Author: Casino Connection Staff

Utah Senator Orrin Hatch believes that the federal government needs to get involved in the sports betting industry again. One of the authors of the 1992 Professional and Amateur Sports Protection Act, which was overturned by the Supreme Court in May, Hatch says he has “grave concerns” about sports betting.

“Sports betting, like other addictive behaviors, has ruined many lives,” Hatch told the Senate. “And it’s threat to the integrity of the games shows why the Professional and Amateur Sports Protection Act passed the Senate 88-5.”

But Hatch said he was a realist. “Prohibition is not a possibility or prudent path forward,” he said. “Our goal should be to bring that activity into well-regulated legal markets that can better protect consumers and the integrity of sports.”

To do that, Hatch will propose “fundamental federal standards that will protect the integrity of the games.”

Hatch outlined “match fixing” as one of the threats, but ignores the fact that legal, regulated sports gambling will reveal those connections and problems rather than exacerbate them.

Hatch gave no indication of what these “federal standards” would be, but stressed that players and referees should be banned from sports betting. He took particular aim at regulations in West Virginia, where sports books would be the decision-makers of these bans.

Hatch will retire from the Senate at the end of this term, and so far has no co-sponsors for his proposed measure.

Penn National Gaming has filed a petition to bring sports betting to its Hollywood casino and Penn National Race Course, making it the first casino company to apply for a sports betting license in Pennsylvania.

The company said it will partner with William Hill US in operating the sports books.

However, quick approval isn’t likely. The state’s Gaming Control Board does not meet again until September 12, but state officials have said that because of necessary licensing reviews they are not likely to approve any sports betting licenses before their Oct. 3 meeting.

“We believe this will provide us another attractive amenity at Hollywood Casino, in addition to our full suite of the latest slot machines, table games, multiple dining outlets, exciting live racing and soon-to-be online gaming offerings,” said Fred Lupkin, Hollywood’s vice president of marketing in a press release. “Our plan is to locate our sports book in a newly renovated simulcast theater area at Hollywood Casino and the operations will be managed by William Hill US, the largest sports betting operator in the United States.”

Penn National Gaming has already launched sports betting at two of its Mississippi casino properties and plans to open sports betting at its Hollywood Casino property in West Virginia on Sept. 1.

The application came after the gaming board passed new sports betting regulations designed to allow sports books to begin operating. Pennsylvania’s 12 licensed casinos can pay $10 million to operate sports betting in the state. That high licensing fee and a 36 percent tax on revenue was seen as hindering any movement by the state’s casinos into sports betting.

Though Penn National is the first to apply for a sports betting license, some previous announcements suggest more casinos will follow suit.

Parx Casino announced in July it would be partnering with London-based GAN for its sports betting platforms and Rush Street, owners of Sugarhouse and Rivers Casino in Pennsylvania, announced a partnership with Kambi Group for retail and online sports betting in May. Also, Mount Airy Casino recently announced it will partner with The Stars Group for sports betting.

Observers said most likely the state’s other 12 casino operators will apply for a sports betting license, despite the difficult financials. In comparison, West Virginia taxes sports betting revenue at 10 percent and in New Jersey it’s 8.5 percent. State Rep. Robert Matzie said despite the tax rate, the state’s casinos will be under pressure to offer sports betting. Mt. Airy Casino and Parx Casino both recently signed agreements with sports betting operators.

In a letter to the gaming board, the NFL wrote the state’s taxes and fees may “render legal market participants unable to effectively compete with the illegal market,” and suggested lawmakers “reconsider laws and regulations that could have unintended consequences of advancing illegal sports betting.”

Penn operates 28 casinos in 16 US states and also offers social online gaming through its Penn Interactive Ventures division. In the past year, Penn National shares have soared 62.7 percent, compared to the gaming industry’s 2 percent growth. In the same period, Boyd Gaming shares rose 37.3 percent, Red Rock Resorts shares rose 48.3 percent and Century Casinos shares increased 10.6 percent.

In Mississippi, Penn National Gaming’s three Tunica properties—Hollywood Casino Tunica, 1st Jackpot Casino Tunic, and Resorts Casino Tunica–launched sports books on Friday, August 24. Hollywood Casino Gulf Coast and Boomtown Casino in Biloxi debuted theirs one week earlier. All but Resorts, which will set up kiosks, will offer full sports books.

