US Online Gambling

Sports Revenue for Illinois Dips for May Handle

February 21, 2024 William Mcmaster

A statement by the Illinois Gaming Board revealed that the May handle of sports revenue from the state of Illinois dropped by 14.2% when compared to April. The state had gaming revenue of $537.2m for May, the lowest since January when it broke the $500 million mark to join ranks with New Jersey.

The report also stated that revenues dropped by almost 17% from April, recording $36m. Sports revenue remitted $5.9m as taxes to the government, bringing the total to $53m since sports betting started last year in March. (iGB North America, 2021)

Draftkings Casino did not stay away from the top of the list for long, overtaking FanDuel Casino to reclaim its position. Draftkings recorded 34.5% growth in revenue at $166.2m, while FanDuel Sportsbooks posted 32.2% growth in revenue for Illinois as its online handle stood at $155.6 million.

What Caused the Dip in Illinois Sportsbooks Revenue?

Analysts attribute this drop to the state’s policy preventing remote registration, a situation where Gov. J. B. Pritzker upheld a part of the legislation of Illinois on sports betting where residents must do an in-person registration at a registered casino to bet on sports. This led to a decrease in mobile handle, from 95.5% to 95.1%. (iGaming Business, 2021)

In their 2019 law, Illinois senators added a clause for sports betting online for a period of 18 months. The clause states that bettors must register in person at a casino. Yet, due to the surge of the COVID-19 pandemic, the Governor suspended the clause. By June 28, he suspended remote registration and renewed it on July 26. Following an outcry by Illinois bettors, he backpedaled on the order again on August 21. Since then, he had always renewed the suspension every month, until April when it wasn’t renewed.

According to Jessica Welman, an analyst, in-person registration is going to put a cap on the future growth of the sportsbook industry. The revenues for April and May show that bettors in Illinois are resilient and willing to bet on their favorite games, so the jury is still out on this prediction.

Future Prospects for Illinois Sports Betting Industry

Analysts predict that despite the challenges of in-person registration, Illinois can remain at second place among the US states in sports betting. Basketball and baseball remain favorite sports to bet on, with Illinoisans placing wagers worth $154.3m and $126.1m respectively on both sports. (Yahoo Finance, 2021)

It is expected that Illinois will drop in the rankings when fall begins if the ban on remote registration is still in place. Sportsbooks gain customers during the football season, and online registration will be required, which Illinois will be missing out on. This situation may see states like Nevada and Pennsylvania overtake Illinois.

If the Governor does not rescind the order, sportsbooks in Illinois can only begin online registration in January 2022. During the period of suspension, sportsbooks recorded thousands of new registrations done online, which can give them a good customer base to survive another period of in-person registration.

Till then, it is expected that the sports betting market will remain at a standstill position, and other states will begin to leapfrog the land of Lincoln, endangering their $500 million mark position.

Sources:

Yahoo Finance, 2021
https://finance.yahoo.com/news/illinois-sports-wagering-dips-may-165400088.html
iGB North America, 2021
https://www.igbnorthamerica.com/illinois-betting-revenue-dips-slightly-in-april-despite-retail-improvement/
iGaming Business, 2021
https://igamingbusiness.com/illinois-betting-revenue-dips-slightly-in-april-despite-retail-improvement/

A Guide to Legal Gambling in Colorado

February 21, 2024 William Mcmaster

It’s no secret that the nature of gambling regulations in the US varies from state to state, with some states legalizing all forms of gambling, others legalizing some types, and some states not allowing any form of gambling at all. The state of Colorado falls into the second of the three gambling legalization categories listed above.

Staying updated on which states allow some or all types of gambling and which states don’t could be a lot to keep up with, but it also could be the difference between gambling at a safe online casino and gambling at one that’s illegal and unlicensed.

