SportsHandle and friends deliver another round-up of the week’s big developments in US sports betting.
G2E 2020: Jason Robins Welcomes Stiff Competition As DraftKings Navigates Through Coronavirus Challenges
Since a positive COVID-19 test from Utah Jazz center Rudy Gobert triggered an extended global sports freeze in March, the global sports betting industry has confronted unprecedented challenges over the last seven months.
Top sportsbook operators hit a nadir in the spring when the postponement of three major U.S. sports leagues forced books to showcase obscure sports such as Russian table tennis. The companies rebounded last month when a unique sports calendar featuring simultaneous NFL, NBA, NHL, and MLB action produced record handle throughout the nation. Through it all, DraftKings CEO Jason Robins commended his staff for making a smooth transition to the public markets despite considerable disruptions brought by the global pandemic.
Full story here.
Operators Looking At Nov. 1 Tennessee Sports Betting Go-Live Date With Lots Of Specials
If all goes as planned, when the Tennessee Titans kick off against the Cincinnati Bengals on Sunday, Tennesseans will be able to place mobile sports bets on one of four live digital platforms. Sixteen months after sports wagering became legal in the Volunteer State, the Tennessee Education Lottery (TEL) will launch BetMGM, DraftKings, FanDuel, and Tennessee Action 24/7 on an NFL Sunday, according to multiple operators.
Tennessee was the first state to legalize digital-only sports betting when it did so on July 1, 2019. The state has no casino or gaming industry outside of a traditional lottery, and now online sports betting. The TEL approved sports betting regulations in April, becoming the first and only state regulator to impose a “payout cap,” which requires operators it hold at least 10% of handle (or pay out no more than 90% to patrons) — intended as a mechanism to generate more tax revenue for the state.
Full story here.
The IRS Is Coming For Federal Tax On DFS Entries, Just Like Sports Betting
The Internal Revenue Service (IRS) last week doubled down on its position that daily fantasy sports (DFS) entry fees are akin to sports wagers, signaling that it is a matter of when, and at what percentage, the IRS will levy federal taxes on those sums. This will not come as a surprise to DraftKings or FanDuel, which will likely become taxation victims of their own success after morphing into national sportsbook juggernauts generating large sums of revenue separate from DFS.
Full story here.
Colorado Well Positioned To Legalize iGaming Alongside Sports Betting
In 2019 Colorado voters legalized sports betting, in 2020 they could give some control over gaming to local citizens, and in 2021 (or beyond) they could decide to legalize iGaming. According to the director of the Colorado Division of Gaming, Dan Hartman, who was speaking at a Global Gaming Expo event on Thursday, a referendum would be required in Colorado to continue the state’s expansion of gaming.
“It’s going to take a statewide vote to get iGaming,” he said during a conversation about which states across the U.S. are poised to add playing casino games from mobile devices. The panel, titled “Will the Land-based Shutdown Encourage More Markets to Legalize Remote Betting?” included stakeholders from Indiana, where an iGaming bill is in the works for 2021; a consultant; and a representative from Penn National Gaming, which along with Barstool Sports is partnered with the Ameristar Resort in Black Hawk. The resort, which opened a temporary retail sportsbook in August, is scheduled to launch a Barstool-branded retail book on Nov. 5.
Full story here.
Penn National Touts Early Barstool Sportsbook Performance As Major Success
The Pennsylvania launch last month of the Barstool Sportsbook app was described by Penn National Gaming officials Thursday morning as a huge success that out-performed nearly all of the gaming company’s goals.
In a third-quarter earnings call with investment analysts, Penn National CEO Jay Snowden said Pennsylvania’s 10th online sportsbook is generating a high volume of new and younger customers without the company needing to spend any money on traditional advertising.
Full story here.
Bettors Warming To In-Game Wagering, But Still Attracted To Parlays
Bettors in the United States are becoming more savvy, leading to a rise of in-game wagering, while parlays continue to be a prime draw for brick-and-mortar sportsbooks according to data shared during the Global Gaming Expo on Wednesday.
Max Meltzer, the chief commercial officer at Kambi, provided some insight into the statistics his company compiled dating back to last year. Kambi has sports betting platforms spanning 11 states, and some unique trends created during the COVID-19 pandemic have retained portions of their foundations as casinos try to navigate operating during a pandemic.
Full story here.
FanDuel Finally Getting In On Atlantic City Casino Sportsbook Game
FanDuel’s partnership with the Meadowlands Racetrack has given the daily fantasy sports giant by far the leading sportsbook in New Jersey.
But somehow, FanDuel — though it has had an online sportsbook deal with Golden Nugget since 2018 — hasn’t had a brick-and-mortar presence in Atlantic City in this third football season of legal betting in the state.
However, that will change by the time the NFL and NCAA playoffs come around just after the end of the calendar year.
Full story here.