Penn National Chief Executive Officer Tim Wilmott said, “Penn National is thrilled to begin offering sports wagering to our customers in Mississippi. Their excitement has been growing since the federal ban on sports betting was repealed in May, and we can’t wait to provide our patrons with another great amenity at our casinos.”

Penn National general manager for Tunica properties Justin Carter added, “Every time I step on the gaming floor a customer approaches me about sports betting. With the extreme passion in the region around sports, and college athletics in particular, we look forward to becoming a destination for fans in northern Mississippi, Memphis and Arkansas.”

Last year, Mississippi became the fourth state to legalize sports betting, following Nevada, Oregon, Montana and Delaware. On June 21, the Mississippi Gaming Commission approved a regulatory framework, ahead of a 30-day waiting period for prospective licensees. MGM Resorts’ Beau Rivage Resort and Casino in Biloxi and Gold Strike Casino in Tunica opened their sportsbooks on August 1. Boyd’s IP Casino Resort in Biloxi and Sam’s Town in Tunica plus Caesars Entertainment’s Horseshoe in Tunica debuted their sports books within a few days.

Currently, Mississippi allows retail and mobile sports wagering only on casino property. State law does not allow mobile or online sports betting outside a casino property, so bettors can place wagers on smartphones while they’re on the casino grounds, but nowhere else.

Operators expect sports betting will account for around 2 percent of casino revenue, but hope it will attract visitors from neighboring states who will spend money on other games and amenities.

Gold Strike President and Chief Operating Officer David Tsai said, “The handle has been lower than we expect long-term. The better gauge for long-term volumes will be once football season kicks off in September. That said, our handle and betting volumes already exceed that in many Vegas casinos. We are seeing hundreds of guests coming on property to place sports wagers in our new sports book.”

Mississippi Gaming Commission Executive Director Allen Godfrey said sports betting is, “investment in property, that’s additional jobs. I think it’s going to drive revenue. How much revenue is dependent on the operators, it’s their job to promote it. It will be beneficial to the state if the operators do what they think it will do. If it drives additional foot traffic, and that foot traffic spends money, ultimately ends up in taxes that come to the state of Mississippi.”

Casino employees expect sports betting crowds to grow as football season starts. Hard Rock casino operations manager Russell Schneck said, “It’s definitely going to drive business into the property. We always get busy during football season. We’re going to have events. We’re going to bring in folks, and have VIPS, and maybe bring in some stars and this is going to be the place to be at whenever big sporting events happen.” Hollywood Casino Gulf Coast General Manager Mike Galle added with the area’s passion for SEC college football and New Orleans Saints NFL games, the property’s sports books will be “a great venue for customers to enjoy betting on sports.”

Harrah’s Gulf Coast and Palace Casino also recently opened their sports books and Golden Nugget will soon follow. At Silver Slipper Casino, General Manager John Ferrucci said, “We’re still shooting for the first of September or maybe a little bit earlier.”

IP Casino General Manager Duncan McKenzie noted Mississippi is the only Southern state to operate legalized sports betting. “We’re first and we’re going to be first for a while,” he said. No surrounding state offers legal sports betting; West Virginia, which will launch sports betting September 1, is the closest sports-betting state. For now the only competition will come from Mississippi’s three Choctaw Nation casinos, which are not state-regulated; they plan to open sports books by the end of the summer.

William Hill has not yet been—but is expected to be—licensed by the Mississippi Gaming Commission to operate Penn National’s Mississippi casino sports books and six others it has signed agreements with, including Hard Rock, Palace and Treasure Bay casinos in Biloxi, Island View in Gulfport and Silver Slipper in Hancock County. SBTech has been licensed to operate in the state and will oversee Golden Nugget Casino Biloxi’s sports books. IGT and Scientific Games also have received their state licenses.

Godfrey noted the approval process for sports book operators is similar to slot machine manufacturers. The casinos must get approval for their rules, equipment, operations and staff before their sports books can open.

”I would say, anyone who has applied for a license, they’re just been waiting for themselves to get ready, getting equipment, hiring and training adequate personnel and installing and testing the software platforms. By football season, it would be hard for me to believe that unless something went drastically wrong that they wouldn’t all be up and running,” Godfrey said.

Mississippi will tax sports betting revenue at 12 percent, with 8 percent going to the state and 4 percent to local governments.

