Connecticut’s Governor Symptoms Sportsbetting Jurisprudence, Forms Point in time for Legalization if National Coverage Changes

Connecticut’s Governor Symptoms Sportsbetting Jurisprudence, Forms Point in time for Legalization if National Coverage Changes

Just over a month after lawmakers in Connecticut approved a measure to regulate sports betting in the state – provided the current federal prohibition is repealed – Governor Dannel Malloy signed H-6948 into law.

The sports betting regulation directive was included within a wider gambling expansion package, one which allows the Mashantucket Pequot and Mohegan tribes to jointly operate Connecticut’s third tribal casino.

But while that controversial move has garnered the majority of headlines, Malloy’s signature immediately sets the state up to offer legalized sports betting – if and when the Professional and Amateur Sports Protection Act (PASPA) is amended or repealed. PAPSA has been used as grounds for a federal ban on sports betting since its passage in 1992, outlawing sportsbooks and related wagering in all but four states (Nevada, Delaware, Montana, and Oregon).

In October of 2014, Governor Chris Christie of New Jersey signed a law allowing sports betting in the Garden State – one which omitted deference to PAPSA entirely. This prompted a lawsuit from North America’s four major professional sports leagues (NFL, NBA, MLB, and NHL), along with the National Collegiate Athletic Association (NCAA).

Nearly three years later, Christie and New Jersey have appealed their way to the U.S. Supreme Court – where a decision in favor of the state would effectively rescind PAPSA’s purview over state-authorized sports betting.

Furthermore, Representative Frank Pallone Jr. (D-NJ) has introduced the Gaming Accountability and Modernization Enhancement (GAME) Act of 2017, which among other iGaming-related initiatives would directly repeal PAPSA.

Section 2 of H-6948 explicitly instructs state’s Department of Consumer Protections (DCP) to begin crafting regulations which would govern sports betting in Connecticut provided PAPSA is eventually removed from the equation:

“The Commissioner of Consumer Protection shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to regulate wagering on sporting events to the extent permitted by state and federal law.”

A spokesperson for the DCP issued a statement confirming that work was already underway on that front, while also observing that New Jersey’s court battle is currently ongoing:

“DCP is tasked with adopting regulations to regulate wagering on sporting events to the extent permitted by state and federal law.

The Department is also aware of the New Jersey case that the U.S. Supreme Court is taking up and will continue to monitor federal activity surrounding sports betting.”

Per a report published June 23 by the Hartford Courant, one aspect of the DCP’s planning phase will entail studying online sports betting in addition to casino-style sportsbooks:

“But to push through legislation, the addition of OTB sites and setting up a regulatory framework of future, but not yet legal, online sports betting were both critical to gathering enough votes for casino expansion.”

Lawmakers in Mississippi successfully passed a similar sports betting regulation bill earlier this year, as part of wider daily fantasy sports (DFS) legislation, and Governor Phil Bryant signed it into law.

California has attempted the same in previous years, and just this week Assemblyman Adam Gray introduced an amendment to the state Constitution which would regulate sports betting upon federal reform.

Gray issued a statement clarifying that New Jersey’s case reaching the Supreme Court compelled him to act:

“I am pleased to see the US Supreme Court has shouldered the burden of bringing legal clarity to the issue of sports wagering and the rights of states under the United States Constitution.”

Several other states have introduced similar sports betting legislation in anticipation that PAPSA will fall, including Hawaii, Maryland, Michigan, New York, Pennsylvania, South Carolina, and West Virginia

In Connecticut, any action on PAPSA would provide the basis for implementing H-6948’s sports betting directive – but lawmakers there would still need to overturn the current statutes which criminalize operating sportsbooks.

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Betfair Casino New Jersey Revenue Up 39% in 2016 to Approach Profitability for First Time

Betfair Casino New Jersey Revenue Up 39% in 2016 to Approach Profitability for First Time

With the release of preliminary earnings results for 2016, Paddy Power / Betfair confirmed that the company’s New Jersey-facing online casino is nearing profitability.

Moving into the black would mark a first for the Betfair Casino New Jersey operation, which launched in November of 2013 as one of the state’s six original online casino venues.

Within the dense 53-page financial disclosure, Paddy Power / Betfair attributed a strong performance by the company’s US division largely to Betfair Casino New Jersey, which recorded revenue growth of 39 percent last year.

Breon Corcoran, who serves as chief executive officer of Paddy Power / Betfair, broke the US division numbers down while speaking to investors during an earnings presentation:

“US division revenue in local currency increased by 13 percent and operating profit increased by 9 percent.

These results include … Betfair Casino New Jersey, where revenue increased by 39 percent. The casino is now operating at breakeven earnings before interest, tax, depreciation and amortization (EBITDA) after a couple of years of startup losses.”

Overall, Paddy Power / Betfair’s global operations tallied revenue of £1.55 billion ($ 1.9 billion), good for an 18 percent rate of growth, along with a 35 percent rise in EBITDA.

The company’s New Jersey operation is linked to the brick and mortar Golden Nugget casino resort in Atlantic City. The venue serves as the license holder for Betfair Casino New Jersey, along with its own Golden Nugget branded online casino, and a third platform known as PlaySugarHouse Casino.

Based on previous disclosures by Paddy Power / Betfair, the Betfair Casino New Jersey platform accounts for approximately 35 percent of the Golden Nugget’s total iGaming revenue.

Combing through the monthly revenue reports released by the New Jersey Division of Gaming Enforcement (NJDGE), the steady pace of growth enjoyed by Golden Nugget’s collection of licensees is quite clear.

After beginning 2016 with just over $ 2.5 million in monthly revenue over January, the group increased that figure to just under $ 4.8 million by December – good for an increase of 92 percent over the 12-month span.

The table below shows all monthly revenue totals reported by Golden Nugget’s licensees throughout 2016:

January $ 2,505,664
February $ 3,118,809
March $ 3,070,087
April $ 3,305,283
May $ 3,200,067
June $ 3,533,457
July $ 3,706,991
August $ 3,469,206
September $ 3,659,348
October $ 4,088,225
November $ 3,802,276
December $ 4,790,418
Total $ 42,249,831

Making the site’s performance even more impressive, Betfair Casino New Jersey, and the other Gold Nugget licensees for that matter, lack the online poker component that competitors like Borgata and Caesars rely on.

Historically, the state’s fledgling iGaming marketplace has been dominated by the alliance between Borgata – Atlantic City’s major casino resort – and PartyPoker. In May of last year, the partnership held 24 percent market share to lead New Jersey’s five operating groups, while Golden Nugget and Betfair sat in fourth place with 19 percent.

But by January of this year the tide had turned significantly, with Golden Nugget holding 22 percent market share – 12 percent of which came from Betfair Casino New Jersey – to outpace Borgata / PartyPoker at 21 percent.

That month saw Golden Nugget and Betfair dominate the monthly revenue counts with a $ 4,776,218 total gaming win. Even combining casino and poker play, rivals like Caesars / 888 ($ 4,032,263) and Borgata / PartyPoker ($ 3,767,853) were badly outperformed.

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