US Casinos

A Guide to Legal Gambling in Colorado

February 21, 2024 William Mcmaster

It’s no secret that the nature of gambling regulations in the US varies from state to state, with some states legalizing all forms of gambling, others legalizing some types, and some states not allowing any form of gambling at all. The state of Colorado falls into the second of the three gambling legalization categories listed above.

Staying updated on which states allow some or all types of gambling and which states don’t could be a lot to keep up with, but it also could be the difference between gambling at a safe online casino and gambling at one that’s illegal and unlicensed.

The first step to figuring out Colorado’s gambling laws is knowing what the state defines gambling as. Going by the constitution of the Rocky Mountain State, “risking money or any other thing of value for gain contingent in whole or part upon lot, chance, or the happening or outcome of an event over which the person taking a risk has no control.” (FindLaw, 2016)

According to Colorado Law, gambling at the Colorado Lottery is one form of gambling that is legal, alongside limited gaming in Colorado casinos in Central City, Cripple Creek, Black Hawk, and on Indian reservation land. The constitution always allows gambling on live and off-track horse racing events under the Colorado Division of Gaming, bingos, and raffles licensed and regulated under the Secretary of State’s office, sports betting, as well as what the law deems as “social” gambling. (Specialized Business Group, Colorado Department of Revenue, 2021)

Internet Gaming in Colorado

In 2005, the office of the Attorney General released an official statement which claimed that online gambling fell under all the already existing gambling laws in the state. That means, technically, online gambling is not allowed in Colorado. Residents of the state can still access gambling sites based offshore, though. Placing wagers on those sites and sportsbooks is considered illegal, even if they are legal and licensed in the places where they are set up.

A policy set up by the Colorado Limited Gaming Control Commission restricts businesses and people licensed in Colorado’s casino industry from being involved in any way with any offshore internet gaming site that can be accessed by residents of the state.

While online gambling is classified as illegal in Colorado, no one has ever been arrested for casual gambling at any online gambling sites. This is mostly because much of the law in the state focuses on illegal gambling businesses and professional gambling, as opposed to casual gaming customers.

The state recommends that players stay away from gambling not only because it is illegal, but because there are no state regulatory controls that can guarantee that games are conducted fairly and that children are prevented from accessing gambling sites. Participants who get locked in disputes and complaints over payments with online casinos or telephone sportsbooks can take no benefits or resolutions from state agencies.

Sports Betting in Colorado

May 2020 saw Colorado become one of the US states that offered legal sports betting after voters approved legislative referral Proposition DD (House Bill 1327). Colorado Proposition DD, the Legalize Sports Betting with Tax Revenue for Water Projects Measure, was passed in 2019 after recording a narrow 51 percent – 48 percent win at state ballots.

The bill authorized sports betting while also levying a 10 percent tax on proceeds made by sports betting operators in the state. Proposition DD’s success at the ballots meant that casino properties in the state could apply for online and retail sports betting licenses from the Colorado Gaming Control Commission.

Despite a slow start caused by the global pandemic, the sports betting market in Colorado grew steadily after its launch, recording a total of $2.3 billion in wagers after one year. That figure was released by the Colorado Division of Gaming, and it put the state behind only New Jersey and Illinois for total sports wagers after the first 12 months of operations. The absence of in-person registration restrictions and in-state college sports betting in the Centennial State has made it one of the most attractive legal sports betting states in the country.

How to Take Part in Colorado Gambling

Your gambling options in Colorado include anyone of the following:

Limited casino gaming at casino properties in gaming towns. (Black Hawk, Central City, and Cripple Creek.)
State Lottery.
Live and off-track horse racing.
Licensed bingo and raffle games.

Residents of the state can also take part in poker tournaments as long as those activities fall under the social gambling umbrella. Regulated sports betting in Colorado launched in May 2020.

