Caesars will officially take over Washington DC sports betting kiosks from Intralot, as announced by the Office of Lottery and Gaming (OLG) on Monday. This shift marks a significant change in DC’s sports betting landscape, with Caesars now responsible for providing kiosks to up to 53 DC Lottery retailers by October 1st.
In addition to installing sports wagering kiosks, Caesars may also place point-of-sale terminals at retailers for customers to cash out their betting tickets.
The change comes after the DC Council amended its sports betting policies in June 2023 as part of the 2025 fiscal budget. These changes eliminated the GambetDC app from the market and opened the District of Columbia to licensed sports betting brands like Caesars, BetMGM, and FanDuel, allowing them to offer their mobile betting apps across the entire district. Previously, mobile betting from these operators was limited to a two-block radius around their partnered sports venue.
With the new rules, DC residents can now use licensed brands like Caesars throughout the District, offering more choices for sports betting enthusiasts.
Under the terms of the deal, Caesars will share 40% of gross gaming revenue with the OLG for exclusive rights to operate the sports betting kiosks in the district. Additionally, both Caesars and the OLG will pay retailer commissions:
Caesars will also pay a 1% commission on verified cash deposits made at licensed retailers for mobile betting accounts.
All costs associated with operating the kiosks will be covered by Caesars, meaning that if there is any financial loss in a given month, the company will be responsible for paying the overage.
The transition from GambetDC to Caesars marks the end of a troubled run for GambetDC, which faced significant challenges since its launch in May 2020. Despite the district-wide availability of the GambetDC app, many bettors preferred to use in-person William Hill betting kiosks (now owned by Caesars) during the Covid-19 pandemic, given GambetDC’s less competitive odds.
GambetDC’s business model aimed to hold around 20%, leading to odds that differed significantly from other US sports betting operators. This prompted criticisms from bettors and consistent missed financial projections, requiring the DC Lottery to repeatedly defend the product before the DC Council.
The switch to Caesars marks a new chapter for Washington DC’s sports betting market, which now aligns more closely with other US jurisdictions that have embraced private operators. With Caesars managing the kiosks and entering the mobile market without the previous restrictions, DC sports bettors can expect a more competitive and streamlined experience moving forward.
The latest federal sports betting legislation, known as the SAFE Bet Act, was introduced on Thursday by Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT), calling for significant changes to sports betting regulations in three key areas: advertising, affordability, and the use of artificial intelligence. The bill aims to address concerns about the impact of sports betting on consumers, but it was swiftly met with opposition from industry leaders and state representatives.
The SAFE Bet Act outlines regulations designed to limit harmful practices in the sports betting industry, including:
Rep. Tonko emphasized that the bill is not intended to ban sports betting but to make it safer for the public.
“This bill is an effort designed to prevent harm before it occurs,” Tonko said. “The SAFE Bet Act will ensure that gambling on sports is safe for the public to enjoy.”
Despite Tonko’s intentions, the proposal was met with strong opposition from both gaming industry representatives and lawmakers. Rep. Dina Titus (D-NV), who represents Las Vegas, criticized the bill for pre-empting state gaming regulations.
“The SAFE Bet Act is perhaps well-intentioned, but pre-empting state gaming regulators by outlawing most forms of advertising and restricting the types and methods by which customers can place bets is a misguided approach,” Titus said.
The American Gaming Association (AGA) also voiced concerns, calling the federal legislation a step back for states that have already implemented comprehensive regulations.
“Introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks,” said Chris Cylke, senior vice president of government relations at the AGA.
A significant part of the SAFE Bet Act involves banning prop bets on college and amateur athletes. This provision, according to Rep. Tonko, was requested by athletes, coaches, universities, and leagues who were concerned about the pressure and abuse athletes face due to betting interests.
“NCAA President Charlie Baker has urged states to ban prop betting on individual athletes,” Tonko said, citing that one in three high-profile athletes receives abusive messages related to betting.
The bill also proposes restrictions on sports betting advertising, aiming to limit ads to times when children are not likely to be watching. Tonko previously introduced a similar effort last year with the Betting on Our Future Act.
The SAFE Bet Act calls for strict deposit limits to protect consumers from excessive gambling. These include:
Additionally, the bill proposes a ban on credit card deposits to fund online sports betting accounts, an idea that some states have already explored.
Tonko likened this to existing laws regulating alcohol sales:
“We need to have the same standard for sportsbooks as we do for alcohol, where visibly intoxicated individuals cannot be served.”
The bill also seeks to regulate the use of artificial intelligence in the sports betting industry, particularly targeting the use of AI for live betting pricing and analyzing customer behaviors to target losing bettors.
