The Weekender: RIP Surcharge; ESPN Bet Ready To Shine; iCasino Obstacles
DraftKings puts its surcharge in mothball. Is ESPN Bet ready to shine? Union opposition is the key to unlocking online casinos.
The Bulletin Board
ABOVE the FOLD: A look at the three biggest stories of the week.
— DraftKings’ shortlived surcharge: What happened and what’s next?
— Have we entered make or break time for ESPN Bet?
— One obstacle preventing online casino legalization and sports betting.
HOUSEKEEPING: A look at recent podcasts, featured articles, and more from yours truly.
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DraftKings Surcharge Lifespan = Just Over 1 Scaramucci
DraftKings’ surcharge has come and gone, but as some have noted, the end of the surcharge doesn’t mean sportsbooks won’t find a way to pass on their costs in high-tax states to the customer.
As Flutter CEO Peter Jackson said during the company’s Q2 earnings call, FanDuel won’t add a surcharge, but it will consider “moderating levels of generosity and reducing global marketing.”
here is my coverage of the now-defunct surcharge from this week:
And here are a couple of other pieces from around the web that are worth a read:
Make or break Time for ESPN Bet
Penn Entertainment’s Q2 earnings call signaled a new era for ESPN Bet, although several industry observers (here and here) aren’t convinced the upgrades will be enough.
During the call, CEO Jay Snowden said the company is ready to unleash product enhancements and improved integrations with ESPN properties ahead of and during the upcoming NFL season.
Based on Penn’s comments, the company is aware that the NFL season is when rubber needs to meet the road. As Earnings+More reported yesterday, “The team at Macquarie, meanwhile, suggested Penn’s margin for error in online execution was “razor-thin.”
You can find my thoughts on ESPN Bet from earlier this year here: Wave 2: Is ESPN Bet’s Fast Start Sustainable?
The Key to Unlocking Online Casinos: Overcoming Union Opposition
Attorney Daniel Wallach, in a Forbes column, proposed a bold idea to overcome union opposition to online casino gambling: Guarantee the jobs.
It’s a simple solution, but as with anything in this industry, the devil is in the details.
The trick is to figure out how to curry favor with unions without losing the support of stakeholders.
You can read my column from last week here, and I’ll post more on this idea this week.
Housekeeping
The Forecast is a premium service that consists of quarterly reports and weekly updates on the US online gambling sector. I created it specifically for individuals and organizations interested in an unbiased, clear-cut assessment of the landscape. It will launch in November at a cost of $2,600 annually, but you can save $600 by registering before September 30, 2024.
Reach out to Steve@igamingpundit.com for more details or to register your organization.
PODCASTS:
The Talking Shop Podcast has returned after a two-week hiatus. This week, my guest is Ryan Butler, a senior editor at Covers.com.
You can listen to my conversation with Ryan here.
COLUMNS:
This week’s featured column examines the changing land-based casino landscape and builds on previous thoughts about how many small, seemingly inconsequential changes lead to seismic shifts over time.