Sources

FindLaw, 2016 – https://statelaws.findlaw.com/colorado-law/colorado-gambling-laws.html
Specialized Business Group, Colorado Department of Revenue, 2021. – https://sbg.colorado.gov/what-is-legal-gambling-questions-in-colorado
Colorado Department of Law and Attorney General’s Office News Release, 2005. – https://sbg.colorado.gov/sites/sbg/files/Illegal%20Gambling%20Activities%20News%20Release.pdf

Online Gambling in Illinois Explained

February 21, 2024 William Mcmaster

Illinois is one of the many US states to have relaxed gambling laws within recent years, with the state now permitting online and retail sports betting alongside horse racing and riverboat casinos. Charitable games are also allowed, as are bingo and raffles. However, several other forms of gambling are still prohibited in the Prairie State, and certain restrictions exist on the types that are allowed. Understanding what these restrictions are and when they are valid is crucial to staying away from prohibited gaming activities.

Gambling in Illinois is defined as “playing games of chance or skill for money or other things of value; wagering upon games, contests, or elections; owning or operating gambling devices.” Both live and off-track horse racing and pari-mutuel wagering is allowed in Illinois as long as operators remain licensed with the state’s racing control board. Riverboat gambling is also allowed on any navigable stream not found within counties that have over 3 million residents. Lake Michigan is a notable exception to the riverboat gambling permissions. (Find Law, 2016)

Illinois also allows retail and online sports betting for already existing land-based licensees, but restrictions on remote registration are in place for online sports betting. That means players can only access any of the six online sportsbooks in the state after carrying out in-person registration. The Illinois Gaming Board regulates sports betting, while the Illinois Lottery Control Board (ILCB) and the Department of the Lottery (DOL) control lotteries within the state.

Illinois Gambling History

As far as internet gaming is concerned, the state of Illinois does not have a regulated market. That’s not to say that the state doesn’t have any sort of gambling history, though. In 1920, Illinois legalized horse racing betting at local race tracks as its first major form of legal gambling.

That law was followed by the Riverboat Gambling Act of 1990. The Riverboat Gambling Act allowed commercial casinos to operate on boats as long as they were outside Lake Michigan, as well as counties with populations greater than 3 million. The state permitted local bars, restaurants, and drive-ins to host Illinois Lottery terminals in 2009. A new bill passed in 2019 allowed riverboat casinos to operate within specific locations in the state as fully licensed land-based casinos. There haven’t been any new gambling laws since then.

The land-based casino scene in Illinois includes 9 riverboat casinos and one land-based casino scattered around the state. These casinos offer over 10,000 slot machines and 500 table games combined. Rivers Casino became the first land-based casino in the state after being granted a land-based casino license in 2019. Before then, Rivers had qualified as a riverboat casino by building its property above a shallow pool of water. (Chicago Tribune, 2019)

Riverboat casinos in the state are allowed to operate live poker rooms but are prohibited from offering real money poker sites to residents. Live poker is also operated at charitable gaming venues.

Internet Gaming in Illinois

According to section 28 of the State Code, it is illegal for residents of Illinois to carry out unlicensed internet gambling operations. The law makes it outright impossible to set up an online casino business in Illinois, but it fails to state any form of punishment for residents who participate in online gaming with offshore sites.

The state of internet gaming in Illinois might be set for some change in the future as house bill SB-0007 continues to gain traction within legislative spaces. The bill, introduced back in 2017, seeks to expand land-based gaming and legalize online gambling within the state.

Sports Betting in Illinois

In June 2019, governor J.B Pritzker signed the sports betting bill into law, allowing retail and online sports betting in the state. The bill stated that online-only operators could only get their sports betting licenses after 18 months from when the bill was passed. Sportsbook operators in the state bypassed that waiting time by partnering with casino operators in the state for retail and online licenses. (ActionNetwork, 2021)

Illinois sports betting continues to rise in prominence, with the state now firmly establishing itself within the top five US sports betting markets. That rise has come in spite of restrictions placed on state-based college sports betting and remote registration for online betting.