“Right now, the gambling industry methodically and relentlessly targets losers because that’s where the money is,” said Sen. Blumenthal.
Tonko described these practices as predatory, suggesting that minimum standards need to be established for how AI is used in sports betting products.
While the SAFE Bet Act aims to enhance consumer protection in the rapidly growing US sports betting market, the proposed federal regulations face significant pushback from both the gaming industry and state lawmakers. The debate will likely continue as industry leaders argue for state-level regulation, emphasizing that responsible gaming measures and customer choice are essential to competing with illegal markets.
The sports betting industry is experiencing substantial year-over-year growth, with analysts expressing optimism about the sector’s trajectory. According to a report from GeoComply, total transactions surged by 73% during Week 1 of the NFL season, showcasing the continued expansion of the legal sports betting market. This increase reflects broader positive trends across several key metrics in the industry.
GeoComply tracked a notable increase in unique users, which grew by 3 million from last season, bringing the total to 10.6 million. Established sports betting markets also saw significant growth, with:
Additionally, the average user completed 30 transactions, marking a 25% increase compared to the prior year.
Meanwhile, analysts at Macquarie reported an NFL market hold of 7% for the week of September 2-8, slightly below the long-term average of 9%. Nevertheless, projections for the 2024 NFL season remain strong, with analysts forecasting $37 billion in legal NFL wagers, a 34% year-over-year increase.
Additionally, Q3 online gross gaming revenue is expected to grow by 31%, with further acceleration to 40% year-over-year in Q4.
Several industry analysts, including those from Morgan Stanley and Macquarie, have expressed a favorable outlook for DraftKings as the NFL season unfolds. Morgan Stanley analysts maintained their Overweight rating, citing the company’s continued focus on customer acquisition and product evolution.
DraftKings’ management has indicated that new customer cohorts could potentially match the lifetime value of existing players while being acquired at lower costs. This positions the company to expand its total addressable market. Additionally, DraftKings is working to increase its structural hold rate, which is currently at 10.5%, aiming to close the gap with FanDuel’s 13.5%.
The competitive landscape remains stable, with promotional activity showing signs of moderation heading into the NFL season. Analysts expect in-game betting and progressive parlays to drive customer engagement, which could boost profit margins. DraftKings is focusing on transitioning from high-margin progressive parlays to in-game betting, with international markets reporting over 60% in-game participation.
Despite some concerns about consumer sentiment and regulatory challenges, analysts remain optimistic about the online gaming sector. Macquarie ranked the sector as one of the top gaming markets, noting that it is relatively insulated from macroeconomic fluctuations.
Year-to-date, North American online gaming stocks are up 17%, outperforming the S&P 500’s 13% gain. Analysts believe that the combination of increased customer engagement, new product innovations, and a growing NFL betting market will continue to drive growth for operators like DraftKings and FanDuel.
Stephen Grambling, an analyst at Morgan Stanley, has revised his targets for several US sports betting companies, citing concerns about the broader gaming industry and consumer spending. In a Wednesday note, Grambling upgraded Boyd Gaming to overweight while adjusting the target prices for Caesars, MGM, and Penn Entertainment downwards.
Boyd Gaming, which owns 5% of FanDuel through its sports betting market access agreement, was the only company upgraded in Grambling’s report. The regional casino operator saw its target price rise to $74, based on what Grambling described as an “attractive risk-reward.” Boyd’s regional casino business is stabilizing, and the company owns approximately 90% of its real estate, contributing to its perceived value.
Boyd trades at an enterprise value to EBITDA ratio of 2.5 times, which Grambling notes is a significant discount compared to Penn Entertainment and MGM, both of which trade at about 4.5 times. The value drops even further to 0.5 times EBITDA when factoring out the digital stake in FanDuel.
Despite Penn’s heavy spending on its digital operations, Boyd has performed similarly due to its 5% stake in FanDuel, according to the report.
Grambling also raised his expectations for Sportradar, which delivered a strong Q2 performance. He now forecasts €210 million in EBITDA for this year, up from previous estimates of €202 million, and €237 million for next year, up from €228 million.
Caesars saw a jump in its digital EBITDAR projections, rising to $213 million this year and $277 million next year, largely driven by reduced operating costs.
As the NFL season approaches, Penn Entertainment CEO Jay Snowden demonstrated his confidence in the company by purchasing 54,200 shares at an average price of $18.44, totaling $1 million. This brings Snowden’s total holdings to 853,045 shares.
Director Anuj Dhanda also made a significant move, buying 15,000 shares at $18.40, adding $276,000 to his stake and doubling his holdings to 31,523 shares.
