
Welcome to Gambla.us, your ultimate destination for all things gambling-related. In our quest to keep you informed and up-to-date, we’re thrilled to present our latest feature: The US iGaming Report.
As the gambling landscape evolves, particularly in the United States, staying abreast of the latest trends, regulations, and innovations is crucial for both industry insiders and enthusiasts alike. With our finger on the pulse of the igaming industry, we’ve meticulously curated this report to bring you the most pertinent insights and developments from across the nation.
The potential revival of sports betting in Florida, once uncertain in September, has become increasingly complex a month later. A recent federal court ruling hinted at the possibility of the Seminole Tribe offering online sports betting soon. However, the path forward is cluttered with legal obstacles, putting the relaunch on hold indefinitely:
Plaintiffs in the case have escalated their appeal to the US Supreme Court following a decision by the DC Circuit Court of Appeals.
Additionally, these plaintiffs have initiated a new legal challenge based on violations of the state constitution.
This legal turmoil injects significant uncertainty into the situation, making the near-term revival of sports betting unlikely, though not entirely out of the question. The brief 2021 launch of the Hard Rock Sportsbook in Florida, followed by its quick suspension, suggests that any future attempts to restart sports betting will be approached with heightened caution.
November saw Florida once again becoming the most populous state to offer any form of sports betting, marking the second time it has achieved this milestone. The Hard Rock Bet app resumed accepting wagers, albeit on a limited scale. Access to the app is currently restricted to individuals who registered and placed bets in 2021 when the app briefly operated following the approval of the Seminole compact with the state, before a subsequent court case compelled its cessation.
Additionally, the Seminole tribe confirmed the launch of three sportsbooks at casinos in South Florida. However, the road to full-fledged sports betting in Florida is not without hurdles, and the decision by Hard Rock to expand further into the online market remains uncertain. With two ongoing court cases seeking to halt sports betting in the state, Hard Rock likely aims to avoid a repeat of the start-and-stop scenario experienced in 2021:
The ongoing federal court case is currently under appeal to the U.S. Supreme Court, though there is no guarantee the nation’s highest court will hear the case. Despite initially granting a temporary stay, the court has already denied a stay of the lower court’s ruling.
The plaintiffs in the federal case have initiated a challenge in state court as well, seeking to suspend sports betting through this avenue.
The uncertainty stemming from these legal battles could impede or delay the full-scale rollout of online sports betting. However, faced with the protracted timeline of these legal proceedings, both Hard Rock and the Seminole tribe may be reluctant to wait indefinitely.
December marked Florida’s return to the sports betting scene late in the year. After navigating through a series of legal battles and court victories, the Seminole Tribe made the decision to fully relaunch Hard Rock Bet. Previously, in November, Hard Rock had allowed existing account holders to place bets. Additionally, six retail sportsbooks have now commenced operations, the legislation also permitted the inclusion of craps and roulette at physical casinos.
Despite Florida becoming the most populous state to offer sports betting, surpassing New York, the exclusive operation by Hard Rock might not fully capitalize on customer acquisition and revenue potential. The entrance of other sports betting brands into Florida could happen through agreements with the Seminoles. However, ongoing legal uncertainties cast a shadow over the future of sports betting in the state.
The saga of sports betting in Florida reads like a legal thriller, with more twists and turns than a high-stakes poker game. The plot thickened when a federal court hinted the Seminole Tribe might join the betting table, but legal roadblocks have pressed the pause button on the action. Appeals are flying faster than cards in a blackjack shuffle, with the Supreme Court now holding the deck. Florida got a taste of sports betting in November, but it’s been more of a tease than a full course, thanks to a maze of legal hurdles. The state tried to up the ante in December, but with Hard Rock holding the only chips, it’s a bit like betting on a three-legged horse. As the courtroom drama unfolds, the future of Florida’s sports betting hangs in the balance.
In November 2022, a ballot measure advocating for the legalization of online sports betting in California faced a resounding defeat, signaling a setback for the legalization movement. The measure, supported by sportsbooks, was heavily opposed by the tribes running California’s casinos, leading to predictions of significant delays in future legalization attempts.
However, by October, a glimmer of hope emerges on the horizon. The Pala Band of Mission Indians, a longstanding player in the online gambling industry through Pala Interactive, is gearing up to introduce its own initiative for 2024. This move represents a significant step forward, albeit with uncertain prospects.
The success of such an initiative hinges on gaining the support of various gaming tribes, particularly influential ones like the Pechanga Band. Tribal support is crucial for legalizing sports betting in California, making it a pivotal aspect of the initiative’s viability. However, without detailed language on the ballot measure and a clear response from tribes, its chances appear slim at this stage.
In November, hopes for California sports betting seem dimmer, with the recent ballot initiative facing significant challenges. Initial responses from the state’s tribes indicate skepticism towards the proposal, which appears underdeveloped.
The initiative aims to facilitate the transition of offshore sportsbooks into regulated entities under tribal ownership within the state. However, this ambitious goal poses considerable execution challenges, even if offshore entities express interest.
