This week, we delve into the latest developments in the gambling industry, highlighting both triumphs and setbacks in our regular feature, Bingos & Busts.
In Wisconsin, Governor Tony Evers has signed a sports betting bill that favors the state's 11 tribes, allocating 60% of the revenue to them. This legislation, while beneficial for the tribes, poses challenges for national sportsbooks, which may be hesitant to engage with the new framework. The tribes collectively endorsed a hub-and-spoke model, requiring betting apps to operate through servers situated on tribal land. Forest County Potawatomi Community Chairman Brooks Boyd praised the law, emphasizing its respect for tribal sovereignty and the economic advantages it brings to Wisconsin.
Conversely, in Ohio, lawmakers are pushing for an online sports betting ban. Governor Mike DeWine expressed regret over the legalization last year, and now three state legislators, including Majority Whip Riordan McClain, are proposing a bill that would limit online betting to four physical casinos. While we understand the concerns surrounding legal betting, this proposed reversal seems excessive and unwarranted, especially considering the reasons for its initial legalization.
In New Jersey, Kalshi achieved a significant legal victory. The Third Circuit Court of Appeals upheld a preliminary injunction that prevents the state from enforcing cease-and-desist orders against the prediction market company. This ruling marks a crucial win for Kalshi, although legal battles between states and prediction markets are expected to continue, potentially reaching the Supreme Court.
On a different note, FIFA's announcement of a sponsorship deal with the little-known prediction market ADI Predictstreet has raised eyebrows. The platform, licensed only in Gibraltar, is backed by the Abu Dhabi royal family and led by Ajay Hans Raj Bhatia, who previously settled insider trading allegations. Given FIFA's controversial history, this partnership raises concerns about transparency.
Lastly, FanDuel has decided to eliminate the 50-cent fee it imposed on every bet in Illinois during the NBA Finals. This fee was introduced in response to a new state tax, but its removal is seen as a reaction to declining recreational betting activity. Industry analysts interpret this move as a potential signal regarding the ongoing legislative discussions about repealing the tax.