A Surplus Of Gambling News
Just when I thought things were calming down in the gambling industry, Monday produced an overabundance of significant news.
The Bulletin Board
THE LEDE: Blanche Lincoln’s changing tune; DraftKings + Railbird; California sweeps battle gets even more heated.
ROUNDUP: Bet365 replants US flag; Super Group exits; Another loss deduction critic; VGW adds sales tax; Operators continue to respond to IL tax.
NEWS: Flutter acquires Boyd’s 5% FanDuel stake.
VIEWS: Former MGC regulator takes a job at PrizePicks.
NEWS: DraftKings settles with the state of Connecticut.
AROUND the WATERCOOLER: Tucker and Saagar are no fans of online gambling.
STRAY THOUGHTS: Can poker catch lightning in a bottle again?
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The Lede: Too Much News; Not Enough Newsletter Space
Blanche Lincoln’s Malleable View on Prediction Markets
Well, Monday was quite an eventful day. So much so that I readjusted today’s “Lede” to make room for several critical updates in the gambling world.
Former Sen. Blanche Lincoln has changed her tune on prediction markets and sports betting. As reported by Dustin Gouker’s Event Horizon newsletter, Lincoln’s recent letter in support of Kalshi (Lincoln’s lobbying firm has been paid at least $180,000 by Kalshi) is diametrically opposed to her comments when she served in the Senate 15 years ago.
Lincoln in 2010 [bold mine]:
“Chairman DODD and I maintained this provision in the conference report to assure that the Commission has the power to prevent the creation of futures and swaps markets that would allow citizens to profit from devastating events and also prevent gambling through futures markets… I agree that this provision will strengthen the government’s ability to protect the public interest from gaming contracts and other events contracts.”
Lincoln in her 2025 letter to the CFTC [bold mine]:
“Under Dodd-Frank, lawmakers gave the CFTC authority to prohibit contracts, but only if it determines that the contracts have no commercial utility. Elections have significant policy consequences that affect businesses of all sizes, so the commercial implications are clear. Sporting events like the Super Bowl also have strong commercial value because they have major impacts on advertising, apparel sales and the hospitality industry to name a few.
“Stepping back, these examples further speak to the CFTC’s need to let the markets decide what’s beneficial.”
So why the about-face? As Attorney Daniel Wallach postulated on X:
“Is it any surprise that Blanche Lincoln is a registered lobbyist for Kalshi? Her firm was paid $180,000 by Kalshi in 2024, per Open Secrets (First reported by InGame). And of course she does a complete 180 from her comments on the record in 2010.”
And in another tweet, Wallach summed up the flip-flop in two sentences:
Blanche Lincoln flip-flop: 2010 (Dodd-Frank legislative history): "Event contracts around sporting events such as the Super Bowl would not serve any real commercial purpose." 2025 (Lincoln the lobbyist): "Sporting events like the Super Bowl have strong commercial value."
DraftKings in Talks to Acquire Railbird
DraftKings is in talks to acquire Railbird Exchange, a recently licensed-by-the-CFTC prediction market platform, as reported by Front Office Sports.
The potential deal, with undisclosed financial terms, would provide DraftKings with a foothold in the growing prediction market space. This move comes as sportsbooks and prediction markets are expected to increasingly intertwine, especially ahead of the busy football season.
Recall that DraftKings previously withdrew its application for its own prediction market but has stated on several occasions that it is monitoring the developments in the prediction market space.
This could spark a flurry of mergers or partnerships as sportsbooks seek to compete with platforms like Kalshi, which claims it is under the purview of the federal government as it faces regulatory and legal pushback from states. The current belief is that if Kalshi is allowed to continue offering sports contracts (and expands into parlays), traditional sportsbooks will be playing a game of catch-up that they may not win.
As Daniel Wallach noted on X, an acquisition makes the most sense given the timelines at work:
California Sweepstakes Fight Intensifies
Ahead of today’s second hearing, the two sweepstakes trade groups are ramping up their attacks, apparently joining forces and enlisting help as they try to stop a bill that would prohibit sweepstakes gambling sites in California.
The Social & Promotional Games Association (SPGA) sent out a press release listing “a broad coalition of organizations, including the American Civil Liberties Union (ACLU) and the Association of National Advertisers, whose members include Google, NBCUniversal, and other Fortune 500 companies,” that are opposing California Assembly Bill 831. Listed within the coalition is the other sweepstakes trade group, the Social Gaming Leadership Alliance (SGLA).
