Welcome to our latest Letter From America. It’s a bumper edition this week, so we’re diving right in. First stop, the progressive gaming state of New Jersey, where Governor Phil Murphy has just approved a sweepstakes ban.
New Jersey Axes Sweepstakes
The gig is over for sweepstakes in The Garden State Gov. Murphy (D) signed Amendment A5447 into law on Friday (August 15), banning the controversial quasi-gambling sites.
Following hot on the heels of Connecticut, Nevada and Montana, New Jersey is the latest to join the growing number of jurisdictions outlawing sweepstakes casinos.
New York and Louisiana lawmakers have also passed bills this legislative session, though Louisiana’s Gov. Landry (R) refused to sign, while New York’s Gov. Hochul (D) has hit pause until the December session.
Cliffhanger, anyone?
iGaming Keeps Growing
In other news from New Jersey, July’s GGR hit US$606.2 million (£448m), up 10.7 percent year-on-year.
iGaming almost single-handedly lifted the market, recording double-digit growth, increasing by 26.6 percent to US$247.3 million (£183m), with FanDuel leading the online pack.
Sports betting, meantime, slipped 6.6 percent to US$74.8 million (£55m), with, yes you’ve guessed it, FanDuel in the fore.
Land-based revenue saw a slight increase of 4.3 percent, with GGR reaching US$284.1 million (around £210m) for the month. Total tax receipts came to US$81.7 million (£60.5m).
BetMGM On A Roll
Entain and MGM Resorts’ joint iGaming venture BetMGM is coming of age in America, with its benchmark EBITDA expected to hit US$150 million (£111.1m) this FY25 – the first year positive since launch in 2018.
And BetMGM is currently outpacing market leaders FanDuel and DraftKings by the Net Gaming Revenue metric, its NGR growing 56 percent in Q2; compared to FanDuel’s 11 percent increase and DraftKings’ rise of 45 percent.
VGW Strikes California Tribal Deal
In a surprisingly tactical move, sweepstakes operator VGW has announced a new Tribal partnership that’s set to ruffle feathers and see the company make legitimate inroads in California – one of the toughest, most coveted markets in the U.S.
VGW and the Kletsel Dehe Wintun Nation of the Cortina Rancheria Tribe have struck a conditional agreement to partner and operate a free-to-play online social games platform.
It’s unclear whether this site will operate using a dual currency system, featuring a purchasable coin alongside the free currency, or remain free-to-play-only.
Although the future of the deal is uncertain–because state lawmakers are still considering an outright sweepstakes ban–, it remains–for the moment–a major win for embattled VGW, which has been forced out of many state jurisdictions by either legislation or cease-and-desist orders.
Not Playing Ball
A betting and points-shaving scandal that’s rocking U.S. college basketball is widening as federal investigators in the Eastern District of Pennsylvania have expanded their probe.
A further five so-called Division I Schools in Southern Pennsylvania are now embroiled in the investigation, that has netted a slew of colleges across the states, from Michigan, North Carolina and Louisiana.
While full details of the investigation are still unfolding, sources have reported that it is “national in scope, involves multiple players and programs”, and has links to the gambling ring, which saw former NBA journeyman Jontay Porter receive a lifetime ban.
Porter, formerly of the Memphis Grizzlies, the Wisconsin Herd, the Motor City Cruise, and the Toronto Raptors, now faces up to 20-years in prison.
Kalshi Expands
Ever-expanding Kalshi is broadening its spread to embrace the new American football season by offering wagering on point spreads, totals and touchdown props for both NFL and college games this autumn.
What will the pro leagues and NCAA make of this bold move?
We won’t have to wait long to find out. We predict a riot.
AG Coalition Calls For Crackdown
Speaking of illegal gambling, Attorney Generals from all 50 U.S. states have written to their big boss in D.C., Pamela Bondi, asking for stronger enforcement against the illicit gambling industry.
They say clandestine gaming costs the regulated industry as much as US$400 billion (some £296.2bn) annually in lost wagers and states an estimated US$4 billion (£2.96bn) in taxes.
The coalition–spearheaded by AGs Mike Hilgers of Nebraska; William Tong, Connecticut;, Andrea Joy Campbell, Massachusetts; and Derek Brown, Utah–argues the illegal gambling industry preys on the vulnerable, bypasses licensing requirements, fails to verify the age or identity of users, and offers little to no consumer protection.
Will Bondi heed their warning and take action to protect the legal market?
Let’s hope so!
