The latest in sports betting

Hi there, we’ve taken a look at what’s news, trending and being talked about in the sports betting world this week. Grab a coffee, take five minutes and we’ll fill you in on everything you need to know.

One big story

US senators file bill to repeal federal excise tax on gambling

Two US senators have filed a bill requesting the repeal of the existing federal excise tax on bets placed stateside. Currently, an excise tax of 0.25% is placed on top of any legal wager accepted.

It is a tax which was enacted over seven decades ago, with the American Gaming Association (AGA) describing it as an “antiquated tax” which puts licensed sportsbooks at a disadvantage to black market, offshore brands which don’t pay taxes at a state or federal level.

Nevada senator Dina Titus is also expected to support the bill in congress since she’s been a long-time champion for eliminating the excise tax on wagers.

It’s not the first bill filed which aims to repeal this tax or alter its use. At the turn of the New Year, the Gambling Addiction, Recovery, Investment and Treatment (GRIT) Act was filed, which would ringfence half of the revenues of excise tax towards supporting addiction treatments.

Click here to understand why the removal of America’s excise tax on bets would create a more competitive sports betting landscape.

What you need to know

Commercial

• Betsson Group has closed a deal with FDJ Group to purchase sports betting tech firm, Sporting Solutions. In a bid to enhance its proprietary B2C and B2B sportsbook offerings for pre-game and in-play markets, Betsson has invested in the UK-facing firm which specialises in sports trading, pricing and risk-management solutions. More
• PointsBet’s full-year 2024 revenues finished 16% up year-on-year, due largely to the sale of its US arm to Fanatics Betting and Gaming. According to CEO Sam Swanell the disposal of its US subsidiary left the firm with almost £22m in cash reserves to reinvest in its future growth plans. More  
• Atlanta-based firm PrizePicks has commenced plans to explore potential mergers and acquisitions. It has enlisted help from investment bank Moelis & Co to identify potential opportunities to expand its footprint and challenge well-established daily fantasy sports brands such as DraftKings and FanDuel. More  
• Q2 2024 revenues were up 9% year-on-year for BetMGM, with net gaming revenue hitting a seven-figure sum for the opening half of the year. Its decision to leverage product and pricing specialists Angstrom has paid dividends, according to CEO Adam Greenblatt. More  

Regulation

• Lawmakers in Nebraska could make the state the first in 2024 to legalise or expand gambling services this year. Its state legislature commenced a special session last week, discussing a string of bills designed to legalise online sports betting and daily fantasy sports. More  
• The United Arab Emirates has issued its first lottery licence, in a positive step towards the potential legalisation of gambling. Gulf states currently prohibit gambling but the UAE’s General Commercial Gaming Regulatory Authority’s decision to award a commercial gaming licence to The Game LLC, suggests the door may be ajar for future regulation. More

Technology

• Virgin Bet has completed its migration to Kambi Group’s online sportsbook platform. Erik Logdberg, managing director of Kambi Sportsbook, described this as a “landmark migration”. Meanwhile Sam Sadi, CEO of Virgin Bet’s parent company, LiveScore Group, said it was a “priority” for Virgin Bet to become a top-tier sportsbook. More

People news

British Horseracing Authority announces two key hires to underpin its social and environmental strategy

The British Horseracing Authority (BHA) has confirmed the appointment of Katie Carr as head of environmental sustainability and Tom Baker as head of social impact.

These new positions will be largely funded by the Racing Foundation and overseen by the Industry Programme Group. Both Carr and Baker have been recruited to support the sport’s long-term goals of minimising its effect on the wider environment and maintaining its positive role in local communities.

Click here to get the thoughts of the BHA’s director of strategy and change, Alison Enticknap, on these new hires.

This week’s talking point

Confusion reigns supreme over new Gambling Survey for Great Britain

The UK Gambling Commission (UKGC) has released its Gambling Survey for Great Britain (GSGB), the new source of official statistics for gambling.

The Racing Post’s industry editor, Bill Barber, says the media, politicians and campaigners have “leapt on” the new problem gambling rate of 2.5 per cent contained within the data.

That figure is much higher than the problem gambling rate produced by the NHS Health Surveys which had been the previous source of official statistics.

However, the Gambling Commission says that comparisons between the two figures should not be made due to differing methodologies.

Barber also says the new figures will only strengthen the pressure on the new Labour government and the UKGC to strengthen the UK’s gambling policy and regulatory framework.

Click here to read more about how the UKGC wants the mainstream media to digest and portray the figures within the new GSGB.

This week’s insight

Why has the number of active Australian bettors fallen post-Covid?

New figures from the Australian National University’s (ANU) Centre for Gambling Research have determined an 8% decline in active bettors in Australia since 2019.

Prior to the Covid pandemic, almost two-thirds (65.6%) of citizens gambled in some shape or form. The ANU believes this figure will fall to 60.3% by the end of this year.

ANU researchers believe the decline is driven by the closing of multiple retail venues during and post-pandemic. There has been a big shift towards online betting, with 33.4% of respondents doing so online compared with 28.6% of respondents betting in person.

Lottery Australia remains the country’s most popular gambling product, enjoyed by almost half (46.8%) of those surveyed. Although sports betting is viewed as a big deal, less than one-in-20 (4.7%) of respondents said they bet on sports, with the majority done so online.

Click here to discover more about why the 60% gambling participation rate in Australia could become the ‘new normal’.