The state launched the tax on July 1. Henceforth, Illinois sportsbooks must pay $0.25 on the first 20 million online bets placed in the state annually. If they exceed this threshold, they will have to pay $0.50 on every further bet.

Sports Business Journal quoted a Fanatics spokesperson as stating said its decision “reflects the high cost of operating” in Illinois.

The Fanatics move comes hot on the heels of similar announcements from the operators FanDuel and DraftKings.

CBS News Chicago reported that sports betting companies were only “expected to eat the costs” for a short period of time.

Both FanDuel and DraftKings have announced they will start charging gamers a $0.50 fee on every wager placed in Illinois from September 1 this year.

Lawmakers included the new tax law in the latest state budget, which passed the Illinois General Assembly early last month.

Fanatics Not Expected To Reach 20 Million Bets Threshold

Analysts said last month that DraftKings would have paid out around $68 million in additional taxes if the new levy had been in effect last year.

Experts also think that only FanDuel and DraftKings currently exceed the 20 million bet threshold, meaning that Fanatics bettors will likely only need to pay an additional $0.25 per bet for the foreseeable future.

Observers claim that the providers may cut the number of promotional events they offer in Illinois to offset rising costs.

Illinois last year introduced a progressive tax system of up to 40%, a steep rise from its previous rate of 15%.

The Sports Betting Alliance said last month that a per-bet tax mostly “penalizes small recreational bettors, many of whom are betting a single dollar or two.”

The alliance warned that lawmakers were “essentially urging customers, and especially these small-dollar bettors, to switch to unsafe and unregulated sportsbooks.”

It claimed that these unregulated platforms “defy state consumer protections and generate zero taxes for state priorities.”

The post Fanatics to Pass $0.25 Mobile Betting Tax Charge on to Its Illinois Customers appeared first on CasinoBeats.

A few weeks ago, during the NBA and NHL playoffs, sports accounted for over 80% of trading volume at the prediction markets site. But, with US sports in a quiet period, alternative markets such as the annual eating contest attracted attention. 

Event Horizon tracks the world of prediction markets and notes that Kalshi saw a decline in sports trading recently. 

MLB contests were still the most popular markets on the site. UFC fights, Club World Cup soccer matches, and WNBA games were also among the platform’s most traded events. 

Nathan’s Hot Dog Eating Contest accounted for 4% of overall volume. The winner of the Democratic primary for mayor in New York City was the most traded non-sports market. 

Sports Dominate Prediction Markets Despite Opposition

The top 20 markets for Kalshi last week accounted for less volume than the NBA alone did the previous week. This highlights that the site has become increasingly reliant on sports markets since expanding into the territory in January this year. 

The expansion has been met with strong opposition from states that accuse the platform of offering unlicensed sports betting. 

Seven states issued Kalshi cease-and-desist letters. However, rather than take a step back from sports markets, Kalshi responded by filing counter lawsuits in Nevada, New Jersey, and Maryland. 

So far, judges have ruled in Kalshi’s favor. In Nevada and New Jersey, judges granted preliminary injunctions that allow the company to continue operations in the states for the time being. 

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

The briefs accuse Kalshi of hypocrisy. The company claimed in court that it does not offer betting, but rather gives users opportunities to trade on events with “real-world financial consequences”. However, it was highlighted that Kalshi has frequently run ads that state the platform is offering “legal sports betting in all 50 states”. 

States, therefore, argue that it should be regulated in the same way as sports betting. That means applying for a license, paying taxes on revenue, and being restricted in states that have not yet legalized gambling on sports. 

Courts are mulling over how to balance state betting rules with the Commodity Exchange Act (CEA), which regulates event contracts, While that happens, Kalshi has ramped up its sports markets. 

Whereas the first sports-related markets focused on long-term futures, users can now trade contracts on single-match winner markets in the NBA, NHL, MLB, NFL, soccer, and tennis. An upturn in trading volume is expected for the coming weeks on Wimbledon matches. 

Sports Leagues Warn Of Prediction Markets Expansion

Sports leagues have also voiced concern about Kalshi’s expansion. The NBA sent a letter in May to the Commodity Futures Trading Commission (CFTC), warning of the risks that sports prediction markets pose. 

“Without oversight and regulation tailored to the specific circumstances of sports wagering, the integrity risk posed by sports prediction markets are more significant and more difficult to manage than those presented by legal, regulated sports gambling,” wrote Alexandra Roth, the NBA’s vice president.

The NFL and MLB also sent letters to the CFTC expressing their concern. 

