In a move that demonstrates CDI’s push to diversify and strengthen its regional footprint, the news follows the release last month of its $642.6 million Q1 revenue report. This represented a 9% year-over-year increase from 2024.

Opened on July 9, Casino Salem is located at The Mall at Rockingham Park in Salem and is ideally situated to tap into the Boston market, just 30 minutes from the Downtown region.

The venue currently operates approximately 100 historical horse racing machines (HRMs), accompanied by a designated gaming area featuring 13 live dealer tables.

Developers Retain Operational Control with Future Rebranding on the Cards

Despite obtaining a majority share, the casino’s local developers, Joe Faro and Sal Lupoli, will retain ownership interests in the venture relating to their ongoing roles in the further development and management of Casino Salem.

In a statement, developers Faro and Lupoli commented: “With our vision for Salem, we remain committed to driving economic stimulus to our local economy, creating new jobs, and increasing tourism while delivering a world-class destination that will create lasting benefits for the community for decades.”

CDI has also expressed interest in expanding the gaming floor, as well as introducing several food and beverage outlets in the coming months. 

Additionally, they are expected to rebrand the venue, subject to the completion of the agreement.

The reasoning behind the planned rebrand and expansion is to upscale Casino Salem into a state-of-the-art regional gaming and entertainment venue, to boost CDI’s in-person casino portfolio offerings.

CDI’s Strategic Shift From Sports Betting

Industry analysts believe CDI’s latest acquisition of Casino Salem demonstrates the firm’s desire to expand its presence in the New Hampshire gaming sector, having already attained the neighboring Chasers Poker Room in Salem in 2022.

However, CDI’s statement on Monday maintained that Churchill Downs will continue to run Chasers Poker Room as a separate entity from the Casino Salem procurement.

Further details about the purchase were included in the press release, stating: “The Company will finance the Salem Transaction using its existing credit facility. Closing of the Transaction is subject to usual and customary closing conditions, including receipt of approval by the New Hampshire Lottery Commission. The Transaction is anticipated to close during the third quarter of 2025.”

The news also comes just five months after Churchill Downs shut its doors on its sports betting premises in February of this year, reflecting the organization’s continued shift towards gaming and entertainment venues, such as Chasers Poker Room and Casino Salem.

The post Churchill Downs Eyes New Hampshire Expansion with Casino Salem Deal appeared first on CasinoBeats.

Assembly Bill 831 (AB 831), sponsored by Assemblymember Avelino Valencia, passed through its second major hurdle on July 15. It passed through the Senate Public Safety Committee with a 6-0 vote. Last week, the Senate Governmental Organization Committee advanced the proposed legislation with a 15-0 vote.

AB 831 now moves to the Senate Appropriations Committee, which has an upcoming meeting on August 18.

Bill Opposition Grows

AB 831 receives significant backing from tribal gaming representatives and industry associations such as the American Gaming Association and the Sports Betting Alliance. However, it’s also gathering a large coalition of opponents including the SPGA, which represents the interests of sweepstakes casinos and advocates for responsible social casino gaming.

On July 14, the SPGA announced that several high-profile organizations have joined efforts against the bill:

• ACLU California Action
• American Transaction Processors Coalition
• Association of National Advertisers
• Californians United for a Responsible Budget
• SPGA
• Social Gaming Leadership Alliance
• Virtual Gaming World

These groups represent a wide range of interests, from civil liberties to major corporate brands. For example, Google, General Mills, and NBCUniversal are members of the Association of National Advertisers.

Meanwhile, the American Transaction Processors Coalition represents financial institutions like Bank of America and Paysafe.

In a press release, SPGA emphasized the importance of this broad coalition, stating:

“This diverse coalition, including civil liberties advocates, leading businesses, and industry groups, reflects a shared belief that the bill, as written, could have unintended consequences for lawful promotional practices without offering clear consumer protections.”

Opponents have criticized the bill’s overly broad, rushed, and risky language, which was introduced via a “gut-and-amend” process that allowed for sweeping changes late in the legislative cycle.

Critics argue that the bill’s expansive provisions risk criminalizing not only operators but also suppliers, payment processors, and celebrity endorsers.

Proponents Stress Tribal Sovereignty and Consumer Protection

As with prior hearings, proponents of the ban included tribal gaming groups. They include the Yuhaaviatam of the San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN).

They argue that they hold exclusive rights to regulated gambling in California. Sweepstakes casinos undermine this exclusivity by operating illegally.

San Bernardino County District Attorney Jason Anderson spoke in favor of the prohibition. He noted that sweepstakes casinos lack consumer protection tools to prevent minors from accessing the platforms.

Anderson indicated that multiple states have now banned sweepstakes casinos.