How to take part in Illinois Gambling

Residents of Illinois can take part in any of the following legal forms of gambling:

Casino gambling at any of the land-based casinos in the state.
Retail sports betting
Online Sports Betting (with in-person registration)
Lotteries
Charitable Bingo
Horse Racing

Illinois law states that players must be at least 18 before they can take part in pari-mutuel wagering, bingo, and lotteries. The minimum age for casinos and sports betting is 21 years.

Sources

Find Law, 2016 -https://statelaws.findlaw.com/illinois-law/illinois-gambling-laws.html
Chicago Tribune, 2019 – https://www.chicagotribune.com/business/ct-biz-rivers-casino-land-based-20191108-b4zc7v2clnbhfiqwqw5uyaznwm-story.html
Action Network, 2021 – https://www.actionnetwork.com/online-sports-betting/illinois

Flutter, Fox and FanDuel Deal Close to Conclusion

February 21, 2024 William Mcmaster

US News and sports broadcasting powerhouse Fox News could yet become sports betting stakeholder soon as it sets to acquire some interest in Flutter Entertainment-owned sports betting giant, FanDuel. An initial stake in the sportsbook brand, distinguished as a frontrunner in the US sports betting market for a while now, was purchased by Flutter in 2018, with the company to own 95% of the bookie as of last December.

Existing Fox and Flutter Relationship

Fox Sports Media Group, Fox Corporation’s primary subsidiary, owns the Fox Sports 1 & 2 and Fox Sports Radio channels, as well as FOX Bet. The latter was created in partnership with Canadian gaming company The Stars Group as a sports betting platform in which Fox holds a 5% share. The joint venture between both companies also gave Fox the right to purchase 50% of the Canadian online gambling company’s US business over the next ten years.

In 2020, Flutter Entertainment merged with TSG in a $6 billion deal that added FOX Bet to the former’s portfolio, which already included Betfair, PokerStars, Paddy Power, and FanDuel. Quite notably, the merger also granted Fox a 2.6% stake in Flutter, as well as an option to purchase an 18% share in FanDuel (The Motley Fool, 2021).

As of December last year, things seemed very rosy between both companies as Fox backed Flutter’s move to acquire a majority stake in FanDuel. Speaking on Flutter’s FanDuel move, CEO of Fox Corporation Lachlan Murdoch said: “Fox’s investment in Flutter underscores our confidence in Flutter’s business and its management’s ability to continue to drive leadership in the US market” (The Irish Times, 2021).

Differing Valuations

Flutter’s acquisition of TSG presented Fox with an option to acquire an 18.5% stake in FanDuel after its equity stake was transferred to Flutter. That option was set to be activated this month, but both companies have run into a valuation argument that has seen Fox’s owners launch legal action against Flutter. Fox argues that its option to acquire stakes in FanDuel this month should be valid along the valuation lines Flutter exercised in December of last year; Flutter disagrees. Flutter CEO Peter Jackson stated that Fox must pay a fair market rate in July 2021 by two investment banks. (Nasdaq, 2021)

Jackson, speaking during Flutter’s first-quarter earnings conference call where the company broke down the contribution made by each asset in its portfolio, explained that FanDuel accounts for 91.6% of the company’s revenue, with FOX Bet and PokerStars amounting to just 8.4%.

There is a feeling that both companies could yet settle the dispute amicably, with the potential for both sides to make major upsides from expanded cooperation serving as a motivator if Flutter Entertainment goes ahead with its IPO consideration for FanDuel.

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Sources

The Irish Times, 2021 – https://www.irishtimes.com/business/retail-and-services/can-flutter-find-friends-again-in-fox-to-deliver-on-us-online-gambling-promise-1.4610065
The Motley Fool, 2021 – https://www.fool.com/investing/2021/06/09/fanduel-sports-betting-partnership-gives-fox-34-up/
Nasdaq, 2021 – https://www.nasdaq.com/articles/will-a-fanduel-and-fox-partnership-be-a-sports-betting-powerhouse-2021-06-18

GAN Signs Multi-Year Agreement with Incredible Technologies

March 13, 2024 William Mcmaster

GAN Limited, an internet gaming service provider for companies in the online gambling industry, announced on Thursday, June 17, that it has entered an agreement with Incredible Technologies, Inc., a designer and manufacturer of coin-operated electronic gaming machines for the US market.

