A Surprising #1
Ontario is the top-performing regulated online gambling market in North America over the first three years, besting New Jersey, Michigan, and Pennsylvania.
Ontario's iGaming outperforms US states. Alberta's regulation bill advances. Montana bans sweepstakes. FanDuel launches peer-to-peer fantasy pick’em in 5 states. Look for my deep dive into the why behind Sporttrade’s CFTC pivot tomorrow.
The Bulletin Board
THE LEDE: How Ontario’s first three years compare to US states.
BEYOND the HEADLINE: Alberta online gambling bill continues to progress.
ROUNDUP: NH VGT bill; Skill games in VA; More MI C&Ds; A new batch of CFTC submissions; Bet365 for sale?
NEWS: Sweepstakes prohibition bills make progress in multiple states.
VIEWS: Don’t sleep on DFS?
AROUND the WATERCOOLER: PA Gov. talks to Poker Go.
STRAY THOUGHTS: The endless cycle.
SPONSOR’S MESSAGE - Episode 70: Who Is Winning The A.I. Arms Race
Host Brad Allen is joined by industry founder Stephen Taylor-Matthews to discuss:
Selling his company to Underdog
Why Flutter, DraftKings and bet365 are leading on A.I.
The Lede: 3 Years in, Ontario Outperforms US iGaming States
A short but interesting lead story today — Yes, I know Sporttrade made headlines yesterday, but I’ll deep dive that and offer some of my own thoughts on that development in tomorrow’s feature column. I also spoke with Sporttrade CEO Alex Kane last week, during which we discussed all the ways the regulated market has fallen short.
Now, back to the regularly scheduled programming.
Ontario’s first three years as a regulated online gambling market are outpacing every other North American market, per reporting from Gaming News Canada (GNC breaks out each market’s performance in the column, along with some additional insights).
Michigan — $5.965 billion (Feb. 2021 through Jan. 2024)
Ontario — $5.221 billion* (April 2022 through present)
Pennsylvania — $4.107 billion (Aug. 2019, through July 2022)
New Jersey — $1.546 billion (casino: Dec. 2013 through Nov. 2016; Sports: June 2018 through May 2021)
*Ontario’s tally doesn’t include the state-run lottery platforms, which account for 20% of the province’s online gaming revenue.
There are a couple of caveats to consider, particularly with New Jersey and Pennsylvania, which launched pre-pandemic, when online launches had much slower burns than current launches.
Second, these numbers aren’t adjusted for inflation. Here’s what they would look like using January 2025 dollars:
Michigan: $6.364 billion
Ontario: $5.377 billion
Pennsylvania: $4.969 billion
New Jersey: $1.974 billion
Beyond the Headline: Alberta iGaming Expansion Updates
Staying north of the border for a moment, there is also an update on Alberta’s online gambling regulation bill.
Per reporting from Covers.com’s Geoff Zochodne, a handful of proposed changes were rejected this week, as Bill 48 continues to march toward passage.
“A handful of tweaks to the bill, proposed by the opposition New Democratic Party, were shot down on a 38-16 vote before the committee adjourned for the day,” Zochodne writes. “The rejection of the amendment now tees up approval of the bill by the Committee of the Whole. That would then send the government-backed legislation back to the full assembly for its third and final reading.”
As STTP previously reported, Bill 48 draws heavily on Ontario’s successful regulatory model:
“The bill provides the framework (drawing heavily from Ontario, which regulated online gambling in 2022) for how Alberta will authorize and regulate online casinos and sports betting beyond PlayAlberta, the only licensed entity offered by the Alberta Gaming, Liquor and Cannabis (AGLC).
“The legislation would establish the Alberta iGaming Corporation “to oversee the operation of a private regulated market.” The regulatory duty would fall on the existing Alberta Gaming, Liquor and Cannabis (AGLC).”
And a few more Canadian headlines:
‘Notable’ amount of Ontario gambling still done on grey-market sites
Ontario’s online casino market leader BetMGM will ‘flex muscles’ in Alberta
Roundup: NH VGT Bill; Skill Games in VA; MI C&Ds; CFTC Submissions; Bet365 for Sale?
New Hampshire lawmaker proposes slots in bars and restaurants [Concord Monitor]: New Hampshire State Rep. Dan McGuire wants to add the legalization of slot machines in New Hampshire’s bars and restaurants to Gov. Kelly Ayotte’s budget proposal, HB 2. McGuire proposed a similar bill in 2016, but believes that nearly ten years later, the state might be more amenable to the idea."I’m under the impression that society has become more accepting of gambling over this past decade,” said McGuire. "Something that was not as acceptable in the legislature then, might be today.”
