Robinhood Getting Into Sports Betting?
During its inaugural investor day on Dec. 4, Robinhood CEO Vlad Tenev shook up the sports betting world when he told attendees, “We’re keenly looking into that space.” On Wall Street, the comments had an immediate effect, as shares of DraftKings, Flutter and Penn Entertainment were down for the day.
According to CNBC, Tenev suggested that his company may be interested in entering the gambling landscape with a product similar to Kalshi or Polymarket, both of which offered betting on the latest presidential market. Those companies do not offer traditional sports betting, but rather, customers buy and sell contracts from each other.
“Nothing to announce just yet, but it’s so important to our customers and in culture that we’re excited about it,” Tenev said. Robinhood stock rose 3.5 percent Dec. 4.
Mathew Bowyer Sentencing Postponed
According to the docket for the U.S. District Court for the Central District of California, sentencing for accused illegal bookmaker Mathew Bowyer has been postponed from Feb. 7, 2025 to April 4, 2025.
Bowyer in August pled guilty to three federal charges, including running an illegal sportsbook and money laundering. Bowyer faces up to 18 years in prison. At the height of his business, Bowyer had more than 700 customers, none more infamous than former Shohei Ohtani Japanese-language interpreter Ippei Mizuhara.
Mizuhara lost tens of millions of dollars gambling with Bowyer, and stole $17 million from Ohtani, the Los Angeles Dodgers’ star pitcher and slugger. Mizuhara, who pled guilty to bank fraud and subscribing to a fraudulent tax return in June, is set to be sentenced Dec. 20. He faces up to 33 years in prison.
Bovada Now Out of Arizona After Cease-and-Desist
Arizona became the latest state for offshore operator Bovada to exit after the Arizona Department of Gaming (ADoG) Nov. 8 issued a cease-and-desist letter to parent company Harp Media B.V. The regulator announced Dec. 3 via press release that it sent the letter.
The Bovada website now lists Arizona on its “restricted” U.S. states lists, which includes 16 other U.S. jurisdictions. The letter is one in a string that regulators across the U.S. have sent to the company this year.
According to ADoG, Harp Media is violating three laws by operating in the state. The regulator referred to Bovada as a “felony criminal enterprise.”
“Our enforcement team is committed to preventing unauthorized operations from establishing a foothold here,” ADoG Director Jackie Johnson said via press release. “Arizona will not be a safe haven for unlawful or unlicensed gaming, nor will we allow unlawful entities to compromise the integrity of gaming within our state.”
AGA Says ‘Keep Your Cool’ is Newest RG Tenet
The American Gaming Association (AGA) Dec. 5 released an update to its “Have a Gameplan” public service campaign. “Keep Your Cool” becomes the fifth pillar of the group’s responsible gambling campaign, it said via release. The newest pillar is in response to athlete harassment, and guides bettors that harassment is not acceptable.
According to the press release, “Keep Your Cool” also means to “respect the game” and “stay focused on having fun.” The other existing four pillars, put into place when the AGA rolled out the “Have a Gameplan” campaign in 2019 are:
- Set a budget
- Keep it social
- Know the odds
- Play legally
“Responsible gaming efforts like Have A Game Plan and other proactive efforts by legal operators are resonating with consumers and making a difference,” AGA President and CEO Bill Miller said via press release. “‘Keep Your Cool’ builds on this momentum by reminding bettors that a betting result – good or bad – is not an invitation to criticize a team, official, or athlete.”
While Many Say ‘Don’t Bet on Texas,’ Adelsons Are
The Adelson family, now majority owners of the Dallas Mavericks, have heavily backed gambling legislation in Texas over the last several sessions, per iGB. But despite all the dollars put in, Texas politicians have not meaningfully considered the issue.
The Texas legislature meets only in odd-numbered years. During the 2023 session, the House approved a bill that would have allowed for statewide mobile betting controlled by the state’s professional sports teams and other sports entities, with the tax rate set at 10 percent. A destination resorts bill that included casinos was withdrawn from the House floor without a vote. Besides that, Texas’ Lt. Gov. Dan Patrick said at that time he wouldn’t call for a Senate vote on legal wagering.
