The Weekender: Congress, Sweepstakes, and Credit Cards
The three big stories of the week were: This week's congressional hearing on sports betting. The intensifying sweepstakes fight. Credit cards and online gambling.
The Bulletin Board
ABOVE the FOLD: A look at the three biggest stories of the week.
— Looking ahead to this week’s Congressional sports betting hearing.
— The sweepstakes debate is far from over; It’s just getting started.
— Credit cards make three appearances.
HOUSEKEEPING: A look at recent podcasts, featured articles, and more from yours truly.
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Senate Judiciary Committee to Probe Sports Betting
The Senate Judiciary Committee has scheduled a hearing titled America’s High-Stakes Bet on Legalized Sports Gambling, the latest in a series of adverse events for the industry.
“Next week’s congressional hearing on sports betting could provide a glimpse of what Congress and the federal government have in store for an industry under increasing scrutiny.”
As I’ve been saying for quite some time, the industry’s actions have made federal intervention inevitable.
From a recent Stray Thoughts entry:
“A storm is brewing… A federal storm.
“It may have felt like a boy who cried wolf situation, but with each industry excess, I’ve been sounding the “federal action is a real possibility” alarm for years…
“[…]
“Federal action, which could be momentum for a bill (The SAFE Bet Act) or a Congressional hearing (the Congressional version of a dog and pony show) is something I’ve been closely following since starting the newsletter — both seem to be gaining traction.”
The Sweepstakes Fight Is Just Getting Started
Sweepstakes have been the topic at the NCLGS Conference in New Orleans. If anyone is looking for a resolution, you will be disappointed, as the debate is getting murkier, with the sweepstakes industry has begun to fight back:
First, the Social and Promotional Gaming Association (SPGA) announced that it would implement a Code of Conduct for its operator members.
Then there was the recent research from Eilers & Krejcik Gaming that I reported on in Thursday’s newsletter:
New research from Eilers & Krejcik Gaming (a newsletter sponsor) highlights something I’ve been thinking about since Michigan booted sweepstakes operators from the state in December 2023: What impact would the prohibition on sweepstakes sites have on the state's licensed online gambling revenue?
The answer, per EKG, is minimal.
Per its analysis, “The state of Michigan posted the second worst year-on-year online casino growth in these markets since the exit of social sweepstakes casinos (an average of 24.8%).”
Finally, there was the NCLGS debate (which I’ll have an extended entry on in tomorrow’s newsletter). Here’s a small taste from Jessica Welman:
Credit Cards Are Becoming a Thorny Issue
Credit cards were all over the newsletter this week, starting with my take on the credit card prohibition in the NCLGS Model Online Casino draft legislation:
“Prohibiting credit cards sounds like a robust responsible gambling safeguard, but evidence (where available) suggests the policy has zero impact and possibly exacerbates the problem amongst at-risk gamblers.”
That debate also occurred at NCLGS, with New Hampshire State Sen Tim Lang and former New Jersey Division of Gaming Enforcement chief David Rebuck strongly disagreeing on the policy, per Jessica Welman’s reporting:
“A one size fits all, maximum amount of money that can be wagered is not supported by evidence today,” Rebuck said.
“If I was to allow credit cards, the bill would die on the spot. It wouldn’t go any further at all,” Lang argued. “So while data may suggest otherwise, if the legislators in the room will want to elect again, and wants the actual bill passed…you put credit cards in and that will get your bill killed in most states.”
And on Friday, my featured column looked at the similarities between the online gambling and credit card industries.
Credit Card Roulette
A meme was created during the height of the daily fantasy sports legalization debate after operators started comparing DFS to everything from bowling to a spelling bee.
Housekeeping
REMINDER: Straight to the Point will take its first vacation next week… no newsletters from Monday, December 23, to Sunday, December 29.
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PODCASTS:
The Talking Shop Podcast will return after the holidays in the new year.
Why hire Steve Ruddock? Over the years, Steve has advised startups, national gambling companies, government agencies, and investment banks on a wide variety of topics.
Whether you’re looking for market research, want to raise your brand awareness, or are trying to develop responsible gaming strategies, Steve can help with honest, balanced, no-nonsense analysis of the situation.
Steve’s unique experience and insights are often the missing piece to the puzzle.
Reach out for more information: Straight to the Point Consulting.