Growing pains in the world of sports gambling
1 March 2023
Sports wagering violations in the Bay State:
The Massachusetts Gaming Commission said since regulated retail wagers went live on 31 January that all three casinos – Encore Boston Harbor, Plainridge Park Casino and MGM Springfield – have run afoul of the state’s regulations for in-state college games. After three sports betting violations in less than two weeks, the MGC stated that it doesn’t know what the volume will be just yet, but it believed that these sorts of violations are routine.
Barstool and DraftKings receive fines in The Buckeye State:
Ohio sports betting has only been up and running in the state since 1 January, but already DraftKings and Barstool Sports have received huge fines. Altogether, the Ohio Casino Control Commission has already collected $900,000 in total fines just this year for a variety of violations.
DraftKings received its fine for a direct mail campaign in the state that ended up being sent to some young adults under the legal gambling age. Barstool Sports got hit for its fine for holding a live event just outside of the University of Toledo’s football stadium, which violated rules on advertising near a college campus and for targeting those under 21 years of age.
New York sports betting tax issue:
When New York sports betting was passed with a 51% tax rate, we knew it would lead to problems. Now, both DraftKings and FanDuel New York are saying they could abandon the market if that tax rate isn’t lowered to something more realistic.
The CEO of DraftKings, Jason Robins, described the situation as “unsustainable” while speaking at a recent joint legislative hearing. He pointed out that while the tax rate is already the highest in the nation, it’s even worse than it appears since fees and licensing make the state’s effective tax more than 70%.