He tweeted, “I’ve said repeatedly there is little to no support for expanding gaming from senate GOP. I polled members this week. Nothing changed. The senate must focus on issues voters expect us to pass. We don’t waste time on bills without overwhelming GOP support. HB1942 won’t be referred.”
Since then, Patrick’s stance has not changed. In addition, Eilers & Krejcik in August took Texas off its list of states projected to legalize in 2025.
But according to the Dallas Morning News on Nov. 27, Miriam Adelson has made $13.7 million in political donations ahead of the 2025 session. That already more than quadruples 2022’s total of $3.3 million. The legislature is set to meet Jan. 14-June 2 2025.
Texas Wouldn’t Be the Biggest Handle or Revenue State
A new Eilers & Krejcik study reveals that handle in Texas in year 1 of legal digital sports betting could reach $24 billion, reported Casino Reports Dec. 2. That number could rise to $30 billion by year 3. The report also projects $2.5 billion in revenue in the first year and up to $3.5 billion by the third year, depending on the tax rate.
Despite the gaudy numbers, Casino Reports wrote that Texas would still be second in handle and revenue to California, the country’s most populous state. That’s based on 2022 numbers that projected first-year California handle to be somewhere between $30-60 billion and revenue to be up to $3.4 billion.
It is likely, though, that Texas will easily eclipse handle in New York, the most populous state that currently offers legal sports betting, and Florida, where the Seminole Tribe’s Hard Rock Bet has a monopoly.
What’s Behind the AGCO and IGO Split?
The Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO) are set to become separate agencies in 2025, and Steve McAllister of Gaming News Canada explained why.
McAllister said that after reaching out to Ontario’s Ministry of the Attorney General, he learned that there is some concern about a conflict of interest with both iGO and the Ontario Lottery and Gaming Corporation reporting to the same agency (AGCO) as iGO, which represents commercial sports betting and online gaming operators.
The attorney general’s office shared with McAllister that the move will “strengthen iGO’s governance and accountability structure and contribute to the continued success of Ontario’s thriving iGaming market by positioning the agency as a competitive employer and addressing a conflict-of-interest concern raised by the Auditor General.”
McAllister went on to posit that the move could make iGO more nimble and able to handle issues or implement change more quickly with less red tape to cut through.
NorthStar Gaming Sees Q3 Handle Spike
Canada’s NorthStar Gaming shared a 69 percent increase in handle against the same quarter in 2023, the company reported Nov. 27. The company also reported a 45 percent increase in overall revenue and a 63 percent increase in gross gaming revenue.
NorthStar Bets took CA$667 million in bets in the first nine months of 2024, a 53 percent increase against the first three quarters of 2023. In October, NorthStar Bets rolled out “Sports Insights 2.0,” which included a homepage redesign, more comprehensive statistics, feeds with injury and player news and increased casino content. The company is live in Ontario, Canada’s only competitive regulated market.
In Other News …
Former ESPN SVP of Production Michael Shiffman has moved to FanDuel TV as SVP and Executive Producer, the company announced Dec. 2. Shiffman will oversee creative and operational direction.
Fanatics will hold its FanFest June 20-22, 2025 at the Javits Center in New York, the company announced Dec. 4. The event drew 70,000 people in 2024. The 2025 event will feature more than 500 celebrities, athletes and artists, for what the company calls the “ultimate sports, culture and collecting festival.” Presales for those who attended the 2024 event went on sale Dec. 5 and will be available through Dec. 8. General public tickets go on sale Dec. 13. Find tickets and more information here.
Accel Entertainment Dec. 2 announced that it has completed its acquisition of Fairmount Holdings, Fairmount Park, Inc., more commonly known as FanDuel Sportsbook & Racetrack in Illinois. In the deal, Accel got a casino license and will partner with FanDuel to offer digital wagering in the state.
The Philadelphia Flyers Nov. 27 announced a new partnership with PokerStars that will allow PokerStars’ customers the opportunity to win NHL tickets and memorabilia.
