The Fanatics Sportsbook has officially ended its beta testing period and is now fully available for all customers in four states.

After six-months of beta testing, Fanatics Sportsbook announced today its full sportsbook app is now available for download in Maryland, Massachusetts, Ohio, and Tennessee on the iOS and Android platforms. Fanatics began beta testing its sports betting app in Tennessee in early March. The sportsbook was limited to Fanatics customers by invite only.

The full Fanatics Sportsbook will feature additional offerings for all customers, an enhanced search feature, and a new “discover” page with top sports betting picks for users, marquee games, trending bets, and promos.

Fanatics Officially Launching Full Online Sportsbook

The sports betting app will offer “faster, easier, and a more rewarding sports betting experiencing,” according to Scot McClintic, chief product officer of Fanatics Betting and Gaming.

“After 6 months of beta testing, we are excited to officially launch the Fanatics Sportsbook product to the public. We are laser focused on solving pain points facing customers by offering a faster, easier, and a more rewarding sports betting experience. The strategic patience to build a product for the long-term has given us an opportunity to redefine a customer’s expectation of what a sportsbook should be. With the Fanatics Sportsbook product foundation built and wholly owned, customers should expect unparalleled speed of feature improvement, delivery, and innovation,” McClintic said in a press release.

Fanatics Sportsbook touted its recent acquisition of PointsBet’s U.S. assets as a way to “supercharge” its sports betting engine by integrating the best parts of PointsBet’s tech platform. The sportsbook will also leverage PointsBet’s quantitative driven trading models from Banach Technology and its state-of-the-art risk and trading platform, according to a release.

FanCash is Backbone of Loyalty Program

The Fanatics Sportsbook will offer legal sports betting markets on professional and college football, basketball, hockey and baseball, as well as golf, tennis, motorsports, boxing, MMA and more.

The sportsbook will also allow users to earn Fanatic’s “FanCash,” which can be converted dollar-for-dollar into bonus bets and can also be used to purchase team merchandise at Fanatics.com. Customers will earn 5% FanCash on same game parlays, 3% FanCash on parlay bets, and 1% FanCash on straight bets.

Fanatics has touted its ability to integrate its merchandise business into its sports betting business as a major advantage over other sports betting operators. While state regulators have frowned upon Fanatics merchandise purchases for Fanatics Sportsbook bonus bet promos, the FanCash program should prove to be a useful customer acquisition and retention strategy for the sports betting operator.

Fanatics Expanding Throughout Country

At a recent New York State Gaming Commission meeting, regulators mentioned that Fanatics Sportsbook has 12 pending licenses in states throughout the U.S., including Colorado, Iowa, New Jersey, and Virginia.

A Fanatics Sportsbook representative declined to comment on pending licensure in other states.

Fanatics is hoping for a transfer of PointsBet’s New York online sports betting license as quickly as possible. PointsBet’s New York online sports betting license was one of the jewels in the Fanatics acquisition of the company’s U.S. assets. In late June, Fanatics improved its bid to PointsBet for $225 million, topping DraftKings’ final offer of $195 million for the company’s U.S. assets.

According to the acquisition details provided from the original Fanatics/PointsBet deal in May, Fanatics will begin acquiring PointsBet assets for three states this month. It’s unknown what state assets will first be turned over to Fanatics. PointsBet will hand over access to three more states on a rolling basis until all U.S. entities are acquired by Fanatics Betting and Gaming by May 2024 at the latest.

New York State Gaming Commission Chairman Brian O’Dwyer revealed recently the commission will evaluate Fanatics for suitability before making a recommendation on the transfer of the PointsBet license.

A final recommendation on the license will likely be made during the commission’s September meeting.

The post Fanatics Sportsbook Ends Beta Testing, Officially Launches Full Online Sportsbook appeared first on Sports Betting Dime.

DraftKings continues to enjoy its Massachusetts sports betting homefield advantage as the Boston-based sports betting operator again reported the top handle and revenue figures in the commonwealth.

The Massachusetts Gaming Commission reported $294,924,777 in sports betting handle for July, which resulted in $29.4 million in taxable sports betting revenue. Online sports betting accounted for the majority of handle at $288.1 million.

The MGC noted $5.8 million in sports betting tax revenue for the month.

DraftKings, FanDuel Remain Top Operators

DraftKings again reported the top sports betting handle and tax revenue for the month, noting $144.86 million in online sports betting handle and $2.87 million in sports betting tax revenue. FanDuel was second in the commonwealth with $86.18 million in online sports betting handle and $1.97 million in tax revenue.

DraftKings also topped all other operators in handle and taxable revenue in June.

Fanatics saw a nearly $500,000 increase in its sports betting handle from June, noting $2.3 million for July. Betr continues to struggle in the commonwealth, as its online sports betting handle dipped to just $155,581 for the month.

Here are the total online sports betting handle figures for July:

• DraftKings Massachusetts: $144,866,211
• FanDuel Massachusetts: $86,188,846
• BetMGM Massachusetts: $22,461,780
• Barstool Sportsbook: $11,688,652
• Caesars Sportsbook Massachusetts: $11,343,713
• WynnBET Massachusetts: $9,061,119
• Fanatics Sportsbook: $2,353,501
• Betr: $155,581

On the retail sportsbook side, Encore Boston Harbor topped all three casinos with $3.2 million in handle and nearly $350,000 in total taxable revenue. Here are the full retail sports betting details for the month:

• Encore Boston Harbor (WynnBET): $3,236,151
• Plainridge Park Casino (Barstool Sportsbook): $2,962,172.90
• MGM Springfield (BetMGM): $607,046

The total taxable revenue for retail sportsbooks are right here:

• Encore Boston Harbor (WynnBET): $349,832.
• Plainridge Park Casino (Barstool Sportsbook): $153,438
• MGM Springfield (BetMGM): $72,867

Daily Fantasy Sports Reported For Commonwealth

For the first time, the MGC reported the state’s DFS totals for the month. There are currently 15 licensed DFS operators in Massachusetts.

DraftKings led the way with $5.3 million in DFS handle, with PrizePicks notching the second spot with nearly $3 million in handle. FanDuel was the only other operator to top a million in handle, reporting $1.05 million for the month.

In total, the state collected $188,366 in DFS taxes for July.

Here are the total DFS sports betting handles for the month:

• Boom Fantasy: $10,763
• DraftKings: $5,369,116
• FanDuel: $1,056,007
• FanTrax: $27,225
• FFPC: $0
• OwnersBox: $1,638
• Parlay Play: $101,100
• PrizePicks: $2,960,226
• Real Time: $307,893
• SHGN: $64,279
• Sleepers: $215,442
• Splash Sports: $1,225
• Two Nine Sports: $11,140
• Underdog: $33,593
• Vivid Picks: $271,959

Recently, Massachusetts Gaming Commission Interim Executive Director Todd Grossman said the commission will evaluate daily fantasy sports (DFS) offerings in the commonwealth as DFS operators are recently experiencing increased scrutiny for their offerings nationwide.

Grossman revealed the commission would begin a review of DFS operator and offerings in the state in light of several public examinations across the country.

“There’s been a great deal of activity surrounding the boundaries of sports wagering and daily fantasy sports and whether there’s some overlap between the two. That is to say, whether there are certain activities offered by DFS operators that may be considered sports wagering activity. That’s been addressed in a number of jurisdictions now and has been discussed publicly. I wanted to note we are certainly aware of this issue and we’re in the process of reviewing it,” Grossman said.

The post DraftKings Continues Strong Massachusetts Sports Betting Run appeared first on Sports Betting Dime.

The Florida sports betting landscape has been put into another holding pattern as West Flagler Associates filed a petition for an en banc hearing of a D.C. Circuit Court’s decision to restore a 2021 Florida gaming compact.

West Flagler Associates have long contended that the Florida gaming compact is illegal and should not allow online sports betting to take place outside of Indian lands. The en banc request, if granted, would put the case in front of all 11 judges of the D.C. Circuit Court, instead of just the original three-judge panel that unanimously agreed to overturn the original ruling.

But will an en banc rehearing be granted? What’s next if it isn’t? When could Florida actually see sports betting?

What’s Next In the Process?

First a little history. The Florida gaming compact was thrown out by U.S. District Court Judge Dabney L. Friedrich in November 2021 after West Flagler filed a lawsuit against the U.S. Department of the Interior Secretary Deb Haaland for allowing the compact between the state and Seminole Tribe to proceed. Friedrich determined the compact violated the conditions set forth by the Indian Gaming Regulatory Act (IGRA) limiting tribal gaming to the confines of tribal lands. The Seminole Tribe argued in the gaming compact that because the servers that process the online sports bets are located on tribal land, then the bets themselves are placed on tribal lands.

This past June, a three-judge panel for the U.S. Court of Appeals for the District of Columbia unanimously agreed to overturn Friedrich’s ruling.

West Flagler Associates had until Monday, Aug. 14, to file a petition an en banc hearing of the ruling. If granted, an en banc hearing means the case would go before all 11 judges of the U.S. Court of Appeals for the District of Columbia.

A spokesperson for the court told Sports Betting Dime that there is no timeline for an en banc hearing request and it can sometimes takes “months” for a determination to be made.

To be granted an en banc hearing, six of the 11 district judges have to approve the request. Considering that three judges have already ruled against West Flagler and would likely not approve the request, six of the remaining eight judges would have to agree to a rehearing.

