That's A Wrap
Indiana online casino effort has already been put back on the shelf, which is just more evidence of how frigid the climate to legalize online gambling is.
The Bulletin Board
THE LEDE: Indiana online casino efforts run into a wall (again).
LEGAL & REGULATORY ROUNDUP: OK sports betting bills advance; HI still opposes gambling expansions; NH iCasino bill advances.
VIEWS: Why STTP is still bearish on Texas gambling expansions.
AROUND the WATERCOOLER: Not all bettors are created equal.
STRAY THOUGHTS: Downstream effects.
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The Lede: Indiana Online Casino Bill Fails to Advance
The Indiana House Public Policy Committee passed Rep. Ethan Manning’s online casino bill (detail here) on January 29 in a 9-2-2 vote — Manning chairs the committee. The affirmative vote sent the measure to the Ways and Means Committee, and that’s where it met its end.
House Speaker Todd Huston said he will not move the legislation forward in 2025. Huston called it a complex bill that failed to find consensus support as cannibalization concerns persist.
“There’s all sorts of moving parts about how it impacts certain communities, what it does to the overall gaming environment in Indiana. I think all those things just make it complex to work through,” Huston said.
That isn’t too surprising, as STTP previously reported:
“The next stop is the House Ways and Means Committee, chaired by Rep. Jeffrey Thompson. Thompson isn’t seen as anti-gambling, but his overall view of online expansion is unclear. He did vote in favor of the state’s 2019 sports betting bill.”
But the real fight would have been in the Senate, where Senate Appropriations Committee Chair Sen. Ryan Mischler — a key committee in the process — is a longtime gambling critic.
Senate Pro Tempore Rodrick Bray will also need some convincing, as he recently said he doesn’t want to rush online casinos. As reported by the Indiana Capital Chronicle, Bray understands the importance of the gambling industry to the state but wants the legislature to get it right:
“I don’t think it’s good policy to chase revenue. I think you have to decide what the right policy is and then maybe the revenue comes. But if you’re chasing revenue that way, you’re probably not making good policy decisions.”.
While there is growing support, cannibalization concerns continue to be an insurmountable obstacle. Several casino companies oppose the measure, including longstanding opponent Churchill Downs, part of the recently created National Association Against iGaming (NAAiG). In addition to Churchill Downs, Monarch Casino & Resort and The Cordish Companies are known NAAiG members. STTP believes other companies are involved in NAAiG, but that information is not public at this time.
Another casino company that has voiced concerns about untethered online licenses is Penn Entertainment, which operates The Hollywood Casino Lawrenceburg in Indiana — Penn opposed the pull tab language in the bill, which was removed.
In Maryland, Penn Entertainment’s Caitlyn McDonough testified that her company opposes the bill but not online gambling, as PENN believes there is a better way to create a framework more complimentary to existing land-based casinos, citing cannibalization concerns as “real.”
Bottom line: There has been no progress on legalizing online casinos. In fact, efforts appear to be regressing.
Legal & Regulatory Roundup: OK Sports Betting; HI Gambling Expansions; NH iCasino Advances
Five Oklahoma sports betting bills pass committees: Multiple Oklahoma sports betting bills cleared a small hurdle last week, with State Rep. Ken Luttrell’s HB 1047 and HB 1101 passing the Appropriations and Budget Select Agencies Subcommittee. HB 1047 would legalize sports betting in Oklahoma, while HB 1101 is a contingency plan as it calls for a voter referendum. Meanwhile, the Senate Appropriations Committee passed Sen. Dave Rader’s sports betting proposal, SB 125, SB 585, sponsored by State Sen. Bill Coleman, and Sen. Casey Murdock’s bill, SB 164. All of the legislation faces what looks to be insurmountable obstacles as tribes and Gov. Kevin Stitt are not on the same page.
