Something for the weekend - 31 May 2024

While most of you were recovering from a bank holiday or Memorial Day weekend, frantic lobbying efforts were afoot in Illinois, as lawmakers debated a budget proposal that hikes the state’s sports betting tax rate.?

Yes, the state’s market leaders now face a 40% tax for online betting under a new progressive framework. This marks a massive hike on the previous 15% flat rate, and hits DraftKings and FanDuel particularly hard.?

The Sports Betting Alliance calls it an “extremely disappointing decision that will cause real harm” and it’s hard to disagree. It’s going to impact the quality of the product, and there’s a risk users will seek out something with better content and more attractive odds, whether it’s regulated or not.?

It also continues an ongoing trend of lawmakers attempting to increase taxes on a particularly low-margin product. Ohio kicked off this drive by doubling its rate to 20%, and a proposal in New Jersey aimed to do the same, doubling sports betting taxes to 30%. This hasn’t progressed, and Massachusetts’ 51% rate was rejected by lawmakers at least.?

Ultimately, this does raise questions about the industry’s willingness to swallow a 51% tax in New York. Yes, it gives operators to one of the most prized states - with others such as California and Texas yet to regulate - but at what cost? Illinois Governor J.B. Pritzker cited the Empire State’s rate, as well as Pennsylvania’s 36%, in calling for an increase to 35%. Lawmakers were only too happy to oblige, and then some. It’s not just in New York operators are paying for that acceptance.?

Now that rant is over, we’ll get on with the week’s other stories, after something slightly sillier.

iGB Diary: Are we the baddies and eyes down

Happy Friday igamers! This week the Diary gets slightly existential, then starts making a picture of itself from detritus on its desk.

Are… we the baddies?

‘Do what you love, and you’ll never work a day in your life’, as the famous saying goes.

While it’s a charmingly aspirational quote, for many the reality is slightly different.

And this week, a new survey from Engage Health Group showed that for some in the gambling industry, they are even somewhat ashamed about their line of work.

In fact, a fifth of respondents to the gambling industry employee survey stated they felt a “slight sense of embarrassment” over their involvement in gambling. 41% said they were proud of it, while 39% were neutral.

The gambling industry is hardly winning the workplace popularity contest, then, perhaps surprising considering the progress that’s been made from the smoky backrooms of yesteryear to the highly regulated profession of 2024.

For what it’s worth, the Diary loves the gambling industry, warts and all, and counts itself among the chest-puffing 41% rather than the guilt-ridden 20%. It might not be everyone’s cup of tea, but it’s certainly never boring.

So, if you're ever feeling down about your job, just remember, at least it's never dull in the gambling world.

Heavy is the hand that holds the dabber

Roughly this time last year we were treated to a lovely extra bank holiday for the coronation of King Charles III. It was a treat the Diary took right in its stride, doing everything the new King would absolutely want us to do with a day off, like [quickly rewatches The Crown] eat fancy finger sandwiches, hunting stuff and staring longingly out of really fancy rooms.

But we must say, with all the hustle and bustle of the last month, the first anniversary of the King's coronation all but slipped by the Diary. This was not the case for the folks over at Buzz Bingo however, who chose to mark the occasion in a… very unique way. ?

Buzz Bingo presented a portrait of King Charles created entirely from bingo tickets and dabbers at its Tooting club. And honestly, it's very good. We couldn't do that with a bog standard set of acrylics and some Art Attack-grade paintbrushes.?

It's actually much better than the absolutely terrifying, oddly violent looking official portrait of Charles, which was also unveiled this month. In fact, we vote to hang Buzz Bingo's dabber version in every government building in Britain. ?

That’s your lot! Same time, same place, next week!

This week on iGB

We kick off in Great Britain, where a rain-soaked Rishi Sunak sounded the starting gong for a general election on 4 July, just as some key elements of the Gambling Act white paper started coming to fruition. So what now? The land-based sector hopes the election only delays, rather than derails, the progress made so far, according to Bacta president John Bollom. However there’s a prevailing consensus that Labour and the Tories don’t differ massively when it comes to gambling policy. That means a slowdown, rather than a shutdown or rethink - we hope.?

While GB contends with the Genny Lec slowdown, Brazil is putting its foot on the gas. But with the Ministry of Sport granted 45 days to assess sports betting licence applicants, on top of the Ministry of Finance’s 150 day window, is a January 2025 launch even feasible? There’s contrasting views, with some doubting a long-delayed process can suddenly move up a gear. Others, however, are hopeful of a miracle.?

Now to Sweden, where Spelinspektionen’s ban on suppliers providing content to unlicensed sites has resulted in fines for Hacksaw Gaming and Panda Bluemoon. Each provider claimed they had put measures in place to prevent Swedish players accessing the games, though the regulator saw these safeguards as inadequate, doling out a SEK2.6m fine to Hacksaw, and a SEK700,000 penalty to Panda Bluemoon. There was better news for Kindred Group and payments provider Zimpler. Kindred’s SEK100m penalty from 2020 was slashed to SEK30m, and Zimpler had an injunction issued by Spelinspektionen overturned.

Over in Switzerland, the Swiss Casino Association hailed a wave of casino concession renewals as a milestone for the industry. This includes approvals for new casinos in Prilly and Winterthur, with the latter replacing Swiss Casinos’ Schaffhausen property. This means there will be 22 land-based, and 12 online, casinos in the market.

As legislative sessions in the US come to a close with a distinct lack of new opportunities for sports betting and igaming, all hopes are on Missouri for a new state launch in 2024. That’s not looking likely, according to recent polling. A Missouri Scout poll suggests 60% of voters are opposed, and 36% in favour. As hopes of legalisation hinge on a ballot initiative, the industry could be headed for disappointment should it make it onto voting slips in November.

We started this week’s newsletter in the Midwest and we’ll finish there, this time examining the Caitlin Clark effect. After playing her last college game for the Iowa Hawkeyes in April Clark was snapped up by the Indiana Fever - as the WNBA’s number one draft pick, no less - and is now driving growing interest in the league. That extends to the betting sector, with WNBA wagering now outstripping betting on the USWNT. It’s something we’ve seen with the Messi effect on Major League Soccer, but with more of a pronounced benefit for sportsbooks.

That’s all from us this week. We’ll be back on Monday with the industry’s best news, views and analysis.?

Have a great weekend!?