“The SPGA is proud to stand alongside the ACLU, the Association of National Advertisers, and other partners in voicing concerns about AB 831,” said an SPGA spokesperson. “This diverse coalition, including civil liberties advocates, leading businesses, and industry groups, reflects a shared belief that the bill, as written, could have unintended consequences for lawful promotional practices without offering clear consumer protections.”
And then there was this LinkedIn post from industry veteran, and sweepstakes supporter, Marc Brody:
Bottom line, get your popcorn ready.
Roundup: Bet365 Plants Flag; Super Group Exits; Another Loss Deduction Critic; VGW Sales Tax; IL Tax Fallout
Bet365 is planting its flag in the US [Legal Sports Report]: Bet365 is cementing its US presence with a $135 million purchase of its 248,000-square-foot office building in Denver and a new deal with the WNBA’s Indiana Fever. The company moved to the Denver office last year, but following the purchase of the property, it plans to invest another $40 million to support its US growth. Bet365’s partnership with the Indiana Fever will see it become the team’s official sports betting partner. The Fever is one of the more coveted partnership deals, due to WNBA megastar Caitlin Clark. The deal includes brand exposure across Fever’s media platforms.
After exiting sports betting, Super Group ends US iCasino operations [Legal Sports Report]: After ending its US sports betting experiment, Super Group, the parent company of Betway and Spin, is leaving the US online casino market (Spin Palace Casino in New Jersey and Pennsylvania) due to regulatory challenges and insufficient returns on capital. The decision comes on the heels of New Jersey bumping its online gambling tax rates.
NTRA concerned about gambling loss deduction cap [Bloodhorse]: The National Thoroughbred Racing Association (NTRA) is yet another group that is concerned with the gambling loss deduction cap in the One Big Beautiful Act. As reported by Bloodhorse.com, “In a release noting a number of industry-favorable changes in the bill that was signed into law July 4, the NTRA noted: ‘One concern is that the bill limits to 90% of the amount of gambling losses that can be claimed against winnings.’”
VGW adds sales tax in certain US states [SBC Americas]: VGW confirmed to SBC Americas that its Chumba Casino, LuckyLand Slots, and Global Poker have implemented a sales tax on the purchase of Gold Coins in several states as of July 10. Per SBC Americas, “The company did not specify in which states the change has taken effect, or in how many.”
BetMGM and Hard Rock impose minimum wagers in Illinois [InGame]: Rather than a per-wager surcharge like FanDuel, DraftKings, and Fanatics, BetMGM and Hard Rock will impose minimum wagers on bets placed in Illinois. Per InGame, “BetMGM will require a minimum bet of $2.50 in Illinois beginning Wednesday, representing the latest pushback against the per-wager tax the state legislature passed in June for sports betting. The company has not formally announced its plan, but it sent a letter to customers, which was posted Friday on X by a recipient.” InGame also confirmed Hard Rock is imposing a $2 minimum bet in the state.
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News: Flutter Acquires Boyd’s 5% FanDuel Stake
Flutter has acquired Boyd Gaming’s 5% stake in FanDuel for $1.75 billion, which gives Flutter full ownership of FanDuel, in a deal that values FanDuel at $31 billion.
The transaction includes an extended market access agreement at a reduced cost (market access was the genesis of Boyd’s 5% stake), covering Indiana, Iowa, Kansas, Louisiana, and Pennsylvania.
“The deal unlocked ‘tremendous value’ which puts the company in a ‘significantly stronger financial position,’” Boyd CEO Keith Smith said in a press release. “As a result, we are in a significantly stronger financial position to continue executing our strategy of investing in our properties, pursuing growth opportunities, returning capital to our shareholders, and maintaining a strong balance sheet.”
As reported in Earnings+More, the analyst team at Truist said Flutter was “cleaning up shop and looking to reduce ambiguity and present a cleaner story to investors.”
The news has also rekindled the possibility of a Boyd-Penn merger.
“We expect the move to sell the stake three years before the arbitration period to only refuel speculation around takeover talks between the company and PENN Entertainment,” Jordan Bender of Citizens wrote in a note. “The company is now in a position to answer the question around financing with the incremental cash on its balance sheet.”
As E+M also noted, a lingering complication is FOX’s option to purchase an 18.6% stake in FanDuel by December 2030, valued at $4.5 billion, contingent on securing licenses in all FanDuel-operating states.
