The Wednesday Line: PrizePicks Pays NY $15 Million, New Problem Gambling Data, State Legislative Updates
Here’s today’s quick rundown in the world of US gambling. Read The Tuesday Line if you’re playing catch-up.
Connecticut report raises problem gambling concerns
A new report on sports betting in Connecticut is more than 200 pages and is one of the more detailed studies/surveys we have seen in the US. There’s lots to dig into, but the first headline I saw was “Study: Half of sports bets in CT are made by problem gamblers.” Here is the data that will be latched onto as this report circulates, for better or worse: “The proportion of Connecticut gambling revenue from the 1.8% of people with gambling problems ranges from 12.4% for lottery products to 51.0% for sports betting, and is 21.5% for all legalized gambling.” Studies in the past have ascribed disproportionate revenue to problem gamblers, but this one is on the high end of estimates. Sen. Richard Blumenthal (CT) has already pointed to the data as a reason to support the GRIT Act, which would take revenue from the federal sports betting excise tax and use it for problem gambling funding.
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PrizePicks settles for $15 million in NY
PrizePicks leaving New York became a multi-day news story. A day after saying it would exit New York with its fantasy parlay vs. the house product, we learned PrizePicks was paying $15 million to the state in a settlement for operating without a license for four years. For me, the biggest problem for the fantasy parlay industry is optics. The companies in the space would like us to believe they work closely with regulators in states around the country. Here, PrizePicks said in the settlement it "operated in New York in a good-faith belief that it had the ability to do so." That’s a wide gap between what the industry says it does and what it actually does. Related: Here’s a report from Politico on fantasy sports companies donating to attorneys general during a wave of regulatory pushback.
Sports betting legislative updates
Here’s a roundup of some recent progress and updates at the state level:
A Senate committee in Georgia advanced a bill that would approve sending a constitutional amendment on sports betting to the voters. The bill would require a two-thirds majority in the legislature to approve it.
Bipartisan support for sports betting legalization in Minnesota raises hopes the state can get something done this year.
An Alabama House committee heard testimony on a larger gambling expansion that includes sports betting.
A House vote in Missouri could come as soon as next week.
A new Maryland bill seeks to ban gambling on college campuses.
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