Articles from September 2024

Ex-MGA Chief Conviction Upheld for Tipping Off Casino Owner Murder Suspect

Former Malta Gaming Authority (MGA) chief executive Heathcliff Farrugia saw his conviction for corruption upheld on appeal this week.

Heathcliffe Farrugia, Jorgen Fenech, Daphne Caruana Galizia
As MGA chief Heathcliff Farrugia was in charge of one of the world’s foremost online gaming hubs. But his relationship with Caruana Galizia murder suspect, Jorgen Fenech, was a little too cozy. (Image: MGA)

Farrugia was found guilty in May of unlawfully disclosing information he had obtained by virtue of his office and revealing professional secrets. That was for tipping off casino owner Yorgen Fenech in September 2019 that an anti-money laundering investigation was about to be conducted at a rival casino.

Two months later, Fenech, one of Malta’s richest men, was arrested as he tried to flee the island on his yacht. He was charged with complicity in the murder of anti-corruption journalist Daphne Caruana Galizia who was killed in a car bomb attack in 2017.

Fenech, who at the time owned the Portomaso Casino in the resort town Saint Julian’s, is currently awaiting trial for the murder.

Incriminating Texts

Analysis of Fenech’s phone after his arrest revealed conversations with Farrugia concerning rival casino operators that incriminated the regulator.

In texts exchanged between the two men on September 23, 2019, Fenech expressed his dissatisfaction with a recent money laundering review of the Portomaso Casino, which he said had tarnished the business’ reputation.

Farrugia responded by saying he would delay the release of the accompanying compliance report until a forthcoming investigation of Casino Malta, owned by Fenech’s business rival, Eden Leisure Group, was completed.

On Tuesday, Justice Neville Camilleri of Malta’s Court of Criminal Appeal confirmed Farrugia’s three-year suspended sentence, determining that the lower court’s decision had been correct.

As MGA chief, Farrugia was charged with overseeing one of the world’s foremost online gaming hubs. He resigned quietly in October 2022, shortly after police questioned him about his conversations with Fenech.

The Times of Malta has suggested the charges against Farrugia were initially hushed up to avoid tarnishing the reputation of the gaming industry.

Widespread Corruption

Prosecutors believe Caruana Galizia was murdered because she was looking into a government contract to build a power station, which she believed had been corruptly awarded by the Maltese government to Fenech’s company, Electroglas.

She had discovered that a Dubai-registered company mentioned in the Panama Papers leak, 17 Black, planned to make a payment of $2 million to two offshore shell companies. These were owned by Keith Schembri, the former aide of then-Prime Minister Joseph Muscat, and Konrad Mizzi, the former Energy Minister.

Journalists who took up the investigation after Caruana Galizia’s death discovered that 17 Black was controlled by Fenech.

Brothers Alfred Degiorgio and George Degiorgio were each sentenced to 40 years in prison for planning and planting the bomb, along with their associate, Vince Muscat, who received 15 years.

A so-called middleman, Melvin Theuma, named Fenech as the mastermind behind the killing. Fenech claims Schembri was the orchestrator.

The scandal caused a political meltdown in Malta, laying bare the corruption endemic in the island’s politics and business sector and leading to Muscat’s resignation as prime minister.

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Kamala Harris and Donald Trump’s Presidential Debate Attracted 67M Viewers

Tuesday night’s debate between Vice President Kamala and former President Donald Trump attracted an estimated 67.1 million viewers, the Nielsen company said on Wednesday.

Kamala Harris Donald Trump 2024 odds
Viewers watch the presidential debate between Donald Trump and Kamala Harris at the Gipsy Las Vegas in Las Vegas on Tuesday, Sept. 10, 2024. Harris has emerged as the 2024 presidential election front-runner in the debate aftermath. (Image: AP)

While the Harris-Trump debate fell far short of the record 84 million people who tuned in for Trump’s first faceoff with Hillary Clinton in 2016, Tuesday easily bettered Trump’s June back-and-forth with President Joe Biden that drew in 51.3 million people. Tuesday was also short of the 73.1 million people who watched the first debate between Trump and Biden in 2020.

Political bettors believe Harris won the debate. As a result, her odds of winning the November 5 contest have shortened in days following the event.

On Polymarket, Harris’ implied odds of winning the 2024 presidential election are at 50% or even money. Before the debate, which began with Harris going out of her way to shake hands with the former casino tycoon who seemingly had no intent in greeting her, a moment that paid off for bettors who took odds on the two shaking hands, Harris’ implied odds were as low as 45%.