The first step to figuring out Colorado’s gambling laws is knowing what the state defines gambling as. Going by the constitution of the Rocky Mountain State, “risking money or any other thing of value for gain contingent in whole or part upon lot, chance, or the happening or outcome of an event over which the person taking a risk has no control.” (FindLaw, 2016)

According to Colorado Law, gambling at the Colorado Lottery is one form of gambling that is legal, alongside limited gaming in Colorado casinos in Central City, Cripple Creek, Black Hawk, and on Indian reservation land. The constitution always allows gambling on live and off-track horse racing events under the Colorado Division of Gaming, bingos, and raffles licensed and regulated under the Secretary of State’s office, sports betting, as well as what the law deems as “social” gambling. (Specialized Business Group, Colorado Department of Revenue, 2021)

Internet Gaming in Colorado

In 2005, the office of the Attorney General released an official statement which claimed that online gambling fell under all the already existing gambling laws in the state. That means, technically, online gambling is not allowed in Colorado. Residents of the state can still access gambling sites based offshore, though. Placing wagers on those sites and sportsbooks is considered illegal, even if they are legal and licensed in the places where they are set up.

A policy set up by the Colorado Limited Gaming Control Commission restricts businesses and people licensed in Colorado’s casino industry from being involved in any way with any offshore internet gaming site that can be accessed by residents of the state.

While online gambling is classified as illegal in Colorado, no one has ever been arrested for casual gambling at any online gambling sites. This is mostly because much of the law in the state focuses on illegal gambling businesses and professional gambling, as opposed to casual gaming customers.

The state recommends that players stay away from gambling not only because it is illegal, but because there are no state regulatory controls that can guarantee that games are conducted fairly and that children are prevented from accessing gambling sites. Participants who get locked in disputes and complaints over payments with online casinos or telephone sportsbooks can take no benefits or resolutions from state agencies.

Sports Betting in Colorado

May 2020 saw Colorado become one of the US states that offered legal sports betting after voters approved legislative referral Proposition DD (House Bill 1327). Colorado Proposition DD, the Legalize Sports Betting with Tax Revenue for Water Projects Measure, was passed in 2019 after recording a narrow 51 percent – 48 percent win at state ballots.

The bill authorized sports betting while also levying a 10 percent tax on proceeds made by sports betting operators in the state. Proposition DD’s success at the ballots meant that casino properties in the state could apply for online and retail sports betting licenses from the Colorado Gaming Control Commission.

Despite a slow start caused by the global pandemic, the sports betting market in Colorado grew steadily after its launch, recording a total of $2.3 billion in wagers after one year. That figure was released by the Colorado Division of Gaming, and it put the state behind only New Jersey and Illinois for total sports wagers after the first 12 months of operations. The absence of in-person registration restrictions and in-state college sports betting in the Centennial State has made it one of the most attractive legal sports betting states in the country.

How to Take Part in Colorado Gambling

Your gambling options in Colorado include anyone of the following:

Limited casino gaming at casino properties in gaming towns. (Black Hawk, Central City, and Cripple Creek.)
State Lottery.
Live and off-track horse racing.
Licensed bingo and raffle games.

Residents of the state can also take part in poker tournaments as long as those activities fall under the social gambling umbrella. Regulated sports betting in Colorado launched in May 2020.

Sources

FindLaw, 2016 – https://statelaws.findlaw.com/colorado-law/colorado-gambling-laws.html
Specialized Business Group, Colorado Department of Revenue, 2021. – https://sbg.colorado.gov/what-is-legal-gambling-questions-in-colorado
Colorado Department of Law and Attorney General’s Office News Release, 2005. – https://sbg.colorado.gov/sites/sbg/files/Illegal%20Gambling%20Activities%20News%20Release.pdf

Online Gambling in Illinois Explained

February 21, 2024 William Mcmaster

Illinois is one of the many US states to have relaxed gambling laws within recent years, with the state now permitting online and retail sports betting alongside horse racing and riverboat casinos. Charitable games are also allowed, as are bingo and raffles. However, several other forms of gambling are still prohibited in the Prairie State, and certain restrictions exist on the types that are allowed. Understanding what these restrictions are and when they are valid is crucial to staying away from prohibited gaming activities.

