The Cashout: The Rise Of Bet365 In US Sports Betting
TCL will offer market analysis in the US gambling space in The Cashout every Friday to paid subscribers, along with a news roundup for free subscribers.
We have some more numbers from December and January for online sports betting revenue. And I’ll break down how Bet365 is pushing into the top of the tier of US sportsbooks behind DraftKings and FanDuel for the 11 states where it’s live.
But first, here’s the Friday roundup:
Meet up with Closing Line Consulting in March!
I’ll be in New York City the week of March 10, when I’ll be speaking on panels at the GeoComply/Citi Challenger Series event and the Next.io Summit. If you want to meet up or schedule some time, you can reply to this email (if that’s how you’re reading The Closing Line), or email me at dustin@closinglineconsulting.com. More about my consultancy here.
Gambling news roundup
Curaçao-based MyBookie next on Michigan regulator’s hit list (SBC Americas): “Michigan’s gaming regulator is continuing its crackdown on offshore gaming operators by attempting to push MyBookie out of the state. The Michigan Gaming Control Board (MGCB) said on Thursday that it has sent a cease-and-desist letter to Duranbah Limited N.V., the Curaçao-based operator of MyBookie.ag. The site offers slots, poker, and live-dealer games like blackjack, roulette and craps, as well as letting users bet on sporting events and horse races.” Many states have been issuing similar notices to offshore operator Bovada in recent months.
Feds seek 57-month sentence for Mizuhara for defrauding Ohtani (ESPN): “Federal prosecutors recommended a 57-month prison sentence Thursday for Ippei Mizuhara, the former interpreter for Los Angeles Dodgers superstar Shohei Ohtani, and released an audio recording in which they say he impersonates Ohtani in an attempt to wire money from Ohtani's bank account. In a separate court filing, Mizuhara's attorney, Michael G. Freedman, said Mizuhara has suffered from a gambling addiction since he was a teenager and asked for an 18-month sentence.” It’s a pretty bad beat if you had over 58 months for a sentence.
Lawmaker in New Jersey wants to ban online sports betting ads (SBC Americas): “New Jersey Assemblyman Brian Bergen has introduced a piece of legislation that proposes changes to the state law regarding sports betting advertisements. Bergen has introduced Bill A5207, which aims to ban the ‘posting, distributing, broadcasting, or disseminating’ of any online ad related to sports betting.”
Sweeps Casino Inbox: 143 Emails in 13 Days Raise Responsible Gaming Concerns (Sweepsy): “Here’s the deal: I signed up for seven sweeps casino sites on Jan. 8 for a story that analyzed arbitration clauses in terms and conditions and if those same clauses (or similar clauses) showed up in separate terms and conditions for specific promotions. … Then, from Jan. 8-20, I received 143 promotional emails from those seven operators. That’s 11 per day over the 13 days, and it was really more like 12 days, because I signed up pretty late at night on Jan. 8. Of the 143 emails, only one had anything to do with responsible gaming.”
Senator Miller unveils Minnesota Sports Betting Act 3.0 (Minnesota State Republican Caucus): “Minnesota State Senator Jeremy Miller (R-Winona) today unveiled the Minnesota Sports Betting Act 3.0, an updated version of his sports betting proposal. The Minnesota Sports Betting Act 3.0 builds on the bipartisan cooperation and momentum from last session and aims to bring together stakeholders and legislators from both sides of the aisle to legalize sports betting in Minnesota. This proposal includes ideas brought forward from people across the state, including colleagues on both sides of the aisle, in an effort to finally pass a sports betting bill Minnesotans can be proud of. The bill would help the state’s eleven tribes, enhance the horse racing industry, benefit charities, bring major sporting events to Minnesota, provide funding for youth sports, and fund problem gambling services. ‘Minnesota continues to miss out on what is now a $150 billion industry,’ Senator Miller said. ‘We were on the brink of success last year; I strongly believe 2025 could be the year we get this across the finish line.’
The Takeaway: Welcome To The Era Of (Sports) Prediction Markets (TCL): “It feels like a pretty disruptive moment in sports betting, doesn’t it? Kalshi launched sports events contracts for the champions of some major North American sports — basically futures bets — on Thursday in all 50 states. They followed in the footsteps of Crypto.com, which launched similar markets in December.”
Online gambling: The stakes for public health (Harvard): This is a panel you can watch. Here’s the description: “Gambling has gone digital. Online casino games are legal in several states, and online sports betting in dozens more. But behind the flashy marketing and sign-up bonuses, what are the costs of having “a casino in your pocket” 24/7? In this discussion, our panel of experts examined the forces driving the rise of online gambling, the emotional, health and economic harms of problem gambling, and how policy change and treatment can reduce the burden.”
Skill gaming is coming
Toast is building real-time strategy-based skill games that are designed for bettors. Peer-to-peer gin rummy and blackjack are already available, with a basketball game going live in Q1. Toast’s games are built for easy integration with any platform. For a demo or to learn more, email connect@playtoast.com.
Some updates on December sports betting numbers
We had a lot of states reporting December last week; you can check out The Cashout here (paywalled) if you missed it last week.
The top-level takeaway from last week: gross revenue has been bad.
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