THE AGENDA
Playing With Fire
As we entered into 2022 last month , there was lots of speculation about the legalization of gambling in the few states in the U . S . that still lack it . The giddiness about sports betting in North America continued to surround the handful of states and provinces that may permit it in 2022 and how such a competitive market is developing .
For those advocating these positions , I have just three words : Stop . Just . Stop . Because the out-of-control marketing of sports betting across the country is causing a backlash that could eviscerate the industry in many varied and serious ways .
Sports betting in the U . S . is in its infancy . The pressure to establish market share is enormous . Thus , this barrage of ads is turning off the American public , and the content of the ads is skating a fine line between fun and fantasy ( and I don ’ t mean DFS ). And let ’ s name names .
Caesars ’ “ emperor ” seems to be all over the place . Being a fan of Curb Your Enthusiasm , I ’ m a big fan of JB Smoove . I like to see him stretch his acting chops . But not every single moment while I ’ m watching a sports event .
DraftKings and FanDuel . Did you not learn your lessons at the dawn of the DFS movement , when your constant and repetitive ads hammered the airwaves during each and every game , match or tournament ? You woke up the devil of state attorneys general who realized that maybe there was some gambling going on that wasn ’ t permitted in their states . It ended up costing you multimillions of lobbying dollars to make it right again .
And while I really like the irreverence of Barstool Sports ’ Dave Portnoy and his ability to not be canceled by the “ woke ” crowd — not to mention his “ just one bite ” pizza reviews — regulators will not be handled so deftly . One slip-up and his gambling partnership with Penn National could collapse , and the implications may go far beyond just that business .
Now some history . Back in 1994 , an effort was made in Florida to legalize casinos . It was led by some of the largest companies in the gaming industry . And it failed miserably because it wasn ’ t viewed as a grassroots effort , but an effort to impose gambling upon a state whose citizens might have enjoyed a punt now and then but didn ’ t like the method that was being used . After that experience , the industry always took the position to let a grassroots movement develop
By Roger Gros , Publisher
before jumping in with its support .
That position led to the expansion of gaming in many states across the country — except for Florida , ironically , which several years ago passed a measure that requires a statewide referendum for any effort to expand gaming .
And this law has led to the current fight to place a sports betting measure on the November ballot in Florida . Unlike the current lockout of the players by the owners of Major League Baseball teams , which is characterized as billionaires fighting with multi-millionaires , this one is more simple . It ’ s billionaires ( the Seminole tribe ) fighting with billionaires ( Las Vegas Sands , FanDuel , DraftKings , etc .). Even with a statewide referendum , Florida voters are feeling bullied . This can ’ t end well . In both situations , the loser may be the common man who simply wants to watch a ballgame or make a bet .
The mess in California ballot questions is the same , where as many as four ballot questions on sports betting could confound voters in November . Please stop and reconsider your positions .
Also , please cease and desist in your attempts to get gambling legalized in both Georgia and Texas . Your efforts have been ham-fisted and wrong-minded in both states .
What could happen if we continue this ride on a runaway train ? We ’ d be lucky to get away with an advertising ban similar to the ones Europe is experiencing because of the aggressive marketing of its gambling ventures .
For sports betting the danger is clear and present . The awful New York legislation , featuring a skyhigh tax rate and a limited number of competitors in the market , could make states that have already legalized sports betting sit up and take notice . “ New York and Pennsylvania have a vibrant market with a high tax rate and are doing fine ,” they ’ d say . “ We ’ re getting cheated . Let ’ s raise our rate and get our fair share .”
The noted gaming attorney and academic I . Nelson Rose has written often about how backlashes in gambling occurred over the last 100 years or more . Several of them wiped out the industry as it was known at that time .
Let ’ s not allow that to happen again . Let ’ s run silent , run deep for a couple of years . Let the market settle down . Let the players get comfortable with the product and see what happens . This could be a crucial time in gaming and we need to have a plan .
Vol . 21 • No . 2 • FEBRUARY 2022
Roger Gros , Publisher | rgros @ ggbmagazine . com twitter : @ GlobalGamingBiz
Frank Legato , Editor | flegato @ ggbmagazine . com twitter : @ FranklySpeakn
Marjorie Preston , Managing Editor mpreston @ ggbmagazine . com
Monica Cooley , Art Director mcooley @ ggbmagazine . com
Terri Brady , Sales & Marketing Director tbrady @ ggbmagazine . com
Becky Kingman-Gros , Chief Operating Officer bkingros @ ggbmagazine . com
Lisa Johnson , Communications Advisor lisa @ lisajohnsoncommunications . com twitter : @ LisaJohnsonPR
Columnists Frank Fantini | Dave Forman | Roger Snow
Contributing Editors Willy Allison | Dave Bontempo twitter : @ bontempomedia Julia Carcamo | Andrew Cardno Keli Elkins | Hanna McCall Bill Sokolic twitter : @ downbeachfilm | Alan W . Zajic __________________
EDITORIAL ADVISORY BOARD Rino Armeni , President , Armeni Enterprises
• Mark A . Birtha , Senior Vice President & General Manager , Hard Rock International
• Julie Brinkerhoff-Jacobs , President , Lifescapes International
• Nicholas Casiello Jr ., Shareholder , Fox Rothschild
• Jeffrey Compton , Publisher , CDC E-Reports twitter : @ CDCNewswire
• Dean Macomber , President , Macomber International , Inc .
• Stephen Martino , Vice President & Chief Compliance Officer , MGM Resorts International , twitter : @ stephenmartino
• Jim Rafferty , President , Rafferty & Associates
• Thomas Reilly , Vice President Systems Sales , Scientific Games
• Michael Soll , President , The Innovation Group
• Katherine Spilde , Executive Director , Sycuan Gaming Institute , San Diego State University , twitter : @ kspilde
• Ernie Stevens , Jr ., Chairman , National Indian Gaming Association twitter : @ NIGA1985
• Roy Student , President , Applied Management Strategies
•
David D . Waddell , Partner Regulatory Management Counselors PC
Casino Connection International LLC . 1000 Nevada Way • Suite 204 • Boulder City , NV 89005 702-248-1565 • 702-248-1567 ( fax ) www . ggbmagazine . com
The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor .
Copyright 2022 Global Gaming Business LLC . Boulder City , NV 89005
GLOBAL GAMING BUSINESS is published monthly by Casino Connection International , LLC . Printed in Nevada , USA . Postmaster : Send Change of Address forms to : 1000 Nevada Way , Suite 204 , Boulder City , NV 89005
GGB
Official Publication
4 Global Gaming Business FEBRUARY 2022