Gambling in Illinois is defined as “playing games of chance or skill for money or other things of value; wagering upon games, contests, or elections; owning or operating gambling devices.” Both live and off-track horse racing and pari-mutuel wagering is allowed in Illinois as long as operators remain licensed with the state’s racing control board. Riverboat gambling is also allowed on any navigable stream not found within counties that have over 3 million residents. Lake Michigan is a notable exception to the riverboat gambling permissions. (Find Law, 2016)

Illinois also allows retail and online sports betting for already existing land-based licensees, but restrictions on remote registration are in place for online sports betting. That means players can only access any of the six online sportsbooks in the state after carrying out in-person registration. The Illinois Gaming Board regulates sports betting, while the Illinois Lottery Control Board (ILCB) and the Department of the Lottery (DOL) control lotteries within the state.

Illinois Gambling History

As far as internet gaming is concerned, the state of Illinois does not have a regulated market. That’s not to say that the state doesn’t have any sort of gambling history, though. In 1920, Illinois legalized horse racing betting at local race tracks as its first major form of legal gambling.

That law was followed by the Riverboat Gambling Act of 1990. The Riverboat Gambling Act allowed commercial casinos to operate on boats as long as they were outside Lake Michigan, as well as counties with populations greater than 3 million. The state permitted local bars, restaurants, and drive-ins to host Illinois Lottery terminals in 2009. A new bill passed in 2019 allowed riverboat casinos to operate within specific locations in the state as fully licensed land-based casinos. There haven’t been any new gambling laws since then.

The land-based casino scene in Illinois includes 9 riverboat casinos and one land-based casino scattered around the state. These casinos offer over 10,000 slot machines and 500 table games combined. Rivers Casino became the first land-based casino in the state after being granted a land-based casino license in 2019. Before then, Rivers had qualified as a riverboat casino by building its property above a shallow pool of water. (Chicago Tribune, 2019)

Riverboat casinos in the state are allowed to operate live poker rooms but are prohibited from offering real money poker sites to residents. Live poker is also operated at charitable gaming venues.

Internet Gaming in Illinois

According to section 28 of the State Code, it is illegal for residents of Illinois to carry out unlicensed internet gambling operations. The law makes it outright impossible to set up an online casino business in Illinois, but it fails to state any form of punishment for residents who participate in online gaming with offshore sites.

The state of internet gaming in Illinois might be set for some change in the future as house bill SB-0007 continues to gain traction within legislative spaces. The bill, introduced back in 2017, seeks to expand land-based gaming and legalize online gambling within the state.

Sports Betting in Illinois

In June 2019, governor J.B Pritzker signed the sports betting bill into law, allowing retail and online sports betting in the state. The bill stated that online-only operators could only get their sports betting licenses after 18 months from when the bill was passed. Sportsbook operators in the state bypassed that waiting time by partnering with casino operators in the state for retail and online licenses. (ActionNetwork, 2021)

Illinois sports betting continues to rise in prominence, with the state now firmly establishing itself within the top five US sports betting markets. That rise has come in spite of restrictions placed on state-based college sports betting and remote registration for online betting.

How to take part in Illinois Gambling

Residents of Illinois can take part in any of the following legal forms of gambling:

Casino gambling at any of the land-based casinos in the state.
Retail sports betting
Online Sports Betting (with in-person registration)
Lotteries
Charitable Bingo
Horse Racing

Illinois law states that players must be at least 18 before they can take part in pari-mutuel wagering, bingo, and lotteries. The minimum age for casinos and sports betting is 21 years.

Sources

Find Law, 2016 -https://statelaws.findlaw.com/illinois-law/illinois-gambling-laws.html
Chicago Tribune, 2019 – https://www.chicagotribune.com/business/ct-biz-rivers-casino-land-based-20191108-b4zc7v2clnbhfiqwqw5uyaznwm-story.html
Action Network, 2021 – https://www.actionnetwork.com/online-sports-betting/illinois

GAN Signs Multi-Year Agreement with Incredible Technologies

March 13, 2024 William Mcmaster

GAN Limited, an internet gaming service provider for companies in the online gambling industry, announced on Thursday, June 17, that it has entered an agreement with Incredible Technologies, Inc., a designer and manufacturer of coin-operated electronic gaming machines for the US market.

