A Late Contender
Ohio has a new bill that would legalize online casinos, poker, lottery, and horseracing, but it will likely face stiff opposition on several fronts.
The Bulletin Board
THE LEDE: Ohio’s new online gambling bill, plus active efforts in other states.
ROUNDUP: Paraguay regulates iGaming; Americas vs. Europe; Where is AC revenue coming from; More layoffs at Catena.
VIEWS: Shock Survey: Bettors don’t trust RG messaging from operators.
VIEWS: Is ESPN Bet still a Challenger brand?
AROUND the WATERCOOLER: More on proper messaging.
STRAY THOUGHTS: A hard way to make an easy living.
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The Lede: Active Online Casino-Poker Legalization Bills
As legislative sessions wrap up, efforts to legalize online casinos and poker are dropping like flies (Wyoming, Virginia, Indiana, Maryland, Arkansas, Hawaii, and Maine). However, there are still several glimmers of hope.
A quick note: Legislative session end dates are often extended through procedural motions or special sessions.
Ohio (Legislative Session Ends 12/31/2025)
A new bill in the Ohio Senate would legalize online casinos, horse racing, and lottery in the state. In the Ohio House of Representatives, Ohio State Rep. Brian Stewart, the Finance Committee chair, is also said to be drafting a bill to legalize online gambling.
SB 197, sponsored by State Sen. Nathan Manning
The effort seems to have the support of House and Senate leadership.
“Senate President Rob McColley (R-Napoleon) said iGaming and iLottery are being looked at as the budget process goes on.
[…]
“McColley's Republican counterpart in the House shares a similar view.
"In some sense I think as a state we've sort of turned the corner and said, we're going to raise money from gambling," said Speaker Matt Huffman (R-Lima).”
STTP thoughts: The Senate bill is likely to receive pushback from numerous sides.
There is stiff opposition from two significant National Association Against iGaming (NAAiG) members, JACK Entertainment and Churchill Downs, in the state, and PENN Entertainment, which has lobbied against several online casino bills in 2025.
It is not exactly industry-friendly, with a $50 million licensing fee and a tax rate of 36% (40% if the licensee partners with an outside platform).
The bill would also restructure the regulatory regime, as Steve Bittenbender noted on X, it moves oversight of racinos from the lottery to the Ohio Casino Control Commission. It abolishes the racing board and gives OCCC oversight of racing, charitable gaming, and sweepstakes machines.
The bill lowers the retail betting tax rate to 10%, which is likely to raise an eyebrow from Gov. Mike DeWine, who doubled the online tax rate months after launch, and tried for a second doubling this year (but failed).
Illinois (Legislative Session Ends 5/31/2025)
Illinois remains an elusive online gambling prize that requires the entrenched VGT industry to be on board. Efforts are afoot, and Gov. J.B. Pritzker called iCasinos an idea worth exploring. However, considering a March 13 hearing turned into an anti-legalization struggle session, the state is still a ways off.
SB 1963, sponsored by State Sen. Cristina Castro
HB 3080, sponsored by State Rep. Edgar González, Jr.
Massachusetts (Legislative Session Ends 11/19/2025)
With online lottery (including slot-like instant-win games) legalized and in the process of launching, the Massachusetts legislature is unlikely to take up another gambling expansion. There are bills and an RFP for an online casino study.
HD 4084, sponsored by State Rep. Daniel Cahill
SD 2240, sponsored by State Sen. Paul Feeney
HD 2393, sponsored by Rep. David Muradian (text to come)
New York (Legislative Session Ends 6/13/2025)
The ongoing licensing of downstate casinos will keep further expansions sidelined until the licenses are awarded, and who wins those licenses could keep efforts sidelined for many years to come. Gov. Hochul hasn’t shown any signs of supporting iCasinos, but the state’s labor unions are the major roadblock.
S 2614, sponsored by State Sen. Joseph Addabbo Jr.
New Hampshire (Legislative Session Ends 6/30/2025)
The sponsor has shelved 2025 legislation, despite passage by the Senate Ways & Means Committee. State Sen. Tim Lang recommended tabling the measure even though the committee recommended passage with an amendment. Working against the state is the newly approved casino by the anti-online Cordish Companies and ongoing opposition from the state’s charity casinos. The bill isn’t dead, but it’s in the ICU.
SB 168, sponsored by State Sen. Tim Lang
Roundup: Paraguay Regulates iGaming; Americas vs. Europe; AC Revenue; Catena Layoffs
Paraguay latest to regulate online gambling [iGaming Business]: Paraguay has enacted Law No. 7348/2025, ending its gambling monopoly and introducing a new regulatory framework focused on consumer protection and low tax burdens to boost competition and tax revenue. Signed on May 7, 2025, the law allows private operators to enter the market (previously only available through a tender process, per iGB), both online and offline. The National Gaming Commission (Conajzar), now under the National Directorate of Tax Revenue (DNIT), will oversee regulation and ensure transparency. Conajzar President Carlos Liseras highlights the law’s focus on consumer protection and low tax burdens, predicting doubled state contributions. Strict operator criteria and infrastructure rules aim to modernize the sector and attract investment.
Americas likely to overtake Europe as iGaming GGR leader [Vixio]: Speaking of Latin America, Vixio (a newsletter sponsor) forecasts that online gambling GGR from the Americas (North and Latin America) could soon eclipse Europe. “By 2028, regulated online gambling markets in the U.S., Canada, and Latin American countries are expected to generate US$56.3bn, drawing level with Europe or potentially surpassing it depending on currency fluctuations.”
