State of the Union: New Jersey to ban college props? Polymarket under fire and more
Welcome to iGB’s State of the Union, a look at the biggest North American sports betting stories we’ve covered over the week and briefs on others we found interesting.
New Jersey bill would ban college-player props
New Jersey’s House Tourism, Gaming and the Arts Committee yesterday (14 November) moved forward a bill that would ban betting college-player prop bets. The bill is likely in response to the NCAA’s campaign to get all US states to ban such bets.
But wagering operators have long argued that banning any kind of bet will only send bettors to the black market. That will take money away from companies and states. And it also puts consumers at risk.
“Player propositions are available on illegal and offshore sportsbooks and removing customers’ ability to place legal wagers will deter bettors from moving to the regulated market,” American Gaming Association SVP of strategic communications Joe Maloney told iGB in May.
Thirteen US states ban betting on college-player prop bets. Some, like Massachusetts, had that in their law or regulations from the start. Others, like Ohio, instituted the ban in response to the NCAA’s call.
In New Jersey, the Assembly committee unanimously passed the bill.
It’s been quite a week for Polymarket, a cryptocurrency-based prediction market that took US election wagers. And not in a good way. According to multiple media reports, the FBI raided founder Shayne Copler’s New York City apartment 13 November. The raid took place at 6 a.m. local time.
A Polymarket spokesperson suggested that the raid was “political retribution” from the Biden administration. And Coplan suggested the same in a tweet:
It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents. We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting…
— Shayne Coplan 🦅 (@shayne_coplan) November 13, 2024
Bloomberg reported that Polymarket is under investigation by the US Department of Justice (DoJ) for allegedly taking bets from people in the US. Polymarket is based in the US and is the world’s biggest prediction market, but those in the US cannot bet on it. According to the New York Times, the DoJ and FBI are investigating whether or not Polymarket was run as an “unlicensed commodities exchange.”
Election betting has been in the news since Kalshi won the right to offer such bets to Americans in federal court earlier this year. That site took more than $700 million (£554 million/€663.7 million) in bets on candidates and issues on the 5 November US presidential election ballot.
Could Ohio tax rate go down?
When Ohio lawmakers legalised digital sports betting in December 2021, they did so with a 10% tax rate. Betting didn’t go live until 1 January 2023, and within six months of that launch, Governor Mike DeWine pushed through a doubling of the tax rate to 20%.
Senator Niraj Antani late last year introduced SB 190, a two-page bill that would return the tax rate to 10%. The bill got its first hearing 12 November. In written testimony before the senate finance committee, Antani suggested that his goal would be for the state to have one of the lowest tax rates in the nation – 6.75% — but that going back to 10% would be “reasonable.”Â
“The 20% rate makes us the 6th highest out of the 38 states with sports betting. The lowest in the country are Iowa and Nevada, three times lower than our rate,” Antani wrote. “Our border states, Kentucky, Michigan, Indiana and West Virginia, now all have significantly lower tax rates. This puts us at a significant regional and national disadvantage.”
Of the legal betting states plus the District of Columbia, 19 currently have tax rates that are 15% or less, seven have rates between 15.1%-20%, and six have rates over 20.1%. Betting is not taxed in some states, like New Mexico or Wisconsin, where tribes are offering only on-site gambling and don’t have to pay taxes to the state.Â
Antani also has another gambling bill under consideration. His SB 312 would legalise online casino. That bill is also in the finance committee, but has not gained any traction.
Bally’s integrated platform live in New Jersey
Bally’s launched its first integrated sportsbook and online casino platform in New Jersey, PlayUSA reported 13 November. The app is powered by White Hat Gaming and allows for seamless play between the sportsbook and online casino offerings. The company also introduced a universal wallet that can be accessed for either kind of gambling.
“This unified platform combines our existing apps’ features and functionality, offering New Jersey players a seamless sports and casino betting experience,” North American CEO Brett Calapp said via press release. “Enhancing the player experience remains a crucial focus in personalising the fun while playing Bally Bet.”
The new platform is currently only available in New Jersey.
ROGA names advisory board
The Responsible Online Gaming Association (ROGA) named former New Jersey regulator Dave Rebuck and former Massachusetts Gaming Commission chair Cathy Judd-Stein to its inaugural advisory board. ROGA made the announcement 12 November. The advisory board is designed to offer guidance on “responsible gaming-related topics such as the latest industry and regulatory concerns, best practices, consumer behaviour, research developments, and technology that may
impact the gaming industry,” according to a press release.
ROGA, formed in March, is comprised of Bally’s, BetMGM, Bet365, DraftKings, Fanatics Betting & Gaming, FanDuel, Hard Rock Digital and Penn Entertainment.
In addition to the former regulators, ROGA named Dr. James Whelan and Dr. Kahlil Philander to the board. Whelan is the executive director of the Tennessee Institute for Gambling Education and Philander is an assistant professor at the School of Hospitality Business Management at Washington State University.
For its first initiative, ROGA plans to roll out gambling education and financial literacy materials directed at college-aged students in early 2025.
LVXP gets first approval for NBA-IR complex
LVXP, a Las Vegas real estate development company, 12 November got its first approval for an integrated resort (IR) that includes an NBA arena. The Winchester Town Advisory Board unanimously approved it. The proposal will now move to the Clark County Commission, though it needs other approvals, as well. In its proposal, LVXP has an 18,000-seat NBA arena and what would be the tallest building in Las Vegas. The IR is proposed for the north end of the Strip.
LVXP also released a video rendering of the project:
In other news …Â
DraftKings opened a new $500 million revolving credit line, per Sportico. The credit line will allow the company liquidity and should save it money, as the interest rate is lower and terms different. A consortium led by Morgan Stanley is extending the credit line.Â
California’s Pechanga Resort Casino 8 November announced a partnership with the Venetian Hotel on the Las Vegas Strip. Billed as a “first-of-its-kind” partnership, customers of both resorts will now have access to benefits, amenities and casino clubs at both locations.
The Massachusetts Gaming Commission 13 November announced that it has created an official seal for legal wagering operators in the state. The commission will require that operators display the seal on platforms beginning this month, according to an MGC press release.Â
BetMGM extended its partnership with the Las Vegas Golden Knights, it shared in a 14 November press release. The new deal, which will include fan experiences, co-branded content and promotions, is in effect through the 2026-27 season.Â
The Sandia Resort & Casino 13 November opened a 10,000-square-foot casino, according to the Albuquerque Journal. The new Sandia sportsbook will have the highest wager limits in the state, with plans to accept bets of up to $8,000 at teller windows.
Worth the read …
Fanatics Sportsbook has been live across the US for 14 about months. The company is the only non-wagering company to spin off a sports betting division and find some success on a national level. Casino Report’s Brett Smiley, along with analyst Alfonso Straffon share how the company continues to make incremental gains. Read the full story here.
ICYMI on iGB
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PASPA lawyer Ted Olson dies
Arkansas’ Issue 2 now in force, but legal claim is pending
Louisiana committee defers decision on 51% wagering tax increase
