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Take The ‘Over’ On 2018 For Legal New York Sports Betting

Sports betting is a no-go in New York.

The General Assembly adjourned Wednesday night, leaving piles of unfinished business on the table. Active NY sports betting bills failed to reach a vote in either chamber.

Lawmakers had been working to broaden the 2013 act that authorized sports betting at the four commercial NY casinos. The state’s race tracks and off-track betting facilities seek inclusion, and tribal nations are pushing to have their voices heard, too.

Barring a special session, however, a new law won’t be in place until at least 2019. Regulators now have to decide whether or not to move forward with what limited pieces they have.

NY sports betting runs out of steam

If we’d been handicapping states a few months ago, NY would have been among the favorites to pass a new sports betting law. Committees dug deep early in the year, and key lawmakers had the wind at their backs throughout the spring.

The most diligent efforts originated with the chairs of the gaming committee in each chamber.

Sen. John Bonacic led the push, leaking a draft bill in February and introducing it in March. A couple of months later, Assm. Gary Pretlow introduced his own into the lower chamber. The US Supreme Court decision in May sparked some fresh urgency in the statehouse.

Optimism grew as Bonacic and Pretlow modified their bills to match each other in June. Making the bills “same-as” versions seemed to be a precursor to expedited passage. Then the bills were amended together again during the final days, another indication of progress behind the scenes.

It was much ado about nothing, though. Neither chamber reached a vote. The clock expired on Wednesday night, and lawmakers departed Albany with sports betting unresolved.

Close but no cigar for Pretlow, Bonacic

For all that momentum, there was never a clear sense that sports betting would get over the hump.

The primary resistance came straight from Gov. Andrew Cuomo. The governor urged a methodical approach to legislation, and he proclaimed the efforts dead very early on. Here’s what Cuomo told capitol reporters in mid-May:

We’ll do an economic analysis and a legal analysis, but nothing’s going to happen this year because there’s literally just a number of days left in the legislative session and this would be a very big issue to tackle.

More than a month still remained in the session at that point, but alas. That is “a number of days” by definition. A spokesman for Assembly Speaker Carl Heastie indicated that Democratic members of the lower chamber had also raised “significant issues.”

By June, the bills were “on life support” according to a source for Legal Sports Report.

The Oneida Indian Nation expressed opposition, too. Although the nation has an appetite for sports betting at its three NY properties, it rejected the proposed framework. NY lawmakers employ extra caution when navigating gambling issues that could affect the tribal-state relationship.

To make a long story short, there simply wasn’t enough support to get sports betting onto the floor this session.

A big loss for MLB, NBA

The death of NY sports betting bills could be seen as a big loss for the NBA and Major League Baseball, too.

The two professional sports leagues spearheaded a lobbying effort at the state level, pushing lawmakers to adopt their preferred model for legislation. New York became the frontier in a months-long campaign through statehouses across the country.

At a February hearing in Albany, the NBA offered support for state regulation for the very first time. It supports states, that is, provided they follow the league’s proposed framework. That includes the payment of integrity fees, a controversial inclusion in the eyes of lawmakers and operators alike.

While most states pushed back against league influence, however, NY lawmakers turned a listening ear.

“I do think they deserve something because they produce the product,” Pretlow told ESPN. “It’s better for me to have the support of the leagues rather than have them fighting me.”

Bonacic included a modified integrity fee in his bill — a quarter of a percent of every bet instead of the requested one percent. Pretlow introduced his bill with the same fee, though he called it a “royalty fee”. The Senate bill adopted the same language by amendment, and that “other” amendment reduced the rate to a fifth of a percent across both.

It wasn’t what the leagues asked for back in February, but it would have been something. It would have been more than they’re receiving in any other state, that’s for sure. No existing sports betting law in any state includes integrity fees.

The NBA and MLB were banking on NY lawmakers to help them set a new, more favorable precedent in other states.

Better luck next year?

By the time the legislature reconvenes, at least two (and possibly three) neighboring states will be generating tax revenue from sports betting.

