SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 7/10/24:
- Delaware’s Online Sports Betting Expansion Stalls
- New Jersey Fines DraftKings $100K for Inaccurate Reporting
- New York Online Sports Betting Sees 29% Revenue Surge in June
- UK Calls for Stricter Gambling Ad Regulations Amid Public Concern
- DraftKings Considers Sale of VSiN Amid Media Profitability Challenges
- US vs UK Gambling Regulations: Flutter and Entain Under Spotlight
- Flutter Entertainment Eyes PENN Acquisition Amid Industry Buzz
Delaware’s Online Sports Betting Expansion Stalls
A bill aimed at expanding online sports betting in Delaware was not approved before the legislative session adjourned on June 30, leaving BetRivers as the only operator through its exclusive contract with the Delaware Lottery. The proposed legislation, introduced by Rep. Franklin D. Cooke, sought to allow each of Delaware’s three casinos to partner with up to two online sports betting operators, which would have created a more competitive market. The bill set a $500,000 licensing fee for a five-year term and an 18% tax rate on monthly adjusted gross sports betting receipts, with 1.5% contributing to horse racing purses. Despite support from a legislative report recommending the expansion and citing successful models from neighboring states like Maryland, Pennsylvania, and New Jersey, the bill stalled in the House Appropriations Committee. This means Delaware will continue with a single online sports betting operator, potentially missing out on an estimated $30.7 million in tax revenue over five years and $9 million annually thereafter.
New Jersey Fines DraftKings $100K for Inaccurate Reporting
New Jersey gambling regulators have fined DraftKings $100,000 for reporting inaccurate sports betting data, citing “unacceptable conduct” and weaknesses in the company’s business practices. The errors, involving overstated parlay bets and understated other wager categories, required several months of corrected financial data, a first in 13 years. This led to incorrect sports betting tax returns for Resorts Digital, necessitating reposts. DraftKings attributed the issue to a database coding error, initially downplayed its urgency, but has since corrected the problem and implemented additional controls and training.
New York Online Sports Betting Sees 29% Revenue Surge in June
In June, New York State saw a 29 percent increase in online sports betting revenue despite a lower-than-usual 9.1 percent hold. The state handled $1.4 billion in bets, generating $133.9 million in revenue, with 51 percent going to state taxes. FanDuel led the market with a handle of $577 million, up 37 percent, and $67.1 million in revenue, a 42 percent increase. DraftKings followed with a handle of $522 million, a seven percent rise, and $40.9 million in revenue, a 10 percent increase. Caesars Sportsbook and BetMGM saw modest handle growth but mixed revenue results. Fanatics experienced a significant handle increase, while BetRivers slightly outperformed it in handle but not in winnings. Smaller amounts were handled by BallyBet, Resorts World Bet, and WynnBet, with modest winnings.
UK Calls for Stricter Gambling Ad Regulations Amid Public Concern
The latest research commissioned by GambleAware reveals strong public support for stricter regulations on gambling advertisements in the UK. Ipsos found that 67% of the public believes there are too many gambling ads, with 66% expressing concerns about their impact on children. GambleAware advocates for banning gambling sponsorships in sports, including on football jerseys, and proposes restrictions on TV, streaming, and radio gambling ads during sports broadcasts. Despite industry funding, GambleAware urges the new UK government to implement tougher advertising laws, highlighting concerns about normalization and potential harm from pervasive gambling promotions.
DraftKings Considers Sale of VSiN Amid Media Profitability Challenges
DraftKings is reportedly considering selling the Vegas Sports Information Network (VSiN), acquired for $70 million in 2021, with industry analysts suggesting its founder Brent Musburger as a potential buyer. Known for its comprehensive sports wagering coverage from Las Vegas, VSiN broadcasts 18 hours daily and operates across radio, television, and streaming platforms.
US vs UK Gambling Regulations: Flutter and Entain Under Spotlight
Virginia Delegate Paul Krizek plans to address concerns over fantasy sports in the state by proposing legislation in the 2025 General Assembly session. He aims to clarify the regulatory gray areas between legal sports betting and prop-centric fantasy sports, while also advocating to raise the age limit for cash-based fantasy games from 18 to 21. Krizek criticizes fantasy sports operators for offering prop bets similar to regulated sportsbooks without the same level of oversight. Virginia lawmakers and regulators are considering various approaches, including mirroring states that have banned pick ’em-style games or imposing stricter regulations and taxes on DFS operators to ensure compliance and fairness in the market.
Flutter Entertainment Eyes PENN Acquisition Amid Industry Buzz
Flutter Entertainment, owner of FanDuel, is reportedly considering acquiring PENN Entertainment, sparking significant industry interest and a 5% rise in Flutter’s stock. This follows previous acquisition talks by Boyd Gaming and suggestions from activist investors that PENN should explore a sale. Challenges like Flutter’s recent leadership changes and ESPN’s brand agreement with PENN, valued at $1.5 billion, could complicate any potential deal, especially with regulatory concerns over competition between FanDuel and ESPN BET in overlapping markets.
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