Trump’s odds have lengthened from 53% before the debate to 49% as of this writing. Nearly $900 million has been bet on the Polymarket contest.

Costly Outcome

Along with Trump’s 2024 odds lengthening following what many called a bad night for the billionaire, his performance cost him considerable money, at least on paper.

Shares of Trump Media & Technology Group (NASDAQ: DJT) tumbled in the aftermath of the Tuesday spectacle. The parent organization of Trump’s Truth Social media platform, which has plans to launch a streaming subscription service called TMTG+ that will air “non-woke” entertainment and conservative news programming, saw its stock price fall nearly 20% on Wednesday.

Trump owns about 60% of the company’s outstanding shares. DJT is down over 75% since its closing high of $66.22 on March 27. It’s now trading at around $16.

Trump’s media group returned the “DJT” ticker to Wall Street. The stock abbreviation was previously used when Trump took Trump Hotels and Casino Resorts public in 1995.

The DJT ticker was used until 2004 when the company went bankrupt. When Trump created a new gaming entity, Trump Entertainment Resorts, that same year, the company traded under the ticker TRMP.

Harris Favored

William Hill, one of the largest bookmakers in the United Kingdom, reported a flurry of bets on Harris in the debate aftermath. William Hill wasn’t alone, as numerous other high-street sportsbooks adjusted their election odds in Harris’ favor.

As of Thursday afternoon, Harris’ odds of becoming the 47th commander-in-chief stand at 4/5 (-125). A winning $100 bet on that line, which implies a likelihood of nearly 56%, would net $80. Trump’s odds are at even money (+100), with a winning $100 bet doubling the wager.

The national polling average as of September 12 has Harris at 47.9% to Trump at 46.7% support. The election, however, will come down to several key battleground states, including Pennsylvania, Arizona, Georgia, Nevada, Michigan, and Wisconsin.

In Nevada, the largest union of casino workers is actively trying to get out the vote in Harris’ favor. The Culinary Union’s support of Harris isn’t exactly a surprise, as the union hasn’t endorsed a Republican for president in decades. The union had earlier endorsed Biden until he dropped out of the 2024 race.

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Philippines Casinos to Remain Under Government Control Until at Least 2026

Philippines casinos owned by the government will remain under the state’s control until at least 2026.

Philippines casinos PAGCOR gambling
Alejandro Tengco, chief executive of the Philippine Amusement and Gaming Corporation (PAGCOR), delivers an address at the Inside Asian Gaming Academy Summit in Manila on Tuesday, Sept. 10, 2024. Tengco revealed that the selling of state-owned casinos won’t begin until 2026. (Image: PAGCOR)

The Philippines is home to both commercial and government-held casinos. The Philippine Amusement and Gaming Corporation(PAGCOR) regulates commercial gaming resorts in Manila and in special freeport zones. The agency also runs casinos under the Casino Filipino brand.

Lawmakers have for years called on Filipino presidents to divest the nation’s stake in managing gaming operations while simultaneously regulating its competitors. Many have said PAGCOR’s dual capacity presents conflicts of interest.

Former Philippines President Rodrigo Duterte flip-flopped on his pledge to sell off PAGCOR’s casinos on grounds that their operations provided too critical of a tax benefit, specifically in the aftermath of the COVID-19 pandemic. Duterte’s successor, President Ferdinand “Bongbong” Marcos, has since resumed the central government’s mission to divest the casino portfolio.

Liquidation Delayed

Earlier this year, PAGCOR Chairman Alejandro Tengco said the agency would unload its nine casinos and 33 satellite branches before the end of the first quarter in 2026. This week, Tengco pushed back on that statement and revealed that the selloff won’t even start until sometime in 2026.

In the interim, PAGCOR is investing in modernizing its Casino Filipino properties, many of which are outdated and in need of upgrades. Tengco believes such an investment will make the venues more attractive to prospective buyers and result in richer sales.

As we prepare for the planned privatization of PAGCOR casinos, we intend to increase their value by modernizing our gaming facilities and equipment to make them more attractive to potential investors,” the PAGCOR chief said on Tuesday during his keynote address at Inside Asian Gaming’s Academy Summit at the Hilton Manila.

Tengco detailed that PAGCOR has ordered 3,341 new slot machines that are commonly found in the multibillion-dollar integrated resort casinos in Manila’s Entertainment City to be installed in Casino Filipino’s premier properties. The first batch of 1,968 terminals is expected to be delivered this week.

