Author: Casino Connection Staff

The Arizona House has begun considering a deal that would allow sports betting at tribal casinos and site owned by pro sports teams. The deal was negotiated with Arizona’s tribes by Governor Doug Ducey.

Online bets, wagers on fantasy sports and some Keno at off-track betting locations and social clubs would also be allowed.

It updates the existing tribal state gaming compacts with Arizona’s tribes while extending them for another 20 years. Ducey first alluded to it during his state of the state address when he announced, “an opportunity for a modernized gaming compact that will bring in more revenue for our tribal nations and our state budget.”

What makes this different sports from betting legislation in other states is the section allowing teams such as the Arizona Diamondbacks to operate sportsbook retail at their arenas, online and for a quarter mile around. Ten such licenses would be issue and could include professional golf or NASCAR.

Tribes would get 10 such licenses and each of the two dozen tribal casinos could also offer sportsbooks.

The deal Ducey reached also allows the tribes to build new casinos and to add new table games such as baccarat and craps.

Senator T.J. Shope, a sponsor of one of the bills, told Arizona Capitol Times that expanding gaming would give fans something to do after watching spring training or golf.

“For that person that is interested in doing something in the afternoon and evening when the ballgame’s over, they’re going to be able to go ahead and have that option,” he said.

On sports betting Shope said, “The ease of being able to do it by phone is something that is definitely a desire from I think the average person that does this sort of stuff.”

He also defends the provisions that would benefit social clubs and service organizations, whose memberships are declining as younger generations choose not to join them.

“That’s why you see memberships in all these groups dwindling,” he said. Shope said he’s willing to help out—and give them the exclusive right to make money off of keno—because “they do a lot of good for the community.”

Casino companies are moving beyond acquiring stakes in sportsbooks. They’ve set their sights on daily fantasy sports.

To that end, Bally’s Corp. purchased privately-held Monkey Knife Fight, in an all-stock deal worth $90 million. For the Rhode Island-based gaming company, the acquisition adds another element in a push to increase its assortment of casino and online sports betting avenues.

Bally’s becomes the third U.S. company to have a daily fantasy sports component, along with DraftKings and FanDuel. But the latter two control 85 percent of the market.

“We are pleased to enter into the high-growth (daily fantasy sports) market,” said George Papanier, Bally’s president and CEO. “Monkey Knife Fight is a unique asset that we look forward to incorporating into Bally’s constantly growing omnichannel portfolio of land-based casinos and iGaming platforms. The acquisition will lead to Bally’s developing new and engaging content with MKF for its customers.”

Monkey Knife Fight, which also offers e-sports, operates in 37 states, with 180,000 registered users and 80,000 depositors. The firm, the official partner of the NFL Players Association, will support Bally’s plans to develop a potential customer database in states with no sports betting yet such as California, Florida and Texas, as well as in Canada. SponsorUnited ranked MKF the sixth most-searched and 10th fastest-growing brand in sports and entertainment.

MKF founder and CEO Bill Asher said the company has grown through “strategic partnerships with teams, ownership groups, and players unions.”

The deal is expected to close in the first quarter of 2021.

Monkey Knife expects to produce $30 million in annual revenue for Bally’s.

In other Bally’s news, the company has partnered with Sinclair Broadcast Group Inc., a move that would combine Bally’s sports betting technology with Sinclair’s footprint, including 188 local broadcast stations, 19 owned and operated RSNs, STIRR, Tennis Channel and Stadium.

The deal replaces Fox on Sinclair’s 21 regional sports networks.

Truist Securities gaming analyst Barry Jonas told investors the transaction expands Bally’s portfolio but also helps the Sinclair deal by offering daily fantasy “into markets where sports betting isn’t yet legal and or Bally’s doesn’t currently have a presence.”

As part of the process, Sinclair and Bally’s Corp. revealed the new Bally Sports logo and Bally Sports regional monikers. The Bally logos will replace the existing FOX Sports regional logos when the networks officially rebrand in the coming months.

“We are extremely proud to unveil the Bally Sports logo as it signifies a new, transformative chapter in the regional sports business and is representative of our cohesive partnership with Bally’s,” said Steve Rosenberg, president of local sports for Sinclair.