He also clarified that the AB 831 language does not prohibit traditional sweepstakes. Furthermore, he added that the bill and the District Attorney’s office are not interested in penalizing players, but the operators, which are often offshore companies.

Legal Concerns and Planned Amendments

In opposition, Duane Morris partner Bill Gantz pointed out that some tribal groups operate social casinos with prizes of real-world value without any regulation or oversight.

He argued that there’s no evidence to support the claims of potential risks associated with the platforms. He added that they operate within California’s laws.

Meanwhile, in a written statement, the ACLU California Action warned that the bill’s broad language could potentially criminalize individuals involved in legitimate online sweepstakes, not just operators of sweepstakes casinos.

Responding to these concerns, the bill sponsor told the committee that upcoming amendments will clarify the bill’s scope:

“Things like payment processors, financial institutions, geolocation providers, media affiliates and also individuals would not be held liable if this bill were to pass. This is solely going to focus on the entities that are providing the sweepstakes types of platforms.”

The committee chair, Senator Jesse Arreguín, added that committee members and Valencia were able to come up with amendments that will focus on the operators and not other businesses and individuals.

The post ACLU, Industry Groups Unite Against California Sweepstakes Casino Ban Bill as AB 831 Advances appeared first on CasinoBeats.

In a written communication to its customers, BetMGM informed them that, starting today, it requires a $2.50 minimum bet on all wager types. Those include straight bets, parlays, Same Game Parlays, round robins, and bonus bets.

BetMGM is not alone in implementing a minimum wager requirement. Hard Rock Bet has already implemented a $2 minimum requirement for all bets.

The change by the two operators comes as a direct response to Illinois’ new two-tier tax structure on mobile sports bets. The law requires operators to pay $0.25 per bet on the first 20 million wagers. After that threshold, the tax rises to $0.50 per bet.

The new tax went into effect on July 1.

FanDuel, DraftKings, Fanatics Opt for Bet Surcharge

While BetMGM and Hard Rock Bet chose to set higher minimums, other major operators are passing the tax directly to bettors through surcharges.

FanDuel became the first operator to respond by announcing a $0.50 surcharge on all bets, starting September 1. The operator highlighted that the recent tax hike was the second in a year.

In 2024, FanDuel’s tax on gross gaming revenue rose from 15% to 40%. The platform claims it absorbed those costs in 2024. However, it now says it must pass them on to consumers to protect its margins.

FanDuel’s decision sent a shockwave through the industry, with observers closely watching to see how investors and analysts would respond.

As the response was relatively positive, FanDuel’s rival DraftKings also announced a $0.50 surcharge shortly after. DraftKings carefully timed its announcement. Last year, it introduced a similar surcharge, following the Illinois hike, but faced heavy scrutiny. That forced it to abandon the idea.

The third sports betting operator to impose a surcharge is Fanatics. However, unlike DraftKings and FanDuel, Fanatics decided to impose a $0.25 surcharge instead of $0.50 surcharge.

Observers note that the lower fee is due to Fanatics not being expected to exceed the 20 million bets threshold. At the same time, a large part of the wagers placed on FanDuel and DraftKings will fall under the higher $0.50 per bet tax.

Meanwhile, the remaining mobile sportsbooks in the state, bet365, BetRivers, Caesars, ESPN Bet, and Circa, have not indicated whether they will impose a surcharge or a minimum bet requirement in Illinois.

Credit Card Ban Advances in Illinois

In another potential blow to Illinois mobile sportsbooks, the state has moved one step closer to banning the use of credit cards to place sports bets. Illinois already prohibits the use of credit cards in casinos and video gaming establishments within the state.

In April, the Illinois Gaming Board unanimously approved a prohibition on credit card usage at sportsbooks. That advanced the proposal through the state’s administrative process.

The proposed amendment to the state’s gambling laws was officially published in the July 11 Illinois Register as part of the required rule-making protocol.

As part of the process, the amendment is now under review by the Joint Committee on Administrative Rules. The committee will hold a public comment period until August 25, after which it will make a decision. The next meeting is scheduled for August 13.

If the committee approves the change, it would prohibit retail and online sportsbooks from accepting credit cards for deposits. Debit cards and bank transfers (ACH) will still be available as payment methods.

With a ban, Illinois would join six other states with similar provisions. They include Rhode Island, Iowa, Massachusetts, New Hampshire, Vermont, and Tennessee.

The post BetMGM, Hard Rock Bet Impose Minimum Wagers in Illinois as New Tax Kicks In appeared first on CasinoBeats.

In a strong indication of the profits on the table in the US sports betting sector, BetMGM has revised upwards its guidance for fiscal year 2025 net revenue, from $2.4 billion-$2.5 billion to at least $2.6 billion. 