In West Virginia, William Hill has been licensed to operate the sports book at Penn National’s Hollywood Casino at Charles Town, opening September 1 near the Skybox Sports Bar. Hollywood Casino General Manager Scott Saunders said, “This region is a hotbed of both professional sports and college athletics, and we look forward to becoming a destination for fans in West Virginia, Virginia, Maryland and Washington, D.C.”

William Hill U.S. Chief Executive Officer Joe Asher said, “I’m really proud of the incredible work our team is doing to get us operational at Hollywood Casino at Charles Town Races. We’re proud to be working with Penn National and appreciate their confidence in us.”

West Virginia Lottery Commission Legal Counsel Danielle Boyd noted two other casinos are planning to launch sports betting in early- to mid-September, and two more will open several weeks later. Boyd said West Virginia will have a monopoly on sports betting in the region for now. She added sports betting will attract people to the state to place wagers at the casinos or other venues.

Besides on-site sports betting, West Virginia’s regulations also allow online and mobile wagering but Penn National has made no mention of any plans for that. Wilmott said the company does not plan to make any “huge investments” in sports betting; like Boyd, he said sports wagering will bring customers to the state’s gaming venues, not serve as a significant standalone revenue stream.

The only other confirmed partnership in West Virginia is between the Greenbrier, owned by the family of West Virginia Governor Jim Justice, and FanDuel Sportsbook. The West Virginia Lottery approved the sports betting licenses of each but no launch date has been announced. The lottery also approved sports betting licenses for Mardi Gras Casino in Charleston and Wheeling Island Casino in Wheeling, both operated by Delaware North.

Atlantic City casinos saw a 1.6 percent increase in earnings for the second quarter over 2017, collectively making a profit of $171.4 million according to figures release by the New Jersey Division of Gaming Enforcement.

Regulators had initially reported profits were down for the quarter, but later corrected the figures to show the slight increase.

According to an analysis by the Associated Press, the city’s leading casino, the Borgata, did see a 20.6 percent decline in operating profit for the quarter taking in $53 million. That figure, however, still easily led the market.

The largest increase was at Resorts casino, which saw its profit up nearly 64 percent to more than $9 million.

Gross operating profit reflects earnings before interest, taxes, depreciation, and other charges and is a widely-accepted measure of profitability in the Atlantic City gambling industry.

The earnings report for the quarter is the last to focus primarily on the seven city casinos that were open before Hard Rock Atlantic City and Ocean Resort casino both opened on June 27.

“These numbers are an improvement from the first quarter and that is a positive sign in light of the new competition that was entering the market,” said James Plousis, chairman of the New Jersey Casino Control Commission in a press release. “I remain optimistic that the addition of sports betting, new amenities and entertainment will continue to expand the industry.”

According to the AP, Harrah’s profit of $31.5 million was up 20.2 percent from the second quarter of 2017; Caesars profit of $24.6 million was down 4.6 percent, and the Golden Nugget’s $14.2 million profit was up nearly 32 percent.

Bally’s profit of $11.7 million was up 2.7 percent and Tropicana’s profit of $25.2 million was up over 34 percent.

Among the two newly opened casinos, The Ocean Resort Casino reported a gross operating profit of $860,000, while Hard Rock reported an operating loss of $2.1 million.

For online companies, Caesars Interactive NJ reported an operating profit of $2.9 million, up more than 40 percent from a year ago. Resorts Digital reported an operating profit of $391,000, which was down from an operating profit of $1.3 million a year ago, the AP reported.

A reporting change also affected the report. A line of revenue that used to be reported as “promotional expenses” is now required to be reported as a reduction to “casino revenue.” These changes were considered when regulators calculated earnings comparisons with those of a year ago, the release said.

For the first half of 2018, the casinos reported a collective gross operating profit of $294.4 million, a decrease of 4.6 percent from the same period last year, the AP reported.

In another Atlantic City story, city officials have been concerned that a planned shutdown of Atlantic City’s rail service to install federally mandated safety equipment is really a ploy by the state to end service to the resort.

However, the head of NJ Transit said service will resume in January.

“The silver lining is that we will not be shutting down permanently,” said Kevin Corbett, executive director of NJ Transit, during a press conference. “I know there’s been concern and skepticism that this is a bait and switch. It is not. We’re not putting millions of dollars of PTC (positive train control) equipment in only to not start service again.”