Hawaii's bill to legalize casinos is dead; sports betting bill progresses: Per KITV, “SB 893 would have established a Hawaii Gaming Control Commission to oversee casinos added to the new Aloha Stadium Entertainment District. A 15% wagering tax of gross receipts was also included in this bill.” Meanwhile, legislation that would legalize sports betting is taking baby steps in the Hawaii legislature. HB1308 passed its second committee, the House Judiciary & Hawaiian Affairs Committee, in a 6-4 vote, “With two committee members noting they have reservations about the measure,” per SBC Americas. Given the statements from lawmakers reported by KITV on casino gambling, sports betting will likely suffer a similar fate.
New Hampshire online casino bill passes committee after amendment: After an amendment clarifying how tax proceeds would be distributed was introduced, the New Hampshire Senate Ways and Means Committee passed Sen. Timothy Lang’s SB 168. The amendment ensures that charitable gaming is included in the revenue-sharing framework, which may placate some opposition. Still, several obstacles remain, including Cordish Companies and other local operators concerned about online gambling’s impact on casino foot traffic.
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Views: TX Sports Betting Push Unlikely to Produce Results
Texas has officially joined the legislative fray with two sports betting bills — both would require a constitutional amendment:
HJR 137, sponsored by Rep. Charlie Geren, would legalize resort casinos and sports betting.
HJR 134, sponsored by Rep. Sam Harless, would legalize sports betting.
The Texas Constitution requires a constitutional amendment to expand gambling in the state. This amendment would require a two-thirds majority in the Senate and the House, followed by a public referendum.
The rationale exists, as the Texas sports betting market is expected to reach $7 billion annually. According to estimates, the state stands to gain over $1.12 billion in the first five years — about $360 million annually.
“We appreciate Rep. Harless introducing this constitutional amendment,” said Karina Kling, spokesperson for the Texas Sports Betting Alliance. “Right now, unregulated sports betting is happening across the state, putting consumers at risk and costing Texas millions in lost tax revenue every year. It’s time to let Texans take control and decide if they want a strong, regulatory framework for sports betting—just like the 39 states that have already moved forward."
And, of course, Texans are already gambling online. As GeoComply noted, “From the start of the NFL regular season through its conclusion on January 5th, there were more than 4.5 million geolocation checks (potential wagering attempts) and over 333,000 mobile sports betting accounts active in Texas.”
So, where does Texas currently stand?
Good News: We have some semi-positive comments from Gov. Gregg Abbott, who views legal online sports betting as inevitable.
Meh News: There are heavy lobbying efforts on both sides, typically leading to expensive bills and gridlock.
Bad News: The Texas Republican Party’s platform is about as anti-gambling as it gets: “We oppose any expansion of gambling, including legalized casino gambling.” It also calls on GOP politicians to refuse donations from gambling organizations.
Terrible News: Lt. Gov. Dan Patrick isn’t a fan of gambling, and given that he controls what legislation is brought to the Senate floor, his point of view matters. Patrick has repeatedly said a sports betting bill must have majority Republican support before he even considers it. Recall that Patrick chastised former House Speaker Dade Phelan for passing a sports betting bill in 2023 with the help of Democrats.
“The difference between the Senate and the House is we don’t let the Democrats run the Senate,” Patrick said. “We know how to work across the aisle without ceding power to the other side to let them run the Senate like Dade lets Democrats run the House. We’re a Republican state.”
Phelan was succeeded by another moderate, Dustin Burrows (who won the speakership with Democrat support). Burrows supported gambling expansions in 2023, but the rift between moderate and hard-line conservatives in Texas is growing as wide as the divide between Republicans and Democrats.
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Around the Watercooler
Social media conversations, rumors, and gossip.
The following LinkedIn post from Brad Allen of Eilers & Krejcik (a newsletter sponsor) aligns with the chart Alun Bowden (also of EKG) has posted about lifetime values. Optimove found that 60% of bettors contribute 1% of revenue, and 3% of bettors generate 82% of revenue. VIPs indeed.
Stray Thoughts
There are always downstream effects, and the below tweet makes an honest case for not raising the gambling age to 21:
It’s never as simple as flipping a switch.