The agreement grants GAN Limited exclusive online rights to all existing and future online games by Incredible Technologies, which are expected to grow to over 110 during the term of the contract. This is GAN’s second major agreement for exclusive gaming content, reinforcing the SaaS company’s position as an industry leader in the United States’ iGaming sphere.

About Incredible Technologies Inc.

Incredible Technologies is an Illinois-based company known for its array of innovative electronic gaming machines, including popular ones such as Crazy Money and Money Rain. Its games line the floors of retail casino gaming outlets in the United States and are accessible online in New Jersey. With this deal, the company will be able to grow its online portfolio while working long-term with a partner that has a well-established online distribution chain in the country. This was made known in a statement by Daymon Ruttenburg, the Senior Vice President of Gaming of Incredible Technologies.

“Our partnership with a proven and premier partner like GAN advances the online U.S. distribution of our leading portfolio of gaming content. Since our company’s founding, we have been committed to creating innovative and exciting ways to engage players with new technologies and capabilities. We know that GAN shares this commitment, and we look forward to bringing new online experiences to our players through GAN’s extensive online distribution network. Together, we will be drivers of the U.S. iGaming market as it continues to grow.”

Implications of the Deal for Gan Limited

Gan Limited will now begin to obtain online content licensing fees from existing online operations of Incredible Technologies in the Garden State. What this means is that access to Incredible Technologies’ existing gaming library and future additions to it will be only through GAN’s Platform and Super RGS. The company has announced that because of this long-term deal, its exclusive content from combined online slot partners makes up about 7% of all slots sold in the United States last year.

Jeff Berman, Gan Limited’s Chief Commercial Officer said:

“We welcome this partnership with Incredible Technologies as another validation of our market-leading presence in the regulated intra-State markets of America. Today’s announcement is another exciting step toward building upon our strategy of establishing exclusive online access rights to the most popular retail U.S. slot games. Few content providers in the U.S. market have established a reputation for innovation and creativity as well as the operational excellence of Incredible Technologies. The popularity of IT’s slot games, including the player-favorite Ultra Rush themes, will be a critical addition to our portfolio as we commit ourselves to becoming a leading provider of exclusive online content.”

Sources

BusinessWire, 2021 – https://www.businesswire.com/news/home/20210617005163/en/GAN-Announces-Multi-Year-Agreement-with-Incredible-Technologies-for-Exclusive-U.S.-Online-Rights-to-Leading-Casino-Portfolio
Benzinga, 2021 – https://m.benzinga.com/article/21608816
iGaming Future, 2021 – https://igamingfuture.com/gan-and-incredible-technologies-sign-us-exclusivity-deal/

BetMGM Michigan’s Top Performer in Online Casino Market

February 21, 2024 William Mcmaster

Michigan continued its impressive start to online gaming in May. According to numbers from the Michigan Gaming Board, online casino operators in the state raised $94.9 million for May, a figure which put the state among the best in the country. Online casino operators paid state taxes worth $18.1 million, along with $5.2 million paid as taxes to the city of Detroit and $1.9 million to tribal governments.

The total revenue gained by Michigan online casinos in May was almost unbelievably consistent with the numbers from April. The difference between both months was a slightly imperceptible $213.47 (0.0002%) drop from $94,851,765.56 to $94,851,552.09. (Michigan Gaming Control Board, 2021)

The breakdown of Michigan’s online gaming revenue for May revealed that BetMGM Online Casino led the way again, with $36.1 million gained in revenue, amounting to 38% of the total revenue. The revenue was for the most part a result of winnings from BetMGM MI Casino, but earnings from BetMGM MI Poker also contributed.

Behind BetMGM’s class-topping numbers

BetMGM’s high-performing online casino numbers for the month of May included $36,089,904 in revenue, $7,073,621 in state taxes, and $3,482,676 in local taxes. Those figures make it the second month in a row where BetMGM has held almost 40% of Michigan’s online gaming market.

Despite the pretty strong competition facing the operator – including giants FanDuel and DraftKings – BetMGM has managed to navigate its way to an undisputed top spot in Michigan’s online casino market since it launched in January.