Penn’s stock performance for the rest of the year will likely hinge on the success of ESPN Bet and its integration into ESPN’s platforms, which could help the brand increase its market share.
Despite cautioning about declining sponsorship costs, Caesars recently announced a new partnership with the Detroit Lions, making Caesars the official sports betting and iGaming partner of the team. This comes ahead of the launch of its second iGaming brand, Horseshoe, in Michigan later this year.
Hard Rock Bet also made headlines by becoming the official sportsbook of the Jacksonville Jaguars. This deal further cements Hard Rock’s position in Florida, where it operates the only legal sportsbook.
Fanatics took a step forward in its sports betting journey with the opening of an in-person sportsbook at Ocean Casino in Atlantic City. The sportsbook offers a premium experience with a 100-foot bar, lounge, slot machines, and extensive LED walls for an immersive betting environment.
In a move to bolster responsible gaming, PrizePicks has partnered with EPIC to provide educational training for its employees. EPIC will also assess PrizePicks’ organizational practices to identify areas for improvement in responsible gaming efforts.
Bet365 has been hit with another fine by New Jersey sports betting regulators, marking the second penalty in two months in the Garden State. The New Jersey Division of Gaming Enforcement (NJDGE) imposed a $33,000 fine on the operator for accepting bets on prohibited events and events that had already concluded.
The ruling, dated August 29, details infractions that occurred between February 3, 2022 and January 23, 2023, during which bet365 accepted over $257,700 in wagers on unapproved or completed events. The company has not responded to requests for comment regarding the violations.
The NJDGE outlined a seven-count ruling that details several violations by bet365, including taking bets on matches that had already started or finished. Some of the key infractions include:
Bet365 also blamed a software malfunction for offering unapproved markets on European exhibition soccer matches between November 2021 and March 2022. During this period, customers placed nearly 200 bets totaling $15,500 on unapproved games, with the operator paying out over $5,000.
In April 2022, bet365 accepted 56 bets worth $13,735 on tape-delayed Professional Fighters League Challenger Series matches that had taken place the previous month. These bets were eventually refunded.
New Jersey law prohibits betting on in-state college teams, but on October 29, 2022, bet365 accepted two college football bets on Rutgers University at its in-person sportsbook in Atlantic City. Although the bets were small, totaling $16, they were still considered a violation of state regulations and were voided.
In another incident on January 19, 2023, a Premier League soccer prop market remained open for nine minutes after the event’s result was already known. This allowed one customer to place two bets worth $163,000, which were later refunded.
This latest fine follows a more substantial penalty in July 2023, when bet365 was ordered to repay over $500,000 to bettors for incorrectly revising odds on wagers over a three-year period. An audit revealed that bet365 had adjusted odds without regulatory approval, a practice permitted in some U.S. jurisdictions but not in New Jersey. The company defended its actions, claiming the odds revisions were due to “an obvious error.”
New York online sports betting saw a robust performance in August, recording $1.43 billion in bets as the state prepares for the lucrative NFL and college football seasons. According to the New York State Gaming Commission, the state generated $124.9 million in gross gaming revenue for the month, leading to more than $63.7 million in tax revenue.
For the first time since May, DraftKings topped FanDuel in terms of online sports betting handle, reporting $526.7 million in August compared to FanDuel’s $511.6 million. However, FanDuel remained ahead in gross gaming revenue, posting $52.6 million compared to DraftKings’ $43.3 million.
New York ended August on a high note, with $401.4 million in bets placed during the week ending Sept. 1—the state’s highest weekly total since May. Gross gaming revenue for the week was $30.4 million, positioning the state for a successful football season. Both NFL and college football saw their first full weekends of action as bettors flocked to place wagers.
The New York State Gaming Commission reported the following weekly handle totals for its nine active sportsbooks:
ESPN BET, expected to launch in New York by late August, has yet to go live despite securing market access through a $25 million deal with Wynn Interactive Holdings. While PENN Entertainment CEO Jay Snowden promised the launch would coincide with the start of the college football season, the app remains unavailable as of mid-September.
Since the state’s January 8, 2022 launch, FanDuel is the only sportsbook to surpass $19 billion in total handle, solidifying its position as the top operator in New York. Here are the total handles for each sportsbook since launch:
For the week ending Sept. 1, New York’s nine sportsbooks reported $30.4 million in gross gaming revenue, resulting in $15.5 million in tax revenue at the state’s 51% online sports betting tax rate. Here’s a breakdown of weekly gross gaming revenue:
Since launching in January 2022, here are the total gross gaming revenues for New York’s sportsbooks:
As New York barrels into the heart of football season, both NFL and college football are expected to drive substantial growth in sports betting handle and revenue. With DraftKings gaining ground on FanDuel and the much-anticipated launch of ESPN BET on the horizon, the Empire State remains a key player in the online sports betting market.
