This week carried some decent news out of a bunch of different states. As the sports betting world gets more accepted each day, some people see big things to come in the US Sports Betting world.
Indiana Sees a Major Boost in Wagers
The fall is the most popular sports betting season with the NFL and NCAA football leading the charge. Every legal gambling state is surging in taxes from what is unprecedented handle amounts being bet. Indiana’s handle was $92 million in October, only the second month of legal gambling for the state. This is nearly three times the amount from September and equates to about one million in total tax revenue for the month. Football wagers included $41 million of the total $92 million. Draftkings have joined Indiana and you can open an account.
Ohio Eyes Signed Legislation Over 2020 Ballot
Ohio sees the writing on the wall and wants to legalize gambling before the 2020 election. Ohio Governor Mike DeWine believes gambling is coming one way or another and he wants to make sure it is the right way. Gov DeWine would like to pass signed legislature before the 2020 election to avoid a ballot initiative. One reason is he believes legislation is “the best option for regulatory guidelines” (1). Gov. DeWine also believes if legalized gambling is passed on the 2020 ballot then there is a much greater chance of specialized interests taking control of the industry. Ultimately he believes signed legislation will be best for the people of Ohio.
Yahoo Partnered with BETMGM
Yahoo Sports, which currently does daily fantasy, has paired up with BetMGM to bring Yahoo Sportsbook. Only New Jersey residents can use the mobile app initially but that will change in the future as they add more states. MGM has gone to an asset-light strategy “This asset-light strategy also pairs well with MGM’s expansion into sports gambling. Sports gambling requires technological infrastructure and the right marketing to get one’s brand in front of customers. MGM has made deals with major professional basketball, hockey and baseball leagues to be their official sports betting partner. If it’s successful, MGM will have another business to leverage with little assets invested”(2). It is clear that MGM is positioned to take advantage of digital wagering as the tech side grows with the industry. This has reflected nicely in MGM stock price as it has climbed steadily. Currently, MGM is $31.82 up roughly $5 over the last month.
**Also Bet MGM has a deposit bonus of $100 in free bets for a $10 deposit for first-time users.**
New Jersey Brings in the Most Tax Revenue
From August 2018 to August 2019 Nevada had nearly $2 Billion more in wagers placed over New Jersey, however, New Jersey has brought in more tax revenue over that span. “New Jersey has an 8.5% tax for sports bets made in person and a 13% tax for online and mobile sports bets. Nevada has a much lower tax rate of 6.75% for all types of sports bets”(3). Over 80% of the bets were placed with mobile in New Jersey meaning the state received a majority of the taxes at the 13% tax rate. The Supreme Court ruling on PASPA (Professional and Amateur Protection Act) essentially decided sports betting will not just be in Nevada. The ruling also allows states to set their own tax rates.
- Colorado and Illinois are pushing to get legalized gambling in 2020.
- California Indian Casinos are concerned legalized gambling could ruin all they have built.
- A new bill could legalize gambling in Florida.
- Pro sports leagues pitch gambling to Missouri Legislators.
- Pro sports teams and gambling relationships including advertisements are on the way.
- New York hires a consultant for a comprehensive statewide gaming market study.
- And Norman Chad asks the question “Legalized sports gambling. What could go wrong?”