Jonathan D. Nabavi, NFL VP of Public Policy and Government Affairs, wrote in the NFL’s letter, “These contracts would mimic sports betting but seemingly without the robust regulatory features that accompany regulated and legalized sports betting and which help to mitigate threats to the integrity of our contests.”

CFTC Shifts Stance Under New Administration

The CFTC, however, has been reluctant to place any restrictions upon Kalshi and the expansion of sports prediction markets. Under the previous administration, the organization ordered Kalshi to remove its market on the US presidential election. 

Kalshi, as it has done with state regulators, filed a counter lawsuit against the CFTC. It won its legal battle. A federal judge ruled that the market did not harm the public as the CFTC had stated. This made it legal under the CEA. 

Kalshi quickly reinstated the market. Since Donald Trump has taken over the US Presidency from Joe Biden, the CFTC has shifted its stance. Donald Trump Jr. took up a role as a strategic advisor at Kalshi. Kalshi board member Brian Quintenz was nominated by the president to lead the CFTC. 

Quintenz stated he will resign from his position at Kalshi upon taking up the role as CFTC chair. His ties to the company mean he is unlikely to introduce measures against the expansion of political and sports markets. 

The ability of Kalshi to continue expanding saw the company valued at $2 billion in a recent round of funding. Rival prediction market site Polymarket was valued at half that, around $1 billion in its recent round of funding. 

Polymarket Also Expanding Its Sports Trading Options

Polymarket is unlicensed in the US and was fined $1.4 million by the CFTC for accepting US users. The platform has, however, made a partnership with Elon Musk and the social media platform X. That partnership could lead to further expansion. 

Kalshi had initially announced that it had made a deal with Musk and xAI. However, Kalshi was forced to retract the announcement after X denied the partnership had been agreed. 

Similarly to Kalshi, sports markets account for a growing percentage of Polymarket’s business.

The post Sports Markets Continue To Drive Kalshi’s Business, Including Hot Dog Eating Contest appeared first on CasinoBeats.

ESPN reported June 29 that unnamed gambling industry sources had confirmed Beasley was being investigated by prosecutors over irregularities pertaining to NBA games and prop bets in the 2023-24 season.

Beasley played for the Milwaukee Bucks from July 2023 until July the following year, when he signed with the Pistons.

The sources said an unnamed but “prominent” United States-based sportsbook saw “unusually heavy betting interest” on Beasley’s statistics starting in early 2024.

Beasley’s legal team said that the shooting guard is yet to be charged with wrongdoings. The NBA, meanwhile, said it has spoken to federal prosecution officials.

Contract Talks On Hold For Beasley

The Pistons, meanwhile, declined to comment further on the allegations, although the franchise did admit that it was aware of the probe. The NBA spokesman Mike Bass was quoted as stating: “We are cooperating with the federal prosecutors’ investigation.”

Beasley’s attorney Steve Haney said: “An investigation is not a charge. Malik is afforded the same right of the presumption of innocence as anyone else under the US Constitution. As of now, he has not been charged with anything.”

Haney also said he had spoken to prosecutors in the US Attorney’s Office in the Eastern District of New York. This office, he said, is currently leading the investigation.

Beasley is currently a free agent. He was reportedly holding talks with the Pistons over a new three-year, $42 million deal. These talks, ESPN’s unnamed sources said, are now on hold.

The insiders claimed that sportsbook odds on an NBA game between the Milwaukee Bucks and the Portland Trail Blazers on January 31, 2024, showed signs of irregularities.

Odds on Beasley recording less than 2.5 rebounds shifted significantly prior to the game. They shortened from around +120 to around -250 “due to a surge of action on the under,” the source said.

Beasley finished the game with six rebounds, the source explained.

Sports Gambling Controversies In NBA, Around The World

Beasley, born in Atlanta, Georgia, in November 1996, was first drafted to the NBA by the Denver Nuggets in 2016. He is not the only NBA player to be involved in a gambling investigation over recent years.

Last year, Jontay Porter of the Toronto Raptors received a lifetime ban from the league. This following an investigation that found Porter disclosed confidential information to other sports bettors for them to make wagers on games and prop bets.

Earlier this past NBA season, Terry Rozier of the Miami Heat was also under investigation due to unusual betting patterns connected to him for a March 2023 game when he was with the Charlotte Hornets. Rozier has not been charged with a crime and didn’t face any sanctions from the NBA.

Sports stars’ gambling-related activities have also been in the spotlight in Japan in recent weeks. Last week, the Tokyo District Public Prosecutors’ Office decided not to indict Rui Okoye and Daiki Masuda of the Japanese pro baseball team Yomiuri Giants.

The duo had admitted to using their smartphones to gamble on online casinos. The country’s strict gambling rules forbid all forms of online betting.

