Two Years Later

Regulated online gambling in Ontario recently celebrated its second birthday, and in honor of the anniversary, I’ve compiled a roundup of the best insights and takes.

Apr 10, 2024

NEWS: Takeaways from two years of regulated online gambling in Ontario.
NEWS: As land-based casino revenue dips, the Unite Here Local 54 union opposes a complete smoking ban at Atlantic City casinos.
NEWS: Bye-bye GamBetDC; Hello FanDuel.
QUICK HITTER: A New Jersey bill that increases online gambling taxes was officially introduced.
QUICK HITTER: New Jersey lawmaker wants to prohibit college player props.
AROUND the WATERCOOLER: Geocomply takes a few strays.
STRAY THOUGHTS: The poker discussion that won’t go away.

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Two Years of Online Gambling in Ontario = Four Takeaways

Regulated online gambling in Ontario recently celebrated its second anniversary. There have been plenty of releases celebrating the milestone and plenty of lessons learned to talk about. Below are the four I found most compelling.

Takeaway #1: Most online play has shifted to regulated markets. In an Ipsos study conducted in February 2024, “86.4% of Ontarians who gambled online over the preceding three months gambled on regulated sites.” That is a slight increase from the results of a similar study in 2023, where the number came in at 85.3%. There is a caveat, as 19.9% of respondents who use regulated sites said they play on both regulated and unregulated sites. So, the actual number of bettors using unregulated sites is a not-so-small 33.5%.

Takeaway #2: Ontario is North America’s largest online poker market. Per iGaming Ontario, At more than $1.5 billion in total wagering this year, “the five operators offering online peer-to-peer poker in the province have combined to make Ontario the largest ring-fenced online poker market by gaming revenue in North America.” Why is this an important takeaway? New Jersey looked into International player pooling many years ago but eventually scrapped the idea over the logistics. While still a process, the same complexities don’t exist for a US state interested in sharing liquidity with Ontario.

Takeaway #3: Debit > Credit > Alternative payment methods. If you need more evidence that gamblers are a bit different, consider this interesting nugget from a PaySafe article (h/t to the Gaming News Canada Substack) on player habits. According to PaySafe, 59% of players in the province listed debit cards and similar solutions as a Top-Three payment preference—only 30% listed credit cards, which is the reverse of e-commerce trends in Canada. Alternative payment methods were a top-three option for 26% of bettors, but PaySafe noted that the number of people choosing APMs is increasing.

Takeaway #4: Customers hate friction. Sticking with the PaySafe article, quick and easy payments are as highly prioritized (39%) as brand trust among Ontario bettors. It doesn’t surprise me to see payments ahead of other factors people get hyper-focused on, including good odds (29%), promotions (21%), user experience (16%), and sports markets offered (16%). Players wanting a convenient, no-fuss place to wager is a drum I’ve been beating for years.

Smoking Divides Atlantic City Unions

There has been a serious push to make Atlantic City casinos smoke-free, but a total smoking ban now seems unlikely.

Last year, casinos were able to derail a bill that would have prohibited smoking in casinos, arguing that enforcement of the current policies (with smoking sections) makes more sense financially.

With Atlantic City gaming revenue going in the wrong direction, the casinos have picked up a powerful ally, as the Unite Here Local 54 union is concerned about what a full ban would do to the “fragile” Atlantic City gambling ecosystem.

Citing declining foot traffic and land-based revenue, President Donna DiCaprio believes a smoking ban could be a death blow.

“We’re not pro-smoking,” said DiCaprio. “We think that the current arrangement can and should be improved, but a total smoking ban is just not the answer.”

As anti-smoking advocate Richard Schuetz often points out, there is a high comorbidity between smoking and gambling. Per data from DiCaprio, KYW News Radio reports, “between 50% and 72% of the total brick-and-mortar gaming revenue at certain casinos is generated in the smoking sections.”

Meanwhile, the United Auto Workers (representing workers at three Atlantic City casinos) has filed suit against New Jersey, claiming the smoking exemption for casinos is unconstitutional. “Every worker deserves a safe and healthy workplace. It’s a basic human right,” UAW President Shawn Fain said. “Atlantic City casinos are forcing workers to gamble with their health and their futures.”

