Show Your Work
The CEOs of DraftKings and FanDuel appeared together at G2E and during the session they made several claims that warrant further discussion.
The Bulletin Board
NEWS: Examining the comments made by FanDuel CEO Amy Howe and DraftKings CEO Jason Robins during their G2E session.
ICYMI: Stories and updates from around the gambling universe.
NEWS: Live dealer tables account for more than 50% of all online table game revenue in Pennsylvania.
VIEWS: IBIA issues Q3 sports betting integrity report, with a total of 50 alerts issued in Q3.
AROUND the WATERCOOLER: The ESPN Bet logo is mint. No, really, it’s mint green.
STRAY THOUGHTS: Mark Twain on learning lessons the hard way and our uncanny ability to justify our opinions.
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Adding Context to Comments From FD and DK CEOs
Last week, Amy Howe, the CEO of FanDuel, and Jason Robins, the CEO of DraftKings, shared the stage at G2E. The session produced several sound bites, but as I mentioned in a previous newsletter, some of the statements lacked context. Today is a good day to provide some of that context.
Let’s start small.
As several respondents to the tweet said, Robins needs to show his work. This could very well be true, but it’s hard to explain where he got the numbers from.
It’s also a meaningless number. A far better metric that would relay the importance of growing the legal market is how many sports bets are via unlicensed operators in legal states - every bet originating in Texas is through an unlicensed operator.
What’s the deal with online casinos?
This should be part of the discussion. That said, outside of Michigan, that argument (which has been occurring for around 15 years) hasn’t worked anywhere on the iCasino side. The states that have legalized iCasino have done so because they desperately needed to fill a budget shortfall or faced little political resistance (from stakeholders or legislators).
The real path forward for online casinos is stakeholder agreement in a state that is looking to fill a budget hole. Stakeholder agreement is far more difficult on the casino side than sports betting. The latter had nothing to cannibalize, and until every key stakeholder believes that on the casino side, legalization will remain a difficult lift.
Pot meet kettle.
Is this not a concern with the DFS products offered by FanDuel? What about FanDuel Faceoff, which is unregulated and available to anyone 18+ in 30+ states?
Does she harbor the same concerns about lotteries or horse racing? How does Jason Robins feel about this, considering DraftKings offers 18+ sports betting in New Hampshire and Kentucky?
I’ve already spoken my mind about 18 vs. 21, but this seems targeted at a specific group of competitors rather than a principled stance on the appropriate betting age.
Howe also questioned the KYC protocols used by “Pick ‘Em” DFS sites
“Where the lines start to blur between games of skill and real money wagering, and you don't have the same KYC protections that we have,” Howe said. “If you’re 21, you can bet legally.”
First, the legal betting age is not 21. It is for some products in many states, but certainly not across the board, and there is no magical KYC check if you’re 21.
Second, the companies (at least the major ones) she is subtweeting here use the same KYC vendors as FanDuel and other licensed sportsbooks.
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ICYMI: FL Updates; The MGC Is Hiring; Betting Scandal
Anti-gambling group No Casinos files amicus brief in Florida sports betting case arguing against the “hub-and-spoke” model.
Deeper legal dive by Law360 (paywall, but 7-day trial available)
Staying in Florida, the Department of the Interior has filed its response with the Supreme Court of the US.
Obligatory X thread from attorney Daniel Wallach (better than most articles).
A really good, easy-to-digest explainer from Jill Dorson at Sports Handle.
The Massachusetts Gaming Commission seeks to fill several key positions following a mass exodus in the Summer. And like everything in Massachusetts, it looks like it will be a drawn-out process.
More solid reporting by SportsHandle.
An unfolding betting scandal in the UK Premier League revolving around two Italian players.
The nuts and bolts of the situation from Compliance+ More.
Coverage and commentary from CDC Gaming Reports.
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Pennsylvanians Like Their Online Live Dealer Tables
Recently, I covered the launch of Light & Wonder’s live dealer studio in Michigan and talked about the importance of live dealer games.
“This is a small story in the grand scheme of things, but live dealer is an often overlooked part of the online ecosystem…
“What’s all the fuss with live dealer games? First, they’ve effectively bridged the gap between brick-and-mortar customers and online products.
“[…]
“Second, they are also a revenue generator. Two years after launching live dealer games in New Jersey, Golden Nugget Online Gaming’s Thomas Winter told me online table game revenue increased by 150% since live dealer games were first offered in 2016.”
And right on cue, some new evidence has emerged. Play Pennsylvania’s Corey Sharp reports that live dealer games generated more than 50% of Pennsylvania online table games revenue in FY 2022-2023. In FY 2021-2022, live dealer game revenue was also around 50% of total table game revenue, which is a solid number considering the product debuted in October 2020.
IBIA Issued 50 Sports Betting Alerts in Q3
A recent report from the International Betting Integrity Association (IBIA) shows the group issued 50 sports betting alerts in Q3 2023.
Tennis produced 15 of the alerts, with soccer accounting for another 13. Table Tennis (8), Darts (7), and eSports (3) rounding out the Top 5 sports. Of note, in Q3 2022, there were 33 tennis alerts.
Regarding what leagues the alerts originated from, it was a tie between Darts in the UK and table tennis in the Czech Republic, with seven alerts each. The UK had a total of 11 alerts across all sports.
Around the Watercooler
Social media conversations, rumors, and gossip.
ESPN Bet’s logo was the talk of X yesterday. The following thread from Joe Pompliano has more than 300 likes and a couple dozen responses.
Jamie Salsburg took a crack at “improving” the logos, and I think he struck gold with the top left and bottom right.
Stray Thoughts
A two-fer from Mark Twain.
“A man who carries a cat by the tail learns something he can learn in no other way.”
“Get your facts first, then you can distort them as you please.”