The post Detroit Pistons Star Malik Beasley Being Investigated Over Gambling Allegations appeared first on CasinoBeats.

Earlier this year, Murphy proposed to raise the tax to 25% for online sportsbooks and casinos. Currently, the rates are 13% for mobile sportsbooks and 15% for online casinos.

The governor estimated the hike would generate over $400 million in additional revenue.

As expected, operators opposed the hike. They claimed it would require them to reduce promos, which could drive consumers to illegal platforms.

While not officially confirmed, The Press of Atlantic City reports that lawmakers agreed on a 19.75% rate on Monday, aiming to satisfy the government and operators’ requests.

The legislature must pass the 2026 budget by July 1, marking the start of the new fiscal year.

Balance Between Record Revenues and Fairness to Operators

Last week, Gov. Murphy told The Press of Atlantic City that the state was seeking a balance between increasing online gambling revenue and fairness to the industry and its customers.

“We want to be competitive. We want to be fair to our taxpayers, and we want to be fair to those who participate in the industry.”

He emphasized that New Jersey paved the way for legal sports betting in the US. He added that the state wants to further the progress.

New Jersey stands in the middle among US states regarding its sports betting and online casino taxes.

There have been talks about raising it, including a bill last year. That proposal by Sen. John McKeon would’ve increased the tax to 30%. While his bill failed, McKeon predicted that a hike is inevitable.

Now that it seems like it will become a reality. The new tax comes at a time when the online gambling industry is thriving in New Jersey.

In May, the state’s total gambling revenue was $614.7 million. Online casinos reported a 28.5% increase compared to May 2024, while sports betting saw a 30.2% growth year-over-year.

Additionally, land-based casinos had a strong performance, reporting a 10.9% yearly increase.

Truist: Substantial Increase, but Manageable

Analysts from Truist Securities believe the cost increase for operators will be manageable, especially considering tax rates in states like New York and New Hampshire, where the rate is 51%. Also, the increase is much lower than in Illinois.

Truist suggests that the increase could be mitigated through reductions in promotions alone. It added that a 50% mitigation in 2026 is “very reasonable and potentially higher afterwards.”

Truist also conducted a “back-of-the-envelope” analysis based on the latest twelve-month data to estimate the added financial burden for leading operators under the new tax rates, based on a 20% tax:

• FanDuel: Total impact of $67 million ($29 million in sports betting and $38 million in iGaming)
• DraftKings: Total impact of $56 million, ($20 million in sports betting and $36 million in iGaming)
• BetMGM: Total impact of $27 million ($5 million from sports betting and $22 million from iGaming)
• Caesars: Total impact of $18 million ($3 million in sports betting, $15 million in iGaming)
• Penn: Total impact of $4 million ($2 million from both sports betting and iGaming)

Operators Could Use Illinois Playbook to Offset NJ Tax Impact

While Truist estimates that the gross tax impact could cost FanDuel $67 million and DraftKings $56 million annually, the firm provided another outlook.

Truist estimates the new tax would reduce Flutter Entertainment’s 2025 adjusted EBITDA guidance by $35 million. For DraftKings, that number would be $30 million—figures that reflect expected mitigation efforts already built into the operator’s strategy.

This implies that the two operators might be able to mitigate over 40% of the added cost. That could be done through promotion reductions or operational changes.

Though it’s unclear whether New Jersey operators will follow suit, Illinois offers a recent example of how companies may respond to higher taxes.

Both FanDuel and DraftKings recently implemented a 50-cent surcharge in Illinois after the state voted to raise taxes for a second year straight. In 2024, the tax on gross gaming revenue jumped from 15% to 40%.

Then, about a month ago, lawmakers voted to add a tax on every bet in the state. Some estimates suggest that with the new tax, the effective rate in Illinois is close to 50% for the two gaming giants.

FanDuel acted first and announced the surcharge. It stated that it must pass on the costs to the consumers to protect margins. DraftKings followed suit shortly after. Investors reacted positively to both companies’ moves, suggesting they see that as a good strategic move.

As the New Jersey hike is expected to be less than 10% for both sports betting and online casinos, it’s unlikely that the operators will follow Illinois’ example.

The post New Jersey Raises Online Gambling Tax to 19.75%, Operators Face Up to $67M in Added Costs appeared first on CasinoBeats.

The partnership was announced on the World Lottery Association (WLA) website in a press release. The statement notes that “The long-term partnership marks a major milestone in Finland’s evolving gambling landscape, offering an enhanced omnichannel experience across digital and retail channels in anticipation of the country’s upcoming regulatory changes in 2027.”

