Monopoly-Busters
Are Delaware and Washington DC ready to end their sports betting monopolies? New Jersey's new revenue reports paint a clearer picture.
The Bulletin Board
NEWS: Delaware and Washington DC consider ending their lottery-run mobile sports betting monopolies.
LOOSE ENDS: Billion-dollar casino in VA; Battle brewing in MN; AR casino exec warns against prop bet bans.
NEWS: Examining New Jersey’s operator-by-operator revenue numbers.
AROUND the WATERCOOLER: Lottery spend is off-the-charts, and a CTA by Illinois sportsbooks.
STRAY THOUGHTS: Porter, Ohtani, and a dozen other scandals.
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Are Competitive Markets Coming to Delaware and DC?
There are several monopoly markets in the US sports betting space: Delaware, Rhode Island, New Hampshire, Oregon, and Washington DC.
Two jurisdictions, Delaware and DC, are considering a more competitive model. Legislation that would replace the current lottery-run model with an open, competitive market has been introduced in both locales.
In Delaware, HB 365 would authorize the state’s three racinos to launch two unique sports betting skins. That would end the current exclusive contract between the Lottery and Rush Street Interactive. RSI recently took over the Delaware contract from 888.
In DC, the new legislation would authorize sports facility master licensees to expand from retail to mobile betting or opt for a mobile-only license. City-wide mobile betting is currently exclusive to Intralot, which has subcontracted FanDuel to serve as the betting platform.
In a recent EKG Line Newsletter, Eilers & Krejcik Gaming (a newsletter sponsor) highlighted two hurdles these proposals will need to overcome:
“Having operated under the existing model for several years, neither the Lotteries nor their platform providers, who enjoy monopoly access to bettors, are likely eager to upend the status quo.”
“While the proposals are likely to be supported in theory by many operators, the small size of the jurisdictions is unlikely to inspire the kind of dedicated attention that may be required to overcome the aforementioned framework inertia.”
The changed market conditions in both locales are also working against the bills. If the impetus for ditching the lottery-run monopoly is performance, both markets have looked much better since the start of 2024. FanDuel has recently taken over from Intralot’s much-maligned Gambet DC platform, and RSI has tripled overall revenue in its first three months in Delaware.
Loose Ends: Billion-Dollar Casino in VA; Battle Brewing in MN; AR Casino Exec Warns Against Prop Bet Bans
Live! Casino in Virginia: Billion-dollar casino and entertainment projects are becoming the norm (Chicago, New York, and beyond), and Virginia wants in on the action. Per a press release, The Cordish Companies and Bruce Smith Enterprise have proposed a $1.4 billion Live! Gaming & Entertainment District, anchored by Live! Casino & Hotel Virginia in Peterburg, VA.
Testy in Minnesota: With sports betting still up in the air and tribes crying foul over the recent authorization of HHR machines at tracks (and subsequent bill to prohibit the machines), one of Minnesota’s commercial race tracks, Running Aces, has filed a federal racketeering lawsuit claiming three tribal casinos are offering Class III card games not authorized under state law.
Casino exec weighs in on player prop bets: “Banning player props on regulated sportsbooks doesn’t ban player props,” Carlton Saffa, the CMO at Saracen Casino Resort in Pine Bluff, Arkansas, said. “It simply pushes them to the illegal markets, whether they be offshore or bookies.” Saffa told Gambling.com, “There’s an old saying that sunlight is the best disinfectant. If you want to know what’s going on with something, you don’t ban it. You regulate it.”
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A Close Look At NJ Online Casino Revenue Numbers
After more than a decade, the New Jersey Division of Gaming Enforcement now reports online casino revenue by individual operators rather than by master license holders.
The first round of data wasn’t overly surprising. Firms like Eilers & Krejciik Gaming have estimated revenue at the operator level for years, but as many noted on X, it’s nice to see the official numbers.
In addition to the Top 10 (highlighted below), I would note that ESPN Bet and Jackpocket are on the ascent. Within the Top 10, pay particular attention to BetRivers’ success.
Oh, and did I mention that March was a record-setting month, with the state’s online casinos tallying $197 million in revenue? That seems important.
Around the Watercooler
Social media conversations, rumors, and gossip.
There are a couple of items to discuss today.
The amount of money spent on Lottery products is mind-boggling:
Mobilize! It would appear that operators are very concerned about the proposed tax increase on sports betting (from 15% to 35%), considering this CTA:
Stray Thoughts
The latest on Jontay Porter is missing from the newsletter. Either this week or next, I’ll dedicate the Friday Feature Column to some big-picture thoughts on his permanent ban from the NBA, along with the Shohei Ohtani situation and the dozen other scandals swirling around the legal US sports betting market.