Last Updated Jul 26, 2021, 22:48 PM
Weekly News - 03/09/2021
THIS WEEK IN LEGAL SPORTS BETTING - GEORGIA SPORTS BETTING SEES MOVEMENT
|Best US Sportsbooks · Weekly Update|
March 9th, 2021 Weekly Report
Sporting events have had major impacts this year in legal sports betting news and this month is no different! Looking ahead to such sports betting stalwarts as March Madness, many bettors are curious as to their options for wagering. So, keep reading to see all of the activity that you need to know about in the legal sports betting world!
- New York Looking to Make Moves
- Progress in Georgia?
- DraftKings Partnership with DISH
- Controversial Move in Connecticut
- Final Thoughts
STATES LOOKING TO MAKE MOVES: WHERE DOES NEW YORK SPORTS BETTING STAND?
The recent scandal surrounding New York Governor Andrew Cuomo has many anxious sports bettors tongues wagging. The embattled governor has now seen his political sway waning, which could benefit proponents of New York sports betting. As someone who has long been a roadblock to New York mobile sports betting in particular, the governor’s issues may prove beneficial.
Some have begun to speculate that this could be a good time for the governor’s political opponents to push forward their own agendas. And, one of the agendas that has long been debated is the one surrounding legal gambling in the state. As of right now, online sports betting has been added to the state budget that is set to be finalized at the end of this month.
New York Governor Cuomo has thrown his support behind a sports betting system that would be run by the state’s lottery. This kind of system would only have one operator available. However, New York state legislators tend to favor a format with an open market that would allow for multiple online skins. These lawmakers have pushed plans forward for this open market mobile sports betting system. And, with the recent developments surrounding Governor Cuomo, the legislators may have a strong position from which to negotiate at this time. Because the state’s governor needs to curry favor where he can, it is unlikely that he will pick battles with potential allies.
Many in the sports betting and legal gambling industry are hopeful about the future of sports betting in New York. Penn National Gaming as well as Golden Nugget have both announced their market-access agreements with New York. And, the CEO of PointsBet Sam Swannell has also indicated that he is confident about the future of New York sports betting.
Ever since PASPA was overturned by the Supreme Court in 2018, neighboring state New Jersey has capitalized on the sports betting market. So, an open market is especially important for New York lawmakers to consider when legalizing sports betting in the state. If there is only one option available for sports betting in the state, New York bettors could continue to place their bets in New Jersey.
HAS GEORGIA SPORTS BETTING MADE ANY PROGRESS?
Some may look at the progress on Georgia sports betting this week and think it is promising. The Georgia state Senate formally approved two pieces of legislation surrounding sports betting in the state this past week. However, the House is not anticipated to readily approve this legislation.
SR 135 was approved in the Georgia state Senate by a vote of 41 to 10. This referendum would allow Georgia voters to decide whether to legalize sports betting in the state by voting on the matter in next year’s election. And a little while later, SB 142 was also passed in the Georgia state Senate by a vote of 34 to 17. This legislation would regulate sports betting in the state of Georgia.
However, both pieces of legislation will be entering an embattled House. As of right now, there is a disagreement between Republican and Democrat members of the house. Because of a Republican movement to end and suppress certain voting rights in the state, there are Democrats who will not support any Republican-sponsored bills.
Both sports betting bills in Georgia were sponsored by state Senator Jeff Mullis, who is expected to rework the bills. Mullis feels that there will need to be contributions from both sides of the aisle before the legislation will pass.
For instance, SB 142 had initially planned for a 10% tax rate. But, that tax rate has already been increased to 16% in a newer incarnation of the bill. And, the House has proposed increasing the tax rate to 20% in their HB 86. As of this writing, it is not totally clear if legalizing Georgia sports betting would require an amendment to the Georgia state constitution.
DRAFTKINGS ANNOUNCES PARTNERSHIP WITH DISH
One of the biggest names in sports betting, DraftKings, has recently announced an interesting partnership with television provider DISH. The partnership will give sports bettors the ability to place wagers on sporting events through their televisions. However, the wager would need to be completed using the DraftKings Sportsbook app in order to be officially counted.
This kind of venture has been attempted before. Sky Bet invested millions into a similar venture that did not end up panning out. And, Fubo TV is also looking to find a way to combine its live streaming service with sports wagering.
A CONTROVERSIAL MOVE IN CONNECTICUT SPORTS BETTING
Recently, Connecticut Governor Ned Lamont announced the state had reached a sports betting agreement with just one of the two tribal partners in the state. As a result, many in the state are upset with the announcement. An agreement was reached between Governor Lamont’s office and the Mohegan Tribe in Connecticut last week for expanded gaming.
There was a joint Public Safety and Security Committee hearing that preceded the announcement. Sports betting operators in the state were able to give their opinions on the future of Connecticut sports betting.
The Chairman of the Mashantucket Pequot Indigenous Peoples, Rodney Butler, had expressed his doubts that a two-sided announcement could come with his tribe at the hearing. After Governor Lamont’s announcement, Butler and supporters of the tribe made their opinions known. Butler feels that a two sided announcement and agreement is necessary and feels that the governor’s decision to push forward with only one tribe was extremely disrespectful.
As an agreement is needed with both tribes to move forward with sports betting, the announcement that a deal has been reached with only one tribe has been viewed as offensive. Butler feels that the tribes have already been asked to concede too much in the deal, before the announcement was even made. However, it would appear that Butler and the Mashantucket Pequot tribe are still open to discussions.
In addition, seventeen legislators coming from Eastern Connecticut wrote a letter to the governor expressing their support for the Mashantucket Pequot tribe. The letter stated that the agreement is incomplete without the addition of the Mashantucket Pequot Tribal Nation. The eastern Connecticut delegation will not be supporting the agreement unless it includes both tribes according to the letter.
As of now, here is what Connecticut sports betting will look like. It looks like the tax rate for sports betting revenue will be 13.5%. Meanwhile, iGaming will be taxed at a rate of 20%. The Mohegan tribe will receive one skin in the agreement, which would go to sports betting partner Kambi, with whom the tribe had reached an agreement two years ago.
In addition, an online sports betting skin would go to the Connecticut Lottery. And, fifteen retail locations would also be able to enact sports betting legally. Plus, brand new sports betting venues run by the Connecticut lottery would be built in both Hartford as well as Bridgeport.
The Connecticut Lottery would be able to sub-license some retail operations to the company Sportech, but the company will not receive an online license. As Sportech is already Connecticut’s exclusive operator for parimutuel wagering, the company wants a better agreement with the state for sports betting. The company can only be included in the planning for sports betting if the Connecticut Lottery decides to allow for it.
Sportech has expressed displeasure at the current plan for its inclusion in the Connecticut sports betting market. The company has expressed its plans to seek legal recourse in order to expand its access to sports betting in the state.
As you can see, sometimes progress towards legal sports betting can move quite slowly even with support. But, the legal process is long and involved for creating the foundation for legal sports betting in each state.
So, the time and care that is spent on sports betting legislation is necessary for the success of the market in your state! Come back next week for more sports betting news!
Written by Allie Nelson, our US Sports Betting Industry Expert. You can learn more about our author's expertise.