Veikkaus is a member of the WLA, and OpenBet now provides services to 21 lotteries worldwide. 

Jarrko Nordlund, EVP for iCasino and Sports Betting at Veikkaus, said: “As we prepare for increased competition within the market, working alongside the industry’s most trusted, innovative, and scalable providers is key to enhancing our product and technological capabilities. 

“Launching with OpenBet’s platform heralds a new era of sports betting within Finland, taking it to new heights and offering players a modernised experience they will truly appreciate. 

“OpenBet’s desire to innovate further and bring more groundbreaking concepts to the Finnish market really excites us and underpins our decision to establish a close, long-term partnership with the company.”

Online Gambling Monopoly Ending In 2027

Plans to open up Finland’s gambling market from the current monopoly held by the government-owned Veikkaus have gathered pace since a legislative project was launched in October 2023. 

The Ministry of the Interior announced last year that new licenses would be issued to operators no later than January 2026.

This summer, parliament is expected to pass a Gambling Bill that was introduced in March this year to formalize the plan. 

Assuming no major objections, Finland will begin accepting license applications in January 2026. New operators will be able to launch in the market in January 2027. 

The changes have been proposed as it is estimated that, despite having a monopoly on legal gambling in the country, Veikkaus only holds around 50% of the market. The other 50% is held by offshore operators. 

Minister of the Interior Mari Rantanen commented on the new regulations, stating, “The aim of the bill has been to find a regulatory solution in which regulation combating gambling harms is balanced with the fact that gambling companies want to apply for a license, and that online gambling would be directed to a regulated gaming offering.”

Veikkaus Supports Regulated Competition

Veikkaus has been surprisingly welcoming to the idea of opening the market to licensed competitors. CEO Olli Sarekoski praised the idea as a way to tackle the rise of unlicensed operators. He stated, “If the system change is headed towards a license system, then the move away from unregulated platforms “happens faster rather than slowly”.

The lack of resistance is an admission that the platform is already losing out to offshore betting sites. 

Velipekka Nummikoski, Veikkaus’s Deputy CEO, commented, “In Finland, we formally have an exclusive rights system, but if we look at digital gaming, Veikkaus’ market share is only half. You can already ask if we really have an exclusive system anymore.”

How Much Revenue Did Veikkaus Generate In 2024?

Veikkaus generated just over $1 billion in revenue from gambling in 2024, with about 60% of that from online sources. The remaining 40% came from land-based casinos, lotteries, and slots. 

Offshore operators are estimated to have generated around the same as the online figures, roughly $639 million. 

The new system will place a 22% tax on gaming revenue as well as license fees for operators. This is slightly higher than Finland’s Nordic neighbors. Sweden currently places an 18% tax on its licensed platforms. Denmark opened with a 20% rate, but increased that to 28% in 2021.

Privately run gambling companies will be able to apply for licenses to offer sports betting and online casino gaming. Land-based casinos, lotteries, and slots will remain under the exclusive control of Veikkaus. 

In addition to the partnership with OpenBet to innovate its sportsbook, Veikkaus also partnered with Playtech last year to launch its live casino. 

The post Veikkaus Partners With OpenBet Ahead Of Finnish Gambling Reform appeared first on CasinoBeats.

A lawsuit filed in April by Protect The Constitution, LLC, claims the compact that the Seminole Tribe signed with Gov. Ron DeSantis in 2021 violates state laws. 

The compact allows the tribe to offer online sports betting as part of the Indian Gaming Regulatory Act (IGRA), which allows gambling on tribal lands. According to the agreement, because the servers are on tribal lands, this equates to bets being placed on tribal lands. 

In 2018, however, a constitutional amendment that gave Florida voters a say in any future expansion of gambling was approved.

Residents voted 71% in favor of the amendment, which “ensures that Florida voters shall have the exclusive right to decide whether to authorize casino gambling” in the state. It required a vote through a citizens’ initiative “for casino gambling to be authorized under Florida law.”

The agreement between DeSantis and the Seminole Tribe allows online sports betting through the tribe’s Hard Rock Bet platform. However, this was never put to a public vote.

There is debate over whether this constitutes casino gambling. At the time of the 2018 amendment, online sports betting was not part of the discussions. 

Lawsuit Claims Voters Must Approve Online Sports Betting

The lawsuit filed states that, “Today, online sports betting occurs throughout the state of Florida. But no citizens’ initiative has ever been held to provide authorization. 

“And the people of Florida have never been allowed to exercise their constitutional right to decide whether sports betting should be authorized throughout the state.”

Courts initially ruled against the legality of the 2021 compact, and the Seminole Tribe shut down Hard Rock Sportsbook shortly after its launch.

