Legal digital wagering stalled in Nebraska
Legal digital sports betting appears to be stalled in Nebraska. The state legislature has been in special session since July 25 and the General Affairs Committee held a hearing on the subject last week. But since then, lawmakers appear divided.
One source said that Governor Jim Pillen, traditionally anti-gaming, now supports an expansion. Pillen previously said that he plans to introduce legislation in January. He appears open to any gambling expansion to increase state tax revenue. Friday is Day 10 of the special session, which does not have a firm adjournment date.
In 2020, Nebraska voters legalized “games of chance.” At that time, it was unclear if sports betting fell under that umbrella – it is defined as a “game of skill” in some other states – but lawmakers later determined wagering was part of the expansion. However, the legislature limited legal sports betting to in-person wagering. Gambling proponents are now pushing to add digital gambling. Ninety percent of gambling tax proceeds in Nebraska are earmarked for property-tax relief.
The median property tax in Nebraska is 1.61 percent, making it one of the 10 most expensive property-tax states in the U.S.
FanDuel Being Sued for Alleged Data Privacy Violation
Covers is reporting that FanDuel has been sued in federal court in California for improperly sharing consumer data. A lawsuit contends that consumer data is sent to TikTok before FanDuel customers can make a cookie decision regarding data sharing. When the data is sent, according to Covers, TikTok uses “fingerprinting.” Data is collected from anonymous sources visiting the site and then integrated with existing data on file to create a profile. TikTok then sends targeted ads to consumers.
FanDuel’s parent company, Flutter, isn’t the only well-known corporation being sued for using TikTok software. Wagering competitor DraftKings, WebMD, and United Health Care have also been sued.
DraftKings Misses Earnings, but Defends Winning Surcharge Idea
DraftKings missed analyst expectations when it reported quarterly earnings last Friday, one day after the company announced it would begin charging a winners’ tax starting in January, iGB reported. On the earnings call last Friday, co-founder Jason Robins said he believes that consumers will be willing to pay the new fee because of the quality of DraftKing’s product. Executives also predicted that the company could hit $1 billion in EBITDA in 2025.
“It is an important step that consumers will ultimately understand,” Robins said during the Q&A portion of the earnings call. “If they feel the product and experience is better, then they would rather pay for that than go somewhere else that doesn’t have as strong a product.”
Robins suggested during the call that other operators might follow suit. Most have been mum on the subject, though Rush Street Interactive CEO Richard Schwartz on Monday said his company won’t go down that road.
ESPN’s Purdhum gets contract renewal
Sports betting reporter David Purdhum signed a multi-year contract extension, ESPN announced Monday. Purdhum has been covering sports betting since 2008 and is among, if not, the most prominent wagering news reporter in the U.S. He covers daily news but has played a role in ESPN’s investigative work around the Alabama baseball betting scandal, the Jontay Porter illegal wagering scandal, and the Detroit Lions’ 2023 player suspensions, according to the press release.
“The future is going to be even more fascinating, as the fledgling American betting market continues to mature into what most experts believe will be one of the largest in the world,” Purdhum said via release. “I can’t wait to tell the stories along the way.”
In other news …
The New Jersey Division of Gaming Enforcement is requiring bet365 to reimburse bettors to the tune of $519,0323 after shifting odds without the agency’s approval. Bettors made 199 wagers on 12 days between December 2020 and November 2022 that were affected.
Daily fantasy provider PrizePicks on Monday announced that Mike Ybarra will replace Adam Wexler as CEO immediately. No reason was given for the quick change, though Wexler, one of the company’s founders, will stay on as executive chairman of the board.
The US Attorney’s office in Southern California Monday said that it had arrested four men in San Bernardino County for running a cock-fighting ring. According to an affidavit, cockfighters paid a $1,000 entry fee and fans paid a $40 per person entry fee, and there were often 100 attendees.
The Massachusetts Gaming Commission canceled a Wednesday agenda-setting meeting during which it had planned to set a new date to discuss bet limits with operators. The issue has been contentious and most operators boycotted an initial meeting on the topic. It’s unclear why the meeting was canceled or when the bet-limits issue will again be considered.