Tengco additionally said PAGCOR will mandate that buyers of the Casino Filipino properties will be required to maintain a minimum of 50% of the acquired venue’s workforce for a certain period. Those who are let go will be required to receive severance packages based on their length of employment. 

PAGCOR Casino Revenue

PAGCOR’s gaming operations pale in comparison to the integrated resorts in Manila.

In the second quarter, Casino Filipino locations generated gross gaming revenue of approximately PHP8.29 billion (US$147.5 million). During that same April through June period, Manila’s City of Dreams, Solaire, Okada, and Newport World Resorts produced GGR of PHP40.3 billion (US$717.1 million).

Commercial casinos in Fiesta, Clark, and Greenfield respectively won $6.4 million, $119.5 million, and $37.5 million. The three freeport zones have seen a gaming surge in recent years, with China’s crackdown on money moving through Macau and the casino enclave’s decision to rid junket groups from the market credited for the boom.

The influx of Chinese high rollers has Filipino gaming magnates bullish on the industry. This week, Travellers International Hotel Group and Alliance Global, the parent companies of Newport World Resorts, revealed their intentions to open casino resorts in Boracay and Cebu.  

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Woman Stole Almost $40K While Man She Met at Las Vegas Casino Was Sleeping

Law enforcement in Las Vegas has apprehended a woman who allegedly stole almost $40,000 from a man she met at an unnamed Strip casino. The victim invited Monica Falcon to go home with him on June 12, and when he was asleep, she reportedly took $600 in cash, $17,000 from his bank account, $4,912 worth of Venmo payments, and $17,500 from a cryptocurrency account.

identified Falcon by looking at casino surveillance video

Police identified Falcon by looking at casino surveillance video, and the victim subsequently identified her as the woman he took to his apartment.

Falcon has a rap sheet that includes charges of trespassing, prostitution, and solicitation. Police officers got in touch with her by phone and asked that she turn herself in to give a statement.

After she refused to do so, police arrested her last month, charging her with theft with a value of $25,000 or more and less than $100,000. Her next court hearing is on December 4.

The felony charge carries between one and ten years in prison, plus restitution.

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New Jersey Republicans to Rescue Stalled Effort to Ban Atlantic City Casino Smoking

New Jersey Republicans have come out in support of extinguishing smoking inside Atlantic City casinos.

Atlantic City casino smoking New Jersey Republicans
Opponents to casino smoking inside Atlantic City casinos rally in May 2022. New Jersey Republicans have recently come out in support of a casino smoking ban. (Image: Townsquare Media)

In recent years, legislation to close the smoking loophole afforded to casinos in Atlantic City and parimutuel wagering facilities garnered enough support to pass the New Jersey Legislature. A majority of lawmakers in both the Senate and General Assembly issued their backing to amend the 2006 Smoke-Free Air Act to exclude casinos and racetracks from allowing cigarettes and cigars.

The bills never came up for a floor vote, however, as Democratic leaders reportedly wished to delay the matter until the 2023 fall election where all 40 Senate and 80 Assembly seats were on the ballot. Democrats retained their stronghold on the state house in Trenton, but action on the casino smoking bills remained inactive.

GOP members now say they’ll rescue the smoking bills and get them across the finish line, and on to Gov. Phil Murphy’s (D) desk.

Popular Legislation

Assembly Minority Leader John DiMaio (R-Warren) believes it’s time that casino workers are provided the same workplace protections as most other employees.

If Democrats are serious about protecting workers, Republicans are ready to help pass the bill,” said DiMaio. “We need legislative action, not excuses.”

Legislative action is likely the only recourse to end the indoor casino smoking allowance after state courts recently ruled that the 2006 law doesn’t violate worker protections afforded under the New Jersey Constitution. The lawsuit, filed by the United Auto Workers, a union that represents table game dealers at Bally’s, Caesars, and Tropicana, has been appealed to the state’s Supreme Court but its acceptance presumably faces long odds.

This isn’t about politics. It’s about doing what’s right for workers and their families,” DiMaio continued. “With significant bipartisan support, there’s no reason not to get this done.”

The casino industry says there is.

The Casino Association of New Jersey, which represents the nine casinos down the shore, says a smoking ban would hurt business and lead to thousands of job cuts. Those industry claims have been cited for Democrats not resuming their push to force gamblers outside to smoke following the 2023 election.

Despite higher revenue, Atlantic City casino profits collectively declined 1.7% in the second quarter. During the first half of the year, resort revenue was up 1.5% but profits dropped almost 5% year over year. Higher operating costs were blamed. 

