beat FanDuel and DraftKings at their own game instead of carving out a unique niche. They are trying to beat a stronger opponent with strength or trying to overcome strength with finesse when the only option is some combination of both.
Around the Watercooler
Social media conversations, rumors, and gossip.
There has been plenty of chatter on social media about the reporting on North Carolina sports betting revenue, with a mini-controversy centered on the promotional credits sportsbooks have handed out.
Sporttrade’s Alex Kane (a newsletter sponsor) weighed in on the way sports betting revenue is framed in a solid thread on X:
You can listen to Alex’s thoughts on sports betting taxes from his Talking Shop Podcast appearance.
Stray Thoughts
A chef’s kiss quote from Brian Wyman, Partner at The Innovation Group:
“Every legislative decision is about tradeoffs, and iGaming is no different. Hopefully, honest dialogue (and less grandstanding) can put both sides of the table together to figure out solutions that can advance the industry while ensuring substantive and continued benefit to and partnership with the states that ultimately control the licenses. I think this will take some time, however.”