Additionally, en banc hearings are rarely granted. The last en banc hearing to be granted was in 2021.

“The interpretation of a gaming statute is not on par with the kinds of issue the D.C. Circuit would typically grant a rehearing on. These are issues that present important federal constitutional questions, separation of power type issues, and this doesn’t strike me as the kind of case that reaches the threshold of being an issue of exceptional importance,” Daniel Wallach, a gaming law attorney, Founder of Wallach Legal and UNHLaw Sports Wagering, recently told SBD.

So When Could Florida See Sports Betting?

It depends on when the request is either granted or denied. If it’s granted, a rehearing can take months to play out before a final determination is made. If an en banc hearing request is denied, the original three-judge panel rule will go into effect after a week and the Seminole Tribe would be clear to launch sports betting.

It’s unlikely that the court will take “months” to determine if a rehearing is necessary, so if one is not granted Florida could see sports betting early on in the NFL season.

However, if a hearing is not granted, West Flagler still has legal options. It will have 90 days to request a writ of certiorari to hear the case with SCOTUS. Wallach previously told SBD he expects West Flagler to take this issue to SCOTUS if an en banc hearing is not granted.

“This is an unsettled question of law. Ultimately, the question of whether the Indian Gaming Regulatory Act applies to tribal gaming outside of Indian lands is a question that has been wrestled with in a number of previous federal court decisions.  The confusion over this issue has prompted proposed federal legislation. Two times this has prompted the Department of Interior to propose new rules recognizing that compact’s can includes provisions for online sports betting,” he said.

It’s also important to note that the Seminole Tribe could launch sports betting (and craps and roulette) in its casinos right now if it chooses. There is no injunction barring them from doing so, but the risk for the tribe may be too great, Wallach said.

“The risk the Seminole Tribe would incur by launching prior to the official mandate, that might be viewed negatively by some of the appellate judges on the D.C. bench that would be ultimately deciding on granting a rehearing, so why poke the bear?” he said.

The post What’s Next for West Flagler, the Seminoles, and Florida Sports Betting? appeared first on Sports Betting Dime.

Florida sports betting will be further delayed. Whether its merely a few weeks or as long as a few months is now anyone’s guess, as West Flagler has submitted a request for an en banc hearing of a D.C. Circuit Court’s decision to restore a 2021 Florida gaming compact.

West Flagler, the plaintiffs in the hearing, had until midnight tonight to file a petition.

If they did not file a petition the official mandate restoring the Florida gaming compact would have gone into effect on Monday, Aug. 21, allowing the Seminole tribe to launch its Florida sports betting services, along with craps and roulette in its Florida casinos.

West Flagler Requests Rehearing En Banc

In late June, a three-judge panel for the U.S. Court of Appeals for the the District of Columbia unanimously agreed to overturn a ruling from U.S. District Court Judge Dabney L. Friedrich that declared a 2021 Florida gaming compact violated the Indian Gaming Regulatory Act (IGRA).

The gaming compact was thrown out by Friedrich in November 2021. Ultimately, Friedrich determined the compact violated the conditions set forth by IGRA that limits tribal gaming to the confines of tribal lands. The Seminole Tribe argued in the gaming compact that because the servers that processed the online sports bets were located on tribal land, then the bets themselves were placed on tribal lands.

The three-judge panel for the U.S. Court of Appeals for the the District of Columbia disagreed with her ruling.

In West Flagler’s request, counsel for the plaintiff’s wrote that the Supreme Court’s ruling of Michigan v. Bay Mills Indian Community found the Indian Gaming Regulatory Act (IGRA) regulates gaming on “Indian lands, and nowhere else.”

“The Opinion is erroneous and will create confusion, and thus rehearing is warranted. The Opinion relies on an interpretation of an IGRA provision itemizing the ancillary subject matters that are permissible in an IGRA compact. As shown by both the plain text of this provision and the overall legislative purpose of IGRA, this provision cannot reasonably be read to allow IGRA compacts to contain provisions that on their face seek to authorize gaming activities off of Indian lands,” counsel wrote in the document.

If granted, the en banc rehearing will include all judges of the court, not just a three-judge panel, to hear the case.

A Seminole Tribe spokesperson told Sports Betting Dime through email that it’s important to remember that the original decision from the U.S. Court of Appeals for the District of Columbia Circuit was unanimously in favor of the Department of the Interior and the gaming compact approval.

“It’s important to note the three Judge panel of the U.S. Court of Appeals for the District of Columbia Circuit issued a unanimous decision in favor of the U.S. Department of the Interior, which approved the Gaming Compact between the Seminole Tribe and the State of Florida,” the Seminole Tribe spokesperson wrote.

Will Request Be Granted?

But just because an appeal is requested does not mean one will automatically be granted. Daniel Wallach, a gaming law attorney, Founder of Wallach Legal and UNHLaw Sports Wagering, recently told Sports Betting Dime that he expected West Flagler to continue their fight in one way or another, but face long odds to have an en banc hearing  granted.

En banc hearings are rarely granted by the U.S. Court of Appeals, Wallach said, as the court typically grants only one review for every 500 three-judge panel decisions. An en banc hearing has not been granted since 2021, he noted.

“The interpretation of a gaming statute is not on par with the kinds of issue the D.C. Circuit would typically grant a rehearing on. These are issues that present important federal constitutional questions, separation of power type issues, and this doesn’t strike me as the kind of case that reaches the threshold of being an issue of exceptional importance,” Wallach said.

The post West Flagler Requests Rehearing of Florida Sports Betting Decision appeared first on Sports Betting Dime.

West Flagler will have to make a decision today on appealing a U.S. Court of Appeals for the District of Columbia ruling that restored a 2021 Florida gaming compact.

West Flagler, the plaintiffs in the hearing, have until Monday to file a petition for an “en banc hearing” of the U.S. Court of Appeals decision. If they do not file a petition by today, the official mandate restoring the Florida gaming compact will go into effect on Monday, Aug. 21. If restored, the Seminole Tribe will once again be able to launch its Florida sports betting services, along with craps and roulette in its Florida casinos.

So, like an 80s sitcom, it all boils down to one question…will they or won’t they?

What’s at Stake?

In late June, a three-judge panel for the U.S. Court of Appeals for the the District of Columbia unanimously agreed to overturn a ruling from U.S. District Court Judge Dabney L. Friedrich that declared a 2021 Florida gaming compact violated the Indian Gaming Regulatory Act (IGRA).

The gaming compact was thrown out by Friedrich in November 2021. Ultimately, Friedrich determined the compact violated the conditions set forth by IGRA that limits tribal gaming to the confines of tribal lands. The Seminole Tribe argued in the gaming compact that because the servers that processed the online sports bets were located on tribal land, then the bets themselves were placed on tribal lands.

The three-judge panel for the U.S. Court of Appeals for the the District of Columbia disagreed with her ruling.

West Flagler, however, has options. The plaintiffs in the hearing can take the case to Florida State Court and continue their fight in a new setting. Or, as they’ll have to decide today, can also apply for an “en banc hearing” of the U.S. Court of Appeals decision. If granted, an “en banc hearing” would allow West Flagler’s case to be heard by the entire court, not just a three-judge panel.

West Flagler can also go the Supreme Court route, but we’ll get to that in a minute.

Are Appeal Requests Typically Granted?

But just because an appeal is requested does not mean one will automatically be granted. Daniel Wallach, a gaming law attorney, Founder of Wallach Legal and UNHLaw Sports Wagering, recently told Sports Betting Dime that he expects West Flagler to continue their fight in one way or another, but face long odds to have a rehearing request granted.

En banc hearings are rarely granted by the U.S. Court of Appeals, Wallach said, as the court typically grants only one review for every 500 three-judge panel decisions. An en banc hearing has not been granted since 2021, he noted.

“The interpretation of a gaming statute is not on par with the kinds of issue the D.C. Circuit would typically grant a rehearing on. These are issues that present important federal constitutional questions, separation of power type issues, and this doesn’t strike me as the kind of case that reaches the threshold of being an issue of exceptional importance,” Wallach said.

West Flagler has until the end of the day to request a rehearing. The deadline is not time specific, Wallach said, and could come in at 11:59 p.m. if the plaintiffs choose to do so.

An Appeal in Some Form is Likely

It’d be unlikely for West Flagler to not appeal the decision in some way, Wallach said.

It’s a no-risk proposition for the plaintiffs, who have already sunk a considerable amount of time and money into the legal fight with the Seminole Tribe.

“If West Flagler does nothing, they’ll face immediate competition by virtue of online sports betting being activated in the state[…]there is very little downside to an appeal and there’s no risk. It’s an insignificant cost compared with what they’ve already spent fighting this. If they’re already in this far, I don’t see the logic of conceding at this point,” Wallach said.

The gaming attorney said he expects West Flagler to appeal with the D.C. Circuit and take the fight to SCOTUS as well.

SCOTUS may have interest in hearing the case if West Flagler goes that route, Wallach said. The D.C. Circuit court ruling may have triggered a number of grounds that would appeal to a SCOTUS hearing.

If West Flagler chooses to not appeal the U.S. Court of Appeals decision, it will  have until Sept. 30 to request a writ of certiorari with SCOTUS.