The Bally’s Sports logo features the iconic red Bally’s script atop a red sports typography. The logo also serves as the foundation for the RSN logos by positioning the global logo above a prominent red banner with the corresponding geographic name overlaid in white.

“We look forward to integrating Bally’s unique content, including the award-winning daily fantasy sports platform we are acquiring from Monkey Knife Fight, across Sinclair’s live game day coverage and providing unrivaled sports gamification on a national scale,” Papanier said.

As part of the rebrand, Prime Ticket becomes Bally Sports SoCal, and Sports Time Ohio becomes Bally Sports Great Lakes.

Caesars Entertainment, Inc. also invested in the daily fantasy sports platform, In this case, SuperDraft, Inc. The deal assists Caesars’ mobile sports and gaming network’s effort to strengthen its customer acquisition and retention for both online and retail. SuperDraft compliments Caesars mobile sports betting network and increases access to customers for traditional casinos and online offerings, according to CDC Gaming Reports.

The investment gives Caesars a minority equity position but one with an option to increase its stake over time up to 100 percent. At the same time, the partnership elevates SuperDraft’s standing in the daily fantasy sports industry.

“The addition of daily fantasy sports fits seamlessly with our strategic vision for mobile and online sports,” said Tom Reeg, CEO of Caesars Entertainment, Inc. “SuperDraft’s innovative multiplier game mode is unique in the marketplace, and we believe it offers a tremendous opportunity to strengthen our position in the sports gaming landscape.”

SuperDraft has a presence in 35 states with 7 professional sports appealing to casual and experienced players. The company will become part of Caesars’ online brands such as World Series of Poker, Caesars Online Casino, and, soon, William Hill, according to CDC Gaming Reports.

“We’re super excited to be part of Caesars’ powerful gaming ecosystem,” said Steve Wang, CEO and founder of SuperDraft Inc. “Daily fantasy players deserve a breath of fresh air, and we’re here to transform the industry. SuperDraft is now well-positioned to accelerate its growth with financial staying power while broadening its consumer appeal with bigger contests and better rewards to players of all interest levels.”

To celebrate, SuperDraft will inaugurate a $1 million tournament on February 7, Super Bowl Sunday. Each day, both free and paid players will have the opportunity to collect a winning ticket and compete for $300,000, $100,000 and $20,000.

SuperDraft expects to be tied to the Caesars Rewards program that will permit players to credits redeemable for rewards and experiences online or at one of Caesars casino resorts nationwide.

“Caesars is a strong strategic partner that will allow us to further enhance our industry-leading tech stack and provide an enhanced player-first experience,” said Nate Hunter, SuperDraft CTO and Co-Founder.

The Georgia House Economic Development and Tourism Committee recently voted 20-6 to approve House Bill 86, which would legalize on-site and online sports betting and direct tax revenue to the state lottery. The bill has been sent to the full House for further debate.

Under the proposal, the Georgia Lottery Corp. would regulate sports betting and grant six licenses to operators. The annual licensing fee would be $900,000. Revenue would be taxed at 14 percent. Committee Chairman Ron Stephens said even at a 10 percent, the HOPE scholarship program could receive $42 million a year.

Stephens said the bill would require bettors to be at least 21 years of age. It would prohibit betting on college or high school sports, as well as on certain events like injuries.

Some state government lawyers have questioned whether a constitutional amendment would be required to legalize sports betting. An amendment would need the approval of two-thirds of each legislative chamber and a majority of voters.

Stephens said state Senator Jeff Mullis is expected to file a bill in the Senate proposing a 10 percent tax rate and allowing wagering on collegiate sports. That legislation has not yet been filed.

Atlanta’s four major league professional sports teams support the measure. Stephens noted the teams haven’t been able to fill stadiums due to Covid-19. “It’s for fan participation. As I said earlier, the stands are empty. They believe that fan engagement is what sports betting is all about,” he stated.

In addition, he noted an American Gaming Association study said millions of Georgians place billions of dollars in illegal sports bets each year. “We can legitimize it, if you will, through the lottery. If you’re going to do it offshore, why don’t we collect the revenue here in Georgia?” Stephens said.

