If You Can Make It Here
If You Can Make It Here
ESPN Bet is approved to launch its mobile sports betting in New York, but some wonder if the Empire State will change its fortunes or be more of the same?
The Bulletin Board
NEWS: New York regulators approve ESPN Bet; app could launch before the weekend.
NEWS: Boyd Interactive acquires Resorts Digital.
LEGAL and REGULATORY UPDATES: AR Online Gambling Fight and NC Regulatory Rule Changes.
NEWS: iDEA Growth Webinar: Gaming CEOs highlight why prohibition doesn’t work and the need for regulated online gambling.
AROUND the WATERCOOLER: Would you like
friesa bonus bet with that?STRAY THOUGHTS: What happens when the answer is always more?
SPONSOR’S MESSAGE - Sporttrade was borne out of the belief that the golden age of sports betting has yet to come. Combining proprietary technology, thoughtful design, and capital markets expertise, our platform endeavors to modernize sports betting for a more equitable, responsible, and accessible future.
Sporttrade’s newest feature, The Tape, prints all trades made on the app in real-time.
ESPN Bet Approved in New York
On Monday, the New York State Gaming Commission unanimously approved Penn’s acquisition of Wynn Interactive’s New York mobile sports betting license.
The commissioners had a few questions about the acquisition, including asking Penn if it had plans to broadcast from college campuses or partner with colleges in any way (what is this, 2021?), to which Penn representatives answered no.
At the end of the proceedings, the commissioners said that after reviewing the license applications, the Commission found no reason to preclude Penn or ESPN Bet.
Per Sports Betting Dime’s Robert Linnehan, a Penn spokesperson, said, "We’re grateful to the New York State Gaming Commission for its approval, and we’re in the process of readying our product for launch in New York in the coming days."
The unanswered question is, what will that launch look like? Will Penn come into Week 3 of the NFL season guns blazing (perhaps hoping its competitors used their promotional ammunition in the leadup to Week 1), trying to pull bettors away from competitors with bonus dollars? Or will it take a more cautious approach and try to build market share more organically?
Boyd Interactive Acquires Resorts Digital
And in stories I was not expecting to write, we have the news that Boyd Interactive acquired Resorts Digital as of September 1 — the deal was apparently made in May but flew under everyone’s radar.
Per the AP’s Wayne Parry, who seems to have broken the news yesterday, “Boyd Interactive has purchased Resorts Digital, the online gambling arm of Atlantic City’s Resorts casino, for an undisclosed amount.”
The news was confirmed by Mark Giannantonio, president of Resorts, who told the AP the deal was struck on September 1 and included ResortsCasino.com, MoheganSunCasino.com, and an unused online skin.
The physical casino will remain in the hands of DGMB Casino (at least for now), which will also retain the master online license issued by the New Jersey Division of Gaming Enforcement. Several other online brands not part of the deal, including PokerStars and DraftKings, operate under the Resorts’ license.
I say “at least for now” because, in February, Mohegan Sun announced it would end its management agreement with the property at the end of 2024. So, seeing what happens with the physical property will be interesting.
The deal allows DGMB to collect a share of the online sites operating under its license without operating any of the sites and cut an expensive division from its expenses.
This is a very intriguing acquisition, considering the recent rumors that Boyd was kicking Penn Entertainment’s tires, perhaps in a joint bid with Flutter.
In a statement to Bonus.com, a Boyd spokesperson highlighted the company’s regional focus:
“The acquisition of Resorts Digital Gaming is consistent with Boyd Gaming’s strategy of building a profitable regional iGaming business integrated with our existing nationwide portfolio.
“As part of this transaction, Boyd Interactive has acquired the New Jersey operations of ResortsCasino.com and MoheganSunCasino.com, complementing our existing Stardust Online Casino in New Jersey. New Jersey has long been one of the nation’s leading iGaming states, and we look forward to further growing our presence in that state’s online gaming market in partnership with Resorts Casino in Atlantic City.”
It’s also interesting for the Atlantic City land-based market, as Resorts Digital has been propping up Resorts Casino for a decade.
Parry notes that “Resorts Digital… has taken in five times the amount of money from gamblers over the first eight months of this year as the physical casino did.”
The numbers for that period are striking, with Resorts Digital generating $573 million in revenue and $9.6 million in profits, compared to Resorts Casino’s $109 million in revenue and $355,000 in profits.