“This is an unsettled question of law. Ultimately, the question of whether the Indian Gaming Regulatory Act applies to tribal gaming outside of Indian lands is a question that has been wrestled with in a number of previous federal court decisions.  The confusion over this issue has prompted proposed federal legislation. Two times this has prompted the Department of Interior to propose new rules recognizing that compact’s can includes provisions for online sports betting,” he said.

What Happens if No Appeal is Made?

So if the unlikely happens and West Flagler doesn’t appeal the ruling today or take the issue to SCOTUS, what is the timeline for the Seminole Tribe to being offering Florida online sports betting again?

It could happen as soon as next week.

The U.S. Court of Appeals for the District of Columbia official mandate will go into effect on Monday, Aug. 21, paving the way for the tribe to launch sports betting and its new table games anytime after.

The post West Flagler Has Until Today To Appeal Florida Sports Betting Ruling appeared first on Sports Betting Dime.

Wynn Resorts announced today its decision to cease WynnBET’s online sports betting and iGaming operations in eight states as soon as possible.

WynnBET is currently licensed to operate in 12 states. It will work with regulators to cease operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia as soon as possible.

It will continue to operate in Nevada and Massachusetts. Wynn announced it will also review its New York and Michigan operations.

Wynn Cites Better Uses of Capital Deployment

Julie Cameron-Doe, chief financial officer of Wynn Resorts, noted in the announcement that the requirement for “outsized marketing spend through user acquisition” was a mitigating factor that led to the decision.

“In light of the continued requirement for outsized marketing spend through user acquisition and promotions in online sports betting, we believe there are higher and better uses of capital deployment for Wynn Resorts shareholders,” she said.

She went on to explain in the announcement that Wynn Resorts still believes in the long-term prospects of iGaming, but the lack of iGaming legislature in the country made opportunities difficult for the operator.

“While we believe in the long-term prospects of iGaming, the dearth of iGaming legislation and the presence of numerous other investment opportunities available to us around the globe have led us to the decision to curtail our capital investment in WynnBET to focus primarily on those states where we maintain a physical presence,” she said.

What Happens in New York?

WynnBET has struggled to gain a foothold in New York, reporting $155.5 million in online sports betting handle since launching in January 2022. This amounted to just a 0.6% online sports betting handle share in New York.

If WynnBET ceases operations in New York, it’s unknown what will happen to their online sports betting license. A representative for the New York State Gaming Commission told SBD that it is monitoring the situation closely, but “cannot opine on hypotheticals.”

Recently, PENN Entertainment CEO Jay Snowden said the company and ESPN BET would explore opportunities to enter the New York online sports betting market. Will this be the opportunity PENN Entertainment needs to enter the market?

WynnBET Recently Promoted its Multi-State App

Oddly enough, one week ago WynnBET announced an additional six states would be included in its new multi-state WynnBET app. The multi-state platform replaced existing state specific WynnBET apps in Arizona, Colorado, Indiana, Tennessee, and Virginia. It previously launched in Massachusetts and West Virginia and the company announced plans to bring in New Jersey and New York in the next several weeks.

It also had plans to bring Michigan into the multi-state app as well.

“We are thrilled to introduce the new WynnBET app with enhanced sportsbook technology to six more markets, which continues our commitment to offer players a five-star experience in each of the states we operate in,” Wynn Sports Interactive President Ian Williams said in a press release. “We would like to thank state regulators for their timely review of our new platform as well as the many WynnBET team members and partners involved in this project for their diligent work in finalizing this significant task in a short amount of time.”

Now? WynnBET will be ceasing operations in each of those states outside of Massachusetts, Michigan, and New York.

If you were a WynnBET customer now looking for a new sportsbook, consider one of the following:

The post WynnBET Will Cease Online Sports Betting, iGaming Operations in Eight States appeared first on Sports Betting Dime.

An important appeal date for the fate of Florida sports betting is fast approaching, as West Flagler has until Monday, Aug. 14, to officially appeal a U.S. Court of Appeals for the District of Columbia ruling that restored a 2021 Florida gaming compact.

West Flagler, the plaintiffs in the hearing, have until Monday to file a petition for an “en banc hearing” of the U.S. Court of Appeals decision. If they do not file a petition by Aug. 14, the official mandate restoring the Florida gaming compact will go into effect on Monday, Aug. 21. If restored, the Seminole Tribe will once again be able to launch its Florida sports betting services, along with craps and roulette in its Florida casinos.

But what are the odds that West Flagler will appeal the decision? Or take the issue to the Supreme Court of the United States (SCOTUS)? Daniel Wallach, a gaming law attorney, Founder of Wallach Legal and UNHLaw Sports Wagering, told Sports Betting Dime that he expects West Flagler to continue their fight in one way or another, but face long odds to have a rehearing request granted.

Florida Gaming Compact Restored After Ruling

In late June, a three-judge panel for the U.S. Court of Appeals for the the District of Columbia unanimously agreed to overturn a ruling from U.S. District Court Judge Dabney L. Friedrich that declared a 2021 Florida gaming compact violated the Indian Gaming Regulatory Act (IGRA).

The gaming compact was thrown out by Friedrich in November 2021. Ultimately, Friedrich determined the compact violated the conditions set forth by IGRA that limits tribal gaming to the confines of tribal lands. The Seminole Tribe argued in the gaming compact that because the servers that processed the online sports bets were located on tribal land, then the bets themselves were placed on tribal lands.

The three-judge panel for the U.S. Court of Appeals for the the District of Columbia disagreed with her ruling.

“We see the case differently. IGRA ‘regulate[s] gaming on Indian lands, and nowhere else.’ Michigan v. Bay Mills Indian Cmty., 572 U.S. 782, 795 (2014). Thus, to be sure, an IGRA gaming compact can legally authorize a tribe to conduct gaming only on its own lands. But at the same time, IGRA does not prohibit a gaming compact—which is, at bottom, an agreement between a tribe and a state—from discussing other topics, including those governing activities “outside Indian lands[.]” Id. at 796. In fact, IGRA expressly contemplates that a compact ‘may’ do so where the activity is ‘directly related to’ gaming,” the judges wrote in the ruling.

West Flagler has options moving forward if they hope to continue their legal fight. The District Court specifically noted in its ruling that the plaintiffs could take the issue to Florida State Court. The plaintiffs can also apply for an “en banc hearing” of the U.S. Court of Appeals decision or appeal to the Supreme Court of the United States to hear the case.

But will West Flagler continue their fight?

Appeal From West Flagler Likely

Wallach today spoke at length with Sports Betting Dime about the potential for an appeal from West Flagler. The gaming law attorney said an appeal is a “no-risk” play for West Flagler and he expects them to file with both the U.S. Court of Appeals and Supreme Court moving forward.

“If West Flagler does nothing, they’ll face immediate competition by virtue of online sports betting being activated in the state[…]there is very little downside to an appeal and there’s no risk. It’s an insignificant cost compared with what they’ve already spent fighting this. If they’re already in this far, I don’t see the logic of conceding at this point,” Wallach said.

There could be more support for West Flagler’s legal position in this matter than there is for the D.C. Circuit ruling, he said. The hook, or logic, that the D.C. Circuit used in concluding that the compact addresses internet wagering as a permitted term is “inconsistent with decisions” made by federal appeals courts in the ninth circuit, 10th circuit, and D.C. Circuit.

SCOTUS may have interest in hearing the case if West Flagler goes that route, Wallach said. The D.C. Circuit court ruling may have triggered a number of grounds that would appeal to a SCOTUS hearing.

If West Flagler chooses to not appeal the U.S. Court of Appeals decision, it will  have until Sept. 30 to request a writ of certiorari with SCOTUS.

“This is an unsettled question of law. Ultimately, the question of whether the Indian Gaming Regulatory Act applies to tribal gaming outside of Indian lands is a question that has been wrestled with in a number of previous federal court decisions.  The confusion over this issue has prompted proposed federal legislation. Two times this has prompted the Department of Interior to propose new rules recognizing that compact’s can includes provisions for online sports betting,” he said.

The conflict around this issue will not subside with the D.C. Circuit’s decision and it is doubtful that it will be the last federal appeals court to weigh in on the issue unless heard by SCOTUS, Wallach said.

“That conflict (IGRA vs. online gaming on tribal land) has never been resolved and I think this is the perfect opportunity for the U.S. Supreme Court to bring certainty and clarity to this issue, which has resulted in all these efforts to change or reinterpret IGRA. If the Supreme Court doesn’t weigh in now, the federal court system will be inundated with further challenges down the road,” Wallach said.

The conflict around this issue will not subside with the D.C. Circuit’s decision. It is doubtful that it will be the last federal appeals court to weigh in on the issue, he said.

Odds Are Steep if an Appeal Is Granted

But just because the plaintiff appeals for a rehearing or asks for a hearing in front of SCOTUS does not mean it will be granted, Wallach said.

En banc hearings are rarely granted by the U.S. Court of Appeals, Wallach said, as the court typically grants only one review for every 500 three-judge panel decisions. An en banc hearing has not been granted since 2021, he noted.

“The interpretation of a gaming statute is not on par with the kinds of issue the D.C. Circuit would typically grant a rehearing on. These are issues that present important federal constitutional questions, separation of power type issues, and this doesn’t strike me as the kind of case that reaches the threshold of being an issue of exceptional importance,” Wallach said.

West Flagler may have a better chance at having a hearing with SCOTUS, but those are still long odds. Wallach said SCOTUS typically hears between 60 to 80 cases a year, but “receives many more positions.”