Only half of Atlantic City casino revenue is from gambling [New Jersey Casino Redevelopment Authority]: An economic impact report from Stockton University and the Casino Association of New Jersey found that half of net revenue comes from non-gambling sources: “Net revenue, which is revenue remaining after certain revenue-related expenses are deducted, was evenly split in Atlantic City in 2024, with 50.1% coming from gambling, and lodging (21.6%); food and beverage sales (17.3%) and other miscellaneous revenue (10.9%) comprised the other half.” The report also notes that 50% of gambling revenue is now coming from online sources. Net revenue declined from $3.33 billion then to $3.31 billion last year, with non-gamblnig revenue offsetting land-based gambling declines: “Lodging revenue grew from $536 million to $716 million; food and beverage increased from $518 million to $574 million, and other revenue went from $210 million to $360 million.”
Another round of layoffs at Catena Media [Earning+More]: Catena Media has announced a further 25% reduction in its already massively reduced workforce — the current round of layoffs is said to affect 50 roles. “Our Q1 results show we still have substantial work ahead to fully stabilize the business and rebuild profitability,” said CEO Manuel Stan. “It is vital that we protect margins, and we have therefore taken strong action that I am confident will see costs decrease in absolute and relative terms in the coming quarters.”
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Views: Right Message; Wrong Messenger
I came across these very interesting survey results out of the UK that “suggest gamblers don't trust RG tools and some see them as a 'PR exercise' with little substance,” per iGaming Business.
“Participants reported a lack of trust in the support tools that were provided by gambling operators, due to their commercial interest in people gambling and spending more. Some expressed the view that the tools were just a “PR exercise” by operators.
“A male participant aged over 55 told the survey: “I don’t trust a lot of these so-called tools. I think indirectly they probably know that the actual participant will carry on doing it or even put some more funds into the gambling.””
The results shouldn’t be surprising.
As I wrote in a previous column, you can be offering great advice, but if it’s delivered by the wrong person, it won’t resonate: “Perfect advice delivered at the wrong time or by the wrong messenger will not be heeded.”
Or from this column (yes, I harp on this quite a bit):
“Even if you have a solid case, it doesn’t mean people must accept your conclusions. And sometimes, it comes down to the messenger.
“Consider these comments from Matt Schuler, the executive director of the Ohio Casino Control Commission, who told ESPN's Outside the Lines:
"When I get that feedback, whenever I see, 'Oh, we can't do that, they're going to have to go into the black market. It comes across with the sincerity of a shark being concerned about the welfare of the smaller fish being taken out of its tank."
Maybe the first part of changing the RG conversation is changing the messenger (operators and the “tsk tsk” status quo gatekeepers).
If operators want RG initiatives to be taken seriously, they need to rethink who delivers the message and how. Independent, transparent, and genuinely player-focused messengers could bridge the trust gap. Until then, RG tools risk being seen as hollow gestures, no matter how well-designed they are.
Views: Checking In on the Challenger Brands — ESPN Bet
It’s been a bit since I updated my thoughts on the performance of Challenger sportsbook brands: ESPN Bet, Fanatics, Bet365, and Hard Rock. I’ve also added a fifth Challenger, Kalshi.
I’ll post updated thoughts on each over the next couple of weeks, beginning with ESPN Bet.
Turmoil and uncertainty.
That’s the best way to describe the current situation at ESPN Bet, where market share has barely moved, which has many wondering about the future of the PENN-ESPN partnership.
As if it needed anything else on its plate, PENN is dealing with activist investors, who, as Earnings+More reports, are calling the company’s online strategy “value destructive,” and pointing out that CEO Jay Snowden “has been “lavishly rewarded” and is now the second highest-paid CEO among his peers having received a “tone-deaf” 70% increase in compensation in 2024.”
So, where does that leave ESPN Bet?
PENN is flirting with the idea of exiting the deal. Or, are they?
Activist investor HG Vora has placed two of its three appointees on the PENN Board of Directors and is suing PENN for not appointing all three.
The company’s stock is trading under $16, compared to around $28 when it first announced its sports betting deal with Barstool in January 2020. The price was down to around $16.50 per share when Barstool launched in September 2020 and climbed to over $100 in early 2021. It had settled around $30 when it abandoned Barstool for ESPN in August 2023, and fell to $22.50 by the time ESPN Bet went live in November 2023.
STTP thoughts: Either something drastic changes during the upcoming NFL season, or it’s looking more and more likely that something drastic will occur.
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Around the Watercooler
Social media conversations, rumors, and gossip.
These types of stale arguments, that simply don’t resonate, are one of my biggest gripes with the industry (unlike an imperfect messenger, this is simply an imperfect message that’s not landing):
As I said in my response to Small on LinkedIn, “It hasn't worked thus far,” and I simply don’t see that changing anytime soon.
Or as I said in a previous column, we need to pull a Bill Burr, and turn this franchise around:
“Bill Burr has a bit about arguing with his wife and how when she’s right, she argues the point and nothing else, but when she realizes she’s wrong, she “goes rogue” and steers the conversation in different directions and away from the main point. The bit starts with him saying he has lost every argument, even when he’s right.
“Let’s face it: we (supporters of online gambling legalization) are Bill Burr. We’ve lost the plot.
“Like we did a decade ago when we let Sheldon Adelson choose the battleground and the rules of engagement, we are being distracted by red herrings and slippery slopes and falling victim to false dichotomies and strawman arguments.
“But there’s hope. Bill ends the bit by saying that he’s figured it out and is “turning this franchise around” by staying on the main point.
It’s time for a message/strategy that works.
Stray Thoughts
Being a winning sports bettor is time-consuming. It’s boring. Like making a living playing poker, there are a few crushers, but for the most part, the professionals are just eking out a living.
Selling that as the dream, and 11-leg parlays as the devil (to steal a line from Mama Boucher) isn’t going to appeal to too many people.