This week’s gambling news comes from all over the country, as US online gambling growth is hitting some bumps in the road. First in Massachusetts, with mobile betting violations from three operators. And in Ohio, where three more were fined for breaking the rules. Plus, there’s trouble brewing up in New York state, where operators are getting tired of being taxed at 51%!
Thank you for streaming another edition of This Week in Gambling! We’ve got stories from all over the country, as US online gambling continues to grow, but is hitting some snags along the way. But first, some positive news: We reported at the start of the year that 2022 set a record for gambling revenue… and now the numbers are all in! The total was over $60 billion, and you can attribute most of that to the growth of sports betting and online games!
Yes, while land-based casinos still account for the majority of the revenue, US online gambling now accounts for about 20% of the total! Of course, most of the “online” numbers are coming from mobile sports betting at this point. And with so much growth so quickly, there are some issues which need to be sorted out.
First up in Massachusetts, Plainridge Park Casino, Wynn Bet, and Barstool Sports each allowed state residents to place bets on in-state college games. That was specifically forbidden when the state set up their regulations. So far, there have been no fines issued for the activity, but that doesn’t mean they won’t come at some point.
And speaking of fines, we recently reported that Caesar’s, DraftKings, and Barstool Sports were facing possible fines in financial penalties up in the state of Ohio for breaking rules surrounding problem and underage gambling. Now we can tell you that those three operators have been ordered to pay $900 000, altogether, in fines for those violations.
Also, most of you know that New York began regulating US online gambling last year, albeit in the form of mobile sports betting. At the time, we reported about their 51% tax rate, and how it would cause issues in the future. Well, that day is already here, as both DraftKings and FanDuel have now publicly stated that they feel the rate is “unsustainable”. They went on to add that if the rate is not lowered to something more comparable to other states, then New York could see them leave the market, along with other operators.
