The Weekender: MA iLottery, NY Survey, And The DK Surcharge
The Weekender: MA iLottery, NY Survey, And The DK Surcharge
The biggest stories of the week include the DraftKings surcharge; the legalization of online lottery in Massachusetts, and a not-so-helpful survey in New York.
The Bulletin Board
ABOVE the FOLD: A look at the three biggest stories of the week.
— Massachusetts Online Lottery: What it will offer and when it will go live.
— Not so great results from a New York online gambling survey.
— DraftKings enters unchartered territory with a surcharge on winning bets.
HOUSEKEEPING: A look at recent podcasts, featured articles, and more from yours truly.
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Massachusetts Online Lottery Details
The recently approved Massachusetts online lottery is coming into focus. Lottery Director Mark William Bracken laid out the expected launch (late 2025) and the products that will be available.
Bracken told MassLive that besides the option to buy drawing game tickets such as “Powerball” and “Mass Cash,” the majority will be e-instant tickets.
I would add that based on the product offerings (see here), the MA online lottery could be the most modern version to date in the US.
However, as I wrote on Thursday, it’s unclear if lawmakers understood the scope of the online lottery products they approved, particularly e-instants: “Some lawmakers may be surprised to learn they didn’t just authorize the sale of draw tickets online; they essentially authorized online slot machines. That revelation might not sit well, and we could see a Minnesota 2.0, with the legislature specifically banning e-instants when they reconvene.”
A Not-So-Good Online Gambling Survey in NY
Supporters will spin the results of a recent survey conducted by the office of NY State Sen. Joseph Addabbo Jr. as positive, considering legalization of online casinos had 44% support and 33% opposition, but bigger picture, those numbers should be incredibly scary.
Prostitution had 56% support, but what really caught my eye was fewer people are opposed to legalized prostitution than online casinos: 33% for iCasino vs. 28% for prostitution.
What this says to me is that in the world of sin, gambling is seen as the greater evil. And keep in mind the question was phrased very favorably toward online casino legalization.
You can read my full write-up here.
DraftKings Surcharge Steals the Show
The story of the week (and likely the upcoming week or even month) was DraftKings’ announcement that it would be adding a surcharge to winning wagers in high-tax states.
Beyond the announcement, there isn’t a tidy way to summarize what this means because nobody really knows; it could be something we eventually look at as a nothingburger or one of the most consequential moments in US sports betting history.
I had some thoughts on it in Friday’s feature column, and here are a few other links worth reading:
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Housekeeping
HUGE ANNOUNCEMENT: This week, I announced The Forecast.
The Forecast is a premium service that consists of quarterly reports and weekly updates on the US online gambling sector. I created it specifically for individuals and organizations interested in an unbiased, clear-cut assessment of the landscape. It will launch in November at a cost of $2,600 annually, but you can save $600 by becoming one of the first 20 organizations to sign up — There are still some available at the discounted rate, but they are going fast.
Reach out to Steve@igamingpundit.com for more details or to register your organization.
PODCAST: No podcast episode this week, so I’ll highlight my recent chant with Mark Checkwicz, who joined me fresh off a World Series of Poker bracelet win in the $5,000 Senior’s Event. Mark has an interesting relationship with gambling (and is very open to discussing it) that fluctuates between healthy and unhealthy. His story is one I think everyone working in the RG and PG space needs to hear, as it will challenge conventional thinking.
Featured Column: DraftKings Bold Gambit. As noted above, this week’s feature column focused on DraftKings' announcement of a surcharge on winning bets. I’ll have more thoughts on this in the future, but the best way to summarize my thoughts on this is: It’s a bad idea that may or may not hurt DraftKings (I can’t envision a scenario where it benefits DraftKings), but at the same time, it’s not a good sign for US sports betting.
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.
Bingo and horseracing paved the way for lotteries, helping make gambling more socially acceptable. Then lotteries helped pave the way for sports betting, which in most states was the first form of gambling available online. Now sports gambling is returning the favor, helping justify the passage of iLottery in states like MA, where for a long time even cashless sales seemed unlikely to happen.