The Early Line: Sweepstakes Casino Takes Over Publishers Clearing House
Gambling news roundup: AGA launches “Play Smart from the Start” consumer hub; Kalshi riles up tribes; Massachusetts online casino bill gets a hearing.
The Early Line offers a look at the top stories heading into the week, along with some analysis.
Online Casino Operator Wins Auction for Publishers Clearing House (WSJ, paywall): “Publishers Clearing House, the direct-to-consumer marketing company known for its Prize Patrol sweepstakes, found a new owner who plans to revive the classic brand that went bankrupt after government scrutiny and a changing retail landscape. ARB Interactive, the company behind online Modo Casino, emerged as the winning bidder in a recent bankruptcy auction for the assets of Publishers Clearing House.”
Reading the line: We learned a few months ago that PCH had designs on the sweepstakes casino space; not long afterwards, it declared bankruptcy. At the time: “The company will use its bankruptcy to shed its legacy direct mail catalog marketing and magazine subscription businesses, so that it can strengthen its digital advertising and online gaming businesses. It will use its bankruptcy to explore a sale of its assets or find a business partner willing to fund a long-term business plan for its digital businesses, the company said.”
Modo has been one of a number of sweepstakes casinos that have been aggressively marketing to US customers, including employing golfer John Daly to promote the brand. With regulatory and legislative fights all over the country around sweepstakes, there’s likely some pressure on operators to gain a better foothold as the addressable market shrinks. How valuable is the PCH brand—or its customer database—in today’s online sweepstakes industry? I guess we’re about to find out.
AGA Launches “Play Smart from the Start” Consumer Hub to Help Players Game Responsibly (press release): “The American Gaming Association (AGA) announced the launch of the Play Smart Consumer Hub, a new online resource designed to help consumers game responsibly. The hub builds on AGA’s Play Smart from the Start, a messaging platform that encourages players to make informed choices and develop habits that keep gaming fun.”
“The AGA is committed to making responsible gaming a seamless part of the player experience,” said Bill Miller, president and CEO of the AGA. “Part of the fun of gaming is that everyone plays differently, but no matter how or where you play, staying in control starts with habits that work for you. The Play Smart Consumer Hub provides players with straightforward, actionable tools to help them stay in control and keep gaming fun.”
Reading the line: I am going to get more into this tomorrow in The Current, so I will keep it short today. But companies and organizations trying something on the responsible gambling front > not trying anything. The resource is an interesting one, if the AGA and member organizations can get it into the hands of gamblers effectively.
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.
'Prediction Markets Are More Accurate Than Polls' Will Be Tested In NYC Mayor Race (Event Horizon): “How good are prediction markets at telling us who will win elections? We’re getting an interesting look at the concept in the New York City mayor’s race, where the primary elections take place tomorrow. Kalshi and Polymarket now show the NYC Democratic primary as almost a dead heat between Zohran Mamdani and Andrew Cuomo. Both prediction markets had Cuomo as a 77-78% favorite yesterday, and greater than a 90% favorite in May.”
Reading the line: Prediction markets have swung back toward Cuomo as a small favorite after Mamdani had been the favorite for a short time. No matter the outcome, the funny/interesting part is that Kalshi and Polymarket claim to be more accurate and faster than polls and the news. But on this occasion, a single poll created a huge shift in the market. I think it throws a bit of cold water on a talking point that both prediction markets like to advance regularly. I can find a lot of examples about both companies talking about this, but here’s Kalshi CEO Tarek Mansour saying “no one trusts polls anymore,” while traders on his platform are heavily valuing a poll. And:
Other prediction markets news:
Kalshi Allegedly Lied About Tribe Talks, Could Face New Lawsuit (Sportico, paywall): “Victor Rocha, the conference chair of the Indian Gaming Association and member of the Pechanga Band of Indians, does not appreciate the way Kalshi has characterized its relations with tribal groups amid their fight over sports prediction markets. … ‘I’ve talked to Tarek Mansour twice now, and my take from him is that he’s a lying little twerp,’ Rocha said.”
Popcorn dot gif. Not great comms from Kalshi… I could have told everyone that these conversations were not “productive” without being a part of them. And that this would piss off the tribes!
An alliance of tribes and tribal groups have filed an amicus brief in the Kalshi case against Maryland (h/t Dan Wallach on Twitter). Maryland is one of seven states that have told Kalshi to stop operating there for offering illegal sports betting. Kalshi has sued three of them. You can see the brief below; it’s many of the same groups that filed an amicus brief in the New Jersey case.
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More gambling news
Massachusetts Lawmakers Mulling Over iGaming Bills (Sports Betting Dime): “The legalization of Massachusetts iGaming will either be a boon for commonwealth casinos or their death knell, depending on who you ask. The Massachusetts Joint Committee on Consumer Protection and Professional Licensure today heard testimony on behalf, and against, two counterpart bills to legalize iGaming in the commonwealth. Sen. Paul R. Feeney’s (D-Bristol and Norfolk) bill, S235, and Rep. Daniel Cahill’s (D-10th Essex) bill, H332, both seek to license and legalize iGaming for casinos and gaming operators in Massachusetts.”
Florida urges judge to toss lawsuit challenging Seminole control of online sports betting (Sun-Sentinel, paywall): “The state wants a Leon County circuit judge to toss out a lawsuit that alleges a deal allowing the Seminole Tribe of Florida to offer online sports betting violates a 2018 constitutional amendment aimed at limiting casino gambling. Attorney General James Uthmeier’s office last week filed a 34-page motion to dismiss the lawsuit, which was filed in April by Protect the Constitution, LLC. … Exceptions are carved out for limited-time promotional sweepstakes tied to the genuine sale of consumer goods or services, provided they don’t operate like ongoing virtual casinos or award real money.”