Virginia judge: Skill games are not illegal gambling machines [Virginia Mercury]: A Hanover County judge has ruled in favor of “a convenience store owner who faced criminal charges for operating several Queen of Virginia (QVS2) skill machines.” According to the Virginia Mercury, “Judge Hugh Campbell of the Hanover County General District Court dismissed the case against David Bogese, owner of the Breez-In Mart, after finding that the QVS2 devices at his store did not meet the legal definition of illegal gambling machines under state law.” Skill games (slot machines with an added layer) have led to legal battles in several states.
Michigan sends cease-and-desist letter to offshore sportsbooks [Play Michigan]: “The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to SportsBetting.ag and BetOnline.ag, two well-known offshore sportsbooks. It’s part of the ongoing effort to curb illegal gambling in the Great Lakes State.”
CFTC receives several new letter submissions [CFTC Roundtable Submissions]: Although the CFTC Roundtable on prediction markets may have been cancelled, numerous stakeholders and interested parties continue to express their views. Among the new submissions received over the last week are those from the Maryland Lottery and Gaming Control Agency (View), Sporttrade (View), Rutgers (View), the Pennsylvania Gaming Control Board (View), and the Michigan Gaming Control Board (View).
Bet365 owners mull sale [The Guardian]: What was once a rumor has evolved into a more substantial development. Per The Guardian, “The billionaire Coates family behind Bet365 are weighing up a sale of their online gambling empire that could value the business at £9bn… The company, headed by Denise Coates, has held talks with Wall Street banks and US advisers in recent weeks about a full or partial sale, sources familiar with the matter said. Informal discussions explored options for a potential sale, including a medium-term plan to float the business on a US stock exchange.”
News: MT Passes Sweeps Ban; Bills in CT, NY, & LA Progress
The sweepstakes industry was recently touting its 3-0 record in defeating legislative prohibition. That perfect record is now in serious jeopardy. The Montana legislature passed SB 555, which would prohibit sweepstakes gaming in the state. The bill now awaits the signature of Gov. Greg Gianforte.
As Sweepsy.com pointed out, the bill doesn’t use the word sweepstakes: “However, its just-vague-enough language is seen as a catch-all by industry observers and legal experts that encompasses sweepstakes casinos.”
As I previously summarized:
“The bill amends the definition of online gambling to include “online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited. This includes but is not limited to any platform, website, or application that knowingly transmits or receives gambling information, allows consumers to place a bet or wager using any form of currency, and makes payouts of any form of currency.” 100% free-to-play casinos are exempt.”
Further, the Louisiana Senate has passed its sweepstakes prohibition bill, Connecticut’s sweepstakes ban (which also includes a ban on lottery couriers) has passed a second committee, and prohibitive legislation in New York has advanced to the House floor — as Daniel Wallach noted on X, the bill was amended to read: “determination as to what constitutes dual-currency system is made by regulators; addresses contrived concern that traditional sweepstakes will be banned too.”
You can find STTP’s running tally of sweepstakes prohibition bills here.
Views: Don’t Sleep on DFS
As first reported by Dustin Gouker at The Closing Line, “FanDuel is getting into the fantasy pick’em space for the first time,” with the launch of a new peer-to-peer product called FanDuel Picks. The product will initially be available in five states: Oregon, Minnesota, Wisconsin, Arkansas, and Alabama.
“The game is similar to other peer-to-peer fantasy parlay offerings available in the US, like DraftKings Pick 6, PrizePicks Arena, and Underdog Champions,” Gouker reports.
With all eyes firmly focused on the intersection of prediction markets and sports betting, DFS products (and sweepstakes, too) are flying under the radar, despite the two most prominent players in the market, Underdog (a newsletter sponsor) and PrizePicks, having reached unicorn status.
And as Dustin Gouker reported a few months back, the download numbers for sports betting (including DFS) apps will likely surprise many people:
So why is FanDuel launching a peer-to-peer product?
First, the states provide a clue, as FanDuel’s sportsbook isn’t available in any of them, and with Kalshi’s sports products available in all 50 states, getting into every state, with any sports betting adjacent product, seems like a wise move.
STTP Thoughts: As betting customers have more and more options (prediction markets, DFS, sweepstakes, traditional sportsbooks) and the line between sports betting and “other” continues to blur, bettors are going to gravitate toward the products they enjoy and a big part of that will be UX, which DFS has always been terrific at.
Around the Watercooler
Social media conversations, rumors, and gossip.
Poker Go with a huge get, as Pennsylvania Gov. Josh Shapiro sat down for an eight-minute interview about the state joining the Multi-State Internet Gaming Association (MSIGA) and pooling its poker players with other MSIGA states.
Stray Thoughts
This was sent to me via private message recently (published with permission):
“The most hilarious thing about the sports betting and gambling space is that it’s a continuous loop of guys pushing the limits of legality to gain market share before capitulation to regulation, only to be pushed out by the next wave of risk takers.”