The Cashout: US Online Casinos Post Second-Best Month On Record
Gambling news roundup: New California bill would effectively ban sweepstakes casinos; Penn lays off dozens from theScore; Delta's survey with sports betting.
TCL offers market analysis in the US gambling space in The Cashout every weekend to paid subscribers, along with a news roundup for free subscribers.
It’s another big month for US online casinos, which aren’t far off the March records. Also, an update on May sports betting metrics, with new numbers from New Jersey, Pennsylvania and Massachusetts.
But first, the gambling news roundup:
Gambling news roundup
All the prediction markets news via The Event Horizon:
California Legislators Target Sweepstakes Casinos, Backed by Tribal Gaming Coalition (Sweepsy): “California has joined the growing list of states moving to dismantle sweepstakes-style online casinos, introducing legislation this week that directly targets the operators, technology providers, and celebrity promoters behind the booming ‘social casino’ industry.”
The proposed language is expected to amend an existing bill, but it is not yet online via the CA legislature’s website.
Whether the bill — which would effectively ban sweepstakes gaming — can actually become law is the big question. We’ll see if tribal gaming and other interests opposed to sweepstakes have the juice to get this to the finish line.
Per Howard Glaser, Global Head of Government Affairs at Light & Wonder, on LinkedIn: “The bill, to which CNIGA (California Nations Indian Gaming Association) members were alerted in a widely distributed email this afternoon, is expected to gain a favorable hearing in Sacramento, where casino gambling is exclusively tribal under state and federal law.”
The pushback at the state level from lawmakers and regulators so far has not been great for the sweepstakes gaming industry, but it’s something the industry can survive. The loss of California would be a drastic reduction of the addressable market for sweeps.
PENN Entertainment lays off dozens of theScore employees (Canadian Gaming Business): “PENN Entertainment has laid off dozens of content, sales and other staff at Canadian sports media and gaming company theScore.
Canadian Gaming Business understands that more than 75 employees were told on Thursday that they were being let go. The layoffs have roughly cut the brand’s editorial newsroom in half and also impacted the sales team. ‘These changes reflect the ongoing evolution of our digital business,’ a company spokesperson told CGB on Friday. ‘Under the leadership of key recent product and technology hires, we are structured to advance our online strategy and efficiently grow our business.’”
Delta Surveys Passengers About Bringing Sports Gambling Onboard (View from the Wing): “A new Delta survey asks whether customers want ‘exclusive access to sports gambling (sportsbook) opportunities’ as something to ‘trial or explore on your personal device through Delta’s Wi-Fi portal?’
Reddit thread here with the survey:
New Jersey Bill to Ban College Player Prop Bets Moves Forward (Sports Betting Dime): “New Jersey legislators are examining a bill to prohibit college player prop bets in the Garden State. The New Jersey Senate State Government, Wagering, Tourism and Historic Preservation Committee unanimously moved Sen. Kristin M. Corrado’s (R-40) bill, S3080, forward this week. The bill calls for a complete prohibition of bets on player-specific props in the state.”
RI lawmakers approve bill that restricts smoking in casinos (WPRI): “Rhode Island lawmakers have approved legislation that would include casinos in the state’s law prohibiting smoking in workplaces. The legislation, sponsored by Rep. V. Susan Sosnowski, repeals an exemption granted to gambling facilities and casinos from the smoke-free workplace requirement in the Public Health and Workplace Safety Act. Sosnowski’s proposal was amended to allow facilities to offer a “smoking lounge,” which is defined as an enclosed space with a proper ventilation system to prevent the migration of smoke into smoke-free spaces.”
Ifrah Law has been at the center of advancing iGaming in the U.S., shaping groundbreaking legislation, leading precedent-setting cases, and guiding clients that span the iGaming ecosystem through every phase of their business journey. Learn more at IfrahLaw.com.
Ontario Launching Review of Sports Betting, iGaming Sector (Covers): “The Ontario government is about to look under the hood of legalized gambling, launching a review that will try to ensure online sports betting, iGaming, and brick-and-mortar casino play are delivering the goods for Canada’s most populous province. Ontario’s minister of tourism, culture, and gaming, Stan Cho, announced the review Thursday at the Canadian Gaming Summit in Toronto.”
Xanada invests in bank-approved B2B sweeps game aggregator (SBC Americas): “Xanada Investments is providing support to a B2B sweepstakes casino game aggregator. The gaming-focused investment fund announced an early-stage investment in Sweepium allowing the platform to scale as a B2B sweepstakes games aggregator. Xanada is investing in Sweepium to access the budding but controversial sweepstakes casino sector.”
New laws aim to help law enforcement stop illegal gambling on Oahu (Hawaii News Now): “Three bills were signed into law Thursday aimed at helping city agencies crack down on illegal game rooms. Leaders say it’s a critical step toward improving public safety, especially along Oahu’s Waianae Coast. ‘Bill 11 is actually creating fines for our gambling devices,’ City Councilmember Andria Tupola said. “Bill 12 strengthens the relationship between DPP and HPD when we crack down on building violations, and bill 13 specifically addresses that landlords work with HPD.’”
FanDuel’s Trusted Voices: Conversations About Betting is designed to equip adults, including parents and coaches, with tools and resources to talk to young people about gambling, including information on warning signs, risks and proxy betting. The program is led by retired professional basketball player Randy Livingston and his wife, basketball agent Anita Smith, who share their personal stories related to problem gambling, with the hope of preventing others from experiencing similar harms. Learn more and join the conversation here.
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The Cashout
Here’s what’s on tap for paid subscribers:
May sports betting metrics update (including brand-level data)
ESPN Bet opt-out watch
Online casino revenue for May
App download rankings
Updated sports betting numbers for May
We have a lot more data since the last edition of The Cashout, including New Jersey, Pennsylvania and Massachusetts. Blended hold across reporting states sits at 11.5%, again pointing to a very good month and potentially quarter for sportsbooks.
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