Opponents, such as Georgia Baptist Mission Board spokesman Mike Griffin, said state-sponsored gambling encourages addiction and other social problems. Griffin stated, “They should think this is terrible because it’s going to accentuate everything that’s negative about predatory gambling. All this is going to do is prime children to get ready to gamble one day.”

At a recent committee hearing, Missouri state Senators recently debated and expressed conflicting viewpoints about details of bills that would legalize sports betting.

For example, state Senator Caleb Rowden’s Senate Bill 256 would tax sports wagering revenue at 6.75 percent, tying Iowa for the lowest rate in the U.S. Rowden said, “In my view, there’s really not much of a reason not to do it at this point. It’s already happening. We might as well legalize what’s already happening and make a little money off of it.”

However, state Senator Denny Hoskins, sponsor of another sports betting measure, Senate Bill 18, said the tax rate under Rowden’s bill is too low. “I just believe that we’re leaving a little bit too much money on the table for education,” Hoskins said. His bill would tax sports betting revenue at 9 percent, compared to Missouri’s 21 percent tax rate on casino revenue.

Mike Winter, executive director of the Missouri Gaming Association, said he believed SB 256 would establish the proper framework for moving forward on sports betting in the state. “All this is taking place illegally. We’re trying to drive it out of the illegal market and bring it into a legal, regulated environment where we can be assured that bets are handled properly, consumers are treated fairly and those who have issues with gambling cannot participate,” he said.

Hoskins said a major concern is guarding against youth betting, therefore strict safeguards would be implemented under his bill. “There are 3.4 million cell phones in the state, plus any computer, plus any iPad, so basically, this would be the biggest expansion of gambling in the history of the state of Missouri,” he noted said. Winter assured the committee that identity verification would be in place to prevent anyone who is under age from creating an account or gambling.

State Senator Tony Luetkemeyer introduced another sports betting measure, SB 217. It’s similar to SB 256 but would tax sports wagering revenue at 6.25 percent, which would be the lowest in the U.S. It also would require the use of official data from sports leagues. Luetkemeyer explained, “Consumers deserve to know that their bets are being settled using reliable, verified information directly from the leagues and distributed real-time to mitigate the risk of incorrect results for consumers. In the absence of this, consumers would have to rely on data that is pirated, web scraping or collected covertly in stadiums.”

Testifying against SB 217, Winter said the bill was good for sports leagues at the expense of state regulators, because the governing bodies of the sports leagues would hold a lot of power.

Representatives from the Kansas City Chiefs, St. Louis Cardinals and St. Louis Blues spoke in support of both Rowden’s and Luetkemeyer’s bills.

In a third attempt to allow sports betting, the Kansas Senate Federal and State Affairs Committee recently filed a bill to legalize sports wagering in the state.

SB 84 would allow each of the state’s four commercial casinos to offer an on-site commercial sports book and to partner with up to three online betting operators. Tribal casinos also would be allowed to renegotiate their gaming compacts to offer retail wagering facilities and the Kansas City Motor Speedway also could open a designated sports betting area for online wagering but could not open an on-site sportsbook.

Retail sportsbook revenue would be taxed at 7.5 percent and online sports betting revenue at 10 percent. Both rates are below the median rate charged in the two dozen states with legal sports wagering. The bill did not mention any initial or annual license renewal fees. The state would not require any payments for official league data. Bettors, who must be at least 21 years of age and physically located within state lines, could wager on college and professional sports, including Kansas college sports teams. The bill does not spell out whether registration must be in person or could be done online. It also would create a voluntary sports betting self-exclusion list. Regulators would be required to finalize draft rules and regulations on or before October 31, 2021.

The bill is similar to one that was introduced in 2020 but didn’t pass because lawmakers were focused on Covid-19. Observers said this year’s version has a better chance of passing because it could generate revenue to help fill the budget gap caused by Covid-19. Also, Kansas is under pressure to pass sports betting legislation because of Colorado’s success and the possible passage of sports wagering measures in Missouri and Nebraska.

Democratic Governor Laura Kelly has voiced support for legalized sports betting. However, before she could sign the bill into law, it would have to pass both chambers where Republicans hold super-majorities. Religious and social conservatives also could challenge any expansion of gambling in the state.