DraftKings is considering alternative solutions to manage high state taxes on sports betting, after withdrawing a controversial surcharge fee on winning bets. The decision came following negative customer feedback, as competitors like FanDuel opted against implementing a similar fee.
During the Bank of America Gaming and Lodging Conference last Thursday, DraftKings CEO Jason Robins discussed the surcharge fee, which was announced and then swiftly retracted within 13 days. The plan was initially designed to offset high taxes in certain states, including Illinois, where tax rates for large sportsbooks have risen to 40%. However, the fee faced significant backlash from customers and was quickly abandoned.
Robins explained the company’s rationale behind the surcharge, stating that it was intended to allow for more investment in promos and other customer benefits. However, after considering the negative response from customers and industry observers, the company chose to abandon the idea.
“Clearly, this was something that our customers — they didn’t like this type of solution,” Robins said. “So we changed it.”
Despite the public criticism, Robins defended the company’s approach, stating that the surcharge was never fully implemented, and the decision to reverse course was part of a deliberate strategy.
“We can always say we changed our mind,” Robins noted. “We decided to throw it out there and see what the reaction from customers was… and determined it wasn’t the right thing at this time.”
While the surcharge is off the table for now, DraftKings continues to explore other options to manage the impact of high state taxes. Robins hinted that future solutions could emerge as sports betting operators adapt to the evolving tax landscape.
“There is something that maybe isn’t exactly this that I think could be a solution,” Robins said, although he declined to elaborate on specific plans.
The challenge posed by high taxes, particularly in states like Illinois, remains a concern. DraftKings expects to lose $50 million next year due to the Illinois tax increase, which has raised rates from 15% to 40% for larger sportsbooks. The Sports Betting Alliance, an industry lobbying group, has warned that these tax hikes could fuel the black market and degrade the quality of promos, odds, and other betting products.
Unlike DraftKings, FanDuel has chosen a different approach to dealing with the Illinois tax hike. Rather than implementing a surcharge, FanDuel has opted to reduce its marketing efforts and moderate its levels of promotions.
“We believe that moderating our levels of generosity or reducing local marketing efforts is a more effective response to higher tax rates,” said Peter Jackson, CEO of Flutter, FanDuel’s parent company.
As states like Illinois continue to increase taxes on sports betting, operators are left to find creative ways to mitigate the impact on their bottom lines. DraftKings and FanDuel have both confirmed that they do not plan to introduce state-specific odds or pricing despite the financial pressures.
With football season underway and DraftKings stock rebounding to $36.11 after hitting a low of $29.83, the company’s ability to navigate these challenges could play a significant role in its future market performance.
Maryland sports betting achieved a significant milestone in August 2024, surpassing $100 million in total sports betting tax revenue since the state’s first retail sportsbook opened in December 2021. The state’s August 2024 sports betting tax revenue totaled $5.5 million, which will help fund public education programs.
Maryland Lottery and Gaming reported a sports betting handle of $377.4 million in August 2024, an increase of 43.1% compared to August 2023 when the handle was $263.7 million. This growth is particularly impressive considering the number of operators remained relatively stable, with 11 online sports betting operators and 12 retail sportsbooks in August 2024 compared to 12 online and 12 retail operators the previous year.
The state’s tax revenue from sports betting in August more than doubled year-over-year, rising from $2.5 million in August 2023 to $5.58 million in August 2024. However, August’s tax revenue totals fell just short of July’s record of $6.2 million.
Online sports betting continues to dominate the Maryland market, with $368.4 million in online handle, compared to $8.9 million wagered at retail sportsbooks. The gaming commission also reported $39.25 million in gaming revenues for the month, representing a 10.4% hold.
FanDuel maintained its lead in the Maryland market, reporting $160.7 million in online sports bets for August 2024, far outpacing DraftKings, which reported $119.3 million. BetMGM followed with $32.17 million in handle, rounding out the top three operators in the state.
Veterans Services, a newer operator in Maryland, reported a modest handle of just over $322,000 for the month.
Here’s a breakdown of the online sports betting handle and tax revenue for August 2024:
With Maryland surpassing the $100 million mark in sports betting tax revenue, the state is poised for further growth as it enters the highly profitable football season. The significant rise in August handle and tax revenue underscores the state’s increasing role in the US sports betting market.
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