Welcome back for another whirlwind tour of the latest breaking news from the U.S. iGaming industry. Welcome to the latest edition of America.
Today we’re kicking-off with news about DraftKings and FanDuel, the nation’s top two iGaming and online sportsbook sites, who–to the surprise of many observers–have abruptly walked away from the Nevada sports betting market.
Never Nevada
FanDuel and DraftKings have both thrown in the towel and exited Nevada, with FanDuel withdrawing its existing Nevada Gaming Control Board (NGCB) licence, and DraftKings pulling its application.
The announcement, made by the NGCB on Wednesday November 12, came hot on the heels of both companies revealing the imminent launch of their respective prediction market apps.
Nevada is one of six states that have warned sports betting operators that dabbling in prediction markets could jeopardise their gaming licences.
But it is now the first state where operators have pulled out entirely. And not just any operators. They are the two market leaders, who together control over 65 percent of the U.S. online sports betting market.
This could mark a major turning point for U.S. sports betting.
MLB Curbs Bets
Major League Baseball (MLB) is stepping in to curb micro, or prop, betting. MLB has agreed with its sportsbook partners to cap prop bets at US$200 (£152) and ban their use in parlays. With immediate effect.
The statement, made on November 10, came barely 24-hours after news of yet another match-fixing scandal, this one involving the arrest of two Cleveland Guardians pitchers, Emmanuel Clase and Luis Ortiz, on November 9.
The allegations? The pair are accused of manipulating specific pitches in two MLB games, which legally amounts to wire fraud, conspiracy to influence sports contests by bribery, and money laundering.
Many observers argue that prop bets make individual athletes susceptible to manipulation, as they only require a player to alter their performance rather than throw an entire game. This, it’s said, makes athletes frustratingly easy targets.
Kalshi Clocks California Win
Back to prediction markets: Kalshi has scored a major legal victory in California.
On November 10, Judge Jacqueline Corley denied a preliminary injunction brought by three of California’s Native American Tribes to block the platform from operating on Tribal lands.
With the injunction denied, Kalshi now retains free rein in California – the U.S.’s largest state and one where few forms of gambling are permitted.
Empire State Smashes Records
New York State has set a new record for the highest-ever handle, AKA online sportsbook spending, at US$2.64 billion (£2.01 bn) — up on the previous record high of US$2.49 billion (£1.89bn), set in January this year.
According to the New York Gaming Commission, October’s bets were fuelled by the NFL, college football, the MLB playoffs, and the start of the NHL and NBA regular seasons.
FanDuel led the market, ahead of its main competitor DraftKings, becoming the first operator to surpass US$1 billion (£760m) in monthly wagers.
Total revenue also climbed by 35.4 percent, year-on-year, to US$238.7 million (£181.4m) for the state’s online sportsbooks.
PA Tax Hike Off Table
Plans to raise taxes for Pennsylvania’s online sports betting operators have collapsed amid bitter political infighting.
The proposal would have hiked operator taxes from 36 percent to 54 percent, with the extra revenue earmarked for education and other state projects.
But, according to multiple reports, the tax increase has been removed from the state budget after disagreements between Republican and Democratic lawmakers over how the additional funds should be spent.
So for now at least, Pennsylvania operators can breathe a sigh of relief.
Bally’s Greek Wedding
Rounding off with good news for Bally’s: The company reported a 5.4 percent y-o-y revenue increase in Q3, with the total for the quarter ending September 30 reaching US$663.7 million (£504.0 m), according to CEO Robeson Reeves.
The Casinos & Resorts division accounted for the lion’s share–US$396.1 million (£301.2m), up 12.1 percent, y-o-y–, driven largely by the integration of four new casinos acquired from The Queen Casino & Entertainment earlier this year.
Online revenue showed a mixed picture: North America Interactive revenue rose 13.1 percent to US$49.9 million (£38.0 m), and U.K. online revenue was up eight percent. But overall interactive revenue fell 6.9 percent, y-o-y, to US$215.1 million (£163.6 m).
A major highlight on the earnings call was the completion of Intralot S.A.’s €2.7 billion (£2.39bn) acquisition of Bally’s International Interactive business.
The deal, paid in cash and stock, gives Bally’s a 58 percent stake in Intralot — now one of the largest listed companies on the Athens Stock Exchange.
Smash those plates!
