SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 6/26/24:
- Ohio Tightens Gambling Rules; Michigan Clarifies Amusement Venue Policy
- Illinois Hikes Sports Betting Taxes for 2025
- FIFA Warns Players Against Betting
- BetMGM Partners with Brian Christopher Slots
- Supreme Court Upholds Florida Seminole Tribe Gambling Compact
- ACMA Blocks Three Offshore Gambling Sites in Australia
- Alberta Advances Online Gambling Market with Ontario-Inspired Model
- MGM Resorts Acquires Tipico’s US iGaming and Sportsbook Operations
- Boyd Gaming Pursues Acquisition of Penn Entertainment
Ohio Tightens Gambling Rules; Michigan Clarifies Amusement Venue Policy
On June 18, the Ohio Casino Control Commission (OCCC) advanced changes to its advertising and promotional rules and expanded the responsibilities of integrity monitors. These amended rules, which still need approval from Ohio’s Common-Sense Initiative office and the Joint Committee on Agency Rule Review, aim to prevent gambling companies from offering promotions to individuals under 21 or those on exclusion lists. This includes prohibiting companies like Fanatics Sportsbook from marketing to minors purchasing team merchandise. Additionally, Ohio’s new integrity monitoring regulations will require monitors to proactively identify suspicious gaming activity and create a safe reporting environment for athletes and whistleblowers. In parallel, the Michigan Gaming Control Board (MGCB) clarified that it is not aiming to close businesses like Dave & Busters or Chuck E Cheese. This response follows concerns about a proposal allowing adult customers to engage in peer-to-peer betting via an app at these venues. While Nevada has already banned such activities, and Illinois considered similar restrictions, Michigan’s stance remains under discussion.
Illinois Hikes Sports Betting Taxes for 2025
Illinois is set to increase taxes on sports betting with a new progressive tax rate starting July 1, 2025, replacing the flat 15% rate. This change, part of the 2025 fiscal budget signed by Governor J.B. Pritzker, introduces tax brackets ranging from 20% on revenues under $30 million to 40% on revenues over $200 million. Senator Elgie Sims, who helped negotiate the budget, argues that this adjustment addresses the rapid growth of the industry without burdening ordinary taxpayers. Additionally, the budget includes a slight increase in taxes on video gambling terminals from 34% to 35%, with the revenue allocated for state and local construction projects. Despite concerns, Pritzker dismissed the likelihood of sportsbooks exiting the state due to the tax hike, noting that Illinois’ rates remain competitive.
FIFA Warns Players Against Betting
In a recent address in Paris, FIFA President Gianni Infantino issued a strong warning to soccer players about the severe consequences of betting on sports, emphasizing that match-fixing will be met with harsh sanctions including hefty fines, suspensions, and lifetime bans. Infantino stressed the importance of maintaining the integrity of soccer, highlighting players’ responsibility to uphold the spirit of the game and the significant impact their actions have on the sport’s reputation. His comments reflect FIFA’s zero-tolerance policy on betting and match-fixing, underscoring the organization’s commitment to preserving the fairness and unpredictability that make soccer beloved worldwide.
BetMGM Partners with Brian Christopher Slots
BetMGM has partnered with social media influencer Brian Christopher Slots, who boasts eight million monthly viewers, to become a brand ambassador. Christopher will promote BetMGM through livestreams on platforms like YouTube and Facebook, as well as in future marketing campaigns. The partnership will feature exclusive experiences such as slot tours and meet-and-greets, while also emphasizing responsible gaming. Christopher’s extensive influence, including 1.8 million subscribers and a record of one billion video views, will help engage new players with BetMGM’s casino games.
Supreme Court Upholds Florida Seminole Tribe Gambling Compact
The U.S. Supreme Court has upheld a gambling compact allowing the Seminole Tribe of Florida to conduct online sports betting statewide, including off tribal lands, despite objections from Florida casino operators. The decision affirms states’ authority over gambling regulation, as highlighted by the Indian Gaming Regulatory Act. Challenges to the compact citing federal laws like the Wire Act and UIGEA were dismissed, solidifying the Seminole Tribe’s legal standing to expand its gaming operations across Florida beyond traditional tribal territories, marking a significant shift in gambling dynamics under federal oversight.
ACMA Blocks Three Offshore Gambling Sites in Australia
The Australian Communications and Media Authority (ACMA) has requested that three offshore gambling websites—A Big Candy, Jackpoty, and John Vegas Casino—be blocked in Australia for operating illegally under the Interactive Gambling Act 2001. These websites offer online casino games without the necessary licenses, posing risks to Australian consumers who use their services. ACMA has been actively blocking illegal gambling sites since 2019, with nearly 995 sites blocked to date. In 2024 alone, ACMA has issued 31 blocking requests against various illegal gambling operators, highlighting ongoing efforts to enforce regulatory compliance in the online gambling sector in Australia.
Alberta Advances Online Gambling Market with Ontario-Inspired Model
Alberta is advancing towards launching a regulated online gaming market, with Minister Dale Nally outlining plans that include competition among operators alongside a focus on preventing gambling-related harm. Inspired by Ontario’s model but tailored to Alberta’s needs, Bill 16 has paved the way for private operators to join Play Alberta in offering online gambling services. Nally highlighted the economic benefits and potential to reduce black market activity, signaling ongoing consultations before finalizing the market’s launch, positioning Alberta as a significant player in Canada’s evolving gambling landscape.
MGM Resorts Acquires Tipico’s US iGaming and Sportsbook Operations
MGM Resorts International has announced its acquisition of Tipico Group’s US iGaming and sportsbook operations through its LeoVegas subsidiary, aiming to enhance its proprietary sports betting platform and integrate Tipico’s technology and team into its business. The deal, expected to close in the third quarter, marks a strategic move for MGM to bolster its digital gaming capabilities amidst ongoing industry consolidation and speculation about Tipico’s future ownership.
Boyd Gaming Pursues Acquisition of Penn Entertainment
Boyd Gaming has approached Penn Entertainment for a potential acquisition, marking what could be the largest merger in US gambling since Eldorado Resorts’ acquisition of Caesars Entertainment in 2019-20. The news caused Penn’s stock to rise by 8%, contrasting with a 3% drop in Boyd Gaming’s shares. Penn, with a market value exceeding $9 billion, operates more casino properties across 20 states compared to Boyd’s 28 properties in 10 states. Both companies are active in online gaming and sports betting, with Penn notably holding the rights to ESPN Bet through a significant licensing deal with Disney-owned ESPN. Potential divestments due to overlapping operations in certain states are anticipated if the merger proceeds. Analysts speculate about the strategic implications and financial benefits for Boyd, navigating Penn’s diverse portfolio and partnerships, including recent acquisitions like Score Media and Gaming.
