Gambling news roundup: Wisconsin Tribe Sues Kalshi
Updates on FanDuel + CME Group deal; MA iGaming bill also seeks to ban sweepstakes casinos; Robinhood sues in Nevada, NJ; DraftKings, Fanatics, PrizePicks, Underdog also eye prediction markets
I am sorry if you are missing the podcast, but the breaking news from FanDuel entering event contracts/prediction markets took precedence. Hopefully, the podcast will return next week.
Also, there was a bad/incomplete end to the FanDuel newsletter on email. The post has been updated with some more information and analysis:
The roundup
Ho-Chunk Nation sues Kalshi: A second tribal lawsuit has appeared to try to stop Kalshi and Robinhood from offering sports event contracts on tribal lands. The Ho-Chunk Nation joins a trio of tribes in California that also sued Kalshi.
From the complaint: “This is an action brought by the Ho-Chunk Nation (the “Nation”), a federally recognized Indian Tribe, seeking a preliminary and permanent injunction against the defendants to prevent them from engaging in illegal sports gambling on the Nation’s Indian lands in direct violation of the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq. (“IGRA”), the Nation’s Tribal-State Gaming Compact (“Compact”) with the State of Wisconsin (“State”) entered into pursuant to the IGRA, the Nation’s Gaming Ordinance (“Ordinance”) approved by the Chairman of the National Indian Gaming Commission pursuant to the IGRA, and the Tribal Gaming Commissions’ regulations adopted pursuant to the Nation’s federally approved Ordinance and Compact. …”
“Currently, 18-year- old high school students across the United States—including some that are located on Indian reservations—are on their phones placing bets on the outcome of virtually every sporting event occurring across the globe, without any regulation of that betting by states or Indian tribes and the protective measures related to corruption and problem gambling imbedded in such regulatory schemes, in contravention of federal, state, and tribal law. And they are placing those illegal bets using defendants Kalshi Inc. and KalshiEX LLC, (“Kalshi”), and Robinhood Markets, Inc. and Robinhood Derivatives LLC (“Robinhood”).
“Contrary to Kalshi’s assertions, Kalshi is engaging in sport gambling as
defined by the IGRA and the Nation’s Compact and Ordinance. Therefore, the Nation seeks an order from the Court enjoining Kalshi from conducting its illegal sports gambling operation. In addition, the Nation seeks a permanent injunction enjoining Kalshi’s illegal gambling on its Indian Lands because such gaming is currently unregulated, violates the State’s Constitution and criminal law, and directly interferes with the
ability of the Nation to govern itself under its own laws on its Indian Lands— lands owned by the United States of America in trust for the Nation.”
You can see the full complaint below:
Massachusetts iGaming Bill Also Seeks to Prohibit Sweepstakes (Sports Betting Dime): “Massachusetts lawmakers have yet another iGaming bill to consider, but chances for its legalization may be fairly low. Rep. David K. Muradian, Jr. (R – 9th Worcester) introduced H4431 earlier this week, a bill to legalize iGaming for licensed operators. It is the third piece of iGaming legislation Massachusetts lawmakers have seen this year. The bill also sets out to prohibit dual-currency sweepstakes games in the commonwealth and sets fines for potential violations.”
From the Social Gaming Leadership Alliance: “A new bill introduced in Massachusetts, House Bill 4431, proposes a sweeping ban on online social games that utilize sweepstakes promotions. If enacted, the bill would deny Bay Staters access to the safe, free-to-play games they enjoy while exposing a wide range of legitimate businesses to unprecedented criminal liability.
The legislation broadly targets any online game or promotion that awards prizes based on chance and uses virtual currency, including games that simulate slot machines, poker, table games, lotteries, and sports wagering. The bill would make it unlawful not only to operate these games, but also to support, assist, or facilitate their operation in any way. This means businesses including payment processors, marketing companies, internet service providers and technology platforms, which serve diverse business models, would be forced to police client's promotional activities in real-time or risk being criminalized.”
From the Social and Promotional Games Association: “Lawmakers moving to ban sweepstakes while introducing iGaming demonstrate a poor understanding of the sweepstakes model and undue deference to iGaming lobbyists. Instead of a blanket ban, Massachusetts could embrace oversight and regulation, securing millions in potential tax revenues, instead of deciding for its residents what games they can — and can’t — play on their mobile phones.”
Robinhood Files Lawsuits in Nevada, New Jersey Over Sports Event Contracts (Sports Betting Dime): “On the same day Robinhood Derivatives announced it will be offering college and professional football event contracts to customers, it also filed two lawsuits against New Jersey and Nevada gaming officials who previously attempted to halt the sports offerings. Robinhood filed two lawsuits in U.S. District Courts of New Jersey and Nevada to prohibit the state gaming commissions from taking action against the prediction market company’s sports event contracts. Robinhood filed separate lawsuits against against Mary Jo Flaherty, the interim director of the New Jersey Division of Gaming Enforcement, and a number of Nevada Gaming Commission members. Both the New Jersey Division of Gaming Enforcement and the Nevada Gaming Commission issued cease-and-desist letters to Robinhood this past March, attempting to block the company’s sports event contracts from its customers.”
