NY Mobile Betting Mishap, Canada Advances & More: This Week In Sports Betting Investing
Canadian Sports Betting Bill Sees Royal Assent
As expected, Canadian sports betting bill C-218 received Royal Assent last Wednesday following approval from both the Senate and House of Commons. With the pathway now paved for single-event wagering, focus now shifts to Canadian Prime Minister Justin Trudeau to establish the effective date for the amendment to go into effect.
The amendment can best be compared to the United States Supreme Court’s overturn of PASPA, where the act of single-game wagering is no longer viewed as illegal under federal law and states are given the ability to draft legislation for its regulated practice.
Provinces that wish to offer sports betting now have the ability to draft their own guidelines and regulatory framework, though most have already taken steps to get ahead of the expected announcement.
With the Canadian Gaming Association estimating that more than $14 million in illegal wagering takes place each year in the country, operators are eager to step in and profit off of this ripe market. While Ontario has been vocal with its aspiration to offer a competitive marketplace, sportsbook operators are still unsure as to which territories will look to offer third-party licensing opportunities.
New York Sports Betting Deadline Screw Up
The July 1st deadline to start the bidding for online sportsbooks has come and gone, and despite having had months to prepare, the New York State Gaming Commission managed to screw the pooch.
Sen. Joe Addabbo Jr., a key voice in the fight to introduce mobile betting to the state, had been very hopeful about the NYSGC’s ability to meet the seemingly simple deadline. Yet, as Thursday night passed with no news, legislators and operators were left puzzled and frustrated heading into the holiday weekend.
Per law, the bidding period to be one of the selected sportsbooks allowed to operate online in New York is to take place over a 30-day period. A 150-day period would be used to select the winning operators, and while selection could take place sooner, the expectation was to see mobile betting fully operational at some point in the NFL season.
This relatively inexcusable failure now puts this all in jeopardy.
Connecticut Sports Betting Law Puts DFS At Risk
The sports betting law put through by Connecticut saw tight restrictions put in place to limit the number of operators in the small state. Where it was obvious that this would pertain to sportsbook operators, many were shocked to realize that the limit extended to DFS providers as well.
Per the new law, a maximum of three digital sportsbooks “or” DFS platforms can operate in the state. This same law also allows for online/digital sites to run through both of the state’s native tribes or the state lottery.
For DraftKings (DKNG) and FanDuel, two of the largest sports betting and Daily Fantasy platforms in the country, this news had little impact. DraftKings is already a partner of Connecticut’s Mashantucket Pequot Tribe, the group behind Foxwoods Casino.
At the moment FanDuel has no relationships that grant them access to operate in the state, but it appears that they have been offered a provisional liscense to continue with their DFS offerings through the Mohegan Tribe. It is unknown if this provisional liscense will see the partnership include sports betting.
According to Connecticut’s Department of Consumer Protection, any DFS platforms that hopw to operate in the state would “need to enter into a contract with one of the tribal casinos or the Connecticut Lottery Corporation in order to operate fantasy sports in Connecticut.”
With a bit of legislative hurdles left to be cleared, the state hopes to have sports betting live and operational by the end of the calendar year.