In Minnesota, state Senator Karla Bigham and state Rep. Pat Garofalo are co-sponsoring a bill allowing tribal casinos to offer on-site sports wagering for the first year, then mobile betting for participants who sign up for an account at a casino. Bigham said, “Sports betting is already done flagrantly and it’s time to shine some light on it, put some guardrails around it, protections around it and quite honestly we need to legalize it. If that state makes a few bucks while we’re at it, good for us.”

Revenue would be taxed at 6 percent for on-site betting and 8 percent for online wagering. The funds would be directed to the state’s general fund, with 0.5 percent going to problem gambling services. Bigham and Garofalo said the new tax revenue would benefit the state, but “the big win” would be to provide consumer protections to individuals who already are gambling through offshore websites or illegal underground operations.

Minnesota’s tribal nations oppose the legislation. So do some top legislators even though Bigham and Garofalo pointed out the revenue from sports betting could help close the $1.3 billion budget gap. Democratic Governor Tim Walz said he’d be open to sports betting legislation but Republican Senate Majority Leader Paul Gazelka stated passage is unlikely. He noted, “Any major policy item that has a lot of disagreement I don’t foresee happening this year. But in addition, many of us just don’t think it’s the right thing to do for Minnesota.”

Online gaming is now live in Michigan, and FireKeepers Casino Hotel in Battle Creek has plans to introduce a branded app to its retail sportsbook sometime this month.

The Michigan Gaming Control Board approved a launch of those betting apps last month, reported the Battle Creek Enquirer.

“We look forward to carrying over our award-winning casino offering to the online realm, building upon the success of our award-winning casino,” said Jim Wise, vice president of marketing and sports and online gaming. “We appreciate the players who visit FireKeepers, and these guests deserve the same level of rewards and service in the iCasino world.”

Until its mobile app and website are operational, FireKeepers is offering a special bonus of up to $200 in online credit to Red Hot Rewards Club members who are anticipating the start of iGaming, the Enquirer reported.

“We were the first tribal operation to open an on-premises book and now we are a few weeks away from being able to open our iGaming and iCasino options. But what we wanted to do until then, was reward our existing FireKeepers players with this promotion,” Wise said.

Wise said the combination of online gambling and the Dacey’s Sportsbook experience in the casino will keep FireKeepers among the best options for gambling in the state. “What we’ve seen in other states is that this can be a revenue generator without hurting our brick-and-mortar operation. We think we can do all we’re doing and add iGaming and make a fuller experience for our guests.”

And having a local option has FireKeepers believing it will be able to compete with some of the statewide gaming apps that were rolled out over the weekend.

“In some of these cases, people see all these national brands and are not sure which ones they trust. In a couple of weeks, they will see someone local that they know very well and they have visited, like us at Dacey’s Sportsbook, and they will want to give this a try,” Wise said.

“Our on-premises book has gone extremely well, done volumes more than we thought we would since our start in the summer. And that’s a tip to the cap to our people and the service and experience they are making available to our customers.”

Richard Childress Racing has tapped BetMGM as its official sportsbook. BetMGM will collaborate with the NASCAR team on a variety of marketing avenues, including primary sponsorship for select races during the 2021 NASCAR Cup Series. This marks the first partnership between a NASCAR team and sports betting operator.

“BetMGM is at the forefront of the sports betting and online gaming industry and Richard Childress Racing can certainly relate to their pioneering vision,” said Richard Childress, chairman and CEO of Richard Childress Racing. “This innovative relationship will provide opportunities to collaborate in new and groundbreaking ways.”

The agreement begins on February 14 at Daytona International Speedway for the Daytona 500 when Childress puts two cars in play: No. 3 Chevrolet, driven by Austin Dillon, as well as the No. 8 Chevrolet, driven by Tyler Reddick. BetMGM as serves as an authorized NASCAR Gaming Partner.

“Richard Childress Racing is one of the most respected and formidable teams in motorsports. Together we will develop compelling marketing opportunities and activations that introduce the BetMGM sports betting brand to NASCAR fans worldwide,” said Matt Prevost, BetMGM’s chief revenue officer.

