Each Wednesday and Sunday, Digital Wager Wire highlights the most important events impacting the domestic and international sports betting and gaming industry landscape.
Why is Caesars Campaigning Against Sports Betting in Missouri?
It is not often we see companies campaigning against the very thing that defines their existence. But that is ostensibly the case in Missouri, where the iconic Las Vegas gaming company, Caesars, has donated nearly $4 million to Missourians Against the Deceptive Online Gambling Amendment, a political action committee (PAC) created to keep mobile sports betting out of the Show Me State.
Meanwhile, mobile sports betting leaders FanDuel and DraftKings have combined to donate $10 million to the Winning for Missouri Education campaign, a PAC formed to bring digital wagering to the masses in Missouri. A referendum on November’s ballot will decide whether Missouri will move forward with sports betting, as a simple majority is all that is needed to do so.
So, why would Caesars, a gaming company that not only operates land-based casinos and retail sportsbooks but has a large presence in the mobile sports betting realm as well, want to stifle a lucrative revenue stream in which it can participate?
The answer is that Caesars operates a state-high three land-based casinos in Missouri, and under ordinary sports betting legislation, each would get a “skin” to partner with a mobile sportsbook and share in the profits. Caesars would use its own mobile sports betting platform to partner with one of its casinos and then make a deal with two competitors for its other two skins, allowing them to gain access to the Missouri market.
However, this particular legislation allows only one skin per casino operator, regardless of how many casinos it operates. The second issue is that of the dozen or so licenses that will become available, all must be tethered to either a land-based casino or one of the six professional sports teams in the state, except two.
And that is precisely why FanDuel and DraftKings have been the leading proponents in bringing sports betting to Missouri because, as industry leaders, they are the most likely to go untethered and not have to share any of their profits. Caesars takes exception to that as well.
Therefore, it is not as though Caesars is against mobile sports betting in Missouri; however, it is opposed to the manner in which it has been legislated.
Massachusetts Sends Cease and Desist Letter to Bovada
The Bay State becomes the 13th U.S. jurisdiction to send Bovada’s parent company, Curacao-based Harp Media B.V., a cease-and-desist letter stipulating that the offshore bookmaker cannot continue to do business with Massachusetts residents.
Assistant Attorney General Louisa Gibbs wrote, “Bovada almost exclusively depicts U.S. major league teams and players on its webpages and social media platforms and collaborates with U.S. players and U.S. sports-related content creators to promote its platform.”
The Massachusetts AG’s office said in a press release, “Unlicensed operators […] do not go through the same rigorous review as licensed operators, have limited or no protections against gambling addiction and underage play.”
Bovada has complied with other cease and desist letters, which suggests it will do the same in this case. A message on Bovada’s website states: “Should you reside in a restricted state and still retain an account balance, please contact Customer Service for more information or to arrange a cryptocurrency withdrawal.”