Federal judge Dabney Friedrich did not endorse the argument that bets were placed on tribal lands because the servers were stored there. He ordered a return to the 2010 compact, which does not authorize online sports betting. 

Courts Previously Sided With Seminole Tribe

In 2023, the US Court of Appeals for the D.C. Circuit reversed the decision made by Friedrich in 2021. It ruled that the compact permitted betting from anywhere as long as servers remain on tribal lands. 

Subsequently, Hard Rock Bet relaunched its sportsbook in November 2023. From that point through May 2024, the sportsbook took in $12 billion in wagers from residents. Florida took in around $357 million in shared revenue over that period. 

The US Supreme Court also refused to hear a case challenging the legality of the compact last year. The court ruled that the lawsuit had filed the wrong type of petition.  

Florida AG Claims Tribal Gaming Exception Applies

The motion to dismiss the lawsuit uses the same arguments from the Supreme Court case last year. It contends that an exception to the 2018 amendment applies, which protects the rights of gambling on tribal lands. 

The amendment states, “nothing herein shall be construed to limit the ability of the state or Native American tribes to negotiate gaming compacts pursuant to the Federal Indian Gaming Regulatory Act for the conduct of casino gambling on tribal lands, or to affect any existing gambling on tribal lands pursuant to compacts executed by the state and Native American tribes pursuant to IGRA.”

The motion to dismiss states that “online sports betting is validly addressed in the 2021 compact, and compacts are exempted from the citizen-initiative process.”

“Casino gambling or not, sports betting was properly authorized by the compact.”

With the precedent set by previous rulings, the chances of success for the lawsuit are estimated to be low. However, this case will go through a more typical legal process in circuit court. The case is assigned to Judge Jonathan Sjostrom in Leon County. 

The post Florida AG Urges Judge To Dismiss Lawsuit Against Sports Betting By Seminole Tribe appeared first on CasinoBeats.

On June 9, the operator posted on X: “We wanted to inform you about some important changes regarding Resorts World Bet. We encourage you to take action on any outstanding wagers or withdrawals before these dates to avoid any disruptions.”

The exit may not come as a surprise to those following the market closely. Resorts World Bet ranks last among the nine online sportsbooks in the Empire State in terms of revenue.

In May, it reported $10.5 million in handle and $376,410 gross gaming revenue. For the rolling year, the sportsbook’s handle was $89.6 million, and the revenue was $6.4 million. In comparison, market leader FanDuel reported $803 million in handle and $108.9 million in revenue for the month of May alone.

Resorts World’s May results give them approximately 0.48% of the New York sports wagering market share by handle, and just 0.15% by GGR. Given the significant cost of operating in the Big Apple, it would take considerable marketing spend to begin to attempt to steer the operator to a stronger position. This is clearly not a part of the company’s sports betting strategy moving forward.

Who Can Replace Resorts World Bet in NY?

New York is the largest sports betting market in the US. In May, sportsbooks set a monthly record of $248.9 million in gross gaming revenue, beating the previous record set in January. For the rolling year, the nine sportsbooks have generated $2.14 billion in revenue.

Despite a hefty 51% tax, the joint-highest in the US, New York has attracted most of the major operators, including FanDuel, DraftKings, BetMGM, and Caesars.

It’s unclear whether Resorts World Bet would look to sell its license, but if it does, interest from other operators is likely.

A potential suitor could be the global giant Bet365. The British-based operator entered the US in 2019 and took a slow expansion approach until 2022. However, with a more aggressive strategy, it’s now live in 13 states. Hard Rock Bet could also emerge as a potential candidate.

If someone acquires the Resorts World Bet license, it won’t mark a precedent for the market. In 2024, Penn Entertainment’s ESPN Bet took over the WynnBet license after the latter decided to shut down.

Previously, Fanatics Sportsbook entered the market after acquiring PointsBet for $225 million.

No Change of Plans in Genting’s Downstate NY Casino Plans

The Resorts World Bet shutdown will not impact parent company Genting Group’s plans for a full casino license in the state.

The Malaysia-based gambling company operates the Resorts World New York racino in Queens, which is among the candidates for one of three downstate New York licenses.

The property and MGM Resorts’ Empire City Casino in Yonkers are considered by many to be the two frontrunners. They are already operational and would require fewer resources to convert into full-scale casinos.

The competition for the licenses is tight. Even though the initial licensing would cost $500 million and require an additional investment of at least $500 million, there are plenty of suitors.

That includes Manhattan projects like Soloviev Group and Mohegan Gaming’s Freedom Plaza, as well as Caesars Entertainment and SL Green Realty’s Times Square casino.