“60 slots versus one slot. You do the math. You look at the scope of what the Supreme Court grants writ of certiorari on and I think this has a decent chance of bucking the odds. Because, this issue is a recurring one that will not go away anytime soon, particularly if other states and tribes utilize the Florida compact as a blueprint,” he said.

SBD will update the story with more information as the Monday, Aug. 14 deadline draws near.

The post West Flagler Likely to Appeal Court’s Florida Sports Betting Decision, Could Face Long Odds appeared first on Sports Betting Dime.

As PENN Entertainment moves forward in its rebranding efforts of the Barstool Sportsbook online sports betting app to ESPN BET, it’s likely that state sports betting regulators will have questions for PENN and ESPN regarding responsible gaming measures and protections for underage citizens where ESPN BET will operate.

Based on past regulatory discussions involving PENN and its partnership with Barstool Sportsbook, it’s not entirely unlikely that regulators will want assurances that ESPN BET will not be promoted at live ESPN events, such as its popular ESPN College Gameday show, where persons under the age of 21 might be in attendance.

It poses an interesting question…will ESPN face the same scrutiny as Barstool Sports for its programming and potential influence on underage viewers?

Live College Football Show Rankled Massachusetts, Ohio Regulators

The Massachusetts Gaming Commission focused extensively on Barstool Sports allegedly promoting sports betting to an underage crowd during its sports betting licensing process with PENN. The MGC pointed to an incident in Ohio where Barstool Sports was fined $250,000 by the Ohio Casino Control Commission for violating a state prohibition on advertising targeting a college campus and/or individuals under the age of 21.

The violation, sent to Penn Sports Interactive as part of its Barstool Sportsbook brand, stemmed from a Nov. 15, 2022, Barstool College Football show which took place “on, or targeting the area of, the University of Toledo’s Campus.” During the show, the violation notice alleges that Barstool advertised the Barstool Sportsbook by promoting pre-registration for the sportsbook, including bonus cash and “mycash” rewards for PENN Entertainment casinos. It also said Barstool targeted individuals under the age of 21 in the same way during the show.

As part of PENN’s sports betting license approval, the MGC ordered PENN and Barstool Sports must take specific measures to ensure that no individual under the age of 21 be permitted to any Barstool Sports College Football shows.

Will PENN’s sports betting rebranding to ESPN BET be subjected to these same state restrictions on similar types of live ESPN programming where individuals under the age of 21 may be in attendance?

ESPN College Game Day Restrictions?

ESPN College Gameday, a popular national college football television show, is a live event that typically broadcasts from a college campus. Students flock to the tapings, many who are under the age of 21. Will ESPN, ESPN BET, and PENN Entertainment be beholden to the same national restrictions moving forward as part of their licensure in Massachusetts? Will Ohio regulators have questions for PENN regarding its plans to restrict advertisement of ESPN BET during live events where underage individuals may be in attendance?

ESPN College Gameday is a massive show, far bigger than the Barstool College Football show that came under question. Will the MGC impose the same national restrictions on ESPN BET if ESPN doesn’t bar students younger than 21 from attending one of the shows?

It is important to note that ESPN BET is beginning with a clean slate in these states. The Barstool College Football show faced these restrictions after its hosts advertised the Barstool Sportsbook and pre-registration for the online app at a live event. It’s likely that regulators will have discussions with PENN and ESPN warning them of such actions, but perhaps will not impose restrictions until a violation occurs?

It also remains to be seen just how extensive the rebranding discussions will be in each state. Discussions will likely take place in both Ohio and Massachusetts leading up to the rebranding, but will not be as intense as the process PENN underwent when seeking a sports betting license.

The MGC has shown a diligence in ensuring limited sports betting exposure to underage state residents, so it will likely have questions for PENN regarding live ESPN programming. An Ohio Casino Control Commission representative told Sports Betting Dime that its compliance team is in regular contact with all Ohio sportsbooks, but does not believe that any regulatory items will be necessary for the rebranding.

ESPN BET Launching in November

PENN Entertainment is currently licensed to operate sports betting in 16 states throughout the country. These are as follows:

• Arizona
• Colorado
• Illinois
• Indiana
• Iowa
• Kansas
• Louisiana
• Maryland
• Massachusetts
• Michigan
• New Jersey
• Ohio
• Pennsylvania
• Tennessee
• Virginia
• West Virginia

PENN Entertainment CEO Jay Snowden revealed that ESPN BET will debut in the middle of the NFL season, “certainly before Thanksgiving,” but a specific date had yet to be determined. The new sportsbook is likely to launch sometime in November.

The post Will State Sports Betting Regulations Affect ESPN Programming? appeared first on Sports Betting Dime.

DraftKings set a company high in New York online sports betting this past week, reporting its highest weekly handle total ever of $161.4 million and highest weekly revenue total of $25.1 million.

Let’s repeat that… DraftKings New York reported $161.4 million in total handle and $25.1 million in revenue New York online sports betting during a random August week, even topping company totals for the last two Super Bowls weeks.

$161.4 million in online sports betting handle and $25.1 million in revenue…in New York…for the week ending Aug. 6.

Well alright than!

DraftKings Record Setting New York Week

It was the most successful week of New York online sports betting ever for DraftKings and the most profitable for New York since May. The New York State Gaming Commission releases handle and revenue reports for Caesars Sportsbook, DraftKings Sportsbook, FanDuel, BetMGM, WynnBET, PointsBet, Bally Bet, Resorts World Bet, and BetRivers at the conclusion of each week.

Overall, the state gaming commission reported $317,04,491 in total online sports betting handle and $43,434,415 in revenue for the week ending Aug. 6.

DraftKings dominated the week, outpacing even top-operator FanDuel New York by $62 million in total handle and $13 million in revenue. DraftKings noted on its social media feeds that the Nate Diaz and Jake Paul fight on Aug. 5 set multiple DraftKings records.

According to the operator, the fight was the second most bet boxing match and the fifth most bet combat sports match on DraftKings of all time.

Jake Paul and Nate Diaz set multiple sports betting records Saturday night 👀 pic.twitter.com/rhWCISnK6U

— DraftKings Sportsbook (@DKSportsbook) August 8, 2023

Additionally, the New York Jets took on the Cleveland Browns on Thursday, Aug. 3, for the NFL’s annual Hall of Fame game, the first preseason NFL game of the year.

Despite it’s company record setting week, DraftKings fell short of the all time weekly handle and revenue highs, both of which have been set by FanDuel. FanDuel set the New York sports betting handle record of $188,336,202 for the week ending March 19, 2023, and the revenue record of $26,569,171 for the week ending Jan. 22, 2023.

Here are the handle breakdowns for the nine sportsbooks for the week ending Aug. 6:

• DraftKings: $161,404,051
• FanDuel: $99,252,423
• Caesars: $28,704,799
• BetMGM: $14,032,744
• BetRivers: $7,931,548
• PointsBet: $3,524,376
• WynnBET: $1,903,463
• Resorts World: $751,087
• Bally Bet: $0

Bally Bet ceased operations on June 22 while it transitions to Kambi’s sports betting platform. It will likely come back online before the year is out.

Here are the total handles for the nine sportsbooks since New York’s Jan. 8, 2022 launch. FanDuel is the only operator in the state to eclipse $10 billion in total handle so far.

• FanDuel: $10,660,721,492
• DraftKings: $8,168,647,930
• Caesars: 4,060,822,168
• BetMGM: $2,067,639,810
• BetRivers: $706,370,999
• PointsBet: $620,897,815
• WynnBET: $157,159,731
• Resorts World: $94,496,704
• Bally Bet: $16,370,924

NY Sports Betting Revenues

For the week of Aug. 5, the nine sportsbooks reported a total of $43,434,415 in gross gaming revenue.

At New York’s 51% online sports betting tax rate, this resulted in $22.15 million in tax revenue.

Here are the total gross gaming revenues for the week:

• DraftKings: $25,149,544
• FanDuel: $12,233,869
• Caesars: $2,988,917
• BetMGM: $1,885,558
• BetRivers: $492,381
• PointsBet: $401,756
• WynnBET: $169,407
• Resorts World: $112,984
• Bally Bet: $0

Here are the total gross gaming revenues since the Jan. 8, 2022 launch:

• FanDuel: $1,110,705,807
• DraftKings: $669,531,378
• Caesars: $301,406,026
• BetMGM: $136,443,697
• BetRivers: $40,497,878
• PointsBet: $37,901,357
• WynnBET: $9,608,909
• Resorts World: $5,235,422
• Bally Bet: $917,669

The post DraftKings Sets Company High for New York Online Sports Betting…In August? appeared first on Sports Betting Dime.

The Kentucky sports betting landscape is becoming more clear by the day.

Gov. Andy Beshear (D) today announced that seven online sports betting operators and seven of the state’s licensed racetracks have applied for Kentucky sports betting licenses.

“The countdown is on. Kentuckians can plan to place their first sports wagers, at a retail location, in just 28 days,” Gov. Beshear said today. “Bringing sports wagering to the state not only gives Kentuckians a much-anticipated new form of entertainment, but also brings money to the state to support pensions, freeing up money that can be used to build a better Kentucky through the funding of education, economic development, disaster recovery and other necessary projects, like providing cleaner water, building roads and high-speed internet.”

