This past week in North America has seen a flurry of activity in the gambling industry, with significant fines, sportsbook exits, and crucial legislative developments taking center stage. The Pennsylvania Gaming Control Board, the Massachusetts Gaming Commission, and various gambling operators have been making headlines.
Kicking off the week on 22 May, the Pennsylvania Gaming Control Board announced a $125,000 fine for Wind Creek Bethlehem. This substantial penalty was imposed for allowing minors onto its gaming floor on ten separate occasions. In a press release, the regulator detailed that these incidents spanned over a 20-month period and involved 11 individuals. The fine underscores the stringent oversight on gambling activities and adherence to regulations meant to prevent underage gambling.
A day later, on 23 May, the Massachusetts Gaming Commission levied a fine on Fanatics Sportsbook, amounting to $10,000. The fine was a direct result of allowing a bet to be placed on a Boston College team, which breaches state regulations that prohibit betting on in-state college teams in most cases. A consumer had placed a $50 futures bet on the Golden Eagles’ bowl game against SMU scheduled for 5 December 2023. The sportsbook discovered the error the next day and promptly canceled the bet.
Meanwhile, Michigan’s gambling landscape is set to undergo significant changes. According to a report from PlayMichigan, SI Sportsbook will exit the state by the end of the year. The platform, now owned by Evoke, has been underperforming and was the worst-performing iGaming operator in Michigan for the first quarter of 2024, with its sportsbook also ranking low in revenue. SI Sportsbook was launched in September 2022 and partnered with Island Resort & Casino. With SI Sportsbook’s imminent departure, it is anticipated that Hard Rock Bet will step in as its replacement. This potential change will first require vetting and approval by the Michigan Gaming Control Board.
Adding to the upheaval in Michigan, WynnBet, another major player, is also winding down its operations and exiting multiple states. Caesars Sportsbook acquired the WynnBet license earlier this year. Michigan’s digital gambling platforms must be in partnership with one of the three commercial casinos in Detroit or a tribal casino, with SI Sportsbook currently partnered with the Hannahville Indian Community on Michigan’s Upper Peninsula.
In Rhode Island, a pair of bills progressing through the legislature could significantly impact Bally’s casino operations. These bills would allow Bally’s to extend $100,000 in credit to its patrons. Spearheaded by Senate President Dominick Ruggerio, the bills aim to keep Bally’s competitive with neighboring states like Massachusetts and Connecticut, which have more flexible credit limits at their casinos. The Providence Journal revealed that Bally’s perceives the increased credit limit as essential to maintain its competitive edge.
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The week also saw the Nevada Gaming Control Board rejecting a proposal from PropSwap, a company that enables bettors to sell their wagering tickets to cash out early. PropSwap, which operates in several states, proposed a new licensing category for this business model in Nevada. However, the NGCB determined the model to be illegal, citing Nevada’s lack of appropriate licensing for such businesses.
In Illinois, legislative maneuvers took a notable turn on 23 May when a bill targeting amusement centers like Dave & Buster’s was incorporated into a horse racing bill. HB 394, as amended, passed the rules and gaming committees and was set for a vote on the House floor. The bill seeks to prevent amusement centers from facilitating betting through loyalty apps, a measure that has raised concerns in multiple states, with Illinois taking the lead in legislative action on the issue. The Illinois legislative session, initially slated to end, will extend into the weekend due to pending budget and wagering-tax increase discussions.
In a major announcement, Circa Sportsbook revealed it would offer a $16 million payout in its Circa Million VI and Survivor NFL contests, with in-person sign-ups beginning on 24 May. The contests boast no rake and feature mini-contests throughout the year. The Survivor contest requires bettors to pick one straight-up winner each week without repeating teams, while the Million VI contest involves making five picks against the spread weekly. Entry fees for both contests are $1,000, with multiple entries allowed.
Investigation and opinion pieces also played their part in this eventful week. James Trumm of the Toledo Blade delved into the contentious issue of whether sports betting companies are specifically targeting Black communities, uncovering differing opinions on the matter.
In corporate movements, former executive director of the Massachusetts and DC Lottery, Beth Bresnahan, was introduced on 21 May as SciGames’ chief communications and brand officer. SciGames continues to bolster its leadership with industry veterans to enhance its market presence.
BetMGM announced on 23 May that it is now the official odds provider for the Associated Press, marking a significant partnership. BetMGM’s odds will be featured in AP’s daily sports odds fixtures and various sports stories, enhancing visibility and integration in mainstream media.
Meanwhile, the Maryland Lottery granted initial license approval to Betr on the same day. While the launch date remains unrevealed, Betr is already operational in Ohio and Virginia and had exited the Massachusetts market earlier this year.
Finally, discussions regarding a potential tax-rate increase on wagering in Illinois will likely reach a conclusion over the weekend, offering further clarity to the state’s gambling landscape. Other notable mentions include West Flagler’s response to the federal government in the US Supreme Court and significant performance metrics from FanDuel and DraftKings, suggesting substantial market movements ahead.
This busy week is a testament to the dynamic and often turbulent nature of the gambling industry across North America, reflecting regulatory stringency, market exits, new entries, and technological advancements that continue to shape the sector.