Another high-profile bid comes from Mets owner Steve Cohen and Hard Rock International. The partners plan to build an $8 billion casino project near Citi Field in Queens. Meanwhile, Bally’s Corporation plans to build a casino in the Bronx. However, the project has hit a roadblock due to permitting issues.

License applications are due by June 27, and the state anticipates making a decision by December.

The post Resorts World Bet to Stop Accepting Wagers on June 16, Exit New York on June 30 appeared first on CasinoBeats.

Today, 39 states and Washington, D.C. have legalized sports betting, and nearly one in four adults has a sports betting account. That number jumps to roughly half of all men aged 18 to 49. In 2024, US adults wagered approximately $150 billion on sports.

Sports betting’s rise in popularity has generated substantial tax revenue, but it has also fueled a sharp increase in gambling addiction and problem gambling symptoms. One gambling regulator recently cautioned that the US market is becoming “a highway without speed limits.”

A common misconception is that sports betting is less addictive than casino gambling. That’s often attributed to a perceived element of skill or knowledge. However, research suggests that this is not the case; sports betting can be as addictive, especially with the rise of live betting, where outcomes are often resolved in seconds.

Key Statistics on Problem Gambling

The American Gaming Association reports that 21% of adults placed a sports bet in 2024. It also reports that 85% of sports bettors acknowledge the effectiveness of the responsible gambling tools provided.

Despite these tools, problem gambling is on the rise. According to the National Council on Problem Gambling, about 2.5 million US adults meet the criteria for a severe gambling problem. Another five to eight million experience mild to moderate symptoms.

While these numbers are not separated between sports betting and casino gambling, a poll by Siena College Research Institute and St. Bonaventure University’s Jandoli School of Communication reveals troubling behaviors among online sports bettors:

• 52% have “chased” a bet.
• 37% have felt ashamed after losing.
• 20% lost money, which they couldn’t afford.
• 20% have lied about the extent of their sports betting
• 34% know someone with an online sports betting problem
• 23% had had someone express concern about their betting, but only 9% ever sought help with problem gambling.

Treatment providers report a clear demographic trend. Birches Health reports an “ alarming influx of young male bettors across the US seeking assistance for serious gambling problems.” Elliott Rapaport, founder of Birches Health, notes that even people in states without legalized sports betting easily find ways to bet.

Traditionally, that’s been due to illegal offshore platforms. However, recently, event prediction platforms like Kalshi have given access to “sports betting” to many outside legal jurisdiction.

That has led to several state regulators engaging in legal battles with Kalshi. While the platform has been successful so far, a recent questioning by a federal judge in a case against Maryland could pose a threat to Kalshi’s sports event prediction market.

The Cultural Halo Effect and Hidden Risks of Sports Betting

Sports undoubtedly hold a special cultural significance in the US, often seen as a wholesome pastime and bonding activity. This cultural approval extends to sports betting. It creates a halo effect that frames the activity as a less hazardous form of gambling compared to casino games.

Many people don’t consider sports betting as gambling, or at least not as risky. That’s tied to the notion of sports being something culturally ingrained and celebrated. Additionally, many bettors’ perception of their knowledge about the sport or game creates the illusion of control. That’s a belief that the individual’s skills or expertise can influence the outcome of an event.

This perception dangerously downplays the addiction risks linked to sports betting. Casino games, slots in particular, have long been associated with addictive triggers. However, the evolving nature of sports betting is adopting similar elements. The rise of mobile access and in-play (live) betting in particular mirrors the rapid feedback of casino games.

A revealing statistic from the poll by Siena College Research Institute and St. Bonaventure University’s Jandoli School shows that 86% of sports bettors think they can make money from sports betting. That’s an increase from the 80% in 2024. Don Levy, Siena College Research Institute’s director, highlights the mindset of sports bettors (especially young men) that the activity is harmless entertainment (a UK Gambling Commission survey also supports that):

“Bettors, overwhelmingly young men, say online betting is fun, interesting and exciting and 54% of them place bets at least once or twice a week. Nearly 80% benefitted from promotions in which they were awarded money for participation and while most think they can make money gambling, only 30% say in hindsight they’ve won more than lost.”

Parlays and Live Bets: The Most Dangerous Forms of Sports Betting?

Recent research highlights specific bet types driving higher risk behavior.

A study, conducted in collaboration with researchers from the UK and Australia and Kindred Group’s Unibet brand, analyzed anonymized behavioral data from 100,000 UK online gamblers to identify which products most strongly correlate with markers of potential harm.

