SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 12/18/24:
- Sports Betting Probe Launches as Trump Administration Looms
- Louisiana Law Maker Flags $4.6B Lost to Illegal Casinos
- Tennessee Hits Sports Betting Record for Third Month
- FanDuel, DraftKings Rally Michigan Users Against Tax Hike
- Gambling.com Acquires OddsJam Parent in Major Deal
- New Sports Betting Bill Introduced in South Carolina
- Expanded College Football Playoff Spurs More Betting on More Teams
- College Football Playoff Games to Hit Theaters Nationwide
Sports Betting Probe Launches as Trump Administration Looms
Federal scrutiny of the US sports betting industry escalated as the Senate Judiciary Committee held its inaugural hearing, discussing key issues such as regulation, athlete harassment, and responsible gambling. Simultaneously, gaming industry leaders at the NCLGS conference expressed optimism about the incoming Trump Administration’s business-friendly stance, emphasizing the importance of maintaining state-level regulatory control. While the Senate hearing debated the potential for federal oversight through measures like the SAFE Bet Act, experts noted that the administration’s expected policies, coupled with shifting public attitudes, could bolster the gaming industry’s growth and stability. This intersection of federal inquiry and political support sets the stage for significant developments in how sports betting is regulated and promoted in the US.
Louisiana Law Maker Flags $4.6B Lost to Illegal Casinos
Louisiana is losing approximately $4.6 billion annually to unregulated online casino platforms, according to State Rep. Mike Echols. Lawmakers are now deliberating the potential legalization of online casinos, weighing benefits against concerns over problem gambling. Operators like El Royale Casino and Stake, which are licensed abroad, accept Louisiana residents despite the state’s ban on legal online casino operations. Industry experts, including Howard Glaser of Light & Wonder, highlighted the ease of access to these platforms, often through common payment methods like Mastercard and Visa. However, Louisiana Gaming Control Board Chairman Chris Hebert warned of the unique risks posed by online gambling, emphasizing its potential to increase problem gambling by removing the barrier of physical travel to casinos.
Tennessee Hits Sports Betting Record for Third Month
Tennessee’s online sportsbooks set a new record with a $594 million handle in November, surpassing previous records of $547 million in October and $521 million in September. This marked the fourth time the state exceeded $500 million in monthly wagers and represented an 8.5% increase from October and a 15.3% year-over-year growth. Tennessee, the first state to launch an online-only sports betting market in November 2020, currently licenses 12 operators, including FanDuel, DraftKings, BetMGM, and ESPN BET. Despite the record-breaking streak, the Tennessee Sports Wagering Council issued fines to three sportsbooks over the summer for compliance issues.
FanDuel, DraftKings Rally Michigan Users Against Tax Hike
Michigan’s proposed tax hikes on online casino and sports betting revenues have drawn pushback from leading operators FanDuel and DraftKings. The legislation, SB 1193 and SB 1194, would raise the sports wagering tax rate from 8.4% to 8.5% and the progressive online casino tax rate by 1% per bracket. Both companies sent emails to Michigan users urging them to oppose the “surprise tax hike,” citing potential impacts on promotional offers and odds. FanDuel and DraftKings, members of the Sports Betting Alliance, have joined BetMGM and Fanatics in advocating against the increase. This echoes their opposition to similar measures in Illinois, where taxes reached as high as 40%. Critics argue such changes could harm consumer experience and push players to unregulated platforms. The bills, introduced by Senators Sam Singh and Jeremy Moss, are currently under review by the Senate Government Operations Committee.
Gambling.com Acquires OddsJam Parent in Major Deal
In its largest acquisition to date, Gambling.com Group has agreed to acquire Odds Holdings, the parent company of OddsJam, for a potential total valuation of $160 million. OddsJam, a subscription-based platform offering real-time sports betting odds across nearly 300 sportsbooks, will provide Gambling.com Group with a new revenue stream independent of its affiliate business. The deal includes $70 million in cash and $10 million in stock upfront, with an additional $80 million contingent on EBITDA growth through 2026. Odds Holdings’ team, including founders Ankit Goyal and Alex Monahan, will join Gambling.com. The acquisition is expected to close on January 1, 2025, positioning the company to scale its technology and data offerings to a broader global audience. Gambling.com continues to demonstrate resilience, recently reporting record revenues and raising its full-year 2024 financial guidance.
New Sports Betting Bill Introduced in South Carolina
House Bill 3625, introduced in South Carolina, aims to legalize sports betting under the South Carolina Wagering Act. The bill includes a 12.5% tax rate, eight operating licenses, and sets a minimum age of 18 for bettors—placing South Carolina among a few states with an age limit below 21. The Act would also legalize Daily Fantasy Sports and establish the South Carolina Sports Wagering Commission to regulate the market. A key challenge lies in wagering on college sports, particularly in-state teams, a growing concern nationwide due to athlete harassment. Proponents hope the success of neighboring North Carolina’s sports betting market will help drive the bill forward.
Expanded College Football Playoff Spurs More Betting on More Teams
The 12-team expansion of the College Football Playoff has fueled record-breaking betting activity, according to major sportsbooks. Texas and Oregon lead as co-favorites, while underdog teams like SMU and Boise State have drawn surprising action, highlighting bettors’ appetite for long-shot wagers. Sportsbooks report increased handle, with SMU’s resilience drawing notable bets against higher-seeded Penn State. Meanwhile, Boise State’s neutral-site disadvantage and questions about their ranking challenge their playoff chances. The postseason also introduces weather variables, as Midwest and Northeast games could impact Southern teams like Tennessee and SMU. With long-shot teams gaining interest and major markets thriving, the new playoff format has reshaped college football betting.
College Football Playoff Games to Hit Theaters Nationwide
Federal scrutiny of the US sports betting industry escalated as the Senate Judiciary Committee held its inaugural hearing, discussing key issues such as regulation, athlete harassment, and responsible gambling. Simultaneously, gaming industry leaders at the NCLGS conference expressed optimism about the incoming Trump Administration’s business-friendly stance, emphasizing the importance of maintaining state-level regulatory control. While the Senate hearing debated the potential for federal oversight through measures like the SAFE Bet Act, experts noted that the administration’s expected policies, coupled with shifting public attitudes, could bolster the gaming industry’s growth and stability. This intersection of federal inquiry and political support sets the stage for significant developments in how sports betting is regulated and promoted in the US.
Click here to read our latest blog post: Efficient Market Hypothesis in Sports Betting