BetMGM is a joint venture between MGM Resorts International (NYSE: MGM) and UK-listed Entain (LON: ENT). The trading update, reported on June 16, was enough to send the shares of Entain skyward, up 15.2% on the day to £8.56p ($11.76), while MGM Resorts stock climbed 8% to $34.30. 

Entain PLC ADR also trades in the US over-the-counter under the tickers GMVHY and GMVHF.

A global sports betting business, Entain owns numerous other brands, including BetCity, bwin, Ladbrokes and Coral.

Since the US Supreme Court ruled in 2018 that the prohibition on sports gambling was unconstitutional, the sector has exploded. US sports betting is now legal in 40 states and generated revenues of $13.78 billion in 2024 (not including the sportsbook operations of tribal casinos), according to Statista.

US online and offline sports betting market size is forecast to reach $19.8 billion by the end of 2025, with a compound annual growth rate of 10.9% set to see that top $33.2 billion by 2030, according to Grand Review Research. 

Fuelling the growth is online and mobile betting. The surging popularity of crypto-based iGaming is also powering expansion. 

Gaming revenue overall grew to $72 billion last year, an increase of 7.5% from 2023, according to the American Gaming Association.

BetMGM growth is accelerating

Digging down into the numbers, BetMGM reported Q2 trading as being “broadly consistent” with impressive Q1 growth of 34%. In July, Entain says it will divulge more details regarding BetMGM’s Q2 performance. 

BetMGM posted net revenue of $2.1 billion in FY2024, a year-on-year rise of 7% attributed to growth in its iGaming division.

In this article, we are concentrating on Entain stock because of its potential as a recovery play and the combination of value and momentum it presents. 

Although BetMGM is not one of the big five of the US sports betting world, measured by market capitalization, it nevertheless has the brand power and financial support of two big hitters: Entain and MGM Resorts International.

For instance, in the Grand Review Research report cited above, BetMGM is prominently mentioned despite its relatively small size compared to Flutter International (market cap $47.2 billion), DraftKings ($21.1 billion) or FanDuel. The report notes that BetMGM “through its joint venture structure, combines retail presence with digital scalability.”

FanDuel is jointly owned by Flutter Entertainment, Boyd Gaming (market cap $6.35 billion) and Fox Corporation (market cap $24 billion). 

Entain is turning the corner after regulatory pain, helped by new CEO Stella David

Entain has had its difficulties of late, and that’s what gives rise to the mispricing opportunity. The company could be set for a positive rerating for several reasons.

First off, the company has new leadership that augurs well. Then, there’s its primary listing on the London Stock Exchange. Could there be a move to the NYSE on the near horizon? That would bring a flood of new liquidity into the trading of its shares.

For sure, there are things not to like about Entain, such as its debt burden and a history of stubborn underperformance. But, could a move to the NYSE be the shot in the arm that enables the firm to bring its experience with sports books more into play in BetMGM’s ongoing expansion plan execution?

Entain has had three different CEOs since December 2023. Stella David took over from Gavin Issacs, who was in post for a mere five months following the resignation of Jette Nygaard-Andersen. She was forced out by the bribery scandal involving a Turkish firm that was part of the group. For that, Entain was slapped with a £585 million ($803 million) penalty.

David has been the company’s interim CEO since February and is a former chair of the board. David has extensive business experience having spent 15 years in c-suite roles at Bacardi. By all accounts, she made a pivotal contribution in growing the business. 

She has been at Entain for three years and continues as a non-executive director at Domino’s Pizza and Norwegian Cruise Line Holdings. She is also the chair of Vue, a cinema chain.

In a statement of intent when she took up the CEO role, David placed US online sports betting at the center of Entain’s growth strategy, in addition to renewed efforts in new markets such as Brazil.

BetMGM the $500m earnings jewel in Entain’s crown?

If the BetMGM update is anything to go by, the shift in focus is paying off handsomely. Earnings before interest, tax, depreciation and amortization (EBITDA) earnings were also revised upwards to $100 million after previously not supplying a figure.

According to the upgraded guidance, EBITDA is expected to continue to improve and “further reinforce its confidence in future growth prospects and pathway to $500 million EBITDA in the coming years”. 

So what about the difficulties Entain management has been struggling with in recent times? Are they behind it now?

Well, the £585 million hit from the Turkish bribery case obviously stands out. But in 2022 there was also a fine of £17 million ($23) imposed by the UK regulator, the Gambling Commission, for lax player safety and anti-money laundering (AML) compliance. And in 2024 the Australian regulator sued the Entain subsidiary for breaches of AML rules.