The study identified six behaviors associated with problem gambling. Then, they used a scale from 0 to 1.0 to measure the connection between the type of gambling and those behaviors. A score of 0 means no correlation. Meanwhile, a score of 1.0 shows that every gambler using that product exhibited those behaviors.

The most at-risk gambling product was slots, with a score of 0.34. That was unsurprising to researchers as slots have a rapid event frequency. Notably, the research found that parlay bets also pose a significant risk. That was especially the case for in-play “combo” parlays, which took the second spot with a score of 0.22.

These parlays, also known as round robins, require users to bet on a large number of mini parlays simultaneously. That increases the chances of getting some return in exchange for a higher wager.

This study focuses on the UK, and its direct applicability to the US market is uncertain. However, research shows that parlays and live bets are among the most popular bet types in the US.

According to Birches Health, 70% of all bets on the NFL and NBA on FanDuel in 2023 were parlays. On a state level, parlays accounted for 32.2% of sports betting handle and 72.5% of gross revenue in September 2024 in New Jersey.

Meanwhile, research from Statista shows that live bets are the most popular type of bet.

Is Sports Betting Less Addictive Than Casino Gambling?

While the Kindred study reveals that slots pose the highest threat, research is increasingly debunking the idea that sports betting is safer.

According to the National Council on Problem Gambling, problem gambling rates among sports bettors are at least twice as high as those of other gamblers. That rate is even higher for those placing sports bets online.

The New Jersey Gambling Prevalence Study, conducted by the Rutgers University Center for Gambling Studies, further highlights behavioral differences between sports bettors and other gamblers.

The study found that sports bettors are more likely to exhibit signs of problem gambling. Also, they bet on a greater number of outcomes than others (nine vs. five). The study also revealed “alarming results” regarding mental health problems.

Sports bettors were significantly more likely to use tobacco, alcohol, or illicit drugs. They reported 10 times higher rates of attempting suicide than other gamblers. Other mental health problems include being 10 times more likely to pay for sex or have unprotected sex with strangers than non-sports bettors.

The illusion of control among sports bettors also encourages bettors to chase losses more frequently. Going back to the Sienna College poll, 52% said they’ve chased losses (58% among young males, 18-24).

Meanwhile, research in British Columbia revealed that, on average, gamblers returned more slowly after a loss across most game types. That indicates a lower tendency to chase losses compared to sports bettors.

The post Sports Betting Addiction Surges in the US: The Halo Effect and Hidden Risks appeared first on CasinoBeats.

While it was among the first states to approve sports betting in 2019, Rhode Island chose a one-operator model. Currently, gaming and lottery giant International Gaming Technology (IGT) runs Sportsbook Rhode Island. Its contract expires in 2026.

Senate Bill 748 (SB 748), sponsored by Senate Majority Leader Frank Ciccone, would require the Rhode Island Lottery Commission not to renew IGT’s contract. It would also need to open invitations to potential applicants before IGT’s contract expires. The commission would also ensure all approved operators adhere to regulatory requirements.

The Senate’s 30-3 vote in favor of SB 748 comes on the heels of a Spectrum Gaming Group’s report. The report recommends that the state open the market to four to six sports betting operators.

SB 748 now moves to the House, which has until June 30 to vote on it.

IGT Opposes Rhode Island Bill, DraftKings Praises It

IGT rejects the notion that more operators will bring more revenue to the state. In a Senate testimony, IGT Senior VP, Joe Bertolone stated that the Rhode Island model outperforms neighboring states with multi-license systems.

He added: “This strong fiscal performance is not coincidental; it reflects the benefits of centralized operations, cohesive marketing and product development through committed in-state operating partners. … The data strongly suggests that maintaining the current model is the most prudent course of action to safeguard and grow state revenues.”

IGT noted that it was the only license candidate in 2019. It added that to attract more operators, the state must cut its 51% tax rate, which is among the highest in the country.

However, reducing the tax rate might result in more wagering, but it would not necessarily lead to more revenue for Rhode Island. That’s because the operators would take a higher cut of the handle. According to IGT, the state currently receives $17.44 per person, compared with $9.78 in multi-operator Connecticut.

In contrast, DraftKings believes opening up the market will bring a better experience to the players.

“A marketplace with multiple choices for players leads to a better player experience – operators are forced to innovate, while competing for business.”

According to DraftKings Senate testimony, Rhode Islanders spend $38 per adult resident on sports betting, which is one of the lowest in the country. For comparison, in Massachusetts, that number is nearly double.

Senate Bill 748 Doesn’t Address Key Concerns

Despite strong support in the Senate, SB 748 does not address one key issue: the tax rate. IGT and the Spectrum Gaming study also highlighted that.