Leading digital sports publication The Athletic and BetMGM have agreed to a partnership that makes BetMGM the publication’s exclusive sports betting partner in the United States. Key details of the agreement include the creation of “The Athletic Betting Hub,” a new content vertical for The Athletic, as well as further in-depth content and product integrations between the two companies.

“BetMGM has pioneered the online gaming industry and as we sought to establish The Athletic as a home for great betting content, we knew there would be no better partner,” said Evan Parker, general manager of content operations for The Athletic.

“As we collaborate on this new venture, we share a joint vision for how to seamlessly blend media, analysis and betting into unique, premium experiences for The Athletic subscribers.”

With more than 1 million subscribers around the world, The Athletic’s readers have access to coverage of nearly 300 professional sports and collegiate teams and clubs in the U.S., Canada and the U.K. An editorial team of more than 400 full-time writers has produced thousands of articles and contributes to more than 100 podcasts.

Matt Prevost, BetMGM’s chief revenue officer, said, “The Athletic has an incredibly engaged and loyal readership, and we look forward to introducing their fans to the BetMGM sports betting brand. They also have an outstanding product and, through integrations and collaboration, this partnership complements The Athletic’s premium offering.”

The publication’s betting hub will feature sports betting content with integrated live odds and exclusive offers powered by BetMGM. This includes betting analysis and original reporting across its written, audio and video platforms. BetMGM and The Athletic will also collaborate across digital and social platforms to create an immersive betting experience for sports fans.

The BetMGM mobile app is currently live in 10 states and is available for download on both iOS and Android, as well as accessible via desktop at betmgm.com. BetMGM offers user-friendly sports betting experiences, making it easy to customize pre-game, live in-play, futures and parlay wagers.

North Dakota state Rep. Michael Howe will introduce a resolution that would allow voters to determine if sports betting should be legalized. Howe said the resolution has extensive bipartisan support. Lawmakers would be required to endorse the resolution in an up-or-down vote.

However, residents also could initiate a measure to put the issue on a ballot as early as next year. North Dakota’s constitution gives citizens the right to bypass the legislature and put a constitutional amendment directly on the ballot. If the measure is approved, lawmakers would then establish rules for sports betting in the following legislative session, Howe explained. “The general public would have overwhelming support for sports betting,” Howe said.

Two bills that would have allowed sports betting in the state were rejected two years ago. Those bills were poorly written, Howe stated. Supporters claimed sports betting would generate revenue for charities and for the state. Those opposed said sports wagering would lead to more problem gambling with no funds earmarked for treatment services.

In 2002, North Dakota overwhelmingly approved a statewide lottery, which, along with charitable gambling has become a multimillion-dollar annual industry. Howe stated, “It’s not as taboo as it once was. The general public has embraced it now. A lot of people are already doing it on their phone illegally. Why not let North Dakota have a piece of that pie? Why not have it here and regulate it here?”

A spokesman for Governor Doug Burgum said the governor take a neutral stance on the issue.

Hawthorne Race Course made history January 27 when it opened the first non-casino, off-track betting sportsbook, operated by PointsBet.

Illinois has licensed Hawthorne and Fairmount Park as race track sportsbooks. Hawthorne is building a racino set to open next December. The OTB site in Crestwood is one of three where Hawthorne can accept sports wagers. The other two—yet to open—will be in prospect Heights and Oakwood Terrace.

Located in Stickney in suburban Chicago, Hawthorne Race Course opened a retail sportsbook in September, the closest one to downtown Chicago. Crestwood is 15 miles from the track, according to Sports Handle.

“Hawthorne is the only gaming company in the Chicagoland area that is able to open sportsbooks at off-track and non-casino locations, so this is an opportunity on which we focused a lot of energy and investment,” said Tim Carey, president and CEO of Hawthorne Race Course, in a joint statement with PointsBet.

A remodeled Club Hawthorne features a 163-inch video wall, and two dozen 75-inch TV screens throughout the viewing area, as well as leather couches, captain’s chairs and highboy tables. In addition, the site includes six self-serve kiosks and five betting clerk stations, all separated by Plexiglas. Capacity is limited to 25 percent and masks are required.