The company experienced a drop in revenue from April, but much in the same vein as total online gaming revenue in Michigan, the difference was almost negligible. In April, BetMGM Online Casino brought in online gaming revenue of $36,813,468.11. That figure fell 1.9% in May with total revenue of $36,089,904.12.

Breakdown of BetMGM’s Revenue Since January

BetMGM’s combination of consistent promotion rollouts and a variety of casino games has seen the company take massive strides in the Michigan online casino market. Before May’s slight drop-off from May, the operator had gone from $11 million to $36 million in three months. (Michigan Gaming Control Board, 2021)

January – $11,075,980.37
February – $26,912,267.71
March – $30,792,815.02
April – $36,813,468.11
May – $36,089,904.12

It is impossible to know the exact amount online poker has contributed to these revenues, as the Michigan Gaming Control Board does not release poker revenue data away from casino revenue. However, the online gaming classification that it gives to the numbers means that revenue from BetMGM’s online poker offering must have been factored into calculations.

The first few months of online gaming in the Wolverine State have thrown up a three-way race between the top USA online casinos BetMGM, FanDuel, and DraftKings. But with a market share percentage that’s more than double their nearest competitors, BetMGM’s hold on top spot appears almost insurmountable.

Sources

Michigan Gaming Control Board, 2021 – https://www.michigan.gov/mgcb/0,4620,7-351-79263-561862–,00.html
Michigan Gaming Control Board, 2021 https://www.michigan.gov/mgcb/0,4620,7-351-79127_82898-244408–,00.html

PointsBet Increase Player Protection with New Appointment

February 21, 2024 William Mcmaster

Online gaming operator PointsBet has made a significant effort to improve player protection by announcing the hire of Teresa Fiore as Responsible Service of Gambling and Corporate Social Responsibility Manager. The announcement came as part of a move by operators in the US to strengthen responsible gambling.

The global online sportsbook operator has experienced massive growth since it launched into the US markets of Illinois, Colorado, Indiana, Michigan, Iowa, and New Jersey. The online gaming brand quickly endeared itself to fans in the US thanks to its extensive bet markets and top drawer app. Now, the company appears to be doubling down on efforts to increase player protection within its ranks.

Speaking after announcing the appointment, PointsBet CEO Johnny Aitken said: “We have been viewed as an industry leader for responsible gambling efforts and awareness since we launched in the US. We have the utmost respect and seriousness for the space, and we’re fortunate in being able to utilize our mature Australian market expertise to help push the industry standard here to be better.”

He added: “We are excited to now take a further step in responsible gambling by bringing a great talent in Teresa to the PointsBet team. Her experience in the US industry, understanding of the current landscape, and knowledge of best practices will be of great benefit to the company as we continue to realize the growing sports betting opportunity,”

PointsBet High-profile Hire – Teresa Fiore

Teresa Fiore joins PointsBet with almost five years of experience working within the responsible gambling space, most of which came from her time working at the Massachusetts Gaming Commission. While she worked there, Fiore was in charge of GameSense, a $3M responsible gaming program that serves more than 300,000 customers annually across three of the state’s land-based casinos.

One of the key roles she played at GameSense involved being at the helm of monthly stakeholder meetings with casino management. She was also in charge of overseeing the design and construction of GameSense Info Centers, as well as offering specific insights that drove a $200,000 multimedia ad campaign. Fiore’s other notable duties included managing a state-wide Voluntary Self-Exclusion program which offered a platform for individuals who’d made the decision to step away from casino gambling and also helped promote regulation.

Speaking after her appointment at PointsBet, Fiore stated: “I am delighted to have joined PointsBet and I welcome the opportunity to continue to find ways to innovate within the responsible gambling sector. With the rapid emergence of legalized sports betting, attention to safe and sustainable business practices is crucial. Driving this work is a holistic view of the player, which will be used to ensure that messaging and safeguards are seamlessly integrated throughout the entire player journey.”

Before her spell at the Massachusetts Gaming Commission, Fiore spent some years working at research and consulting firm, Envirosell. There, she worked on data analysis, strategic oversight, and customer insight projects. Bringing in someone of her experience and expertise is expected to be a very beneficial move for PointsBet, one that will keep the brand firmly on its upward trajectory in the US.