The state taxes Sportsbook Rhode Island at 51%. That is tied for the highest rate in the country with New York and New Hampshire. Additionally, the sportsbook incurs a 17% server hosting fee to Bally’s Corporation.

While DraftKings supports SB 748, it’s unknown whether it would pursue a license with such a high rate. While it operates in New Hampshire, DraftKings holds a monopoly in the market.

Lottery Director Mark Furcolo raised another potential issue in a letter to the Senate Committee on Gaming and Labor in April. Furcolo claimed that SB 748 could violate regulators’ constitutional authority to renew gaming contracts. The Lottery Director also added concerns on whether expanding to five vendors is economically feasible.

However, it seems that Furcolo has come round to the idea of more licenses. Last month, he announced that he had informed the legislative committee overseeing the state’s gambling sector that the lottery intends to issue a request for information (RFI) in early 2026.

Still, the potential constitutional issue remains.

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Bragg Gaming Group

Richard Carter has formally taken up occupation of the role of CEO of Bragg Gaming Group, a position it was confirmed that the former CEO of SBTech was to step into in March.

The company says that the move is made at “a key point” in its growth and evolution, with an aggressive global growth strategy underway, including expansion into the burgeoning North American igaming market and an anticipated launch on the Nasdaq exchange.

I’m excited to be leading Bragg in its next phase of growth and helping to shape the future of the company, as we continue to provide next generation premium content and tools to our B2B partners,” said Carter.

“Bragg has the cutting-edge technology, the data driven insights, the player engagement tools and the premium content that ideally positions the company to capture an increasing proportion of global igaming market.

“I’m eager to leverage these strengths to expand Bragg in both our core European markets and in the rapidly growing North American igaming market.”

Gaming1

Gaming and sports betting operator Gaming1 has appointed Ricardo Viana to its newly created role of chief creative officer, where he will build upon 25 years of industry experience.

Viana will take charge of the design, distribution and marketing of the group’s game collection, streamlining the development process for its more than 120 slots, dice and table games.

“We are thrilled to welcome Ricardo on board, and have every confidence that his appointment will prove pivotal to the continued popularity generated by our ever-growing games offering,” commented Sylvain Boniver, COO and co-founder at Gaming1.

“Our in-house portfolio of premium casino titles has gone from strength to strength in recent months, and Ricardo will undoubtedly play a key role in helping it to expand and improve even further.”

International Game Technology

Walter Bugno has resigned his position as executive vice president of new business and strategic initiatives of International Gaming Technology.

Following the departure, IGT new business responsibilities will be divided among the global lottery and global gaming business units. Responsibilities for strategic initiatives will be assumed by the IGT strategy and corporate development support function.

The group says that the decision has been made in order to “pursue a new professional opportunity,” with Bugno to continue in his current position until May 14, 2021.

“I would like to thank Walter for his accomplishments over the course of more than 10 years of senior leadership at IGT. His efforts have made meaningful contributions to the strength of our global leadership,” noted IGT CEO Marco Sala.

“At every stage of his time with IGT, Walter successfully engaged teams across multiple regions, built significant customer relationships, fostered continued talent development and championed innovation throughout his organisation. On behalf of everyone at IGT, I wish Walter well in his future endeavours.”

Avala Casino

Lauded as ‘Montenegro’s largest casino,” Avala Casino has announced the appointment of Neil Gallacher as CEO as part of the acquisition by Global Gaming Holdings.

Gallacher, an experienced international gaming executive having managed casinos in Europe, Africa and Asia, is also the former vice president of Jeju Shinwa World and joins the Avala Casino team from Les Ambassadeurs, London.

“I look forward to this new role and driving tourism to both Avala Casino and Montenegro as a whole, I am excited to expand our entertainment offerings – launching our new sports bar and high roller poker tournaments alongside avala.bet – our new online sportsbook and casino,” Gallacher stated.

PointsBet

PointsBet has appointed veteran communications and public affairs executive Patrick Sandusky as senior vice president of communications.

In the newly created role, he will lead all external communications and media relations for PointsBet and report to PointsBet USA CEO Johnny Aitken, while being based in the firm’s East Coast offices.

On his appointment, Sandusky said: “I am excited to join a growing company that is not only an industry leader in the sports betting space, but also at the forefront of sports and technology.

“The future of fan engagement will be built around sports wagering, and PointsBet – along with leading partners like NBC Sports – will change the dynamic on how sports fans interact with their favourite teams and leagues.

“I look forward to utilising the strong foundation in place and helping shape strategy and vision to find success in the burgeoning, competitive space that is US sports betting.”

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