Seven Operators Apply for Kentucky Sports Betting Licenses

According to the Kentucky Horse Racing Commission, seven sports betting operators have applied to operate in Kentucky/ The KHRC stressed that an application does not immediately mean a license will be awarded.

The following operators submitted applications:

• DraftKings Kentucky
• FanDuel Kentucky
• BetMGM Kentucky
• Caesars Sportsbook Kentucky
• Bet365 Kentucky
• Circa
• PENN Sports Interactive (ESPN BET)

The applications will be voted on by the KHRC at its Aug. 22 meeting.

It’s the first new sports betting application for PENN Sports Interactive and its partner ESPN BET. PENN is licensed for sports betting in 16 other states and hopes to launch ESPN BET by November.

“The KHRC is excited to open sports wagering and is working efficiently to meet the necessary deadlines. This is a careful process dedicated to wagering integrity and protecting bettors in the state of Kentucky,” said KHRC Chairman Jonathan Rabinowitz.

The KHRC also received applications from seven of the state’s licensed racetracks:

• Churchill Downs, Louisville
• Cumberland Run, coming soon to Corbin
• Ellis Park, Henderson
• Oak Grove Gaming and Racing, Oak Grove
• The Red Mile, Lexington
• Sandy’s Gaming and Racing, coming soon to Ashland
• Turfway Park, Florence

Existing Kentucky Sports Betting Partnerships

BetMGM, Caesars, DraftKings, and FanDuel all previously announced Kentucky sports betting market access agreements. BetMGM announced a partnership with Revolutionary Racing Kentucky (RRKY) earlier this week and plan to launch on Thursday, Sept. 28. BetMGM is also planning to open a 5,200 square-foot brick-and-mortar sportsbook at Sandy’s Racing and Gaming, a $75 million gaming and entertainment facility in Ashland.

Caesars  announced agreements with Keeneland and Red Mile Gaming and Racing in Lexington to grant Caesars Sportsbook market access for online sports betting. The agreement also includes plans to open the first brick-and-mortar retail sportsbook location in central Kentucky.

As part of the deal, Caesars Sportsbook will be an official sports betting partner of Keeneland and Red Mile. Caesars will also operate as an on-premise brick-and-mortar sportsbook at Red Mile.

A FanDuel spokesperson confirmed the sports betting operator will partner with Churchill Downs for Kentucky sports betting market access. The spokesperson said the operator has made no additional announcements about future Kentucky sports betting plans and has no further comment at this time.

In April, Churchill Downs CEO Bill Carstanjen spoke with WDRB.com and said the famous track would be partnering with FanDuel Kentucky for its sports betting product.

However, no confirmation of the deal was provided by FanDuel until late June.

DraftKings CEO and Co-Founder Jason Robins said during the company’s Q2 2023 earning report the operator has secured Kentucky access and will launch online sports betting on Sept. 28. However, he did not provide any other details on a partnership with a track.

The post Initial Operators Applying For Kentucky Sports Betting License Includes ESPN BET appeared first on Sports Betting Dime.

It came out of the blue this week when PENN Entertainment and ESPN announced a $2 billion partnership to launch ESPN BET by the fall. But despite the surprise announcement, ESPN has been looking into branding deals with multiple sports betting operators since at least 2021.

ESPN BET will launch in 16 states by the middle of the NFL season, “certainly before Thanksgiving,” according to PENN Entertainment CEO Jay Snowden. It’s the latest attempt by PENN to partner with a media brand for sports betting after it became clear that its previous partnership with Barstool Sports was not living up to expectations.

But the partnership with PENN Entertainment was a surprising one, as ESPN has been publicly linked to several other sports betting operators in the last three years.

PENN Made “Aggressive” Offer to ESPN

Walt Disney CEO Bob Iger addressed the partnership yesterday during the company’s Q3 2023 fiscal year earnings report. Iger noted that ESPN had discussions with “a number of entities” over the past several years, but PENN Entertainment “stepped up in a very aggressive way.”

“They made an offer to us that was better than any of the competitive offers — by far,” Iger said during the report.

The PENN partnership was even more surprising considering ESPN had two previous media deals with both DraftKings and Caesars dating back to 2020. The sports media giant entered into two separate multi-year agreements with the two sports betting companies and became linked to both following a Wall Street Journal report in 2021.

According to the Wall Street Journal, ESPN was seeking to license its brand with a major sports-betting company for $3 billion in 2021. The report specifically mentioned ESPN had branding discussions with both DraftKings and Caesars.

ESPN Refuted DraftKings Rumors

Last October, whispers out of the industry began to claim that ESPN was nearing a deal with DraftKings, one that ESPN President Jimmy Pitaro refuted in November 2022 at the Sports Business Journal Media Innovators conference in New York.

“We’ve been exploring. We’ve had conversations with all the usual suspects, looking at what could be the logical next step for us. We are not going to, and I’ve said this repeatedly, we’re not going to create a book. We’re not going to take people’s money. We’re not going to set lines, spreads, and odds, it’s not what we do. The idea of leaning in a bit more here, creating a more seamless experience, it’s something that’s definitely on the table,” Pitaro said at the conference.

Pitaro’s comments were a stark contrast to rumors that surrounded ESPN in early October 2022, when several outlets reported the sports media giant was close to licensing its brand to DraftKings Sportsbook. Bloomberg reported that ESPN and DraftKings was close to an agreement for the massive sports media company to license its brand to the sports betting operator.

The post ESPN Had Long History of Sports Betting Interest Before ESPN BET Deal appeared first on Sports Betting Dime.

PENN Entertainment CEO Jay Snowden said today that ESPN BET will launch in 16 states by the middle of the NFL season, “certainly before Thanksgiving,” and the new deal will allow PENN to expand its offerings into other states that balked at their previous Barstool Sports partnership.

Snowden revealed during a PENN Entertainment Q2 2023 earnings call today that a 5% sports betting market share would no longer be acceptable and the company is planning an increased promotional spend to meet expectations. The push will begin in the initial 16 states PENN is licensed for sports betting after their regulatory bodies approve the rebrand and partnership.

But will a rebranding be as easy as expected? What regulatory hurdles will ESPN, PENN Entertainment, and ESPN BET face as it moves towards an NFL launch? There are many unknowns as ESPN BET moves closer to its November debut.

Where Will ESPN BET Debut?

PENN Entertainment is currently licensed to operate sports betting in 16 states throughout the country. These are as follows:

• Arizona
• Colorado
• Illinois
• Indiana
• Iowa
• Kansas
• Louisiana
• Maryland
• Massachusetts
• Michigan
• New Jersey
• Ohio
• Pennsylvania
• Tennessee
• Virginia
• West Virginia

While Snowden thanked Barstool Sports for their three-year partnership with PENN, he did reveal that the new deal with ESPN would allow additional licensure in states that were wary of the Barstool Sportsbook brand.

Barstool Sports Founder Dave Portnoy revealed as much in an “emergency press conference” he posted on X yesterday.

Emergency Press Conference – I Bought Back Barstool Sports pic.twitter.com/dmUk0eNowx

— Dave Portnoy (@stoolpresidente) August 8, 2023

“We underestimated just how tough it is for myself and Barstool to operate in a regulated world…We got denied licenses because of me. You name it. So the regulated industry is probably not the best place for Barstool Sports,” he said.

So where will PENN look next for sports betting licensure? The PENN Entertainment CEO today specifically pointed out New York as a possibility, with opportunities in the short- or medium-term to gain licensure. While Snowden did say that “nobody is making money in New York,” it’s important for a scale player to have access to the states that matter.

Upcoming sports betting markets such as Kentucky, Vermont, and North Carolina are also assuredly on PENN Entertainment’s radar for ESPN BET licensure.

What Regulatory Hurdles could PENN, ESPN Face?

Sports betting regulations are complicated, dense, and could include significant hurdles for PENN Entertainment and ESPN BET prior to launch.

The Massachusetts Gaming Commission, for example, focused extensively on Barstool Sports and its apparent promotion of sports betting to an underage audience when considering sports betting licensure for PENN and Barstool Sportsbook. The commissioners pointed to an incident in Ohio where Barstool Sports was fined $250,000 by the Ohio Casino Control Commission for violating an Ohio prohibition on advertising targeting a college campus and/or individuals under the age of 21.

The violation, sent to Penn Sports Interactive as part of its Barstool Sportsbook brand, stemmed from a Nov. 15, 2022, Barstool College Football show which took place “on, or targeting the area of, the University of Toledo’s Campus.” During the show, the violation notice alleges that Barstool advertised the Barstool Sportsbook by promoting pre-registration for the sportsbook, including bonus cash and “mycash” rewards for PENN Entertainment casinos. It also said Barstool targeted individuals under the age of 21 in the same way during the show.

Barstool and PENN Entertainment agreed to take specific measures moving forward that only individuals 21 years of age or older attend any Barstool Sports College Football shows as a condition of its licensure.

ESPN College Gameday, a popular national college football television show, is a live event that typically broadcasts from a college campus. Students flock to the tapings, many over 21. Will ESPN, ESPN BET, and PENN Entertainment be beholden to the same national restrictions moving forward as part of their licensure?

ESPN College Gameday is a massive show, far bigger than the Barstool College Football show that came under question. Will the MGC deny ESPN BET a license if ESPN doesn’t restrict students younger than 21 from attending one of the shows?