Considering these factors, the prospect of California legalizing sports betting in 2024 remains a long shot. The most likely scenario involves the gradual legalization of retail sportsbooks at tribal casinos, with tribe-operated sports betting apps a more distant possibility. A fully open sports betting market independent of tribal control seems improbable in the current landscape, reflecting the complex dynamics at play.
California’s quest to legalize sports betting has been more twisty than a Hollywood thriller, complete with a 2022 ballot measure flop that had the drama of a blockbuster flop. Thanks to opposition from tribal casinos, it’s been a bumpy ride with more delays than LA traffic. But wait—there’s a plot twist! The Pala Band of Mission Indians is stepping up with a 2024 initiative, turning the page for what could be an epic saga or another cliffhanger.
For this initiative to go from script to screen, it needs the backing of the gaming tribes’ A-listers, especially the Pechanga Band. It’s like trying to get all the major movie studios to agree on a joint release, tribal support is the ticket to premiere night. Yet, without a detailed script (aka ballot measure language) and a nod from the tribes, this sequel might not make it to production.
The plan? To turn offshore sportsbooks into the next blockbuster under tribal management, but the path is littered with production challenges. Attracting offshore interests is like trying to sign an A-list actor for an indie film budget. So, the odds of California rolling out the red carpet for sports betting in 2024 are looking as likely as a snowstorm in San Francisco. The smart money’s on a slow rollout at tribal casinos, with tribe-run betting apps as the potential sleeper hit. A fully open sports betting market not under tribal direction? That’s as likely as winning an Oscar on your first acting gig—a long shot in this complex plot.
October proved to be a challenging month for certain daily fantasy sports (DFS) companies, particularly those offering player proposition parlays or “pick’em” games:
These developments highlight the evolving regulatory landscape that DFS companies must navigate.
The initial spark of regulatory interest in the latest version of the Daily Fantasy Sports (DFS) industry soon evolved into a more pronounced focus. The games these fantasy companies offer mirror the player prop bet parlays available at regulated sportsbooks, with the primary distinction being the legal justification for the former. This justification leverages a combination of federal and state laws that address fantasy sports and games of skill.
A significant portion of the DFS industry, including contests provided by major players like DraftKings and FanDuel, hinges on a legal argument that categorizes them as “games of skill” across various states. Additionally, some states have enacted laws specifically addressing DFS, with approaches ranging from minimal regulation to more relaxed measures that affirm the legality of paid-entry fantasy contests. Notably, “pick’em” apps cater to audiences predominantly in states recognizing DFS as a “game of skill.” Importantly, they serve both California and Texas, the two largest states without legal sports betting, highlighting their significant market presence.
Florida presents a unique scenario with its absence of a specific DFS law, yet it harbors the potential for legalized sports betting through the Seminole compact. This situation could prompt a crackdown on pick’em games that replicate sports betting. After all, why would Florida permit competition for legal sports betting with a similar, yet unregulated product? An unfavorable opinion regarding paid-entry fantasy by the state’s attorney general has been on record since 1991. Despite this, DraftKings and FanDuel have been operating in the state for ten years. They have also made unsuccessful attempts to pass legislation that would confirm the legality of paid-entry fantasy sports.
Five years after the legalization of sports betting expanded, the NCAA has significantly increased its engagement, spurred by several scandals, including notable incidents involving athletes from Iowa and Iowa State caught placing bets. In response, the NCAA has developed an e-learning module aimed at educating current and future college athletes about the intricacies of sports betting and the potential risks involved. Previously, educational efforts were insufficient and lacked consistency across the country. This initiative seeks to remedy that shortfall. Ideally, such educational measures should have been implemented with the onset of sports betting’s expansion, if not sooner, considering the long-standing presence of offshore sportsbooks and local bookmakers.
The NCAA is making commendable efforts to improve, deserving of recognition. It has declared its intention to approach state legislatures for new measures, aimed at safeguarding athletes from gambling-related harassment. As a former plaintiff in the landmark court case that led to the overturning of the federal sports betting prohibition in 2018, the NCAA’s initial attempts to navigate the subsequent surge in legalization were poorly executed, often advocating for prohibition over-regulation. However, the organization is now adopting a more pragmatic perspective towards sports betting, addressing the challenges faced by its member institutions and athletes, and adapting to the policy landscape five years on.
Recently, there has been a continuous flow of developments at the crossroads of gambling and athletic conduct. Key updates include:
The conversation surrounding the intersection of athletes and sports betting is multifaceted, encompassing several aspects:
A key challenge facing the US sports betting industry is the issue of live betting versus the latency in streaming sporting events. In an era where many are cutting cords, streams can lag significantly behind the live action, creating a frustrating experience for bettors eager to place in-game bets, unless there’s a pause in the play.
However, the integration of low-latency streams directly into sportsbooks presents a potential solution. Genius Sports’ BetVision, lagging only four to six seconds behind real-time, is making strides in mitigating NFL betting latency issues for platforms like Fanatics Sportsbook, Caesars, and BetRivers. For more insights on BetVision’s impact, Legal Sports Report provides further analysis.