Casino Workers Hopeful 

While UAW has fought to move smoking outside, the larger Atlantic City casino union — Unite Here Local 54 — has backed the industry and argued that a smoking ban would hurt the health of its members by eliminating jobs. A grassroots coalition of resort workers disagrees.

Casino Employees Against Smoking Effects (CEASE) has been campaigning for years to eliminate secondhand smoke. The group celebrated Republicans’ willingness to join their crusade.

“Clean air is a bipartisan issue, with both sides recognizing the urgent need to protect workers from secondhand smoke,” said Nicole Vitola, a co-founder of CEASE and a longtime casino dealer. “Now the legislature needs to put their words into long overdue action and vote on this immediately.”

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CNN Names Las Vegas Hottest Family-Friendly Destination

Family-friendly Vegas

Las Vegas may have a deserved reputation as Sin City, but CNN has now named it the hottest destination for families in America.

Citing new attractions incorporating technology and interactivity, CNN Travel recommended the gambling hub as the best in America for family-friendly amenities and attractions.

16% of people who visited Las Vegas in 2023 did so with someone aged 21 or younger

Statistics from the Las Vegas Convention and Visitors Authority state that around 16% of people who visited Las Vegas in 2023 did so with someone aged 21 or younger — a figure almost three times higher than before the COVID-19 pandemic.

Technological wonders

It’s not the first time Las Vegas has been touted as an ideal hotspot for families, although this time may be different, thanks to the latest developments in interactive media.

Consider the current era Family-Friendly Vegas 2.0”

Referencing Las Vegas’ ill-fated 1990s attempt to draw in families, which eventually saw developments give way to traditional adult-oriented entertainment, CNN stated: ”Consider the current era Family-Friendly Vegas 2.0.”

Most of the attractions named incorporate new technologies to appeal to those 21 and under. For instance, the Live Sketchbook, an exhibition in the ARTE museum, where animal drawings can be made to come to life, was cited as a particularly enthralling experience.

The Electric Playhouse, where families can play life-sized videogames using their bodies as controllers, was also given as a tip for families. The Flyover ride, incorporating a domed screen and mist and wind as visitors are taken on a trip based on a short film, was another mention.

Lastly, there was a rave review for the $2.3bn Sphere, by far the most iconic and recognizable of the recent new landmarks cropping up on the Las Vegas skyline.

Vegas’ next evolution

As well as existing attractions, CNN also cited several new developments under works, including Universal Horror Unleashed, a year-round horror attraction from NBCUniversal.

Steve Hill, president of the Las Vegas Convention and Visitors Authority, the local destination marketing organization, was bullish about the prospect of the city appealing to younger visitors.

“Families aren’t only coming because there’s more for kids to do; they’re coming because we now have all sorts of offerings that appeal to adults and kids alike,” said Hill.

“No destination has figured out how to evolve over time better than Las Vegas, and no aspect of our recent history demonstrates this better than our evolution into a great destination for families.”

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GLPI Finalizes $250m Land Acquisition for New Bally’s Chicago Casino

Bally’s Chicago site

Gaming and Leisure Properties Inc (GLPI) has announced that it has completed the $250m purchase of the land where Bally’s Chicago casino is set to be built.

GLPI, a casino and leisure real estate investment trust, purchased the land from Blue Owl Capital as part of an agreement with Bally’s which was announced in July.

Ground is expected to be broken before the end of the year

The land, at Chicago Avenue and Halsted Street, is the site of the former Chicago Tribune publishing center which was closed in May this year. Ground is expected to be broken before the end of the year, with demolition works beginning last month and likely to take around four months.

GLPI investment

The agreement between Bally’s and GLPI will see the current lease renegotiated for an annual rent of $20m, which represents an 8% initial cash yield for the real estate company.

Sourcing funding for the project was one of the major obstacles faced by Bally’s in constructing the casino, but in July, GLPI agreed a major investment plan to get the project over the line.

As well as acquiring the real estate for Bally’s Shreveport and Kansas City properties, the deal also saw GLPI fill the funding gap on the Chicago project.

a blended initial cash investment yield of 8.4%

GLPI will now own all of the real estate and improvements related to the Chicago casino and hotel, which represents a total investment for the company of $1.19bn, providing a blended initial cash investment yield of 8.4%.

Carlino looks forward

Chairman and CEO of GLPI Peter Carlino said in a press release, “The completion of the Chicago land purchase is a significant milestone toward the development of Bally’s Chicago, which promises to be a must-visit destination casino resort property in the heart of Chicago.

