Take It Under Advisement
Take It Under Advisement
The Massachusetts Gaming Commission's meeting on limiting bettors was informative, but speedy action from the deliberative regulatory body is unlikely.
The Bulletin Board
NEWS: MGC meeting on limiting bettors presents both sides, with no real fireworks.
QUICK HITTER: ESPN Bet is still sidelined in New York.
BEYOND the HEADLINE: How committed is ESPN to sports betting?
LOOSE ENDS: DraftKings’ Electric Poker in CT; Intralot era mercifully over in DC; New RG tool just dropped.
NEWS: California bill that would allow tribes to sue cardrooms under fire.
AROUND the WATERCOOLER:
STRAY THOUGHTS: Chart of the Week: Promo spend and market share.
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MGC Meeting on Limiting: Few Fireworks and No Decision
Here is a rundown of yesterday’s Massachusetts Gaming Commission meeting on limiting bettors.
Panel #1, full of lawyers and compliance department representatives, went as expected.
The sportsbooks constantly reiterated that this is a tiny percentage of players and explained why they limit bettors. The consensus was that it is not based on results but on a list of behaviors indicating an advantage player.
BetMGM’s Jeremy Kolman said some triggers include bettors who take advantage of odds errors, syndicate betting, court-siding, bets on low-liquidity, high-volatility markets, and inconsistent bet amounts. Kenneth Fuchs of Caesars also mentioned bots, suspicious activity indicators (AML, integrity concerns, geolocation spoofing, account sharing, and bonus abuse), and arbitraging as triggers.
Alex Smith of Fanatics noted that the majority of limited bettors at Fanatics are losing players, which he said highlights it’s not based on results but rather due to some of the triggers mentioned above.
The MGC’s concerns about limiting focused on casual players being unjustifiably limited and moving to offshore markets. As Interim Chair Jordan Maynard said, we are here because “we get complaints,” and you can see the difference in these complaints. Books pushed back on that a little, saying most complainants likely know why they have been limited, insinuating they are pretending to be recreational bettors.
Panel #2 featured the patron, responsible gambling, and alternate sportsbook models:
Brianne Doura-Schawohl, Founder & CEO – Doura-Schawohl Consulting
David Hill, Podcast Host, Columnist, Writer
Jeff Edelstein, Freelance Sports Betting Writer
Joe Brennan, Executive Chairman – Prime Sports
Marlene Warner, CEO – MA Council on Gaming and Health
Richard Scheutz, CEO - Bettors Voice
HIGHLIGHT #1: Richard Schuetz said, “We” learned nothing from the previous session, “We don’t know what is going on.” We don’t know why people are being limited, and regulators deserve to have data on who is being limited and, more importantly, why. He later added that the “tail is wagging the dog,” and regulators must take charge and demand the data.
HIGHLIGHT #2: Joe Brennan Jr. made a good analogy that I suspect resonated with commissioners because of its simplicity, noting that a sportsbook limiting a sharp bettor is like the stock market limiting Goldman Sachs because they are too smart.
HIGHLIGHT #3: There was also a very interesting comment from journalist David Hill, who said he was recently in Costa Rica to speak with offshore sportsbooks who said they lost a lot of business post-PASPA, but that business is starting to trickle back. The reason? Players are being limited in the licensed US markets.
UPSHOT: So what will come of this? My educated guess is nothing of substance. The operators did a good job explaining why they limit most bettors, and the second panel made a case for Massachusetts to legalize a second class of sportsbook (Prime, Sporttrade, Circa, etc.).
As Commissioner Maynard said, “Let’s assume limiting continues." Would notifications that a player is limited help?
In my opinion, that is what we might end up with after many, many months of discussion, a minor regulatory requirement or two.
As Maynard said multiple times, “We are a deliberative body.” Translation: Don’t expect a rapid response.
Quick Hitter: ESPN Bet NY Is Stuck in Regulatory Limbo
Penn was hoping to have its ESPN Bet mobile sports betting app up and running in New York in time for the NFL season, but according to the latest reporting, the company may miss out on the first quarter of the NFL season.
According to Sports Betting Dime, the app, which was expected to launch in late August, may not be available in the state for several weeks, pushing a launch into late September or October.
Per SBD:
“A spokesperson for the New York State Gaming Commission today revealed to Sports Betting Dime that PENN Interactive’s application to acquire WSI US, LLC, dba Wynn Interactive, has yet to be considered by the commission and likely will not be evaluated until its Monday, Sept. 23 commission meeting at the earliest.”
Beyond the Headline: Is ESPN In or Out on Sports Betting?
The other day, I talked about the problem influencers can create (in the form of a poorly worded tweet from Shannon Sharpe). ESPN Bet faces a different kind of influencer headache, as prominent ESPN personalities have entered into agreements with competitors and are touting those brands, not ESPN Bet.
