At long last, the legislative season is coming to an end. For some states — looking at you, Ohio — this means one final hail-mary attempt to legalize sports betting. For others, it means signing bills into law and drafting rules and regulations.
This week, Ohio sports betting takes a knee, New York mobile sports betting prepares for its first major deadline, and Canada gets a much-needed victory.
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On the rewind:
Ohio sports betting will have to wait
Unfortunately, those wishing to place a sports bet in Ohio before the end of 2021 will have to wait a bit longer.
The Senate attached sports betting language to an unrelated bill that they then passed 31-0, sending the bill back to the House. However, according to The Cincinnati Enquirer, House Speaker Bob Cupp won’t pass the changes before lawmakers break for the summer.
OH sports betting was attached to House Bill 29, a bill to create veteran identification cards.
The takeaway: The pause delays passage of sports betting till the end of summer. But even with that delay, language in the bill calls for sports betting to begin sometime in 2022. Ohio certainly is dragging its feet on the issue and, unless a miracle happens, will miss out on lucrative NFL betting this year.
Sports Illustrated + 888 Holdings
Sports Illustrated (SI) is getting into the business of (drum roll) sports betting.
SI parent company, Authentic Brands Group (ABG), announced a 20-year online gambling joint venture with 888 Holdings, which will launch the first SI Sportsbook in Colorado.
888 will receive exclusive access to use the SI brand and trademarks for online sports betting and iGaming. The company also plans to launch this new joint venture in Indiana, Iowa, and New Jersey.
The takeaway: This is a win-win for both companies. 888 gains access to the loyal reader base of Sports Illustrated. On the flip side, ABG receives brand licensing fees and affiliate fees. Plus, on top of the original 4.99% equity stake ABG gets from the deal, the company can acquire an additional 5% for $15 million and another 5% for $25 million.
New York sports betting details coming soon
Industry experts and consumers have been patiently waiting for new details for NY online sports betting.
Well, the wait is almost over. The due date for request for proposal details from state regulators is July 1. While extensive details may not emerge on this exact date, it does mark the first big deadline since Gov. Andrew Cuomo approved mobile sports betting.
We know there will be at least two platform providers in the Empire State and four sports betting websites. There will be a 50% revenue share between providers and the state with a minimum 12% tax rate.
The takeaway: There is a chance sports betting could launch by the fall; at least that’s what Sen. Joe Addabbo hopes for. If things progress smoothly and deadlines are met, there is a real possibility that New Yorkers will have the chance to place a bet before the Super Bowl.
Victory for Canada sports betting
A bill to legalize single-game sports betting in Canada passed through Parliament and is on its way to the desk of the Governor General.
The bill, C-128, was introduced by Kevin Waugh in early 2020 and passed by 57-20 vote. Sports betting will be regulated at a provincial level, similar to US states. Although the bill has yet to be signed, Ontario and British Columbia have already begun working on rules and regulations to govern sports wagering.
A multitude of timelines have been thrown out as potential start dates. Alcohol and Gaming Commission of Ontario, COO David Phillips said, “by the end of 2021,” while Paul Burns, President, and CEO at the Canadian Gaming Association, said, “by labor day.”
The takeaway: Regardless of exact dates, sports betting in Canada is a huge step in the right direction. But the under-the-radar winner has to be Score Media & Gaming, which operates theScore Bet and is the leading digital sports media brand in Canada.
Market Teasers
This week’s Market Teasers include the well-known JPMorgan Chace, which just bought a stake in Kraft Analytics Group — yes, the company owned by New England Patriots owner Robert Kraft, and, PlayStudios, which is lead by former Wynn Las Vegas President and COO Andrew Pascal.
PlayStudios
$MYPS | $7.92 | -0.25% change
- The free-to-play casual mobile and social games developer celebrated its first day of trading on June 22. In 2021, the company expanded its brand partners (7) to include names like IHG Hotels & Resorts and MGM Resorts International.
JPMorgan Chase & Co.
$JPM | $154.14 | -0.12% change
- According to the Wall Street Journal, the objective of JPM’s deal with Kraft Analytics Group (KAGR) is to use data from legal sports betting, mobile ticketing, and concession sales to advise clients looking to squeeze more profit out of their teams.
** Market Teasers is not financial advice, nor am I a financial advisor. All figures were taken on June 29, market close.
