The Weekender: Sweepstakes, Election Betting, and More
California tribes taking on sweepstakes is the lead, but there is also some big news on the election betting front and potential federal oversight, like the SAFE Bet Act.
The Bulletin Board
ABOVE the FOLD: A look at the three biggest stories of the week.
— California tribes ready to go to war with sweepstakes operators.
— Is election betting here to stay?
— The SAFE Bet Act keeps getting referenced.
HOUSEKEEPING: A look at recent podcasts, featured articles, and more from yours truly.
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The New Battlefront: California Tribes Vs. Sweepstakes
The sweepstakes industry has been the talk of the industry for several months. It became front and center, issue #1, after G2E, and it looks to be THE STORY for the foreseeable future.
Post-G2E, Pechanga.net publisher and Conference Chair of the Indian Gaming Association Victor Rocha was true to his word, fully declaring war on sweepstakes sites on the IGA’s New Normal Webinar.
“Rocha, who was more animated about this topic than I’ve seen him since the online poker fights of a decade ago… divided the sweepstakes crowd into two groups: people he knows/likes/respects and “vampires” and “bottom-feeders,” people who show up whenever a new product begins to gain momentum to suck the blood out of the industry or pedal their next grift.”
“They’re mocking us to our face… this is gambling on training wheels,” Rocha said. He called sweepstakes an “existential threat,” warning that sweepstakes sites are hiding behind lawyers and using the DFS model to “takeover” online gambling before it’s legal.
With California tribes leading the way, the question becomes, who will line up behind them?
Rocha plans to host five Webinars on the topic, with the Sports Betting Alliance’s Jeremy Kudon as this week’s guest. The American Gaming Association, other vocal critics of sweepstakes, and possibly some legal experts will follow.
Election Betting Isn’t Set In Stone
Election betting markets are now available in the US, but they may not be a permanent addition to the landscape, Orrick’s Behnam Dayanim wrote:
“The DC federal district court’s decision rejecting the CFTC’s attempt to prohibit Kalshi from offering event contracts involving political events will not be the last word on the matter.”
As Dayanim notes, even if the court sides with Kalshi, the litigation could prove to be a side-show, as the expected rule changes from the CFTC would begin the legal challenge process all over again…
Check out Dayanim’s full thoughts here and my previous election betting coverage:
For those interested in more of the backstory, you can read my deep dive into US election betting here
Don’t Sleep on the Feds
IGA Executive Director Jason Giles mentioned the SAFE Bet Act during the IGA’s New Normal Webinar on sweepstakes, saying, “Maybe the SAFE Bet Act isn’t optional,” hinting that tribes may support federal gambling oversight.
NBA Commissioner Adam Silver also mentioned it:
"I was in favor of a federal framework for sports betting. I still am," Silver recently told the AP. "I still think that the hodgepodge of state by state makes it more difficult for the league to administer it.”
The Safe Bet Act will sit untouched this year, but if I were a betting man, I would put a lot of money on it being reintroduced and making some hay next year, likely with a lot of discussion and debate about the particulars and a possible hearing.
As I previously wrote, The SAFE Bet Act is a bigger threat to the licensed sports betting industry than many people want to believe.
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Housekeeping
The Forecast is a premium service that provides 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, costing $2,600 annually (just $50 per week).
Reach out here for more details or to register your organization for The Forecast.
PODCASTS:
The Talking Shop Podcast had the week off, but given the current discussion, I’ll recommend my previous episode with Dustin Gouker, where we spent quite a bit of time on sweepstakes.
You can listen to our discussion here.
COLUMNS:
In this week’s featured column, I argue for a second sports betting licensing structure that would allow smaller companies and startups to enter all US markets.
I also wrote two columns for the folks over at Casino Reports:
The first was the latest installment of The Ruddock Report, a monthly look at legalization efforts across the US.
The second was on sweepstakes and the current strife’s similarity to the DFS battles of a decade ago.
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.