As Dustin Gouker recently wrote in his Closing Line newsletter:
“Stephen A. Smith, the biggest of all the ESPN personalities (other than maybe Pat McAfee). Leading up to the NFL season, Smith is promoting PrizePicks almost nonstop…”
“Perhaps the stranger example is Erin Dolan, a sports betting analyst who works for ESPN and appears on ESPN Bet Live. She gave out some picks on social media ahead of Thursday’s NFL opener. People pointed out (me included) that many of the picks she gave out were not available on ESPN Bet, which certainly seems pretty odd when ESPN is her employer.”
Smith is his own brand and is free to sign deals that are not at odds with his ESPN contract — Smith is at the tail-end of a five-year deal signed well before ESPN was even a twinkle in Penn’s eye and is reportedly in talks to extend/renew the agreement at an astronomical price.
As Gouker noted, Dolan clarified that she was picking bets she liked, regardless of where the lines were offered.
Gouker points to these as a sign that there is a lack of buy-in in Bristol, “These examples are likely indicative of how much buy-in there is in pushing the ESPN Bet product forward by ESPN, and how (in)effective Penn is at leveraging the brand and its personalities.”
Playing Devil’s advocate, I would point to recent statements and upgrades, which indicate Disney/ESPN is beginning to embrace sports betting but still views the project as a tortoise and hare type race, with the generally conservative parent company choosing to err on the side of caution.
“The new agreement provides ESPN with all necessary rights to create best-in-class sports betting experiences for NBA and WNBA fans,” a Walt Disney press release reads in the wake of a landmark NBA agreement. “ESPN will have increased rights to utilize NBA and WNBA highlights and content within its sports betting coverage and to support or integrate into ESPN BET promotions. Furthermore, ESPN has secured the rights to future NBA-focused sports betting specials and series.”
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Loose Ends: Electric Poker in CT; Intralot Era Over; New RG Tool Just Dropped
DraftKings to launch Electric Poker in Connecticut: Pokerfuse is reporting that DraftKings has submitted its newly launched online poker game, Electric Poker, for regulatory approval in Connecticut. “If the current review of the operator’s peer-to-peer poker product is successful, DraftKings Electric Poker would be allowed to proceed to the next stage — a soft launch with real players taking part,” the CDCP told Pokerfuse. Connecticut legalized online poker in 2021, but due to the state’s small population, neither online casino operator (DraftKings or FanDuel) has launched an online poker product.
The Intralot era is over in DC: Caesars will take over Intralot’s Gambet retail betting offerings in Washington DC, as it has announced it will install 53 sports betting kiosks at small businesses in conjunction with the DC Office of Lottery and Gaming. The Gambet disaster led to the DC voting to open its sports betting market after handing an exclusive contract to Intralot.
AGA members fund the Responsible Gaming Intervention Effectiveness Scale: In a press release, “The American Gaming Association and its members Bally’s, FanDuel, and BetMGM are proud to have provided funding and access to players for the development of the Responsible Gaming Intervention Effectiveness Scale.” The Scale is being touted as a “research-based tool” to evaluate the effectiveness of responsible gaming messaging — I do have some alternative thoughts on this that I will save for another day.
CA Bill That Allows Tribes to Sue Cardrooms Faces Scrutiny
At the tail end of the legislative session, the California legislature passed SB 549, which would give tribes a one-time chance to sue cardrooms. The backstory on SB 549 can be found here, along with previous coverage on STTP detailing cardroom opposition and tribal support.
The bill is not official, as it is one of many Gov. Gavin Newsome is considering signing or vetoing.
Local reporting intimates a tit-for-tat situation, and that overhang might nudge Newsom toward a veto (alongside union opposition).
According to Cal Matters, “Evan Low’s congressional campaign received $60,000 in digital radio ads from a casino-owning Southern California tribe after the Democratic Assemblymember voted for a controversial gambling bill.”
Importantly, there is no evidence of impropriety by Low or the Viejas Band of Kumeyaay Indians.
“It’s not payback,” Viejas attorney general Tauri Bigknife said. “It’s not buying a vote. It’s none of those things. There’s no there, there, OK? It’s supporting someone that we’ve had a longstanding relationship with.” Bigknife noted the tribe has donated to Low’s campaigns in the past.
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Around the Watercooler
Social media conversations, rumors, and gossip.
Circling back to the MGC meeting, this is a good point on why it’s important to communicate that a bettor has been limited:
Stray Thoughts
Chart of the Week (thanks to the latest research note from the JMP Securities team):
Setting aside DraftKings and FanDuel, which, despite handing out the most promotional money, are also the most efficient, Caesars is the most efficient in promotional spending.