Another Obstacle To Overcome
With the possible introduction of one of the most anti-online gambling casino operators, New Hampshire online casino legalization efforts just got a lot harder.
The Bulletin Board
NEWS: New Hampshire online casino efforts may have just added an extremely powerful opponent.
LEGAL and REGULATORY UPDATES: AL bill would increase penalties on illegal gambling; DraftKings faces questions over golf email; Quote of the Week.
NEWS: Caesars contributes more than $4 million to an anti-sports betting group in Missouri.
VIEWS: Is FOX about to become a major shareholder in FanDuel?
AROUND the WATERCOOLER: What are the two sides claiming in the limiting bettor debate?
STRAY THOUGHTS: Looking for help? Perhaps I can be of assistance.
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Cordish Proposed NH Casino Could Complicate iCasino
New Hampshire was one of the top online casino candidates heading into 2023 after the Senate passed an online casino bill in 2022. And that’s when the wheels came off.
One of the state’s casino owners (New Hampshire boasts a dozen charity casinos) was accused of misappropriating COVID funds in 2023.
Following the investigation, Andy Sanborn, a former state lawmaker, had his license revoked by the State Lottery Commission and is being forced to sell his stake in the Concord Casino — which has turned into a whole separate mess.
Complicating matters is Sanborn’s wife, Laurie, a sitting state representative who happened to chair the committee where the 2022 online casino bill died — New Hampshire’s brick-and-mortar casinos opposed the legislation. Following her husband’s legal travails, Laurie Sanborn resigned as the chair of the lavishly titled Commission to Study the Effect of Recent Changes Made to the Charitable Gaming Laws, Including the Newly Authorized Historical Horse Races.
Now, there is yet another potential obstacle, as Cordish Companies has proposed a new casino project, Live! Casino Salem. Plans submitted by the Salem Planning Board indicate a three-story, 60,000-square-foot facility with “over 900 historical horse racing machines, 40-plus betting tables, four restaurants, and a signature center bar.”
Cordish is one of the most vocal opponents of online casino efforts in the US and one of the key reasons Maryland's online casino efforts failed this year. With Cordish in the mix in New Hampshire, the state could shift from a lukewarm short-term candidate to a longshot.
Legal and Regulatory Updates: AL Increases Pressure on Illegal Gambling; DraftKings Golf Email; Quote of the Week
Alabama bill seeks to crack down on illegal gambling machines: As reported by AL.com, “A Republican state representative from south Alabama has introduced a bill that would increase penalties for illegal gambling operations from misdemeanors to felonies, an effort to strengthen laws that do not appear to be working.” The question is, could the presence of illegal gambling help Alabama pass a gambling expansion bill in 2025? Efforts in 2024 to legalize lottery sales and casinos came up short.
MGC to investigate DraftKings golf email: MGC The Massachusetts Gaming Commission has some questions for DraftKings after the company inadvertently sent an email intended for 13 Massachusetts residents to more than 1.2 million (and millions more across the country), including self-excluded bettors. As Covers.com Geoff Zochodne reported, “Commissioners decided against any discipline for DraftKings right away (the operator reported the issue to the regulator itself), and instead voted to send the matter to the MGC’s Investigations and Enforcement Bureau for further review.”
Quote of the Week: “While the effort to authorize sports betting fell short this summer, the positive work done to advance the bill from committee and build momentum for heading into next year was invaluable for getting it across the finish line in the future.” ~ Nebraska State Sen. Eliot Bostar.
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Caesars Plows $4M Into Anti-Sports Betting Campaign
As expected, Caesars has donated more than $4 million to a group called Missourians Against the Deceptive Online Gambling Amendment.
The contributions are as follows, per Larry Henry at Gambling.com:
Harrah's North Kansas City: $1.4 million
Tropicana St Louis: $1.3 million
Isle of Capri Boonville: $1.3 million
Caesars Enterprise Services: $156,202.79
The news comes just days after a pro-sports betting launched its first ad backing the ballot initiative.
According to a press release from September 10 from Missourians Against the Deceptive Online Gambling Amendment, the “measure would enrich online, out-of-state gambling corporations while creating special loopholes that would allow them to pay zero dollars to Missouri.”
The “zero dollars” remark refers to fiscal analysis from the Missouri Department of Revenue, which said that because the measure allows for promotional deductions, there is no guarantee of tax revenue.
The press release also claims “voters don’t even really know what they’re voting on. Amendment 2 establishes no regulatory framework for online sports gambling or guidelines for such a framework.”
Yesterday, I asked the following question: “What will the opposition ads look like, and which will resonate with Missouri voters?”
We are now starting to get a feel for the language they will employ, with “deceptive” and “out-of-state operators” being key talking points.
With at least $4 million to spend, Amendment 2 is in for a tough fight.
Is FOX About to Become a Major Shareholder in FanDuel?
Lachlan Murdoch said FOX is preparing to activate an 18.6% stake option in FanDuel. Murdoch made the comments at the Goldman Sachs Communacopia and Technology Conference on Tuesday, per Sportico reporting.
Per Murdoch, Goldman Sachs analysts value FanDuel at $35 billion. At that valuation, FOX’s stake is worth about $6.5 billion. Exercising the options would cost FOX $4.3 billion, leaving it with a nice $2 billion profit.
As Sportico notes, a 2022 arbitration case gave FOX a ten-year window to exercise its options in FanDuel.
Standing in the way is the need for FOX to become a licensed gambling operator due to its ownership percentage.
Per Sportico:
“Fox must become licensed as a gaming operator before it can complete the transaction, and Murdoch said the company is actively working with state legislators to do that. Clearing state hurdles can be onerous, requiring companies to provide extensive private information, but Murdoch seemed determined.”
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Around the Watercooler
Social media conversations, rumors, and gossip.
Really good summary from Covers.com’s Geoff Zochodne of the two competing arguments in the limiting bettors debate taking place in Massachusetts:
This is what it all boils down to, and in my opinion, highlights the need for a second tier of licenses in states with hefty licensing fees and tax rates that are inhospitable to “alternative sports betting models.”
As one X user posted:
This would require changes to Massachusetts sports betting law, but I’m becoming increasingly intrigued by the idea of tiered licensing and tax structures based on some financial metric.
Stray Thoughts
Last week, I posted a quick note that former DGE chief David Rebuck had started a consulting business. Apparently, he received many messages about his availability after my post.
“All of a sudden, I got about 100 pings in just a couple of days as a result,” Rebuck told Casino Reports with a chuckle while traveling home from a round of golf on Friday.
His previous role precludes him from working with the operators he oversaw, and Rebuck told Casino Reports he is mostly retired.
So, if you contacted Dave and he is unavailable, feel free to contact me, and I can either connect you with some other excellent options or handle it myself.