New York State Of Mind
ESPN Bet has its sights set on New York, but with a limited number of online sports betting licenses available, a deal will have to be made.
The Bulletin Board
NEWS: ESPN Bet is eyeing New York, but how will it gain entry to the nation’s largest sports betting market?
LOOSE ENDS: Quebec and Online Gambling; Rocha Talks CA Sports Betting; NFL Players Go Public with Harassment; FBI unveils cyberattack tool.
NEWS: Dallas Mayor throws cold water on casino talks.
VIEWS: Is acquiring Entain back on MGM’s radar? Analysts think so.
AROUND the WATERCOOLER: Run it Once preps for Delaware debut, sort of.
STRAY THOUGHTS: No days off.
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ESPN Bet Is Looking for a Pathway Into New York
Penn CEO Jay Snowden has sent mixed signals on the New York online sports betting market.
Two years ago, Snowden categorized New York as a large market, but a market that is going to hurt the bottom line:
“… I feel really mixed about New York because of the way the gaming law is structured and the fact that the tax rate is being self-imposed with a minimum of 50%… I don’t think anybody’s going to make money operator-wise… I think, objectively speaking, you’d probably rather be in than not be in… but I think it’s just going to be a margin killer. I think it’s going to be an EBITDA detractor.”
In August of 2023, just after its announced partnership with ESPN, Snowden said, “No one loves the tax rate in New York. But there could be opportunities in the short-term, medium-term to gain access to New York creatively, and those are the things we’re working on behind the scenes.”
The news coming out of the 11th Annual Truist Securities GLLR Summit has ESPN Bet actively looking to purchase a New York mobile sports betting license. New York licenses, which are capped at nine, are extremely valuable.
The big question for ESPN Bet is, who is willing to part ways with their New York mobile betting license?
There are several possibilities.
For the very reasons Snowden was hesitant to enter the New York market, operators could be planning their escape from New York.
Top of the list is Wynn, which announced it was winding down its online operations in eight states back in August. New York was not among those states, but Wynn did say its operations in New York (and Michigan) were under review.
Other possible sellers include Bally’s, Resorts World, and while far less likely, I wouldn’t completely rule out BetRivers.
Loose Ends: Quebec Online Gambling; CA Sports Betting; NFL Player Harassment; FBI Cyberattack Tool
Mark Keast’s interview with Quebec Online Gaming Coalition spokesperson Nathalie Bergeron lays out the potential framework for Quebec online gambling.
Pechanga.net publisher Victor Rocha sat down for a conversation with the World Series of Politics podcast to discuss the current California sports betting efforts and how the tribes will respond.
Athlete harassment has grown since the introduction of legal sports betting. The big question is how (and by whom) the issue is mitigated.
The FBI is trying to counteract the recent spate of cyberattacks that have impacted the casino industry. The department said it is “releasing a decryption tool to help victims free their computer systems from the malicious software used by the group.”
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Dallas Mayor to Casinos: All Politics Are Local
Yeah, about that Dallas casino.
Dallas Mayor Eric Johnson channeled his inner Rick Moranis when he called out the cheerleaders of casinos in Texas, accusing them of going over his helmet and ignoring the Dallas City Council.
“The folks I sit around the horseshoe with every day, I can guarantee you are going to have to have a say in where you plop a casino in the City of Dallas. Or whether you get to plop a casino in the City of Dallas,” Johnson told the Dallas Chamber of Commerce.
Johnson seemed skeptical that a casino bill would make it through the conservative legislature. Still, he cautioned that even if it does, the backers better be ready to talk to the city, as there is a lot of red tape involved in a multi-billion-dollar construction project.
“Ultimately, no matter what happens there, let’s say one day it gets legalized to have casino gambling. That’s not something that just because the legislature says can happen, just happens,” Johnson said.
Will MGM Finally Seal an Entain Deal?
Entain is in turmoil. It recently settled a massive $729 million settlement. Its CEO has stepped aside. And to no one’s surprise, there is revived chatter about a potential sale, now at a reduced price.
The most likely suitor is BetMGM, which is partnered with Entain. MGM made a substantial $11 million bid for Entain a few years back, which Entain rejected. The next offer is likely to be well below that price.
Per Jeffries analyst James Wheatcroft (as reported by Casino.org), “We would expect other options to include the sale of Entain to MGM, the sale of the BetMGM stake, the sale of other assets, in addition to finding a suitable CEO… Several factors now imply an opportune moment for MGM to re-evaluate an approach to Entain.”
In February, MGM CEO Bill Hornbuckle said the company would not throw out another bid for Entain. “We value our relationship [with Entain], and we value BetMGM, but in the rest of the world, we’re going to go down our own direction,” Hornbuckle said.
However, that was after Hornbuckle said that as much as the company wants to control its tech, MGM can’t buy what’s not for sale. Considering Entain’s current predicament, that for sale sign could be planted in the front yard very soon.
Around the Watercooler
Social media conversations, rumors, and gossip.
Delaware will soon have a new online gambling provider, but poker players will be left out in the cold, at least for a spell, per PokerFuse’s Nick Jones.
Of interest, the changeover will include an online poker blackout, which, as PokerFuse notes, “marks the first time in US history that players will gain, then lose, access to regulated, real money online poker.”
And as Jones notes, when poker will return is unknown.
And from the looks of it, the transition for casino players will be anything but seamless, according to PokerFuse:
According to the post on Two Plus Two, players on the Delaware Park were told that “account details and remaining bankroll funds will not be transferred to the new platforms. Please log in and play or withdraw any remaining bankroll funds.”
Jones summed up the situation perfectly, saying:
Another somewhat overlooked aspect of this is that even upon the return of online poker, Delaware players will be cut off from the New Jersey-Nevada player pool that 888 was a part of. Delaware is the only state where Run it Once will be available, which prevents it from pooling players with other states. That means Delawareans (of which there are roughly 1 million) will be limited to intrastate poker once again.
Stray Thoughts
This is the final pre-Christmas newsletter, and while I’m anticipating a very slow news week between Christmas and New Year’s, I will be publishing all next week.
As Bill Belichick said, “No days off.”