These regulatory issues have undoubtedly soured investors on the firm, but David’s new path forward looks like it could be the inflection point long-suffering bulls have been waiting for.

Market is not pricing in ‘improving trends’

Looking at BetMGM’s business operation, the positive bottom-line outcomes show that it is successfully leveraging the strengths of both parties in the joint venture. Entain brings its technological prowess to the business, while MGM Resorts International provides the customer-facing expertise.

Stock analyst Graham Neary says he would prefer to see a reduction in net debt and an improvement in profitability before taking a positive view on the stock. 

For sure, net debt is high at £3.5 billion and the stock could be a momentum trap. For instance the stock’s return on capital ranking is 40th out of 47 in the FTSE’s hotels and entertainment services sector at -3.1%. 

However, net profit in 2025 is estimated to come in at £305 million, bouncing back from the £453 million ($622 million) loss in 2024, the year of that multimillion-dollar bribery penalty, so a one-off writedown. Forecasts for 2026 have net profit climbing higher still to £431 million, which would be up 41%.

In the opposite camp to Neary, Greg Johnson, an analyst at Shore Capital, reckons Entain is undervalued by the market, which is “failing to reflect the improving trends”.

With company delistings from the London Stock Exchange threatening to turn into a flood, Entain is likely to be a candidate for a lucrative transatlantic exit.  

Takeover bids incoming? Entain stock could rocket

It’s not just the prospect of a US listing that has savvy investors salivating. A history of Entain being subject to hostile takeover bids indicates, given recent positive trading news, that more such moves are to be expected. 

DraftKings offered £16.2 billion for Entain back in 2021. Entain’s market capitalization today is £5.2 billion ($7.15 billion). If DraftKings was willing to pony up that sort of money in 2021 for what turns out to be an overly priced valuation, it would probably still be in the market at a much lower valuation. 

Then there are the activist investors sharks thought to be circling. Among them are hedge funds Sachem Head Capital Management, Corvex  Management and Eminence Capital.

Eminence Capital’s Ricky Sandler was behind pushing the board to dump Jette Nygaard-Andersen, the CEO prior to Issacs. Sandler was a big critic of Entain’s £594 million purchase of STS Holding S.A., a Polish sports betting company.

Brokers have an average target price of 987.8p on Entain, 15.51% above the current price, with an outperform consensus rating. 

The post Entain Stock On The Rise As BetMGM Announces Improved Guidance Figures appeared first on CasinoBeats.

The Michigan studio will broadcast games to Caesars Palace Online Casino, Horseshoe Online Casino, and Caesars Sportsbook & Casino.

It includes five blackjack tables (one reserved for VIPs), one roulette table, and one baccarat table. All tables feature custom-branded felts featuring iconic Caesars destinations and each online casino platform.

Select tables also feature custom felts co-branded through partnerships with professional sports teams.

In a press release, Matthew Sunderland, Senior Vice President and Chief iGaming Officer at Caesars Digital, said:

“Our third live dealer studio expands our fully customized live dealer experience that is already extremely popular in Pennsylvania and New Jersey into another key jurisdiction where our online casino platforms are live.”

“The studio design takes inspiration from our flagship destination, Caesars Palace, to authentically recreate the atmosphere of Las Vegas for online players. We look forward to our Michigan players enjoying the new experience.”

Caesars’ Bespoke Game Strategy Continues to Grow

The branded live dealer studio marks another step in the company’s strategy of expanding its library with Caesars-branded content.

The operator unveiled its first bespoke game, Caesars Cleopatra, in August 2023, shortly after introducing its Caesars Palace Online Casino standalone app. The standalone casino’s goal was to deliver a better product, which would help the company gain a higher market share. To achieve that, Caesars employed a branded game strategy.

Since then, it has unveiled over a dozen bespoke games, including slots like:

• Caesars Palace
• Caesars Palace Megaways
• Caesars Cleopatra
• Caesars Fortune
• Caesars Emperors Gold
• Caesars Palace Garden of the Gods
• Caesars Palace Frenzy

Additional games include Caesars Palace Riches LuckyTap, Caesars Palace Slingo, Caesars Palace first-person blackjack, and the live dealer table games.

Branded Content Strategy Drives Market Share Gains

The bespoke product strategy has helped Caesars achieve some of the standalone app’s goals. In Michigan, the platform held a 4.5% market share in July 2023, a month before the debut of Caesars Cleopatra. That placed it in sixth spot out of 15 operators in the state.

A year later, in July 2024, Caesars Palace Online Casino’s market share had climbed to 6.3%, moving up one spot.

The latest data from Michigan shows that in May 2025, online casinos generated $251.5 million in gross gaming revenue, with Caesars Palace Online Casino capturing a 6.6% market share. While still in fifth place, it’s narrowing the gap to the fourth-placed BetRivers Casino, which had just over 7% market share.

