SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 7/24/24:
- Brazil’s Booming Sports Betting Market: Growth and Regulation
- CEOs Warn: Tougher Regulations Boost Black Market Gambling in Europe
- Bet365 Poised to Enter Pennsylvania’s Online Betting Market
- DraftKings Partners with WNBA for Sports Betting and Fantasy Sports
- Finland’s Draft Law: Transition to Open Gaming Licensing by 2027
- SuperBook Sports Shuts Down in Eight States, Remains Only in Nevada
- Musburger Media Acquires VSiN from DraftKings
- DraftKings to Launch Online Sportsbook in Washington, D.C.
Brazil’s Booming Sports Betting Market: Growth and Regulation
The sports betting market in Brazil has experienced rapid growth, expanding from R$2 billion (US$400 million) in 2018 to R$7 billion (US$1.4 billion) by 2020, making it one of the largest in the world. Predictions indicate that by 2027, the LATAM region will generate US$6.75 billion in GGR, with Brazil contributing 45% of this amount. Currently, Brazilians bet R$54 billion (US$11.1 billion) annually, surpassing the country’s beef exports. Factors driving this growth include the popularity of football, with 69% of Brazilian football teams sponsored by betting sites, and a significant increase in time spent on betting websites. Despite the market’s expansion, Brazilian legislation is still developing, with measures like CONAR’s Annex X and the Sports Betting Law ensuring responsible and safe betting practices. These regulations emphasize protecting vulnerable individuals, preventing money laundering, and promoting responsible gambling, with Payment Institutions playing a crucial role in maintaining a secure betting environment.
CEOs Warn: Tougher Regulations Boost Black Market Gambling in Europe
CEOs from major European gambling operators, including Bet365, Flutter, Entain, Evoke, Kindred, and Betsson, have raised concerns that stricter regulations in Europe are driving an increase in black market gambling. The European Gaming and Betting Association’s (EGBA) 2024 Sustainability Report highlights their call for a more balanced regulatory approach, as severe restrictions in countries like the Netherlands, Italy, Spain, Sweden, Great Britain, and Germany have made legal offerings less attractive, pushing players towards unsafe offshore alternatives. Despite the challenges, the report also notes progress in responsible gambling, with a record 65% of European gamblers using safer gambling tools in 2023, driven by increased communication and personalized messages promoting safer play.
Bet365 Poised to Enter Pennsylvania’s Online Betting Market
International online gambling giant bet365, which entered Pennsylvania in January last year, is poised to expand into the state’s online sports betting and iGaming markets. The company began a soft launch of its real money online casino and sportsbook on July 16, 2024, for testing by the Pennsylvania Gaming Control Board (PGCB), with full approval potentially granted by July 19. If approved, bet365 will join 11 existing sportsbooks in Pennsylvania, including Caesars, FanDuel, and DraftKings. The state’s online betting market is substantial, with online sportsbooks and casinos generating significant revenue. bet365’s entry into Pennsylvania follows its expansion across various US states and a partnership with Presque Isle Downs & Casino. Founded in 2000 by Denise Coates, bet365 has grown into a leading global betting operator with operations in over 150 countries.
DraftKings Partners with WNBA for Sports Betting and Fantasy Sports
DraftKings has become an Official Sports Betting and Daily Fantasy Partner of the WNBA, enhancing its commitment to the league as it continues to grow. This partnership, announced on July 18, 2024, will allow DraftKings to leverage official WNBA data, access marketing and hospitality opportunities at major league events like the AT&T WNBA All-Star Game, and feature prominently across WNBA digital and media platforms. The agreement aims to boost fan engagement and visibility for women’s sports. DraftKings, already an official partner of the NBA, is set to use its platform to provide enriched content and responsible gaming experiences for WNBA fans.
Finland’s Draft Law: Transition to Open Gaming Licensing by 2027
The Finnish government has introduced a draft law aiming to radically reform the country’s gaming regulations, set to take effect in January 2027. The proposed changes include replacing the current state-owned monopoly held by Veikkaus with an open licensing system for commercial operators in sports betting and online gaming, while Veikkaus would retain control over lotteries and certain other games. The new system features a 22% gross gaming revenue tax and includes licensing for B2B software suppliers. This overhaul is designed to address issues with the existing monopoly, such as low market channelization and problem gambling, and will establish a new Finnish Supervisory Agency to oversee regulations, including anti-money laundering and player protection measures. The draft law is currently in the consultation phase, with stakeholders encouraged to provide feedback before the final proposal is submitted to parliament in 2025. If approved, the new framework will roll out in stages, with full implementation expected by 2028.
SuperBook Sports Shuts Down in Eight States, Remains Only in Nevada
On July 19, SuperBook Sports announced it was shutting down its operations in eight states: Arizona, Colorado, Iowa, Maryland, New Jersey, Ohio, Tennessee, and Virginia. Despite this, it continues to operate online in Nevada, where it is well-known for its retail sportsbook at the Westgate in Las Vegas and its NFL SuperContests. This closure follows similar exits by Prophet Exchange, SaharaBets, and Unibet earlier in 2024, all struggling to capture market share outside their primary states.
SuperBook’s exit will free up licenses in states with caps on the number of allowed operators, notably in Arizona, where a tribal license will soon be available. This could open the market to new operators, as SuperBook was partnered with the Fort Mojave Indian Tribe. Arizona’s recent closure of its application window for event wagering licenses means new opportunities for professional sports franchises and tribal operators, especially after SaharaBets and Unibet’s exits.
SuperBook’s sudden shutdown, with less than the mandated 180 days notice in some states, requires careful compliance with various state regulations. The company has assured customers they can still withdraw their funds.
Musburger Media Acquires VSiN from DraftKings
Musburger Media announced on July 22, 2024, that it has acquired VSiN, The Sports Betting Network, from DraftKings Inc. Founders Brian Musburger and Bill Adee will lead VSiN, continuing their mission to provide credible, independent sports betting information and analysis. The network, which offers over 18 hours of daily sports betting content, will maintain its programming without interruption and aims to expand its partnerships and distribution. VSiN content remains accessible through various platforms, including YouTube TV, iHeartRadio, and over 300 radio stations. DraftKings will continue to advertise on VSiN, ensuring a collaborative relationship moving forward.
DraftKings to Launch Online Sportsbook in Washington, D.C.
DraftKings announced on Tuesday that it plans to launch its online sportsbook in Washington, D.C., pending licensure and regulatory approvals. The expansion follows a market access agreement with D.C. United, allowing DraftKings to enter the D.C. market, which is home to professional teams across various major sports leagues. Once operational, Washington, D.C. will become the 29th jurisdiction in North America where DraftKings offers its sportsbook. DraftKings shares saw a slight increase in premarket trading, and the company is set to report its Q2 earnings on August 1.
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