It will be interesting to see how PENN Entertainment and ESPN successfully navigate each state’s unique regulations moving forward into the fall.

The post PENN Entertainment Plans to Launch ESPN BET In 16 States, May Face Regulatory Hurdles appeared first on Sports Betting Dime.

PENN Entertainment held its Q2 2023 earning report this morning and CEO Jay Snowden didn’t hesitate in informing the public when ESPN BET would likely make its debut.

Snowden revealed that ESPN BET will debut in the middle of the NFL season, “certainly before Thanksgiving,” but a specific date had yet to be determined. The new sportsbook is likely to launch sometime in November.

ESPN and PENN Entertainment yesterday announced an agreement to launch ESPN BET by the fall in 16 states where PENN is licensed to operate. Barstool Sportsbook will be rebranded as ESPN BET moving forward.

ESPN Is an “Everything Brand”

Snowden touted the ESPN and PENN Entertainment partnership as a “strategic relationship” between the two companies. ESPN is an “everything brand,” Snowden said, and the partnership is fully integrated and includes access and endorsement from top talent at ESPN. PENN Entertainment will also look at potentially integrating ESPN game feeds into the ESPN BET app by the end of the year, he said.

“There are a lot of things we can do here because of who our partner is,” Snowden said.

The partnership will be “more valuable” to ESPN over time, Snowden said. As part of the deal, PENN Entertainment will grant ESPN approximately $500 million of warrants to purchase 31.8 million PENN common shares. However, if ESPN BET reaches certain online sports betting market share thresholds, ESPN can receive bonus warrants to purchase an additional 6.4 million in PENN shares.

“You think about how this will be more valuable for ESPN over time, helping us achieve higher levels of market share. The higher levels of market share make the warrants they own at PENN more valuable. You make it to 20% you get more warrants and be more valuable,” he said.

If the partnership does not work out or meet expectations, Snowden said there are measures in the deal that would allow PENN to cancel the partnership after three years. He did not disclose the details of the three-year opt-out, but did say the bottom range of expectations by year three would be a 20% market share threshold for ESPN BET.

ESPN BET has the potential to be a top-three sportsbook in terms of market share in states it operates, Snowden said. By likely launching in November, the CEO said ESPN BET’s debut won’t get “lost in the noise” of NFL week one and other operators will have burnt through their promotional spend by this time.

The company also believes that the ESPN partnership will allow it to receive sports betting licenses in states where a Barstool partnership would not, Snowden said. There may be an opportunity to gain access into New York, he said, and PENN could be interested even with the difficult tax rate.

“Nobody is making money in New York, but in terms of database cultivation, hopefully there’s opportunities down the road for access,” he said.

The online Barstool Sportsbook will be rebranded ESPN BET in the fall of 2023, while theScore Bet will continue to operate in Canada. The rebrand includes the mobile app, website, and mobile website. PENN Entertainment will oversee the daily operations of ESPN BET sportsbook.

Snowden said that Barstool branding would be removed from PENN’s retail Barstool Sportsbook locations, but that would take some time. Moving forward, he noted that ESPN BET branded retail sportsbooks could become a reality.

PENN Entertainment Q2 2023 Results

In terms of the company’s Q2 2023 results, PENN Entertainment reported $1.67 billion in revenues, an increase of 2.9% year-over-year. Net income was reported at $78.1 million and net income margin of 4.7%, as compared with net income of $26.1 million and net income margin of 1.6% in the prior year.

PENN also reported an adjusted EBITDA of $330.4 million, a decrease of 30.7% year over year.

“The company experienced stable property level performance this quarter with each month showing sequential improvement. Additionally, we are excited to have successfully re-launched our sportsbook app, which features major product improvements that significantly upgrade the user experience, including streamlined navigation, faster load times, expanded wagering markets, enhanced promotions and deeper media integrations,” Snowden said in a release.

The post ESPN BET Set to Debut ‘Certainly Before Thanksgiving’ appeared first on Sports Betting Dime.

Despite paying more than half a billion dollars to acquire Barstool, PENN Entertainment’s Barstool Sportsbook brand lagged in national market share, something the company hopes is vastly improved with its recently announced partnership with ESPN to launch ESPN BET.

ESPN and PENN Entertainment today announced an agreement to launch ESPN BET by fall in 16 states where PENN is licensed to operate. Barstool Sportsbook will be rebranded as ESPN BET as the sports betting operator moves forward in the fall.

PENN Entertainment agreed to pay $1.5 billion to ESPN over the initial 10-year term and grant ESPN approximately $500 million of warrants to purchase 31.8 million PENN common  shares. As part of the deal, PENN Entertainment has included potential financial incentives for ESPN dependent on ESPN BET reaching performance thresholds for North American online sports betting market share.

Barstool Sportsbook Struggled to Gain Foothold

Barstool Sportsbook was operational in 16 states throughout the country, but according to several estimates the sportsbook had less than a 5% market share in its states. This is certainly not what PENN Entertainment envisioned when it fully acquired Barstool Sports this past February.

PENN previously acquired a 36% stake of Barstool in February 2020 and completed the final acquisition of the remaining stake in February 2023 for $388 million. In total, PENN acquired all of Barstool Sports for $551 million. The 2020 agreement included a path for PENN to establish full control and ownership of the company.

But Barstool Sportsbook struggled to gain traction and had difficulty competing with top sports betting operators DraftKings, FanDuel, BetMGM, and Caesars Sportsbook on a national scale. During Ohio’s sports betting launch this past January, Barstool Sportsbook claimed about a 4.5% market share ($45.89 million in handle), while FanDuel and DraftKings claimed about a 45.3% and 31.5% market share, respectively.

PENN Entertainment agreed to sell 100% of its Barstool Sports, Inc. common stock to original founder David Portnoy in exchange for certain non-compete and other restrictive covenants. PENN also has the right to receive 50% of the gross proceeds received by Portnoy if he chooses to sell or agrees to another monetization event of Barstool.

Despite the partnership ending, PENN Entertainment CEO Jay Snowden thanked Barstool for being a “great partner.”

“In connection with the transaction, we are selling Barstool back to founder David Portnoy. Barstool has been a great partner and we are thankful to Dave Portnoy, Erika Ayers, Dan Katz and their team for helping to rapidly scale our digital footprint across 16 jurisdictions in the U.S. and introducing their audience to our retail and digital products. The divestiture allows Barstool to return to its roots of providing unique and authentic content to its loyal audience without the restrictions associated with a publicly traded, licensed gaming company,” Snowden said in a release.

Online Sports Betting Market Share Incentives

PENN Entertainment is certainly banking on the ESPN partnership to capture more of the national market share and has included incentives in its partnership with the sports media giant for online sports betting market percentages it hits. Upon ESPN meeting certain U.S. online sports betting market share, ESPN can receive bonus warrants to purchase up to an additional 6.4 million in PENN shares.

In a PENN Entertainment presentation scheduled for Aug. 9 at 9 a.m., the company laid out just how ESPN BET’s online sports betting market share can effect the company’s financial health.

Described as a “significant value creation,” PENN estimates it could see an annual adjusted EBITDA of $1 billion by 2027 if it captures 20% of the online sports betting market share in North America.

The post PENN Entertainment Banking on ESPN BET Improving Market Share appeared first on Sports Betting Dime.

ESPN has long been rumored to be interested in getting into the sports betting scene and that finally became a reality late this afternoon.

ESPN and PENN Entertainment today announced an agreement to launch ESPN BET by fall in 16 states where PENN is licensed to operate. Barstool Sportsbook will be rebranded as ESPN BET as the sports betting operator moves forward in the fall.

According to a press release, PENN has secured the exclusive right to the ESPN BET trademark for online sports betting in the U.S. for an initial 10-year term which may be extended for an additional 10 years upon mutual agreement. PENN Entertainment agreed to pay $1.5 billion to ESPN over the initial 10-year term and grant ESPN approximately $500 million of warrants to purchase 31.8 million PENN common  shares.

If ESPN BET meets a certain U.S. online sports betting market share, ESPN could receive bonus warrants to purchase an additional 6.4 million in PENN shares.

ESPN BET Will Launch in the Fall

The online Barstool Sportsbook will be rebranded ESPN BET in the fall of 2023, while theScore Bet will continue to operate in Canada. The rebrand includes the mobile app, website, and mobile website. PENN Entertainment will oversee the daily operations of ESPN BET sportsbook.

PENN Entertainment will host its Q2 2023 earning call tomorrow morning at 9 a.m.

Additionally, PENN Entertainment announced it has sold 100% of its Barstool Sports, Inc. common stock to original founder David Portnoy in exchange for certain non-compete and other restrictive covenants. PENN also has the right to receive 50% of the gross proceeds received by Portnoy if he chooses to sell or agrees to another monetization event of Barstool.

Emergency Press Conference – I Bought Back Barstool Sports pic.twitter.com/dmUk0eNowx

— Dave Portnoy (@stoolpresidente) August 8, 2023

PENN Entertainment CEO Jay Snowden thanked Barstool for being a great partner and said the partnership with ESPN is “another milestone” in PENN’s evolution.

“This transformative, exclusive agreement with ESPN marks another major milestone in PENN’s evolution from a pure-play U.S. regional gaming operator to a North American entertainment leader. ESPN Bet will be deeply integrated with ESPN’s broad editorial, content, digital and linear product, and sports programming ecosystem. ESPN Bet will also benefit from PENN’s operational experience, extensive market access and proprietary technology platform, which successfully debuted in the U.S. this July,” he said in a release.

