The Weekender: MGC Talks Limiting; SAFE Bet Act; Election Betting Update
The MGC discusses limiting bettors. Congress considers bill to rein in sports betting. Companies jump on election betting after ruling, but appeals court says no.
The Bulletin Board
ABOVE the FOLD: A look at the three biggest stories of the week.
— The MGC kickstarts the discussion on limiting sports bettors.
— Rep. Paul Tonko and Sen. Richard Blumenthal introduce the SAFE Bet Act.
— Election betting ruling has already changed the landscape.
HOUSEKEEPING: A look at recent podcasts, featured articles, and more from yours truly.
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Long Overdue: MGC Discusses Limiting Bettors
The Massachusetts Gaming Commission finally heard from sports betting operators about limiting bettors. It also heard from player advocates and sportsbooks with an alternative business model in what wound up being two diametrically opposed panel discussions last week.
You can read my full thoughts on the discussion in my column from Thursday, but two statements really stuck out to me:
“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.”
“… 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.”
As much as we say we want data, these are the types of remarks that resonate.
In my column, I asked what would come out of the meeting. The answer, in my opinion, “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.).”
SAFE Bet Act Gains Support in Congress
On Thursday afternoon, Rep. Paul Tonko and Sen. Richard Blumenthal held a press conference to unveil the official version of the SAFE Bet Act.
Tonko and Blumenthal were joined by Mark Gottlieb and Harry Levant, two members of the Public Health Advocacy Institute (PHAI) at Northeastern University School of Law, and Gordon Douglas, the father of a recovering disordered gambler.
Levant, an addiction counselor, and Douglas gave powerful statements during the press conference, with Douglas tearing up as he recounted his son’s struggles. Again, these are the types of stories and statements that resonate.
Although the industry doesn’t think Congress should get involved with what has long been a state-level issue and doesn’t want Congress involved, I have a feeling this conversation will pick up steam in 2025. I also would point out that the introduction this late in the 2024 session could set the bill up for an end-of-session push or the lame-duck session following the November elections — remember that UIGEA was attached to the Safe Port Act the day before Congress adjourned for the 2006 elections.
I’ll have more on the SAFE Bet Act in tomorrow’s newsletter, but you can find my preview of the press conference here.
Is Election Betting Really Coming to the US?
After prevailing in court, Kalshi started offering markets on US elections. Those offerings lasted just a few hours. Per the AP, the Court of Appeals for the District of Columbia Circuit “issued an order Thursday night temporarily freezing the matter until it can consider and rule on the issue.”
This is another topic I’ll explore further this week, but I’ll leave you with this: Considering how the rollout of legal sports betting has been received by the masses, I shudder to think about the vitriol that will surround election betting.
Housekeeping
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Reach out to Steve@igamingpundit.com for more details or to register your organization.
PODCASTS:
This week’s guest on the Talking Shop Podcast is Tomash Devenishek, the CEO and Founder of Kero Sports, one of the premier micro-betting suppliers in the industry.
In a second bonus episode, I spoke to iDEA Growth’s Jeff Ifrah on the history, current state, and future of legalized online gambling in the US. iDEA is hosting a series of free webinars this week (the 18th-20th) that you can register for here.
COLUMNS:
In this week’s feature column, I tackled the topic of cannibalization and why the word itself is a major impediment to legalized online casinos and online poker.
The latest Big Debate column in EGR features yours truly, who took the no-side on whether there will be tougher rules on sweepstakes sites; Howard Glaser of Light & Wonder took the yes-side.
I also contributed a few paragraphs to Mike Mutnansky’s excellent substack on last week’s regulatory meeting on limiting bettors. Mut Stack focuses on sports betting and horseracing but also delves into everything Massachusetts. It is one of the few newsletters I recommend.
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.