A similar scenario is unfolding in New Jersey. For May, when online casinos generated $246.8 million in gross gaming revenue, Caesars Palace Online Casino captured a 7.3% market share. Caesar’s market share is nearly one percent higher than May 2024, when it held a 6.4% market share.

The post Caesars Expands Michigan Presence With New Branded Live Dealer Studio appeared first on CasinoBeats.

The budget was passed late on May 31, the last day of the 2025 legislative session. It now heads to Illinois Gov. J.B. Pritzker’s desk for a signature.

The governor has indicated he will sign the budget. He even praised it as the “seventh consecutive balanced budget that continues to get the state’s finances back on track.”

New Tax on Every Sports Betting Wager

The approved budget includes an anticipated $800 million in increased tax revenue. With Gov. Pritzker indicating he would veto a budget with an increase in tax on individuals, corporations, or the sales tax, lawmakers targeted industries like sports betting to raise funds.

Under the new tax, operators will pay 25 cents on the first 20 million bets placed on their platforms. After that threshold, the tax increases to 50 cents per bet. Estimates are that this initiative will bring $36 million annually.

Industry analysts, such as Truist analyst Barry Jonas and Jefferies analyst David Katz, suggest that the tax increase will have the most significant impact on DraftKings and FanDuel.

Katz also warns that operators might pass the increased costs to bettors through higher minimum bets. That could drive them to alternative platforms like Kalshi, a market prediction site which recently received a cease-and-desist letter from the Illinois Gaming Board.

The new tax increase has come as a surprise to operators. Lawmakers introduced it on the last day of the legislative session, giving them little time to respond.

Second Tax Increase for Illinois Sports Betting in a Year

Once Gov. Pritzker signs the budget, it will mean that Illinois sportsbooks will incur a second tax hike in a year. In 2024, Illinois introduced a graduated tax system:

• 20% for annual revenue of $0 to $30 million
• 25% for those generating $30 to $50 million
• Those with revenue between $50 million and $100 million pay 30%
• 35% for operators with annual revenue of $100 million to $200 million
• Over $200 million: 40%

Additionally, operators pay separate taxes for their retail and online sports betting operations. Before the 2024 increase, operators paid a flat 15% tax. As with the new tax hike, the most affected by the 2024 tax hike were DraftKings and FanDuel. The two market leaders saw their tax rate increase from 15% to 40%.

Higher Sports Betting Taxes Instead of Legalizing iGaming

While lawmakers were scrambling to find an additional revenue source, one potential source went unnoticed: the legalization of online casinos.

Mirroring efforts in 2023, Rep. Edgar González, Jr. and Sen. Cristina Castro introduced companion bills, known as the Internet Gaming Act, to legalize iGaming in the state.

Some estimates suggest that if legalized, online casinos could generate $450 million in tax revenue in their first year, which is over 10 times the estimated tax revenue for new sports betting.

Over time, that figure could reach $800 million. That is comparable to the iGaming market in Pennsylvania, which has a slightly higher population, a mature market, and an aggressive tax system.

Despite these projections and a signal from Gov. Pritzker that he would be open to the idea, the 2025 Internet Gaming Act failed to gain traction and advance past the committee stage.

Illinois Fails to Ban Sweepstakes Casinos

The end of the 2025 Illinois legislative session also means that sweepstakes casinos remain legal in Illinois.

In April, the Senate Gaming, Wagering, and Racing Committee inserted an amendment to a bill that targeted unlicensed retail sweepstakes machines, including online sweepstakes, which directly affected sweepstakes casinos.

Illinois is one of 12 states that introduced bills to ban the social gaming platforms. However, so far, only Montana has passed an official ban.

The post Illinois Raises Sports Betting Tax as Part of New Budget appeared first on CasinoBeats.

DraftKings CEO Blasts Illinois Tax Hike

In a press release, Jason Robins, DraftKings CEO and Co-Founder, expressed strong disappointment with Illinois lawmakers:

“Illinois has been an important part of our growth, and we’re proud to have contributed meaningfully to the state through tax revenue, job creation, and a sustained investment in responsible gaming tools and resources.”

“We are disappointed that Illinois policymakers have chosen to more than triple our tax rate over the past two years, and we are very concerned about what this will do to the legal, regulated industry. Meanwhile, Illinois continues to fuel the rapidly growing illegal industry, which pays no taxes or fees and provides none of the consumer protections that regulated operators offer.”

DraftKings emphasized that it continues to support beneficial policymaking that promotes long-term sustainability of the industry. The operator notes that if the Illinois legislation is repealed, the company will remove the surcharge.