SPONSOR’S MESSAGE - Highest approvals. Zero chargebacks. No trade-offs.
Aeropay's bank transfers deliver industry-leading net profits without compromising security or conversion rates. 95% of Aeropay transactions are approved, allowing more players and higher customer satisfaction rates.
Aeropay reduced fraudulent transactions during the NFL season by nearly 400%.
With its bank-driven approach to secure and efficient money movement, Aeropay is the smart choice for businesses.
Ready to elevate your payment experience? Book a Demo
Legal and Regulatory Updates: AR Online Gambling Fight; NC Regulatory Rules
Online gambling is a divisive issue in Arkansas: “Statewide sports betting was done by casino gaming rule change. No legislation required,” Saracen Casino’s Carlton Saffa tweeted in response to Arkansas Athletic Director Hunter Yurachek's comments on the proposal during an appearance on the Chuck & Bo Show. “Online gaming and NIL 50/50 is a simple rule amendment just like sports betting. If you’re a casino and don’t believe this, then you ought to turn off your sportsbook app.”
NC to start the parimutuel rules process: The North Carolina State Lottery Commission’s sports betting committee approved a regulatory rule change to start the rule-making process for parimutuel wagering. Covers.com reports that “Regulators also moved closer to offering retail sports betting and adding esports to the state's online wagering catalog” by approving a 30-day public comment period.
Gaming CEOs Stress the Need for Regulated iGaming
Online casino advocates got a pep talk during the final session of the iDEA Growth-GeoComply Power Lunch Summit on Friday with the CEO roundtable, moderated by iDEA Growth’s Jeff Ifrah and featuring:
Anna Sainsbury, CEO of GeoComply
Michael Tobin, CEO of Continent 8
Matt Olin, CEO of Apache Gaming Enterprise
The group discussed the current landscape and what the next five or so years will bring regarding online gambling.
All three webinars are available to view here: https://ideagrowth.org/webinars/.
You can also listen to my podcast with Jeff Ifrah on these topics and more here.
Topics ranged from the cannibalization concerns harbored by some pockets of the industry to gray and black market competitors to the online opportunities that exist for land-based entities.
According to slides from GeoComply’s Anna Sainsbury, Bovada saw 85 million visitors over a three-month period, highlighting that the lack of legalization doesn’t mean there is a lack of online gambling options at any US resident’s fingertips. Sainsbury went on to say that there are 50 major black market online gambling brands still operating in the US and hundreds more lesser brands catering to niche audiences.
Another slide indicated Americans wager $400 billion annually on these sites, which, according to GeoComply's calculations, results in $13 billion in lost tax revenue.
Matt Olin of Apache Gaming Enterprise echoed the concerns about lost revenue and stressed that consumer protection, security, and integrity are paramount.
But, as scary as the current landscape is, the panelists are hopeful for the future.
In a throwaway sentence that really stuck out to me, Olin said that even though online gambling isn’t being discussed in Arizona, where the tribe resides, he “wouldn’t be surprised if that’s coming very soon.” The way he delivered the sentence makes me think there is some there there.
Sainsbury was hopeful that online gambling would eventually be embraced, noting that the “movement to digital identity and digital wallets is going to be much further embraced than we can ever imagine today."
Continent 8’s Michael Tobin was even more optimistic, saying, "Every state will be licensing some form of iGaming by then (2030), even the most conservative environments.”
SPONSOR’S MESSAGE - SUBSCRIBE NOW to Zero Latency, the new podcast from Eilers & Krejcik Gaming that provides unparalleled insight into the U.S. online gambling industry through interviews with industry insiders and analysis from EKG experts.
Around the Watercooler
Social media conversations, rumors, and gossip.
I still don’t know what the Massachusetts regulatory rules around this offer are (I received a CTA after placing the order and this email a few days later):
What I do know is that it doesn’t fit with my purchase. I ordered a few UFC t-shirts for my kid, and I’m not being prompted to add a hat or buy a UFC PPV; I’m getting a bonus bet from a sportsbook I didn’t even realize was attached to the UFC Store until the CTA because I’m oblivious to such things — It’s on the site, just as it reads in the screenshot above, but I initially missed it.
Stray Thoughts
If you continually study a problem and the conclusion you always reach is the need for more (more funding, more research, more certifications, more training, more education), you might need to examine whether you’re trying to solve a real problem or trying to solve a problem that doesn’t exist.