ESPN President Jimmy Pitaro said PENN Entertainment is “the right long-term strategic partner to build ESPN Bet.”

“After meeting with Jay and the PENN team, it was clear that they were the right long-term strategic partner to build ESPN Bet into a leading U.S. sports betting platform. We are confident that the combination of our unparalleled audience along with PENN’s operational expertise and state-of-the-art technology provides us with a tremendous opportunity to serve the ever-growing number of consumers interested in betting,” he said in a release.

ESPN Sports Betting Rumors Persisted for Years

ESPN has long been rumored to be interested in the sports betting space. Interestingly, ESPN was linked to DraftKings on several occasions in the past. Last October, whispers out of the industry began to claim that ESPN was nearing a deal with DraftKings, one that Pitaro had to refute in November 2022 at the Sports Business Journal Media Innovators conference in New York.

“We’ve been exploring. We’ve had conversations with all the usual suspects, looking at what could be the logical next step for us. We are not going to, and I’ve said this repeatedly, we’re not going to create a book. We’re not going to take people’s money. We’re not going to set lines, spreads, and odds, it’s not what we do. The idea of leaning in a bit more here, creating a more seamless experience, it’s something that’s definitely on the table,” Pitaro said at the conference.

Pitaro’s comments were a stark contrast to rumors that surrounded ESPN in early October 2022, when several outlets reported the sports media giant was close to licensing its brand to DraftKings Sportsbook.

Bloomberg reported that ESPN and DraftKings was close to an agreement for the massive sports media company to license its brand to the sports betting operator. A deal makes sense, as ESPN and DraftKings already have an existing marketing partnership and ESPN has dipped its toes into sports gambling through content on its website and television shows.

The post PENN Entertainment and ESPN to Launch ESPN BET by the Fall appeared first on Sports Betting Dime.

The Massachusetts Gaming Commission will evaluate daily fantasy sports (DFS) offerings in the commonwealth as DFS operators are recently experiencing increased scrutiny for their offerings nationwide.

Massachusetts Gaming Commission Interim Executive Director Todd Grossman today revealed the commission would begin a review of DFS operator and offerings in the state in light of several public examinations across the country.

“There’s been a great deal of activity surrounding the boundaries of sports wagering and daily fantasy sports and whether there’s some overlap between the two. That is to say, whether there are certain activities offered by DFS operators that may be considered sports wagering activity. That’s been addressed in a number of jurisdictions now and has been discussed publicly. I wanted to note we are certainly aware of this issue and we’re in the process of reviewing it,” Grossman said.

DFS Under Increased Scrutiny Nationwide

Grossman did not provide any details on what the evaluation would entail or any timelines on when it would be completed.

Ahead of Massachusetts, several states have initiated examinations of DFS operations as regulators have started to criticize DFS operators for offering markets that are similar to sports betting. DFS sites are typically beholden to lower tax rates than sports betting operators and several states have taken action against offerings they consider as “illegal sports betting.”

DraftKings, FanDuel, PrizePicks, and Underdog Sports are licensed for DFS in Massachusetts. PrizePicks and Underdog Sports have both recently received national attention for their offerings and their alleged similarity to sports betting. Both DFS operators have claimed their parlay-style, over-under type betting markets fall under the Unlawful Internet Gambling Enforcement Act (UIGEA) carveout for games of skill.

PrizePicks and Underdog Sports both offer these specific types of player-prop type parlays against the house, not against other individuals like more traditional DFS operators.

Wyoming regulators recently sent both PrizePicks and Underdog Sports a cease-and-desist letter for what they determined to be “sports wagering” advertised as daily fantasy sports. Maine also sent a letter to Underdog Sports regarding a “possible” violation for offering unlicensed sports betting in the state.

Also, in recent New York State Register update, New York regulators rejected a request from a commenter to alter the state’s proposed DFS rules to allow for such contests offered by PrizePicks and Underdog Sports.

“A commenter objected to proposed Rule 5602.1(a)(4), which would make explicit that contests shall not be based on proposition betting or contests that have the effect of mimicking proposition betting. The Commission believes that a contest offering that is essentially sports betting, which is authorized for licensees and regulated pursuant to Racing Law Article 13 (not Article 14), cannot properly be characterized as IFS simply because an operator labels it as such.”

Alabama Asks For DFS Adjustment

Most recently,  Underdog Sports and PrizePicks altered their offerings to Alabama customers due to a recent request from the Alabama Attorney General’s Office. PrizePicks and Underdog Sports will no longer offer their over/under type selections with individual athletes to customers in the state. Both Underdog and PrizePicks are limited to offering Alabama customers their “combo” selections, which must include two or more athletes.

Customers in Alabama select between two to six of these “combo” boxes and play against the house, not other individuals like more traditional DFS operators.

“We are appreciative to the officials at the Alabama Attorney General’s Office who have been incredibly collaborative in ensuring that fantasy enthusiasts in the state of Alabama can access our popular skills-based fantasy contests. We now have an updated product offering in Alabama that has become extremely popular over the past month and look forward to innovating additional entertaining game types in the future,” the PrizePicks representative said.

A spokesperson for the Alabama Attorney General’s Office declined to comment on the issue. The Alabama Attorney General’s Office regulates DFS in the state.

Nicholas Green, general counsel for Underdog Sports, thanked the Attorney General for working with Underdog Sports to make the adjustments and for allowing both peer-to-peer and pick’em single-player fantasy contests in the state.

“We were glad to work with the Alabama Attorney General, who decisively interpreted the state’s daily fantasy sports law as allowing both peer-to-peer and our pick’em single-player fantasy contests. We’ve always maintained a fantasy sports license in the state, which the state has renewed multiple times. We’re continuing to offer pick’em with the Attorney General’s approval, with only relatively minor adjustments. We look forward to continuing to make our pick’em game and future game formats available to Alabamans,” he told SBD.

Currently, users in Alabama can no longer include squares with individual athletes in their selections. Customers must use the combo squares.

The post Massachusetts Gaming Commission Reviewing Daily Fantasy Sports Operations appeared first on Sports Betting Dime.

BetMGM announced it has secured market access for Kentucky sports betting.

The sports betting operator announced today a partnership with Revolutionary Racing Kentucky (RRKY) to enter the commonwealth and plans to launch online sports betting on Thursday, Sept. 28, the announced launch date for the state.

BetMGM and RRKY also announced plans to open a 5,200 square-foot brick-and-mortar sportsbook at Sandy’s Racing and Gaming.

BetMGM Ready to Launch by Sept. 28

BetMGM is gearing up to launch in September when the state will allow both retail and online sports betting to begin. BetMGM will launch its online sports betting app on Thursday, Sept. 28, by week four of the NFL season.

“Kentucky has a rich history in sports and a passionate fan base,” BetMGM CEO Adam Greenblatt said in the announcement. “Revolutionary Racing is an ideal partner, enabling us to deliver an entertaining and responsible gaming experience, while investing in the state through job creation and tax revenue.”

Kentucky retail sports betting is set to launch on Thursday, Sept. 7, before the first NFL game of the season. BetMGM and RRKY will be opening a 5,200 square-foot brick-and-mortar sportsbook at Sandy’s Racing and Gaming, a $75 million gaming and entertainment facility in Ashland.

Construction of Kentucky’s first quarter horse racetrack and equestrian center will follow on 182 acres adjacent to the facility, with the first racing launching in 2025.

“We promised to bring a world-class facility to Ashland and wanted a world-class partner for online sports wagering across the Commonwealth and at our sportsbook lounge,” Revolutionary Racing CEO Prentice Salter said in the announcement. “We’ve got that with BetMGM.”

According to a BetMGM rep, only those 21 or older in the state will be able to register for the BetMGM online sports betting app. Kentucky’s legal sports betting age is 18, one of the few states in the country to allow those under 21 to participate.

Fourth Announced Kentucky Sports Betting Operator

BetMGM is the fourth operator to announce sports betting access in the commonwealth. Both Caesars and FanDuel announced partnerships earlier in the year.

Caesars announced agreements with Keeneland and Red Mile Gaming and Racing in Lexington to grant Caesars Sportsbook market access for online sports betting. The agreement also includes plans to open the first brick-and-mortar retail sportsbook location in central Kentucky.

As part of the deal, Caesars Sportsbook will be an official sports betting partner of Keeneland and Red Mile. Caesars will also operate as an on-premise brick-and-mortar sportsbook at Red Mile.

A FanDuel spokesperson earlier confirmed the sports betting operator will partner with Churchill Downs for Kentucky sports betting market access. The spokesperson said the operator has made no additional announcements about future Kentucky sports betting plans and has no further comment at this time.

In April, Churchill Downs CEO Bill Carstanjen spoke with WDRB.com and said the famous track would be partnering with FanDuel Kentucky for its sports betting product.

“We have entered into contracts to provide certain online wagering platforms including FanDuel access to the Kentucky market in connection with which we receive a revenue stream,” Carstanjen said.

However, no confirmation of the deal was provided by FanDuel until late June.

DraftKings CEO and Co-Founder Jason Robins said during the company’s Q2 2023 earning report the operator has secured Kentucky access and will launch online sports betting on Sept. 28. However, he did not provide any other details on a partnership with a track.