DraftKings Mirrors Rival FanDuel

DraftKings’ move comes two days after an identical decision by FanDuel’s parent, Flutter Entertainment.

On June 10, Flutter announced that it would pass on to customers the costs associated with Illinois’ new tax increase through a 50-cent surcharge per bet, starting September 1.

The move was a direct response to newly passed legislation that will require operators to pay 25 cents for every bet placed on their platforms up to the first 20 million bets. After that threshold, the tax increases to 50 cents per bet.

As FanDuel and DraftKings control about 70% of the market, they will pay 50 cents on the vast majority of the bets placed on their platforms. Flutter, in the surcharge announcement, also highlighted that the new tax is the second increase in a year.

In 2024, Illinois replaced its fixed 15% tax with a graduated system based on gross gaming revenue. For FanDuel and DraftKings, that rate jumped to 40%.

Like Flutter, DraftKings Investors Respond Positively

Investors received Flutter’s surcharge announcement well, and the stock rose 1.5% on June 10. DraftKings shares also rose by 2.7% that day. That was likely due to optimism that the operator might avoid adding a surcharge, at least in the short term.

The DraftKings surcharge announcement had a minimal impact on the stock price. It closed on June 12, up nearly 1% at $37.98, before dipping 2% at the market open the next day. It has since started gaining ground.

Jefferies analysts suggest that the surcharge could provide a slight boost to DraftKings’ stock price. Still, the market has already anticipated it, so it’s already accounted for in the current price. Jeffreys and many other analysts maintain a Buy rating and remain optimistic.

Analysts note that DraftKings reported a strong start to the year. That followed strong 2024 results, during which the company posted its first-ever positive Adjusted EBITDA.

The company also maintains a healthy balance sheet with $1.1 billion in cash, following the repurchase of 3.7 million shares. It’s also realizing efficiencies in areas such as advertising.

The post DraftKings Follows FanDuel’s Lead, Will Implement a 50-Cent Surcharge on Bets in Illinois appeared first on CasinoBeats.

The big question now: will rival DraftKings follow suit, and could this become an industry standard?

Flutter Responds to Illinois Tax Hike

The FanDuel announcement comes as no surprise to many. On May 31, the Illinois legislature passed a new tax hike on every bet made in the state. Under the new tax, operators will pay 25 cents for every bet placed on their platforms up to the first 20 million bets. After that threshold, the tax increases to 50 cents per bet.

The 50-cent tax directly applies to FanDuel, the sports betting market leader in the US. While Illinois lawmakers believe that large corporations like FanDuel and DraftKings can afford the increase, the company doesn’t share their view.

In a press release, Peter Jackson, CEO of FanDuel’s parent company, Flutter, said:

“It is important to recognize that there is an optimal level for gaming tax rates that enables operators to provide the best experience for customers, maximize market growth, and maximize revenue for states over time.”

Flutter stressed that this is the second tax hike in a year in Illinois. In 2024, FanDuel’s tax rose from 15% to 40%. The company emphasized that at the time, it made “extensive efforts” to absorb the cost without affecting its customers.

Flutter highlights that if Illinois decides to reverse its decision on the new tax, FanDuel will immediately remove the surcharge.

Flutter Investors Shrug Off The Surcharge News

After the Illinois tax news, Flutter’s stock dipped 2%, but investors seem to have welcomed FanDuel’s bold move. After the announcement, the stock closed on Tuesday up 1.5% at $267.52.

The rebound suggests that investors view FanDuel’s decision to pass the tax on to customers as a pragmatic and disciplined move, rather than a sign of financial weakness.

Analysts estimated that the new tax hike in Illinois would reduce Flutter’s US profits by $74 million annually. However, the surcharge announcement appears to have reassured investors that Flutter will protect margins.

In addition, Flutter reiterated that it expects to grow its group-wide profit by 35% to $3.18 billion, maintaining its forecasts. That news likely increased investor confidence as well.

Flutter’s move is also gaining approval from analysts. A consensus of 22 analysts suggests a one-year stock price target of around $300, implying a 12% increase from the current price. Twenty-one brokerage firms maintain an “outperform” rating for the company.

Meanwhile, gambling industry consultant and analyst Steve Ruddock sees the surcharge as a positive move for the company:

“FanDuel is doing the right thing by transparently showing its customers the cost and its source. Like a mom-and-pop store charging a credit card transaction fee, or a restaurant highlighting the meal tax on the receipt rather than raising menu items, transparency is always good.”

DraftKings Weighs Its Options

FanDuel’s main rival, DraftKings, experienced a 2.6% stock rise on Tuesday. That reflects optimism that the operator might avoid adding a surcharge, at least in the short term.

