Weekender: IL Adds Per-Wager Fee. Profit Declines. Expansion Efforts Face Hurdles.
Atlantic City's gaming revenue rise but profits fall. Ohio's iCasino bills face obstacles. Wyoming debates bettor limits. California betting talks progress, but iCasino and tribal issues persist.
The Bulletin Board
BREAKING NEWS: Illinois enacts per-wager fee on sportsbooks.
ABOVE the FOLD: The week’s top stories from Straight to the Point.
READS of the WEEK: A short list of the articles STTP is reading.
NEWSLETTER ROUNDUP: The best of the best from industry newsletters.
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Breaking News: IL Legislature Hits Sportsbooks Again
In a late amendment to the state budget, the Illinois legislature has imposed a new fee on licensed sportsbooks in the state. The effort emerged unexpectedly as lawmakers scrambled to meet the state’s budget deadline, leaving opponents little time to mount a counteroffensive — not that they didn’t try, as everyone from industry-backed responsible gambling groups to Rob Gronkowski urged lawmakers not to pass the bill.
The bill adds a tax of 25 cents per wager for the first 20 million wagers accepted, and 50 cents per wager after that. With a little assistance from AI, the per-wager fee is equivalent to a 17-20% tax on FanDuel and DraftKings, which, with Illinois' 20-40% graduated tax rate (increased last year), would result in them paying roughly 57-60% in taxes. A smaller operator that doesn’t meet the $.50 threshold) would see its tax rate increase by about 12.5%.
Look for more STTP coverage on this development in upcoming newsletters.
Above the Fold: The Week’s Top Stories on STTP
[MONDAY]: Online gambling is boosting Atlantic City gaming revenue, but operating profits are trending in the wrong direction.
[TUESDAY]: There are high hopes for Ohio's online casino bills, but there are numerous obstacles standing in their way.
[WEDNESDAY]: Wyoming's pro-operator findings may have just turned the dial on the debate over limiting bettors up to 11, but is there a feasible solution?
[THURSDAY]: California sports betting talks progress, but challenges remain. Tribes and operators seek a compromise, with key concerns surrounding iCasino, revenue sharing, market access, and tribal branding.
[FRIDAY FEATURE]: Will sweepstakes be the next big thing or the next flash in the pan? That will depend on how the industry navigates the current political and legal headwinds.
See You At The Crossroads
Sweepstakes, referred to as “social gaming” or “promotional games” by supporters and “gambling by another name” by its opponents, are fighting for legitimacy as they navigate a complex legal and regulatory landscape.
[PODCAST]: From the Archives: In his second appearance on the podcast (one of my most downloaded podcasts), Kim Lund and I discussed the underlying mechanics of social games, sweepstakes, and other products that don’t fall into the traditional gambling bucket but have gambling components. Is the product itself innovative, or is the magic simply their ability to circumvent gambling laws?
Episode 34: Innovation Vs. Recklessness in Gambling Entertainment with Kim Lund
“Sweepstakes offer nothing in terms of end-user experience innovation. There is nothing new to it. You can win money playing the same games that already exist in the real money sphere.”
Reads of the Week
GAME OVER: The story of a cheater Jontay Porter, his bookmakers and the wager that brought them all down [Anthony Milton, Toronto Life]
Frank Floor Talk: Is ChatGPT now a better slot director? [Buddy Frank, CDC Gaming]
Kalshi’s Trading Revenue Was $15M Over Last 90 Days, Dwarfed By Top Sportsbooks [Daniel O’Boyle, InGame]
Lotto.com CEO talks Texas lawsuit and misconceptions around couriers [Jessica Welman, SBC Americas]
An AML Mess: Money laundering scandals provide a “clarion call” for Vegas reforms, but will casinos clean up their act? [Matt Rybaltowski, GGB]
Gaming 2.0: The Industry Under Siege: New competition from unregulated entities poses a threat to regulated casinos. [Gene Johnson, GGB]