New Jersey sports betting went live in June, and plenty of New Yorkers are slipping across the border to place bets. Pennsylvania will launch later this year, and Connecticut lawmakers are considering a special session to revisit the topic this summer. Non-neighboring West Virginia, Mississippi, and Rhode Island are also poised to launch sports betting this year.

But not New York. Its only immediate path forward would involve a special session, which appears unlikely. So how about next year?

Prospects might be slightly better. For starters, MGM just purchased the Empire City Casino in Yonkers, looking to establish itself in the NY market. The group’s appetite for (and experience in) sports betting may help move the needle a bit. The ongoing financial struggles of the upstate casinos add four more logs to that fire.

The recess also gives stakeholders some time to get on the same page, maybe revisiting tribal compacts or continuing the negotiations with sports leagues. It’s possible they all come back next year prepared to move forward together.

Pencil NY sports betting down as small favorite for 2019.

The post Take The ‘Over’ On 2018 For Legal New York Sports Betting appeared first on Play NY.

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First Month Of Regulated DFS Nets Pennsylvania Almost $200K

The first monthly revenue report for Pennsylvania daily fantasy sports contests are in – and there is something of a surprise at the top.

In total, eight DFS companies reported revenue in the Keystone State for May, taking advantage of an October 2017 gaming expansion bill that laid the groundwork for legalized DFS, online gambling, and sports betting. According to figures released by the PA Gaming Control Board, leading the way was the second-largest DFS operators in the nation: FanDuel.

Second in nation, first in PA

Earlier this month, it was reported that DraftKings was the runaway leader in national leader in estimated entries, handle and revenue. Nationally, DraftKings boasted 19 million entries, $137 million in handle and $14 million in revenue for May, while FanDuel’s slash line was 17 million/$77 million/$10 million.

But FanDuel has made an early statement as the king of Pennsylvania.

Figures released by the PGCB showed FanDuel posting $673,013.94 in revenue, while DraftKings raked in $632,008.62. The two DFS giants finished more than $600,000 ahead of the third-place company, DRAFT, which reported $16,992.35 in revenue.

Total fees collected from PA participants equaled $12,430,588.18 last month. And again FanDuel was the leader with $5,986,794, $48,293.50 ahead of DraftKings.

Not all brand-name companies shined in the first month of DFS contests. Yahoo Fantasy Sports, for example, was fourth with just $4,430.47 in revenue. The rest of the 10-company field were as follows:

  • FantasyDraft: $2,499.86
  • Sportshub Technologies: $1,590.67
  • Boom Fantasy: $851.42
  • Fastpick: $319.01
  • Full Time Fantasy Sports and Fantasy Football Players Championship: No revenue reported

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Big revenue equals tax money for state

Pennsylvania got its first cut of the DFS contest revenue, and it was a strong debut.

Per the regulations laid out by the PGCB, which included operators paying a $50,000 entry fee for a five-year license, adjusted gross revenue is taxed at 15 percent with that money going to the state’s Commonwealth General Fund.

As a result, the combined $1,331,706.34 in adjusted gross revenue added up to $199,755.94 in tax money for Pennsylvania. FanDuel and DraftKings alone combined for $195,753.38 in taxes.

DFS is in, sports betting next?

FanDuel made a strong first impression with daily fantasy sports contests in Pennsylvania. But the DFS company could make waves in another facet of the gaming expansion bill.

Just over a week after the US Supreme Court struck down the Professional and Amateur Sports Protection Act on May 14 to clear the way for regulated sports betting, FanDuel was acquired by Dublin-based gaming company Paddy Power Betfair. Not to be outdone, it was announced this week that DraftKings, which has a deal lined up to offer sports betting at Resorts Atlantic City in New Jersey, has partnered with tech company Kambi Group.

Those two deals set the DFS giants to get in on sports betting theoretically wherever single-game wagering is regulated. For some time, Pennsylvania has been in line to do just that, though state lawmakers are still developing legislation as their initial proposals have not been received well.