The rail line will shut down for the work September 5. The federal government has given NJ Transit a deadline of Dec. 31 to have PTC equipment installed on all its rail lines, according to the Press of Atlantic City.

On the surface, New Jersey’s gaming revenue report for July was filled with good news as the state’s sports books operating in the month brought in $40.6 million in bets and Atlantic City casinos saw a 12.8 percent increase in revenue compared to July 2017.

But, the numbers also show that the opening of the Hard Rock Atlantic City and Ocean Resort casinos in late June has impacted Atlantic City’s seven other casinos, with six of them reporting monthly declines in revenue.

On the other hand, online gaming revenue for all city casinos surged to $25.8 million, up nearly 26 percent over July 2017.

The numbers show that the state’s gambling industry is in a period of dynamic change, and that trend will likely continue as two more Atlantic City casinos—Resorts and Golden Nugget—opened live sports books at their properties last week.

For July, sports betting took in $40.6 million in wagers for the month. The figures represent the revenue from the two New Jersey racetracks which have opened sports books and three Atlantic City casino sports books that operated during the month. There are now six sports books operating at Atlantic City casinos along with the two racetrack sports books as well as one online sports book.

The clear winner for sports books was the FanDuel sports book at the Meadowlands Racetrack, which opened July 14.

According to figures released by the state Division of Gaming Enforcement, the Meadowlands took in $1.35 million at its sports book in July. Monmouth Park Racetrack, which started taking bets June 14, took in $856,280 in July, and has won $3.1 million since mid-June, according to an analysis by the Associated Press.

The Borgata took in $562,830 in sports betting in July, and Ocean Resort handled just over $1 million. Bally’s did just under $18,000 in the two days it took sports bets in July.

Sports betting generated $325,646 in state taxes in July and the Borgata, Ocean Resort and Bally’s, and the two tracks saw gross sports betting revenue of $3.8 million on those bets.

The Meadowlands sports book is expected to dominate the market due to its proximity to New York City and since it is where both the NFL’s New York Giants and Jets play their home games.

“It’s not a surprise, but it looks like we’re going to dominate the market,” Jeff Gural, owner of the Meadowlands racetrack told the AP. “The real test will come when companies get their sports book online, because that’s where most of the customers are expected to come from.”

Only one online sports book has launched in the state. DraftKings online sports book, which is partnered with Resorts, launched earlier this month.

Joe Asher, CEO of William Hill US, which runs the sports books at Monmouth Park and the Ocean Resort Casino, told the AP he is “thrilled with the early numbers at both Monmouth and Ocean. They are clearly exceeding our expectations of where we thought we would be at this early stage. There’s no doubt the New Jersey sports betting market has a lot of potential.”

It should be noted that July is a slow time for sports betting with just Major League Baseball and some soccer in play. Since betting began in New Jersey on June 14, more than $57 million in bets has been taken in, according to the AP.

However, a rush continues to have sports books up and running in time for the start of the NFL season in September. Harrah’s Atlantic City—owned by Caesars entertainment which also owns Bally’s—opened its sports book in early August.

Now, both Resorts and Golden Nugget have opened live sports books as well.

The Resorts sportsbook features a 12-foot video wall, 15 television screens, six betting windows and four self-serve kiosks. The Golden Nugget’s sports book occupies the space of the casino’s former poker room—which has been moved to a new location.

Meanwhile, the state also released revenue numbers for Atlantic City casinos in July, which saw the Hard Rock Atlantic City debut with the third highest revenue among the city’s nine casinos and Ocean Resort bring up the rear at ninth.

The Hard Rock brought in $32.7 million. It trailed only Tropicana, at $37 million, and the Borgata, which won $76.6 million in July.

Including all gambling revenue, the nine casinos took in $302 million in July, up 12.8 percent from a year ago.

However, six of the seven casinos that were operating in July 2017 saw revenue declines as the Hard Rock and Ocean Resort clearly cannibalized some of the market. Only the Golden Nugget showed a year-over-year increase in July, with $29.4 million, an increase of 8.8 percent over July 2017, according to the AP’s analysis.

According to the AP, Harrah’s was down 14.1 percent to $31.4 million and Resorts was down 12.7 percent to $17.8 million. Caesars was down 10.3 percent to $29.3 million; Bally’s was down 9.9 percent to $20.5 million; Tropicana was down 9.8 percent, and Borgata was down 4.4 percent.