So far, DraftKings has been cautious. In an emailed statement, the company said that it “anticipates taking action and expects to share more information soon.”

But many analysts think a surcharge is inevitable. Jefferies analyst David Katz expects DraftKings to follow FanDuel’s decision:

“Given the structure of the tax, a surcharge is the most direct cost offset, and we view the move as a modest positive for the shares of the operators.”

Katz doesn’t expect either company to lose market share to smaller operators, which could also impose a surcharge. Combined, FanDuel and DraftKings take about 75% of the Illinois sports betting market.

Citizens’ gaming analyst estimates that the new surcharge will result in $79 million in new 2026 revenue for DraftKings (if it implements it), or 5.4% of its projected EBITDA. Meanwhile, FanDuel will generate $86 million, or approximately 2% of its 2026 EBITDA.

Could Per-Bet Surcharges Spread Nationwide?

FanDuel’s surcharge could be a turning point in the US sports betting industry. Once taboo, passing tax costs to consumers could become a standard practice for operators to resist tax hikes.

BMO Capital Markets analyst Brian Pitz said that Flutter’s move illustrates how operators might respond to regulation:

“New fees on every bet could drive users to leverage illegal operators who won’t add a fee (because they don’t pay state taxes), and are thus unaffected by the new IL per-bet tax.”

The risk of driving consumers to illegal offshore platforms is a concern of the industry. The Sports Betting Alliance, a trade group representing FanDuel, DraftKings, and other prominent operators, has repeatedly warned lawmakers that aggressive tax policies could drive consumers to illegal sites.

Illinois’ new policy could become a case study for other state legislatures. In response, operators will likely adopt a clear message: “If lawmakers impose per-bet taxes, expect us to pass them on to voters directly.”

FanDuel and its peers could use this weapon against tax hike proposals elsewhere. For example, Louisiana recently passed a bill that more than doubles the tax on sports betting.

Ohio is another state on the radar. An active bill in the Buckeye State proposes adding a 2% tax on total wagers placed in the state, in addition to the existing 20% tax on revenue (which was already doubled once, and there have been proposals for another increase).

Other examples include New York and Pennsylvania, which heavily tax operators.

Normalizing Consumer Fees?

However, while some industry observers warn of a consumer backlash, others believe the move is part of a broader pricing evolution.

Ruddock observes: “We live in a world where new fees or price increases occur frequently, including streaming subscriptions, ATM fees, and delivery charges, to name a few.”

He adds that it won’t have a significant impact on the consumer:

“This will have a near-zero impact on casual bettors. Casual bettors don’t go broke. They don’t have a bankroll that gets reduced to zero. They have jobs and dedicate a certain amount of their disposable income to betting. The only difference is that instead of betting $10 or $50 per week, they now bet $12.50 or $55.00 per week.”

Given the popularity of small wager parlays with potentially high returns, Illinois bettors may also simply absorb the impact themselves, given that multi-game wagers are often purely for entertainment purposes and to provide interest in a busy sporting calendar.

Déjà Vu: DraftKings Tried This First

FanDuel’s surcharge announcement is not a new idea. Ironically, the operator is doing what DraftKings tried and abandoned last year.

In 2024, facing Illinois’ first tax hike (from 15% to 40%), DraftKings announced plans to add a surcharge on winning bets in states with high tax rates of 20% or higher, such as New York, Pennsylvania, Illinois, and Vermont.

However, the plan was short-lived. Factors such as customer backlash, rejection by competitors (including FanDuel), and adverse analyst reaction forced DraftKings to back out of the plan.

Now, with even higher taxes in Illinois, FanDuel has flipped its stance. While it’s likely to follow, DraftKings might wait and watch closely if FanDuel receives similar backlash.

The post FanDuel’s Illinois Surcharge Could Set National Precedent, DraftKings May Follow appeared first on CasinoBeats.

The Lincoln Policy Group, founded by Sen. Lincoln, received $180,000 in payments from Kalshi, and Lincoln registered as a lobbyist for Kalshi last year. 

Lincoln’s letter to the CFTC supports the argument Kalshi has frequently made in court cases against state regulators, that prediction markets are governed at the federal level and beyond state control. 

“It is crucial that the CFTC make clear that all prediction markets fall entirely under its domain with no interference by states,” Lincoln wrote in the letter. 

“If a formal rule is necessary to achieve this goal, then the agency should not hesitate to act.”

Lincoln Implores CFTC to Let Markets Decide

After a change in administration, the CFTC has softened its stance towards the expansion of prediction markets into political and sports markets. 

Incoming Chair Brian Quintenz, a board member at Kalshi, indicated his openness to further expansion at a Senate hearing last month, despite opposition from state regulators and tribal groups. 