For starters, operators wanting to offer sports betting must pony up $10 million for licensure, and any revenue would be taxed at an eye-opening 36 percent rate.

Still, should regulations be agreed upon and enacted in the Keystone State, FanDuel and DraftKings are in prime position to bolster their revenue even more. That is, so long as casinos like Hollywood don’t pressure the Gaming Control Board into leaving them out.

The post First Month Of Regulated DFS Nets Pennsylvania Almost $200K appeared first on Play Pennsylvania.

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Can WSOP.com Stay On Top Of The NJ Online Poker Market?

 

 

 

 

 

 

 

 

Caesars Interactive Entertainment‘s WSOP.com and 888 Poker network of online poker sites have become the new king of the hill in New Jersey. Only there’s really not much of a hill to speak of. Plus, there are clear signs its days on top of the NJ online poker market could be numbered.

PokerStars NJ launched in the spring of 2016. It became the New Jersey online poker market revenue leader right out of the gate. In fact, it has held on to the top spot every month since April 2016.

However, New Jersey signed on to the Multi-State Internet Gaming Association (MSIGA) late last year. This allowed the WSOP.com and 888 Poker sites in the state to combine player pools with partner sites in Nevada and Delaware beginning April 30. And now, in May 2018, the WSOP-888 network out-earned PokerStars NJ for the first time ever.

The WSOP-888 network’s share of the NJ online poker market jumped from 35 percent in April 2018 to 44 percent a month later.

In fact, the network enjoyed 42 percent revenue growth. It pulled in a market-leading $770,348 in gross revenue in the Month of May. A number that put it ahead of PokerStars NJ and its $716,668 in gross monthly revenue. Plus, it absolutely crushed the $449,426 in revenue the network itself posted back in April.

NJ online poker market in decline

The only thing stopping this from being a complete success story is the fact the already-struggling NJ online poker market as a whole continued to decline.

In fact, total online poker revenue in New Jersey dipped from $2,119,885 in May 2017 to $1,929,693 last month.

So while the WSOP-888 network was growing, PokerStars NJ revenues dropped 25.6 percent, the Borgata-MGM-partypoker network revenues dropped 27.8 percent, and total online poker revenues in New Jersey were down nine percent.

Caesars currently enjoys an online poker monopoly in Delaware and Nevada. As a result, it is the sole beneficiary of interstate online poker. It is the only player in the game. Which is precisely why it has moved on top in New Jersey.

But it’s easy to see it won’t stay there. Unless it makes some major changes.

Online poker software is key

PokerStars didn’t become the world’s largest online poker site by dominating fenced-in markets with laws protecting it from competition. It did it by offering superior online poker software.

If the first of four World Series of Poker online bracelet events on the WSOP-888 network this month is any indication, the network’s software has a long way to go before it can even compare.

The event managed to draw the largest field ever for a WSOP online bracelet event. However, it could have been even bigger if not for some major software glitches.

A number of players got a message indicating they’d already registered when they hadn’t, shutting them out. Plus, even though there were unlimited re-entries, the software allowed players only 30 seconds to buy back in after going broke. A restriction that made it impossible to make a deposit in time.

WSOP NJ – Get $10 No Deposit

The PokerStars threat looms

PokerStars isn’t currently in this new tri-state online poker market.

But it will presumably jump in the new Pennsylvania online poker market when it launches. That puts it on track to begin offering multi-state online poker just as soon PA becomes the fourth state to sign on to MSIGA. Give it about a year before that happens.

The WSOP-888 network has become the new king of the online poker hill in New Jersey for two reasons. First, the launch of tri-state online poker. Second, the fact it is the only player in that game.

Once the market grows and other teams are allowed on the pitch, its time on top will likely come to an abrupt end. That is unless the organization comes realizes that software is the key to success in the online poker market, and does something about its product.

 

 

 

 

 

 

 

 

The post Can WSOP.com Stay On Top Of The NJ Online Poker Market? appeared first on Play USA.