We are pleased to be working with the Bally’s team, the host community and various stakeholders in Chicago to deliver a world-class entertainment center in the nation’s third largest metropolitan area.”

In the meantime, Bally’s has been running a temporary casino in Chicago while the permanent facility is under construction. In its first year, the Medinah Temple casino received over 1.3 million visitors and generated over $114m in adjusted gross receipts, providing the city with $12.9m in tax revenue – about half of what was projected by 2024.

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Fox Proceeding with Plans to Take FanDuel Stake at $2.2B Discount

Fox Corp. (NASDAQ: FOX) could be preparing to take an 18.6% stake in Flutter Entertainment’s (NYSE: FLUT) FanDuel, and the media giant could do so at a significant discount to the sportsbook operator’s market value.

Fox Flutter
Fox Corp. CEO Lachlan Murdoch says the company is preparing to take an 18.6% stake in FanDuel. (Image: CNN)

At the Goldman Sachs Communacopia and Technology Conference, Fox CEO Lachlan Murdoch said the media company is proceeding with plans to take an 18.6% interest in FanDuel, the rights to which were acquired in 2020 when Flutter doled out $12.2 billion for The Stars Group (TSG). Fox sold Sky Bet to TSG in 2018 for $4.7 billion, taking an equity stake in the buyer.

Murdoch told attendees at the conference that Fox values FanDuel at $35 billion, meaning 18.6% is worth $6.5 billion. Assuming he’s correct and FanDuel is worth $35 billion, that implies the gaming company is worth $17.22 billion more than DraftKings (NASDAQ: DKNG), its most direct competitor. At the close of US markets on Wednesday, DraftKings sported a market capitalization of $17.78 billion.

Fox Won’t Leave $2 Billion on the Table, Says Murdoch

That $6.5 billion figure is well in excess of the $4.3 billion Fox previously estimated it would need to pay to exercise its rights to acquire 18.6% of FanDuel. To buy that portion of FanDuel, Fox must be a licensed sportsbook operator in the states in which FanDuel does business. Murdoch mentioned at the Goldman Sachs conference that the company is working to address that issue.

We’re not going to leave $2 billion on the table,” he said.

It’s clear FanDuel has appreciated in value. Following a legal spat in 2022 between Flutter and Fox, the latter agreed to buy that 18.6% of FanDuel for $3.72 billion with a 5% annual escalator, meaning that for each year the option wasn’t exercised, the price would go up 5%.

“FOX has a 10-year call option that expires in December 2030 to acquire 18.6% of FanDuel for $3.72 billion, with a 5% annual escalator,” according to a November 2022 statement issued by the media firm. “FOX has no obligation to commit capital towards this opportunity unless and until it exercises the option.”

Murdoch said Fox has already initiated the process of procuring state gaming permits.

“We’ve begun the process with state regulators,” Murdoch said. “To fully monetize the option, we need to be licensed as a gaming operator, even with only with only 18.6% and so we’ve started that process with state regulators to begin the gaming licensing approvals.”

Where’s Fox Going to Come up with $4.3 Billion?

Murdoch didn’t get into specifics of how Fox would come up with the $4.3 billion needed to activate its FanDuel stake. Coincidentally, the media entity had $4.31 billion in cash and cash equivalents at the end of fiscal 2024.

Murdoch told attendees at the Goldman conference that Fox would entertain mergers and acquisitions — possibly multiple deals — to bolster its news and sports divisions. Such transactions would require capital.

He didn’t mention the possibility of selling debt to fund acquisitions or the purchase of the FanDuel interest.

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Hurricane Francine Forces Some US Casino Operations to Close

A limited number of casino facilities along the US Gulf Coast shuttered temporarily due to a Category 2 hurricane that was expected to make landfall on Wednesday night.

Coushatta Casino Resort
Coushatta Casino Resort, pictured above. The Louisiana casino was shuttered due to a hurricane. (Image: TripAdvisor)

As of 5 p.m. Wednesday, Hurricane Francine had maximum sustained winds of 100 mph, according to the National Hurricane Center (NHC).

“After landfall, the center is expected to cross southeastern Louisiana tonight, then move northward across Mississippi on Thursday and Thursday night,” the NHC predicted on Wednesday afternoon.

Coushatta Casino Closure

The nasty weather led Kinder, La.’s Coushatta Casino Resort to be closed for part of Wednesday and Thursday.

