Last Updated May 20, 2022, 17:54 PM

Weekly News - 06/08/2021

THIS WEEK IN LEGAL SPORTS BETTING — LOUISIANA SPORTS BETTING SEES A VICTORY

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June 8th, 2021 Weekly Report

As the days get longer and the weather gets hotter, so heats up the state of legal sports betting in the US. Florida sports betting takes a hit, while New York sports betting is in the news again. Keep reading to learn about all of the biggest news in US sports betting from this past week.

If you want to find our more on some major topics not covered in this article you can check out the rest of VegasInsider with our exclusive bet365 bonus codeBetMGM bonus code or Pointsbet promo code for example!

CONTENTS

FLORIDA SPORTS BETTING SEES HIGH PROFILE OPPOSITION

Florida sports betting saw a high profile opponent voice his reservations this week. The Department of Interior is set to review the Florida gaming compact that was reached. However, the mayor of Miami Beach, Dan Gelber, came out in the news to voice his opposition.

The Miami Beach mayor had a letter published in the Miami Herald addressed to the Department of the Interior. He has requested that the DOI reject the new gaming compact. A rejection would send both Florida Governor Ron DeSantis as well as the Seminole Tribe back to the beginning in their Florida sports betting legalization battle.

Mayor Gelber voiced a number of objections to the compact between the Seminole Tribe and Governor DeSantis. The concerns are mainly around the the potential expansion of casino gambling at the Trump Doral property as well as the Fountainebleau Hotel. He believes that the expansion through the compact would not be in line with what is permitted in the Indian Gaming Regulatory Act, or IGRA. He believes it should be rejected by Deb Haaland, the Secretary of the Interior.

It is unknown as of this writing what kind of impact the letter can or will have on the Florida sports betting legalization journey. However, the 45-day window for review of the compact by the Department of the Interior will expire in the middle of July. So, those who are interested should have their answer before then.

MORE NEW YORK SPORTS BETTING QUESTIONS HAVE BEEN ANSWERED

Companies are currently preparing for the upcoming RFP for New York sports betting. As this is happening, the New York State Gaming Commission came out with more answers this past week. However, the official details for the upcoming RFP will be released by July 1st if not earlier.

Operators as well as platform providers will be able to submit bids after they are published. The bids will be to become one of the minimum two platform providers as well as the four sportsbook skins in New York state. The application period will be 30 days long. The commission will be selecting winners with a period of 150 days.

Back in April, around a week after New York Governor Andrew Cuomo signed the budget bill that included sports betting legalization language, the first round of Q&A was published. It is expected that New York mobile sports betting will be launched by the 2022 Super Bowl, hopefully in time for that betting season. However, there has yet to be any public conversations surrounding which companies are teaming up to present bids in the Empire state. But, even if the bidders do not publicly announce the details of their bids, they will still be available to the public.

This is because all bids are subject to the Freedom of Information Law. This was presented on the updated Q&A. But there will not be a plethora of available information. Trade secrets and other information is kept confidential to avoid hurting the bidding businesses. If a platform provider has submitted multiple bids, they are actually able to be selected for multiple licenses by the New York State Gaming Commission.

However, as confirmed by the regulator, these platform providers would have to pay the $25 million license fee for each license granted. The New York State Gaming Commission also has stated that they do not have a preference for the number of operators that a platform provider could include in its bid. But, there will be no changes accepted to the bid once it has been submitted.

And, if a sports betting operator is not longer able to operate, the rest of the operators in the bid would have to make up the difference in the funds that were promised. New York tribal partners are able to fulfill the operator role. Plus, they are able to operate under their own brands as part of a bid. Additionally, platform providers will be awarded extra points if they sign a revenue-sharing agreement with a tribal operator.

It is not yet clear how much an agreement with a tribal partner would boost a bid from a platform provider. There are also other unanswered questions as to what the RFP will want specifically. It is also not clear whether a bid’s score would be hampered by an operator being included in multiple other bids.

There is also a question as to whether preferential treatment would be awarded to platform providers that will have their operations based in New York. The New York State Gaming Commission says that more questions will be answered with the RFP. Each separate operator under a bid is able to have its own risk management operations. The role of the platform provider is to accept and register all of the bets.

An operator will be unable to change platforms while it is under the 10-year license contained in the bid. Platform provider bids do not have to include an operator’s potential revenue and tax projections. No costs related to official league data from GGR will be able to be deducted by the platform providers.

However, the regulator was adamant against addressing hypothetical scenarios in its Q&A. The worry about the New York mobile sports betting rollout is that if it is not handled properly, it could turn off residents who are interested in wagering. So, this means the state could continue to lose out on sports betting revenue to neighboring states.

Neighboring state New Jersey already has a robust legal sports betting market that New Yorkers have been taking advantage of. It is estimated that around a quarter of the state’s betting handle is from New York sports bettors. Plus, interested bettors also have nearby Pennsylvania if they want to place their sports bets as well.

These two states also allow for remote registration, which means New Yorkers just have to be within the border of the states to register. In addition, Connecticut sports betting is also forthcoming, and will most likely beat New York sports betting to launch. This would give New Yorkers another option for sports betting outside of the state.

LOUISIANA SPORTS BETTING MOVES FORWARD

Louisiana Governor John Bel Edwards has signed into law the first of two necessary Louisiana sports betting bills, HB 697. These two sports betting bills are necessary to launch legal sports betting in the state. And, a few days before, another important piece of sports betting legislation, SB 247, passed the state House by a vote of 78 to 15.

Before the Senate bill can go to the state Governor’s desk, it needs to have House amendments approved by the state Senate. These bills together will legalize Louisiana sports betting. 64% of Louisiana’s residents voted at the ballot box to legalize sports betting in the state.

Sponsors of the bill are hopeful for a launch by the end of the NFL season. The bill incorporated temporary licenses that would allow mobile sports betting while the retail sportsbook locations are erected.

There is also a third bill, SB 142, that is awaiting House approval. The bill appropriates the tax revenue from Louisiana sports betting.

Written by Allie Nelson, our US Sports Betting Industry Expert. You can learn more about our author's expertise.

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