Two more states and one U.S. territory were added to the roles of sports betting states last week.
On July 29, Puerto Rican Governor Ricardo Rosselló celebrated one of his final legislative victories.
By signing the Betting Committee Act into law, the scandal-plagued governor authorized betting on sports, fantasy leagues and eSports. The triumph was followed almost immediately by his resignation on August 2. Rosselló was forced to leave office after vulgar text messages he exchanged with other political leaders were leaked. Other officials including Secretary of State Luis Rivera Marín, Secretary of Public Affairs Anthony Maceira and Chief of Staff Ricardo Cruz also resigned.
Rosselló proposed legal sports betting in March as a way to help Puerto Rico recover from the devastation of Hurricane Maria in 2017. Island officials say they will be the first in the Caribbean to allow sports betting.
“By signing this law, we are getting ready to witness the potential it provides to transform Puerto Rico into a vanguard jurisdiction, while benefitting the local economy,” Rosselló said in a news release. “With this legislation, the island will be able to market itself nationally and internationally as an attractive destination for sports betting events.”
To jumpstart tourism, Puerto Rico will offer some of the lowest taxes on sports betting in the United States: 7 percent on gross gaming revenue for retail sportsbooks, and 12 percent for mobile sportsbooks. A study published in March by Spectrum Gaming Group estimates sports betting in Puerto Rico could generate up to US$62 million in GGR per year.
Much of the emphasis will be on eSports, say Puerto Rican officials, due to the vast audience for the events—an estimated 400 million worldwide. By 2023, the economic impact of the sport is projected to exceed US$3 billion.
One day before the Puerto Rican legalization, North Carolina Governor Roy Cooper signed Senate Bill 154, which allows sports and horserace wagering at the Eastern Band of Cherokee Indians’ two casinos: Harrah’s Cherokee Casino in Cherokee and Harrah’s Cherokee Valley River Casino in Murphy. The law was effective immediately.
The state Senate approved the measure in April in a 43-7 vote and it cleared the House on July 15 in a 90-27 vote. Analysts estimated revenue from sports and horserace wagering could generate $1 million to $1.5 million annually for the state. The new sportsbooks will add 30 to 50 new employees at each location.
The new law adds sports and horserace betting to the list of approved Class III games under the state-tribal gaming compact. It authorizes sports and horserace betting only on tribal lands; mobile and online betting are not allowed. Live poker and slot machines already are legal at the two Eastern Band casinos under state law.
Harrah’s Regional Vice President of Marketing Brian Saunooke said, “A lot of our customers have been asking about this for quite a while. It’s an exciting option and a lot of people look to that as part of their overall gaming experience and trip.”
Harrah’s Cherokee Casinos Regional Senior Vice President and General Manager Brooks Robinson added, “This is an exciting time. We continuously work to offer new experiences and opportunities to our customers and are confident that our new sportsbook will be an added delight for our guests and sports fans.”
Saunooke said both North Carolina casino sportsbooks, both to be called the Book, will be located within the existing properties’ footprints, but the Cherokee location will be an “extensive construction project.” The Valley River sportsbook will be smaller. Sanooke said, “By late fall, football will be in full swing. That’s an exciting time for sports bettors in general. We will be looking at other sports as well. We expect to have a full offering similar to what you would have in other markets, like Las Vegas.”
American Gaming Association CEO Bill Miller said, “Legalizing sports betting in North Carolina is a welcome step in the fight against the dangerous illegal market. Providing North Carolinians with legal alternatives to illicit offshore operators will help safeguard consumers and the integrity of the games, advance responsible gaming initiatives and give state and federal law enforcement an advantage in combating illegal gambling.”
In Iowa, the state Racing and Gaming Commission has unanimously approved new rules for betting on professional and collegiate sports and fantasy sports, which will take effect at 12 noon, Thursday, August 15. IRGC Administrator Brian Ohorilko said 18 of Iowa’s 19 casinos have applied for sports betting licenses; only the Casino Queen in Marquette has not applied. The new law does not allow in-game bets on in-state college teams.
Ohorilko said commissioners will begin meeting with the casinos in the near future. “Those meetings are intended to work through every control that’s required in the rules to give feedback to the operators so that they know if they are okay in certain areas or if there are areas where they still need to go back and beef up.”
Casinos have been negotiating with third-party companies to operate their sportsbooks. For example, William Hill US recently announced a partnership with Lakeside Hotel & Casino in Osceola; the company already has deals with casinos in Des Moines, Bettendorf and Waterloo. Customers in all four locations will have access to William Hill’s mobile app, kiosks and InPlay wagering menu.
In addition, several venues have been renovating their facilities to accommodate new sportsbook areas. If physical sportsbooks aren’t ready, several Iowa casinos are expected to offer online sports gambling the moment the clock strikes noon on August 15.
David Strow, a spokesman for Boyd Gaming, owner of Diamond Jo Casino in Northwood, said sportsbook construction is under way there and is expected to be finished in time for the National Football League’s regular season starting in early September. “We’re working diligently to get the sportsbook open. It will be a great addition to Diamond Jo and one that customers will greatly enjoy,” Strow said.
At Q Casino in Dubuque, CEO Jesus Aviles said the sportsbook hopefully will be opened in late August or early September. “With this kind of endeavor, being first to market is not our main thing. What is important is that all of our systems are A-plus. We’ll be testing and re-testing and making sure there are not any glitches,” he said. He noted that new TVs are up in the new sportsbook area, formerly a sports bar. “The goal for our room is that it will be a relaxed atmosphere. It will be a place where you can place a bet, order lunch or dinner and watch a game,” he said.
At Prairie Meadows in Altoona, Senior Vice President and Chief Strategic Officer Brad Rhines said the facility has had the foundations of an 8,600-square-foot sportsbook in place for months. “Whatever the start date, that’s always what our date was projected to be. Day 1, Hour 1 has been our aim.”
Ohorilko said until January 1, 2021, Iowa residents and visitors will have to travel to a casino to set up an online wagering account. Then they’ll be able to place wagers via their phone app, but only within the state’s borders.
Iowa Gaming Association President and CEO Wes Ehrecke commented, “There’s an excitement, just that kind of vibe. We have another entertainment option to enjoy watching sports by betting on them, and we can let players do that in retail and mobile environments.”
Iowa will become the 11th state to offer legal sports wagering, the third in 2019 and the first in the Upper Midwest. Under the new law, licensed casinos must pay a $45,000 license fee with an annual $10,000 renewal. Sports betting revenue will be taxed at 6.75 percent.