In a court case against Kalshi in New Jersey, 34 states, as well as over 60 tribal groups, and the American Gaming Association (AGA), all submitted briefs against sports prediction markets. 

The case is ongoing, as are legal battles in Nevada and Maryland, but Kalshi has so far secured favorable rulings from judges, allowing its markets to be offered in all 50 states. 

Lincoln believes that the CFTC should not cave to increasing pressure from states and tribes, among others. 

“Not surprisingly, the CFTC faces a lot of pressure right now to ban prediction markets, especially contracts tied to political elections or sporting events,” she wrote. 

“This would be a grave mistake for a number of reasons, and it would fly in the face of the agency’s long-standing policy of letting the markets decide.“

Lincoln Letter Contradicts Previous Comments

As highlighted by InGame, Sen. Lincoln’s recent letter to the CFTC stating support for sports prediction markets is in contrast to previous comments. 

During a 2010 Senate conversation, Lincoln said: “It would be quite easy to construct an ‘event contract’ around sporting events such as the Super Bowl, the Kentucky Derby, and Masters Golf Tournament. These types of contracts would not serve any real commercial purpose. Rather, they would be used solely for gambling.”

These words have been used in briefs filed against Kalshi in its legal fight in Maryland. However, in the letter, Lincoln writes a direct contradiction, stating that she now believes the Super Bowl does have a real commercial purpose.

From the letter, Lincoln states, “Sporting events like the Super Bowl also have strong commercial value because they have major impacts on advertising, apparel sales and the hospitality industry to name a few.”

The change in stance from Lincoln may well indicate that Kalshi’s lobbying efforts are paying off. According to Dustin Gouker at the Next Event Horizon, the company has spent $1 million on federal lobbying over the past five years. 

The post Lobbying Bet Pays Off for Kalshi as Former Senator Supports Prediction Markets appeared first on CasinoBeats.

GambleAware’s 2023 Audience Segmentation Report indicated that around 4.5 million UK adults want to reduce or stop gambling, with 93% of individuals preferring informal self-guided methods of support. 

In a statement on its website, GambleAware states: “The app, which offers free and anonymous support to those looking to quit or reduce their gambling, is designed to prevent the escalation of gambling harm, and allows users to set their personal goals.”

The app includes features like activity tracking, goal-setting, motivational reminders, podcasts, educational content, and referral options.

App Aimed At Young Adults

The app is primarily aimed at young adults, with the 2024 Treatment and Support Survey released by GambleAware showing that they suffer from gambling problems at double the rate of the general population. 

The survey reported that 29% of 18-24-year-olds who gamble want to reduce or quit, compared to 15% of all respondents. 

Alexia Clifford, Chief Communications Officer for GambleAware, indicated that there is an increased risk of problem gambling in the digital age due to having a “casino in our pocket”. 

Clifford commented: “Whether individuals want to reduce, manage, or stay gamble-free, the GambleAware Support Tool is here every step of your journey.” 

“The digital age means we essentially have a casino in our pocket, and we know increased accessibility leads to increased participation and therefore increased risk of harm.”

The organization reported a 10% rise in individuals accessing the National Gambling Support Network (NGSN) last year, compared to the previous year. 

“These harms are a growing public health issue, but early intervention is key, and the GambleAware Support Tool app is designed to give people a timely insight into their gambling, with the aim of supporting their journey to reducing or quitting their activity.”

Lower Risk Gambling Guidelines Central to the App

The app has been developed in accordance with the Lower Risk Gambling Guidelines (LRGG), which were created by academic experts in gambling worldwide. 

As stated by GambleAware: “The LRGG highlight three limits that should be followed if an individual wants to keep gambling, but reduce many of the risks that come with it: 

• Gamble no more than 1% of your income 
• Gamble on no more than four days per month 
• Avoid more than two types of gambling per month.”

The GambleAware Support Tool is the only available app in the UK that uses the LRGG to suggest limits for users to reduce their gambling. 

Lived Experience Council Voice Support

Catherine Adams, a member of the GambleAware Lived Experience Council, believes the app will be invaluable to individuals who suffer from the same problems as she once did. 

The Lived Experience Council (LEC) is made up of a variety of people whose lives have been impacted by gambling harm.

Adams said that “I would be gambling on the computer from six in the evening until six in the morning, and I just was not sleeping.”

By reminding users of their progress, Adams thinks the app will be of great benefit to users. 

She stated: “It’s positive being able to monitor your progress yourself and to see how well you’re doing in reducing or quitting your gambling if you’re goal-oriented. To see ‘I’ve done this many days now ‘or ‘I’ve saved this much money, I think it really does give variety of choice in your recovery.”

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