Ocean Resort, the former Revel casino won $17 million in its first full month, ranking it last among the city’s nine casinos.

Ocean Resort owner Bruce Deifik, however, noted that July was the first time in the property’s history—the casino was formerly the Revel—that is generated a positive cash flow. The property had sat vacant for two years before finally re-opening in late June.

“To be ninth out of nine in this position, I’m tickled pink,” Deifik told the wire service. “This was a property that for two years had a cloud over its head, people thought it was cursed, and no one thought I’d ever get it open.”

The opening of the two casinos also pushed Atlantic City’s casino employee count over 30,000 for the first time since 2014. Atlantic City’s nine casino hotels employed 30,217 people in July, according to statistics released by the state. The figure includes full- and part-time employees.

Hard Rock Hotel & Casino Atlantic City and Ocean Resort Casino, both of which opened June 27, combined for 8,184 jobs in July, or 27 percent of the industry’s total. Hard Rock’s 4,393 jobs and Ocean Resort’s 3,791 make the properties the industry’s second- and third-largest employers, the state’s report said.

Finally, online gambling was up nearly 26 percent from a year ago to $25.8 million. That represents a new monthly revenue record for the state. More surprising, it comes in a summer month, which like sports betting is considered a slow time for online betting.

The strength of the state’s online market remains slots and casino games, which was up about 30 percent to $24 million. Online poker fell 8 percent to $1.85 million. For the year, online revenue is up 16.5 percent to $165.4 million.

Golden Nugget again led the market with $9.3 million from online play. The Borgata earned $4.9 million, Resorts Digital Gaming brought in $3.94 million and Caesars Interactive Entertainment was fourth with just under $3.8 million. The Tropicana’s casino-only sites placed fifth with $3.35 million.

Both the Hard Rock ($330,000) and Ocean Resort ($250,000) also began online play in July.

The Arena Football League is looking to make Atlantic City’s Boardwalk Hall the home of one of its franchises.

Ron Jaworski, majority owner of the league’s Philadelphia Soul told the Press of Atlantic City that the franchise wants to start another franchise in Atlantic City

“It’s going to happen,” Jaworski said. “There are a lot of moving parts to it, but I’m confident we can get the local support to put a team there. As everyone knows, I’ve been bullish on the Atlantic City market for a long time. We’re going to make it work.”

Jaworski is a former Philadelphia Eagles quarterback who owns Blue Heron Pines Golf Club in nearby Galloway Township and was responsible for bringing the Philadelphia-based Maxwell Football Club to Atlantic City.

He also staged an Arena League game at Boardwalk Hall in May 2015 which drew an announced crowd of 6,514 that watched the Soul earn a 51-43 victory over the now-defunct Las Vegas Outlaws in the short-lived DraftKings Boardwalk Bowl game, according to the Press.

Jaworski said he is scheduled to meet with city officials this week to discuss the plan.

“I think it’s a great idea,” City Council President Marty Small told the paper. “I’m for anything that will bring family-oriented entertainment to the city.”

Atlantic City has seen four other professional sports franchises unsuccessfully attempt to thrive playing in the resort, but most have been affiliated with independent leagues not affiliated with a major pro sports league. All have either folded or left the city.

 “I know we’ve tried sports franchises here before, but this is different,” Small said. “The Arena League is the major leagues of indoor football.”

The Press also reported that Ted Leonsis is also behind the deal. Leonsis’ company, Monumental Sports & Entertainment, owns a number of sports franchises, including the NHL-champion Washington Capitals, NBA’s Washington Wizards and WNBA’s Washington Mystics.

Leonsis also owns two of the four active AFL franchises. He has said that legalized sports betting in New Jersey makes the state an attractive place to locate a franchise, the report said.

“When the league was first talking about expanding, Atlantic City was one of the top three contenders because of sports betting,” Jaworski said. “Sports betting is a game-changer.”

Commercial casinos in the United States generated more than $40 billion in combined gaming revenue in 2017, a banner performance in which nearly every jurisdiction reported increases over the year before.

The take, compiled in the American Gaming Association’s annual “State of the States” industry overview, enriched state tax coffers by $9.23 billion, 3 percent more than in 2016.

The report notes also that the industry supported roughly 737,450 jobs last year, both directly and indirectly through vendors and support businesses, which amounted to more than $34 billion in wages, benefits and tips.