To ensure the safety of our guests and associates during Hurricane Francine, Coushatta Casino Resort will temporarily close, effective Wednesday … at 2 am,” the gaming property said in a statement. “We look forward to seeing you when we re-open on Thursday … at noon or when conditions are deemed safe to do so.”

On Wednesday, the Silver Slipper Casino Hotel, located in Bay St. Louis, Miss., temporarily shuttered its table games, the Jubilee Buffet, Blue Bayou, valet service, and the gift shop. Normal operations will likely resume on Thursday.

The Bridges Golf Club at Hollywood Casino, also located in Bay St. Louis, also closed temporarily on Wednesday.

Curfews in Mississippi

In Gulfport, Miss. a curfew was to take effect starting at 6 p.m. on Wednesday, according to Mayor Billy Hewes. It’s likely to be lifted at 6 a.m. Thursday. Restaurants, stores, and other businesses will close their doors.

During this period, people’s movement will be restricted, and no one will be allowed on public streets or property except for emergency personnel,” according to the mayor’s statement.

Also, in Bay St. Louis and Waveland, curfews will be in place between 10 p.m. Wednesday until 5 a.m. Thursday, according to the Sun Herald.

New Orleans may face floods as four to eight inches of rainfall are likely, CNN reported. Flights were canceled at the Louis Armstrong New Orleans International Airport.

A flood watch was put into effect for the Louisiana coastline, too. A storm surge warning was issued for Lakes Borgne and Pontchartrain, both in Louisiana, according to weather forecasts.

Tornado threats were possible in Mobile, Birmingham, Montgomery, and Huntsville, Ala.; Tallahassee, Fla., and Tupelo, Miss., AccuWeather reported.

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DraftKings CEO Jason Robins Seeks Alternative for Fighting High Taxes

After quickly abandoning a plan to tax winning bets in states with high sports betting taxes, DraftKings (NASDAQ: DKNG) CEO Jason Robins says the company is seeking workarounds in jurisdictions with burdensome tax structures.

DraftKings stock
DraftKings CEO Jason Robins at an industry conference. He said the company is examining alternatives to surcharges to deal with high taxes in some states. (Image: Bloomberg)

At the Bank of America’s Gaming and Lodging Conference last week, Robins acknowledged DraftKings customers scoffed when it proposed a small levy on winning sports bets placed by clients in Illinois, New York, Pennsylvania, and Vermont to deal with the elevated taxes in those states.

Clearly, this was something that our customers — they didn’t like this type of solution,” Robins said at the conference. “Our thinking behind it was, well, we can invest more in promo for you and other things because we’re going to be collecting more upfront. But we got feedback that people didn’t like this particular solution, so we changed it.”

After announcing the surcharge plan on August 1, DraftKings reversed course less than two weeks later as none of its rivals followed suit. Though the company didn’t say the two events were linked, DraftKings scrapped the surcharge plan on August 13, the day on which FanDuel parent Flutter Entertainment (NYSE: FLUT) reported second-quarter results and told investors it had no plans to follow its competitor on the tax on winning bets gambit.

Robins Looking for Ideas to Contend with High Taxes

While Robins didn’t mention specific ideas, he said the gaming company he co-founded is examining avenues through which it can better contend with some states’ high taxes on online sports betting.

Of the quartet mentioned above, Illinois and New York are particularly problematic for operators because the former recently implemented a graduated tax scheme that subjects the biggest internet sportsbooks, such as DraftKings and FanDuel, to higher taxes than smaller rivals while New York taxes sports wagering at 51% across the board — the highest rate of any large state.

“The bottom line is, at some point, I guess it depends on what happens in other states, but I don’t think that in perpetuity, it will make sense for anybody to completely just eat any tax increase that happens anywhere,” said Robins at the conference.

Some analysts have speculated that either or both of Illinois and New York could pass iGaming legislation next year, and that would be an avenue through which operators such as DraftKings could offset some of their sports betting tax exposure.

Other Legislative Issues Confounding Gaming Companies

Shares of DraftKings are up 5.47% year to date – a tepid showing relative to some peers and broader domestic equity benchmarks. One reason the stock has been lethargic in 2024 is because there’s been little of note in terms of positive legislative action.

No large states legalized online sports betting this year and the number of states allowing iGaming remains the same at six. With less than four months left in the year, there’s little hope of either scenario changing. Still, DraftKings could realize long-term tailwinds.

“DKNG’s total addressable market should increase over the next 3-5 years as states legalize sports betting,” noted Zacks Equity Research. “As budget deficits continue to balloon, more states will likely turn to sports betting as a much-needed tax revenue source.”

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