NFA registry includes applicants tied to DraftKings, PrizePicks and others (SBC Americas): “According to the database of the National Futures Association (NFA), it appears DraftKings is back in the prediction markets market, as are two major fantasy sports operators, Underdog and PrizePicks, and sportsbook groups Fanatics Betting and Gaming. Registration with the NFA is an important preliminary step in ultimately obtaining the regulatory approval and licensure necessary to be regulated as a futures and derivatives market by the Commodity Futures Trading Commission (CFTC).”
The news comes after DraftKings had previously registered with the NFA and then later withdrew its registration.
Managers miffed at offshore sports betting on Little League World Series (Associated Press): “This week, as usual, sports bettors can get action on MLB games from U.S.-based gambling sites. Meanwhile, at least a couple of offshore bookmakers are offering odds on games at the Little League World Series.
Team managers, and Little League itself, are not pleased.”
“I’m not a fan,” said South Carolina’s manager Dave Bogan, noting he goes to Las Vegas twice a year. “It’s just not appropriate, it feels dirty, quite honestly.”
“In news conferences throughout the Little League World Series, U.S. team managers have voiced their displeasure with gambling on their games — players at the tournament top out at 12 years old. Little League International also released a statement last week denouncing sports betting on youth competition.”
PENN Entertainment Partners with the Chicago Bears (press release): “PENN Entertainment, Inc. and the Chicago Bears have announced a multi-year partnership that designates PENN’s Chicagoland retail properties, Hollywood Casino Aurora and the new state-of-the-art Hollywood Casino Joliet as Official Casino Partners, and ESPN BET Sportsbook as an Official Sports Betting Partner of the Bears. Under the agreement, PENN receives a host of entitlements for both brands, including IP rights, expansive in-stadium signage, an in-game Hollywood Casino feature, digital media and marketing integrations, opportunities to provide its customers with exclusive team-related experiences and more.
“We’re thrilled to announce this partnership in connection with the opening of our new state-of-the-art Joliet property and on the precipice of football season.” said Todd George, Executive Vice President, Operations, PENN Entertainment. “Teaming up with one of the premier franchises in the NFL creates exciting new omnichannel marketing opportunities for our ESPN BET and Hollywood Casino brands. Through the partnership, we look forward to engaging a large and passionate audience at Soldier Field as well as across our online products and at the new property in the Chicagoland area.”
BetMGM Unveils Fastest, Most Intuitive and Rewarding App Ahead of Football Season (press release): “BetMGM, a leading iGaming and sports betting operator, announced a suite of cutting-edge features for its mobile app ahead of football season. The enhanced experience offers players a faster, more seamless way to build wagers, place bets and earn rewards.”
"This is the fastest, most user-friendly and best product we have ever offered," said BetMGM CEO Adam Greenblatt. "Every detail was designed with players in mind. By blending years of customer feedback with the ingenuity of our product development team, we've built a premium sports betting app with a level of detail and insight that sets BetMGM apart."
“Fast and frictionless: BetMGM has rolled out its most responsive app to date. Platform enhancements enable a smoother, faster user experience as players navigate the app.
Easier market discovery: The app showcases popular and relevant betting markets with new displays featuring a scrollable interface, making it easier than ever to browse scores and alternate line props. New parlay builders help players quickly browse markets and create parlays with ease.”
The changes to the app will be interesting to track as BetMGM tries to hold onto a top-three position this football season; Fanatics has been ascendant in the US sports betting industry.
Virginia subcommittee considers online casinos and new regulator (SBC Americas): “A joint subcommittee in Virginia is weighing whether or not to establish a regulatory agency designed specifically for gaming as the state also considers adding new verticals. Virginia lawmakers created a joint committee in 2023 to study the feasibility of establishing the Virginia Gaming Commission, which would oversee regulated sports wagering and other forms of commercial gaming. Currently, state-sanctioned sports betting and casino gaming is regulated by the Virginia Lottery. Lawmakers established a joint subcommittee to consider a regulatory body for non-lottery gaming in the wake of concerns regarding the Virginia Lottery’s ability to comprehensively regulate multiple verticals.”
Legendary Las Vegas bookmaker retires: ‘It’s been a great ride’ (Las Vegas Review-Journal): “Jimmy Vaccaro has retired after 50 years as a Las Vegas bookmaker. The Sports Gambling Hall of Famer, who will turn 80 on Oct. 5, left his role as South Point oddsmaker in July and moved back to his native Trafford, Pennsylvania.”
“It’s been a great ride, but we all get old,” he said. “It was time. Fifty years is enough. I want to spend some time just doing nothing.”
GambleAware research says safer gambling ads aren’t working (Next.io): “New GambleAware research has concluded industry safer gambling ads may increase gambling behaviour. The leading UK gambling charity today (20 August) published new research which says current safer gambling ads may in fact encourage people to gamble more. Conducted by Thinks Insight & Strategy, alongside academic professor Elliot Ludvig, the research assessed the effectiveness of safer gambling video campaigns currently in use by major operators. As a result, GambleAware, which is set to be disbanded, called for stronger regulation of gambling ads and increased monitoring of how operators develop their safer gambling messaging.”
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