“This year’s report demonstrates the commercial gaming industry’s ongoing role as a job creator and revenue generator in states across the country, and we’re proud of the industry’s steady growth over the past few years,” the association’s interim CEO Stacy Papadopoulos said.

The revenue total of $40.28 billion represented a 3.4 percent increase over 2016, boosted by a record haul in 11 states—Colorado, Florida, Kansas, Maine, Maryland, Massachusetts, New York, Ohio, Oklahoma, Pennsylvania and Rhode Island—expanded gaming nationwide and significant new openings in Maryland and New York.

Of the 24 states with commercial casinos, 460 properties in all, 20 reported year-over-year revenue increases.

The Las Vegas Strip maintained its status as the largest market at $6.4 billion, followed by Atlantic City at $2.4 billion and the Chicagoland area, which includes casinos in Illinois and northern Indiana, at $1.97 billion. The Baltimore/Washington, D.C., market, which includes Maryland and West Virginia, took over fourth place from New York City with $1.77 billion, largely due to the 2016 opening of MGM National Harbor. New York City dropped to fifth with $1.57 billion.

Looking ahead, though, there are challenges facing the industry, mainly in the form of “intensifying competition,” the report said, which has led to saturation issues in some markets.

MGM National Harbor, for example, helped drive Maryland to a record $1.6 billion in gaming revenue, a 34 percent increase. However, a few of state’s casinos have reported declines due to the competition.

In New York, new casinos helped grow revenue 16 percent to $2.3 billion, although some properties continue to fall short of their forecasts.

As the AGA put it, “Competitive pressures are set to grow in key commercial states in the coming years.”

The “State of the States” does not include tribal gaming, which totals more than 500 properties nationwide. Earlier this year, the National Indian Gaming Commission said revenues in the tribal sector topped $32.4 billion in 2017, a 3.9 percent increase over 2016.

To download a copy of the State of the States, visit the AGA website at AmericanGaming.org.

New research suggests American sports bettors will be migrating in significant numbers from offshore bookmakers to U.S. outlets as more states embrace the newly legalized industry.

A nationwide poll commissioned by the American Gaming Association and conducted by Nielsen Sports finds that 71 percent of bettors currently wagering “with a bookie” will move “some or all” of their betting to the regulated market if they have access to “a legal platform.”

According to the Washington, D.C.-based AGA, the federal lobbying arm of the land-based casino industry, Nielsen conducted a “custom survey” of 1,032 respondents 18 and older using census date to achieve a cross-section of adults by age, gender, geography and ethnicity.

The findings were especially significant when it comes to professional football, the most popular sport among regular bettors. Currently, around 19 percent of NFL fans engage in sports betting. The survey found this would increase to 31 percent with broad access to legal books. The results were slightly lower but similar for the NBA, the NHL and Major League Baseball.

“The Nielsen Sports data supports what we’ve long expected: access to legal sports wagering will increase fan engagement in major sport contests and enable a significant revenue generation opportunity for major sports leagues and teams,” said AGA Senior Vice President of Public Affairs Sara Slane.

It’s also likely to boost engagement from a younger, more affluent customer, a demographic that casinos thus far have struggled to attract in significant numbers.

The survey suggests the proportion of sports fans with six-figure incomes is substantially larger among regular bettors and casual bettors than among non-bettors. Bettors also skew younger. Many more of them are in the millennial generation.

The sports leagues should enjoy substantial benefits as well.

“Expanding access to legal sports betting will bring millennial audiences back to sports broadcasts and stadiums, which is a huge benefit for sport enterprises across the country,” Slane said. “However, this potential will only be realized with proper policy frameworks that empower consumers with competitive odds, access to all bets and the ability to tap into modern platforms including mobile. Without this focus on consumers, the illegal market will continue to thrive.”

By way of example, a recent study by Copenhagen Economics commissioned by the Swedish government found a direct correlation between the level of gambling taxes and the proportion of players captured by the regulated market.

The UK Gambling Commission estimates that it captures over 95 percent of all sports betting in the legal market at a tax rate of 15 percent. In France, where the rate is much higher, roughly 40 percent of sports betting still takes place at unlicensed sites.

On this basis, it’s possible that states like New Jersey, where the online sports betting tax rate of 13 percent is even lower than the UK’s, should eventually reach much more than the 71 percent suggested by the Nielsen survey. While Pennsylvania, which has set its tax rate at 36 percent, can expect figures closer to those in France.