In-game betting has gained significant popularity in the United States, a trend that is expected to continue as the friction caused by lag diminishes.
In the dynamic landscape of the US sports betting industry, numerous brands have come and gone within its inaugural five years. However, 2023 marks a pivotal moment reminiscent of the industry’s nascent stages, introducing two formidable newcomers capable of contesting for top honors. ESPN Bet and Fanatics Sportsbook emerge as serious contenders, potentially challenging the dominance of industry giants FanDuel and DraftKings by making significant inroads into their market share.
Currently, ESPN Bet is generating significant buzz. This new venture from Penn Entertainment, which officially “launched” in November, is essentially a rebranding of Barstool Sportsbook.
The developments surrounding ESPN Bet represent one of the year’s most notable stories. With its 2020 acquisition of a minority stake in Barstool, Penn had pledged to vie for a leading position among sportsbooks. However, after struggling to secure a substantial market share for years, Penn shifted its strategy in 2023 by entering into a significant licensing agreement with ESPN. Following this deal, Penn acknowledged Barstool’s underperformance by writing it off as a loss and selling it back to its founder, Dave Portnoy, for a mere $1.
Despite Barstool’s market share peaking at under 5%, there’s a strong indication that ESPN Bet’s market presence will significantly surpass this threshold. Yet, whether it will achieve its ambitious goal of capturing 20% of the market share is still up for speculation.
What have we seen so far from ESPN Bet?
Fanatics Sportsbook is also live, now in nine states, but has garnered far less buzz than ESPN in the back half of 2023.
Fanatics generated a lot of buzz earlier when it bought the U.S. assets of PointsBet, which had settled in as a mid-tier operator around the country. Fanatics still operates the PointsBet brand in some jurisdictions as well.
Instead of coming in with a giant splash, Fanatics looks like it will be content with a slow burn and trying to grow its business organically on top of the tech and users it acquired with PointsBet.
The initial thoughts on Fanatics:
Besides being a major highlight of 2023, the progress of these two sportsbooks into 2024 is set to be a significant narrative. Observers will keenly watch to determine if they are expanding the market or if they manage to outperform the third and fourth-ranked operators, BetMGM and Caesars.
2024 is setting the stage for the US sports betting scene to go big or go home! With ESPN Bet and Fanatics Sportsbook jumping into the game in 2023, it’s about to get as competitive as a final round in a sports championship. Operators are suiting up to battle for market share with all the fervor of a last-minute touchdown.
As for the rule book, states sitting on the sidelines might just lace up their sneakers, enticed by those sweet, sweet tax dollars and keen to whistle in some regulation on the wild west of betting.
Meanwhile, legal dramas in places like Florida and California are turning into full-blown soap operas, potentially reshaping the sports betting landscape quicker than a ref flipping a coin.
And let’s not forget the tech wizards, casting spells to make betting platforms as smooth and personalized as your favorite sports jersey. Expect data analytics, AI, and marketing mojo to transform the user experience, while cozying up with sports leagues and media turns watching the game into an “all bets are on” affair.
Buckle up, folks. The blend of sports, betting, and tech is hitting a home run, slam dunk, and hat trick all at once!
Massachusetts, Kentucky and Maine launched legal sports betting.
North Carolina legalized sports betting with a 2024 launch expected, Vermont should go live in January.
Regulators have increasingly taken issue with pick’em fantasy companies, saying they run afoul of state laws in some instances. A potential negative outcome for the industry looms in California in 2024, depending on the finding of the state’s attorney general.
The widow of casino magnate Sheldon Adelson bought a majority interest in the NBA’s Dallas Mavericks. Mirian Adelson likely made the deal with the hope that Las Vegas Sands could build a casino in Texas in the future.
The fourth quarter of 2023 has been an eventful and dynamic time in the world of sports betting. With the launch of major players like ESPN Bet and Fanatics Sportsbook, the market is becoming increasingly competitive. These new entrants bring with them their unique strategies and partnerships, such as ESPN’s integration into its media platform and Fanatics’ tie-in with licensed sports merchandise.
As the industry continues to grow and evolve, there are also significant legal and regulatory developments taking place. States such as Massachusetts, Kentucky, and Maine have all launched legal sports betting, while others like North Carolina and Vermont are expected to follow suit in the near future. However, potential challenges lie ahead for the fantasy sports industry as regulators scrutinize pick’em fantasy companies and potential negative outcomes loom in states like California.
In addition, major moves in the sports world, such as Mirian Adelson’s purchase of a majority interest in the NBA’s Dallas Mavericks, could have significant implications for the future of sports betting. With the possibility of Las Vegas Sands building a casino in Texas, it is clear that the intersection of sports, betting, and technology will continue to have a major impact on the industry in the coming years.
2023 has set the stage for even more exciting developments in the world of sports betting in 2024. As operators continue to compete for market share and technology continues to revolutionize the user experience, it is clear that this rapidly growing industry shows no signs of slowing down. So buckle up and get ready for an exhilarating ride in the world of sports betting.
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