The post BetMGM Announces Kentucky Sports Betting Market Access appeared first on Sports Betting Dime.

Daily fantasy sports operators Underdog Sports and PrizePicks have altered their offerings to Alabama customers due to a recent request from the Alabama Attorney General’s Office.

The two DFS operators can no longer offer their over/under type selections with individual athletes to customers. Both Underdog and PrizePicks are limited to offering Alabama customers their “combo” selections, which must include two or more athletes.

Customers in Alabama select between two to six of these “combo” boxes and play against the house, not other individuals like more traditional DFS operators.

You can see an example of the allowed “combo” boxes here:

Alabama Changes Most Recent for DFS Operators

An industry insider alerted Sports Betting Dime to the changes and a PrizePicks company representative confirmed the Alabama Attorney General Office’s request.

“We are appreciative to the officials at the Alabama Attorney General’s Office who have been incredibly collaborative in ensuring that fantasy enthusiasts in the state of Alabama can access our popular skills-based fantasy contests. We now have an updated product offering in Alabama that has become extremely popular over the past month and look forward to innovating additional entertaining game types in the future,” the PrizePicks representative said.

A spokesperson for the Alabama Attorney General’s Office declined to comment on the issue. The Alabama Attorney General’s Office regulates DFS in the state.

Nicholas Green, general counsel for Underdog Sports, thanked the Attorney General for working with Underdog Sports to make the adjustments and for allowing both peer-to-peer and pick’em single-player fantasy contests in the state.

“We were glad to work with the Alabama Attorney General, who decisively interpreted the state’s daily fantasy sports law as allowing both peer-to-peer and our pick’em single-player fantasy contests. We’ve always maintained a fantasy sports license in the state, which the state has renewed multiple times. We’re continuing to offer pick’em with the Attorney General’s approval, with only relatively minor adjustments. We look forward to continuing to make our pick’em game and future game formats available to Alabamans,” he told SBD.

Currently, users in Alabama can no longer include squares with individual athletes in their selections. Customers must use the combo squares.

An Alabama based Xeet (Twitter) user, @BIGNOAH256, provided SBD with a screen capture of PrizePicks denying an entry without combo picks.

Adjustments Not as Severe in Alabama

It’s the latest change for Underdog and PrizePicks, though the requirements in Alabama are not as severe as the DFS operators have recently seen elsewhere in the United States.

In a recent New York State Register update, New York regulators rejected a request from a commenter to alter the state’s proposed DFS rules to allow for such contests offered by PrizePicks and Underdog Sports.

“A commenter objected to proposed Rule 5602.1(a)(4), which would make explicit that contests shall not be based on proposition betting or contests that have the effect of mimicking proposition betting. The Commission believes that a contest offering that is essentially sports betting, which is authorized for licensees and regulated pursuant to Racing Law Article 13 (not Article 14), cannot properly be characterized as IFS simply because an operator labels it as such.”

Both Underdog and PrizePicks have claimed their parlay-style, over-under type offerings fall under the Unlawful Internet Gambling Enforcement Act (UIGEA) carveout for games of skill.

Both are licensed to operate in Alabama.

The post PrizePicks, Underdog Sports Adjusts Alabama Offerings After Request From Attorney General’s Office appeared first on Sports Betting Dime.

The second quarter of 2023 showed some impressive results for DraftKings, as the company reported $875 million in revenue, an 88% increase compared to the second quarter of 2022, and achieved a positive adjusted EBITDA of $72.9 million.

DraftKings CEO Jason Robins presented the Q2 results this morning and predicted the sportsbook operator would achieve positive adjusted EBITDA again in the fourth quarter of 2023 and for fiscal year 2024.

“Revenue and adjusted EBITDA exceeded expectations in the second quarter,” Robins said during the earnings call.

Improved Revenue Outlook for 2023

In the fourth quarter of 2023, DraftKings expects to generate $150 million to $175 million of adjusted EBITDA and nearly $1.2 billion in revenue, Robins said. The company’s revenue and EBITDA guidance for fiscal year 2023 includes launches for both Kentucky and Puerto Rico, which DraftKings believes it will receive licensure for both.

“DraftKings produced outstanding results for the second quarter of 2023. We grew revenue at an impressive year-over-year rate, captured additional GGR share in a cost-effective manner, and maintained our focus on operational efficiency,” Robins said in the earning report. “The positive adjusted EBITDA that we generated in the second quarter exceeded our guidance, and we are well on our way to achieving positive adjusted EBITDA again in the fourth quarter of 2023 and for fiscal year 2024 and beyond. We are excited by the additional product features and functionality that we are introducing leading into football season and also look forward to another successful online sportsbook launch in Kentucky this fall pending licensure and regulatory approvals.”

Kentucky sports betting will launch on Thursday, Sept. 28. Robins said the company will likely launch its online sports betting product on that date and has already secured market access in the state. Moving forward, DraftKings also has plans to launch in North Carolina and Vermont in 2024, dependent on securing market access in both states.

The Bluegrass State’s launch came earlier than expected, DraftKings CFO Jason Park said, and will result in an estimated $20 million in revenue and a $30 million EBITDA loss for the company. Also, Ohio’s increase from 10% to a 20% sports betting tax rate will result in an estimated $10 million cost for DraftKings, he said.

When asked about Ohio’s sports betting tax increase, Robins noted that he expects other states to continue to tax sports betting at a “reasonable level.” Most states understand that if taxes are too high, the legal, regulated operators cannot compete with the unregulated, offshore operators that pay no taxes to a state.

Park said the company will be increasing its midpoint of its fiscal year 2023 revenue guidance to $3.5 billion from $3.185 billion and improving the midpoint of its fiscal year 2023 adjusted EBITDA guidance to $205 million from $315 million.

“We are acquiring new customers efficiently while simultaneously retaining and monetizing our existing players through rapid product innovation, less promotions, and higher hold from better bet mix,” Park said in the revenue report.

Healthy Growth For Customer Retention, Acquisition

The operator’s monthly unique payers (MUP) increased to a 2.1 million average monthly, an increase of 44% compared to the second quarter of 2022. The average revenue per MUP was $137 in the second quarter 2023, a 33% increase compared to the same period in 2022.

In 2023, 12 states representing approximately 24% of the U.S. population have either introduced legislation to legalize online sports betting or introduced bill that may result in sports betting referendums during an upcoming election. Additionally, five state that represent approximately 14% of the U.S. population have either introduced legislation to legalize iGaming or introduce a bill for an iGaming referendum.

The post DraftKings Reports $875 Million in Revenue, Positive Adjusted EBITDA for Q2 2023 appeared first on Sports Betting Dime.

The transfer of a New York online sports betting license to Fanatics will not be immediate, as the New York State Gaming Commission reported today the operator will need to undergo a thorough evaluation for suitability before entering the Empire State.

New York State Gaming Commission Chairman Brian O’Dwyer revealed today the commission will evaluate Fanatics for suitability before making a recommendation on the transfer of the PointsBet license.

A final recommendation on the license will likely be made during the commission’s September meeting.

No Simple Transfer of New York Online Sports Betting License

Fanatics will have to become the new outright owner of the license, which O’Dwyer said requires complete staff review and commission approval before becoming final.

PointsBet’s New York online sports betting license was one of the jewels in the Fanatics acquisition of the company’s U.S. assets. In late June, Fanatics improved its bid to PointsBet for $225 million, topping DraftKings’ final offer of $195 million for the company’s U.S. assets.

Through the purchase, Fanatics gained market access into several lucrative sports betting markets through the deal. PointsBet  has U.S. market access in 14 states, including New York, New Jersey, Michigan, and Pennsylvania.

According to the acquisition details provided from the original Fanatics/PointsBet deal in May, Fanatics will begin acquiring PointsBet assets for three states this month. It’s unknown what state assets will first be turned over to Fanatics. PointsBet will hand over access to three more states on a rolling basis until all U.S. entities are acquired by Fanatics Betting and Gaming by May 2024 at the latest.

O’Dwyer did note at a previous New York State Gaming Commission meeting that Fanatics reps had told the commission they hoped to have PointsBet’s online sports betting license in hand by the start of the upcoming football season. If Fanatics is hoping for a New York launch by football season, the state would have to be included in the initial asset turnover.

PointsBet was one of nine operators to receive a New York online sports betting license from the commission. PointsBet has been live in the state since January 2022, reporting $607 million in total handle, New York State Gaming Commission Executive Director Robert Williams said today.

The online operator has reported just $18.6 million in tax revenue for the state, good for sixth most out of the nine operators, Williams noted.

Fanatics Being Considered in 12 Other Jurisdictions

Williams reported Fanatics is currently live in Maryland, Massachusetts, Tennessee, and Ohio. Ohio is the only state of the four that has registered any official “complaint” with Fanatics, asking the operator to discontinue a promotion offering to match customer sportsbook bonus bets for Fanatics merchandise purchases.

Fanatics discontinue the promotion and no fine was levied by the Ohio Casino Control Commission.

While currently licensed in five states, Williams said Fanatics is being considered for licensure in 12 other jurisdictions. He noted that Colorado, Iowa, New Jersey, and Virginia were likely to make final considerations on Fanatics sports betting licensure very soon.

The post Decision on Fanatics New York Online Sports Betting License Likely in September appeared first on Sports Betting Dime.