Unpacking the Latest in North American Sports Betting: Key Insights and Controversies
iGB’s State of the Union: Weekly Recap of North American Sports Betting News
This week, iGB presents an overview of the most significant stories in North American sports betting, along with some intriguing briefs that captured our attention.
iDEA Report Challenges New Jersey Economic Impact Study
The iDevelopment and Economic Association (iDEA Growth) has released a new report that disputes the findings of a 2023 economic impact analysis for online gambling in New Jersey. This latest report questions the validity of a study conducted by NERA Consulting Group, which had sought to reassess a previous analysis from 2019.
The 2019 report, created by Meister Economic Consulting and Victor Strategies, estimated that online gambling contributed approximately $2 billion (£1.5 billion/€1.84 billion) to New Jersey’s economy between 2013 and 2018. In contrast, the NERA report, commissioned by the Campaign for Fairer Gambling, proposed a significantly lower economic impact.
In its analysis, iDEA scrutinized the methodology used by NERA, pointing out that it relied on data from only two online gambling operators. iDEA argued that this approach does not adequately represent the broader market landscape, which includes many more operators in New Jersey. The iDEA report further contended that contrary to claims made in the NERA report regarding market cannibalisation, a regulated online market tends to draw customers away from illegal gambling activities, thereby increasing overall market revenue.
Arkansas Casino Initiative Raises $13 Million
In Arkansas, an ongoing debate surrounding a proposed casino initiative has sparked financial backing that has reached a significant $13 million (£9.97 million/€11.96 million). This initiative will be presented to voters, allowing them to decide whether to approve the construction of a casino in Pope County, as well as whether the Cherokee Nation, which has been licensed, will be granted permission to build it.
Opposition to the initiative is led by Oklahoma’s Choctaw tribe, which argues that a casino close to its own location in Oklahoma could siphon off customers. Additionally, a legal challenge aimed at preventing the initiative from appearing on the ballot has been thwarted by the state supreme court, which ruled that the signature-gathering process for the initiative was lawful.
Bally Bet Launches in Tennessee
Bally Bet has officially launched its platform in Tennessee, marking the company’s entry into its 10th state. The launch on October 17 follows recent expansions into Massachusetts and Maryland earlier this year. Bally Bet has partnered with the NHL team, the Nashville Predators, to promote its services through social media engagement.
Since Tennessee legalized online wagering on November 1, 2021, the state has established eleven platforms for digital betting, positioning itself as the first state to adopt a purely digital betting framework without physical locations.
Penn Entertainment Stock Update
After Penn Entertainment’s investor presentation in Las Vegas, Jefferies Equity Research maintained its target stock price for the company at $20. On October 17, Penn’s stock closed at $18.78. Analysts noted positive developments, particularly following the launch of ESPN Bet in New York, which reportedly tripled Penn’s average daily wagering handle and doubled the average deposit size.
A survey conducted among ESPN Bet users indicated that roughly half chose the platform due to their prior familiarity with ESPN, yet a substantial 87% also had accounts with other betting platforms.
Additional News Highlights
- Hard Rock Bet has entered a collaboration with Kambi’s “Odds Feed+”, launching new betting markets before the end of the year, encompassing both pre-game and in-game options. This platform currently operates in eight states.
- Tom Brady, the legendary NFL quarterback, received approval this week from NFL owners to become a minority owner of the Las Vegas Raiders, acquiring 5% of the team. The deal was initially reached in May 2023.
- Diamond Sports Group and FanDuel announced a partnership allowing FanDuel to name Diamond’s 16 regional sports networks and digital offerings, creating the FanDuel Sports Network.
Worth the Read: Reflections from NBA Commissioner Adam Silver
Nearly a decade ago, NBA Commissioner Adam Silver penned an op-ed in the New York Times advocating for the legalization of sports betting. In a recent interview, Silver reflected on his earlier stance, reaffirming his support for a federal framework on this issue, showcasing how the landscape of gambling has shifted significantly since his original piece.
In Case You Missed It (ICYMI)
- Tribes prepare to contest the rise of sweepstakes.
- Kalshi experiences a surge in political event futures.
- New York sports betting handle increases, though September revenue declined.
- Star Sydney receives a fine but retains its licence.
- New Jersey achieves another record in igaming revenue.
Stay tuned for more updates in next week’s round-up!