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FanDuel Set To Take Over DC Sports Betting on April 15

The dark times are almost over in Washington, DC. According to the GamBetDC website, April 15 is the tentative start day for FanDuel’s DC sports betting app, ending the drama-filled run of IntraLot’s time at the helm of the DC mobile sports betting market.

Per Bennett Conlin of Sports Handle:

“GambetDC customers will not automatically be transitioned to FanDuel, meaning they’ll need to withdraw their funds from GambetDC and open FanDuel accounts. GambetDC accounts will be deactivated on Oct. 15.
“Starting Tuesday, GambetDC customers will be limited to maximum deposits of $3,000 per day.”

Of importance to current GamBetDC users are the following sections on the GamBetDC FAQ page regarding funds and open bets:

“Note that you can withdraw the money you added to the app or website; however, bonus funds or bonus bets are non-refundable and must be used by April 14, 2024.”

“Any open bets for events prior to July 1, 2024, on GambetDC will remain open until the bet is settled. Bets for events after June 30, 2024, will be canceled, and players will be provided refunds for those bets.”

GamBet (run by Intralot) has been much-maligned in the DC market. The switch to FanDuel is expected to improve the DC Lottery’s sports betting offerings immediately.

Quick Hitter: NJ Bill to Increase Online Gambling Tax Rates Officially Introduced

Two weeks ago, I reported on a proposal in the New Jersey legislature to increase the mobile sports betting and online casino tax rate to 30%. At the time, the bill (S 3064) was just a title and synopsis and lacked language. On Monday, New Jersey State Sen. John McKeon officially introduced the four-page bill and referred it to the Senate State Government, Wagering, Tourism & Historic Preservation Committee.

Per the bill, the base tax rate on online casinos will double, from 15% to 30%, with an additional 5% investment alternative tax, bringing the total to 35%.

Internet sports betting’s base tax would jump from 13% to 30%. The current 1.25% tax for the Casino Reinvestment Development Authority would bring the total to 31.25%.

If passed, the new tax rates would take effect on January 1.

Quick Hitter: New Jersey Bill Would Prohibit College Player Prop Bets

New Jersey State Sen. Kristen Corrado has put forth a bill (S 3080) that, per its synopsis, “Prohibits sports wagering licensees from offering player-specific proposition bets on college sports.”

“Proposition bets have led to a rise in the harassment of student-athletes and have threatened the integrity of college sports,” said Corrado. “I have heard about many individuals who have been the victim of online harassment because they didn’t perform to the expectation of a bettor who made a side wager. This legislation will ban player-specific prop betting in New Jersey, which will help curb that appalling behavior, and make college athletic events safer for all participants.”

If enacted, New Jersey would join a growing list of states with blanket bans on college player props.

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Around the Watercooler

Social media conversations, rumors, and gossip.

The talk of the town (the town being my small corner of social media) is GeoComply’s role in the investigation into student betting at Iowa and Iowa St., as reported in the Des Moines Register in a lengthy, must-read, two-part series (Part 1 and Part 2).

According to the reporting, the Iowa Division of Criminal Investigation struggled to track online sports betting wagers until March 2022, when “GeoComply said it would share the company’s software with the DCI and train its agents on how to track bets around the state as they happen.”

The article also states, “A DCI agent’s memo, meanwhile, suggests that GeoComply helped coach Iowa officials on how to write state regulations that would allow the geolocation company to turn over information without a warrant and without informing sportsbooks.”

The chatter has been negative, with some expressing concerns about how the data will be used. I want more information before I weigh in.

Stray Thoughts

The argument that will never go away: Is poker’s unique selling point (USP), the existence of winning players? And, do poker operators have a responsibility to make sure 1) winning players exist and 2) they provide a navigable path to become a winning player?

When the cost of plying their trade goes up, professional players certainly have something to gripe about. Still, my feelings on this topic haven’t changed much since I wrote these pieces in 2018 and 2020 - As I complained about yesterday, my earlier thoughts on the subject have disappeared from the internet.