California Bill To Ban Sweepstakes Gaming Covers Every Base (Casino Reports): “Casino Reports has seen the proposed amendments to California’s Assembly bill AB831, and it would outlaw all online gambling with sweepstakes prizing, including casino and sports betting operations. The bill, which was gutted and amended by Assemblyman Avelino Valencia, would make it a misdemeanor to operate, promote, or even support sweepstakes games that mimic casino-style gambling and offer players a chance to win cash or cash-equivalent prizes. That includes online slot machines, video poker, table games like blackjack and roulette, sports betting, bingo, and lottery-style games.”
Kelsey Plum Cusses Out WNBA Fan For Mid-Game Gambling Parlay Plea (SI): “In a quiet moment while Lynx star Kayla McBride was shooting a free throw in the fourth quarter, the game's broadcast picked up a fan in the crowd shouting at Sparks standout Rickea Jackson that they needed something from her for their parlay. This prompted Sparks forward Dearica Hamby to say, ‘Shut up,’ to the fan, which could also be caught on the broadcast's audio. Los Angeles star Kelsey Plum then added on to that by saying, ‘Shut the f*** up!’”
Hackers Impersonate Coinbase User Support To Scam Victims of $4,000,000 Before Blowing Most of Money on Gambling: ZachXBT (Daily Hodl): “An investigation by top on-chain analyst ZachXBT has revealed how an alleged New York-based con artist stole millions of dollars from victims by pretending to be support staff from Coinbase…. According to ZachXBT, a portion of that $240,000 was deposited into crypto betting site Roobet, and the rest was converted into Monero (XMR).”
Roger Goodell’s Brother Settles Sports Betting SPAC Deal Lawsuit (Bloomberg Law, paywall): “A brother of NFL commissioner Roger Goodell is among the sports industry veterans involved in a $12 million accord resolving litigation over their deal to take gambling business Super Group SGHC Ltd. public. Super Group, which combined with a special purpose acquisition company in 2022, operates the digital sports betting platform Betway and the online casino Spin. The class action settlement with Timothy Goodell, a Hess Corp. executive, also covers three other architects of the blank-check merger, including John Collins, co-owner and operating partner of the NHL’s New York Islanders, according to filings in Delaware’s Chancery Court.”
DraftKings highlights lllinois tax hike in reasoning for PAC filing (SBC Americas): “In its statement about the PAC filing, DraftKings specifically called out the recent changes to the sports betting tax structure in Illinois. … ‘The recent tax increase in Illinois makes it harder to provide the best service to our players while it simultaneously incentivizes more players to wager in the unregulated, illegal market,’ the company spokesperson told SBC Americas.”
Multiple Sportsbooks Void Tyrese Haliburton Bets After Early Game 7 Injury (Covers): “Multiple sportsbooks voided and refunded losing player prop bets placed on Indiana Pacers guard Tyrese Haliburton, who suffered an Achilles injury in the first quarter of the decisive championship series game against the Oklahoma City Thunder. DraftKings, Fanatics Sportsbook, bet365, and ESPN BET – major U.S. operators – let customers off the hook.”
Hopes For Open Market In Rhode Island Die As Legislature Adjourns With No Action (InGame): “Rhode Island’s legislature closed just after 1:30 a.m. Saturday, and the House failed to take up a bill that would have opened the sports wagering market from a single operator to five. An amended version of SB 748 passed the Senate on June 4, 30-2, but never got a committee hearing in the House.”
Caesars Entertainment Releases 2024 Corporate Social Responsibility Report (press release): “2024 was an incredible year for us at Caesars Entertainment,” said Kiersten Flint, SVP of Corporate Social Responsibility and Internal Communications at Caesars Entertainment. “In addition to rounding out a multi-year capital cycle where we completed and opened three new destinations, we made robust enhancements to programs that benefit our Team Members to help them reach their full potential with us at Caesars. We spent time giving back to our communities and we celebrated 35 years of our Responsible Gaming program. We’re proud of the work we did in 2024 and are carrying that momentum forward in 2025.”
“The Caesars Foundation donated more than $3.4 million to national and local non-profit organizations and disaster relief efforts. The Company provided $72 million in total community investment in 2024, which includes the monetary value of 93,000 HERO volunteer hours invested by Caesars Entertainment Team Members.”
“In 2024, the Company also launched its Extraordinary HERO Award Program, designed to recognize and honor Team Members who exemplify extraordinary dedication to serving their communities. The program spotlights individuals who go above and beyond through volunteering, fundraising and other forms of giving.”
Fanatics Fest + sports betting (press release): “Fanatics Fest NYC hosted 125,000 fans across three days in New York City and Tom Brady was announced as the winner of Fanatics Games. Fanatics Sportsbook and Casino had a big weekend too, giving away $500k in FanCash to customers who played our life sized Spin to Win and FanCash Drop games. Fanatics Fest featured hundreds of the top athletes, celebrities and artists attending the ultimate sports, culture and collecting festival.”
“JAY-Z’s iconic The 40/40 Club was reimagined once again as an exclusive lounge experience in partnership with Fanatics Sportsbook at the center of Fanatics Fest. The one-of-a-kind recreation of the legendary The 40/40 Club captured the essence of the Club’s signature blend of sports, luxury, and entertainment.”
“Fanatics Sportsbook and Casino debuted a 21+ bar and lounge experience at Fanatics Fest NYC — offering guests an immersive environment where sports meet chance and rewards.”
You could bet on who would win the Fanatics Games at Kalshi, but not at Fanatics.
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