“Flutter reiterated yesterday that for Fox to take up the option, it would need to have full licensing across all states in which FanDuel operates,” according to E+M. “Back in September, Fox CEO Lachlan Murdoch said the company was indeed in the process of obtaining the necessary gaming licenses for it to take up the option.”
News: Former MGC Regulator Lands at PrizePicks
Another regulator has made the move to the private sector, with former Massachusetts Gaming Commission general counsel and interim executive director Todd Grossman taking a job with PrizePicks.
“After an unforgettable chapter in public service, I’m thrilled to share that I’ve joined PrizePicks as Director of Gaming Regulatory Compliance,” Grossman shared on LinkedIn. “It’s been great to see up close how sharp, focused, and values-driven this team is; committed to doing things the right way while pushing innovation in this dynamic space.”
Grossman’s move from government to industry is not unusual (a few examples below), nor is it untoward:
Indiana Gaming Commission (IGC) Executive Director Greg Small resigned his position in September 2024 to take a position as Head of Legal & Government Affairs with sweepstakes sports betting operator Fliff.
Louis Trombetta, the first executive director of the Florida Gaming Control Commission, accepted a job with FanDuel as Director of Government Relations in December 2024.
Brandt Iden, one of the architects of Michigan’s online gambling expansion, has had several industry positions (Sportradar and now Fanatics) since leaving office in January 2021.
E. Sequoyah Simermeyer stepped down as the chair of the National Indian Gaming Commission in February 2024 to take a job at FanDuel as the company’s Vice President of Strategic Partnerships.
In other, somewhat-related news, former MGC Chair Cathy Judd-Stein announced on LinkedIn that she has been appointed by Massachusetts Gov. Maura Healey to the Emerging Technology Fund Advisory Committee.
Views: DraftKings Settles with Connecticut
Straight to the Point has been tracking class action lawsuits against licensed sportsbooks, alleging that their bonuses and promotions are misleading and fail to disclose the substantial playthrough requirements needed to fully unlock the bonuses.
DraftKings has been the primary target of these lawsuits, and as reported by SBC Americas, the company recently settled with the state of Connecticut:
“DraftKings is returning $3 million to customers in Connecticut following an investigation by the state’s Department of Consumer Protection (DCP) into the operator’s bonus offers. The DCP reached a settlement with DraftKings requiring the Boston-based sports betting and fantasy giant to return funds to approximately 7,000 consumers in Connecticut.”
As part of the settlement, if a customer is required to play through their deposit and bonus more than one time, DraftKings must clearly disclose the required playthrough requirement.
It will be very interesting to see how (or if) the settlement impacts the other active lawsuits, as it would seem to support the plaintiffs’ cases.
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Around the Watercooler
Social media conversations, rumors, and gossip.
As I noted with the response to the gambling loss deduction cap in the One Big Beautiful Bill, when we go outside the gambling bubble, there isn’t much love for legalized gambling.
Tucker Carlson and Saagar Enjeti recently spent 11 minutes criticizing mobile sports betting (the video is cued to the sports betting discussion at 1:30:00 into their conversation) — As STTP has been reporting, Enjeti has been beating this drum for a while now.
And then there was Bob Costas, who appeared on Meet the Press and said he refused to read gambling promos, as his father’s gambling gave him a love of sports, but also exposed him to the harms gambling can cause:
“On both the Major League Baseball Network and when I did a handful of games on Turner, I refused to read the gambling promos,” Costas told host Kristen Welker. “I just couldn't in good conscience encourage people to do something which I know, for some of them, it's obviously just a little recreation and it's fine, but there's an insidious aspect to it that I didn't want to be part of.”
Stray Thoughts
The World Series of Poker has hit a mini-jackpot, with Leo Margets making the final table of the Main Event, the first female to make the final table since Barbara Enright in 1995. If Margets wins the WSOP, poker will hit a mega-jackpot.
You can find an excellent write-up of the final table from Paul Oresteen, who has been doing some fantastic writing on the 2025 WSOP Main Event.
I’ve been saying for years that the best thing that could happen to poker is a female WSOP champion, and you’d be hard-pressed to find a better female champion than Margets, a well-respected professional player with a solid resume both on the felt and off the felt as an ambassador.
Hopefully, I’ll be able to write about the possibility of a second poker boom in a few days.