The agreement grants GAN Limited exclusive online rights to all existing and future online games by Incredible Technologies, which are expected to grow to over 110 during the term of the contract. This is GAN’s second major agreement for exclusive gaming content, reinforcing the SaaS company’s position as an industry leader in the United States’ iGaming sphere.

About Incredible Technologies Inc.

Incredible Technologies is an Illinois-based company known for its array of innovative electronic gaming machines, including popular ones such as Crazy Money and Money Rain. Its games line the floors of retail casino gaming outlets in the United States and are accessible online in New Jersey. With this deal, the company will be able to grow its online portfolio while working long-term with a partner that has a well-established online distribution chain in the country. This was made known in a statement by Daymon Ruttenburg, the Senior Vice President of Gaming of Incredible Technologies.

“Our partnership with a proven and premier partner like GAN advances the online U.S. distribution of our leading portfolio of gaming content. Since our company’s founding, we have been committed to creating innovative and exciting ways to engage players with new technologies and capabilities. We know that GAN shares this commitment, and we look forward to bringing new online experiences to our players through GAN’s extensive online distribution network. Together, we will be drivers of the U.S. iGaming market as it continues to grow.”

Implications of the Deal for Gan Limited

Gan Limited will now begin to obtain online content licensing fees from existing online operations of Incredible Technologies in the Garden State. What this means is that access to Incredible Technologies’ existing gaming library and future additions to it will be only through GAN’s Platform and Super RGS. The company has announced that because of this long-term deal, its exclusive content from combined online slot partners makes up about 7% of all slots sold in the United States last year.

Jeff Berman, Gan Limited’s Chief Commercial Officer said:

“We welcome this partnership with Incredible Technologies as another validation of our market-leading presence in the regulated intra-State markets of America. Today’s announcement is another exciting step toward building upon our strategy of establishing exclusive online access rights to the most popular retail U.S. slot games. Few content providers in the U.S. market have established a reputation for innovation and creativity as well as the operational excellence of Incredible Technologies. The popularity of IT’s slot games, including the player-favorite Ultra Rush themes, will be a critical addition to our portfolio as we commit ourselves to becoming a leading provider of exclusive online content.”

Sources

BusinessWire, 2021 – https://www.businesswire.com/news/home/20210617005163/en/GAN-Announces-Multi-Year-Agreement-with-Incredible-Technologies-for-Exclusive-U.S.-Online-Rights-to-Leading-Casino-Portfolio
Benzinga, 2021 – https://m.benzinga.com/article/21608816
iGaming Future, 2021 – https://igamingfuture.com/gan-and-incredible-technologies-sign-us-exclusivity-deal/

BetMGM Michigan’s Top Performer in Online Casino Market

February 21, 2024 William Mcmaster

Michigan continued its impressive start to online gaming in May. According to numbers from the Michigan Gaming Board, online casino operators in the state raised $94.9 million for May, a figure which put the state among the best in the country. Online casino operators paid state taxes worth $18.1 million, along with $5.2 million paid as taxes to the city of Detroit and $1.9 million to tribal governments.

The total revenue gained by Michigan online casinos in May was almost unbelievably consistent with the numbers from April. The difference between both months was a slightly imperceptible $213.47 (0.0002%) drop from $94,851,765.56 to $94,851,552.09. (Michigan Gaming Control Board, 2021)

The breakdown of Michigan’s online gaming revenue for May revealed that BetMGM Online Casino led the way again, with $36.1 million gained in revenue, amounting to 38% of the total revenue. The revenue was for the most part a result of winnings from BetMGM MI Casino, but earnings from BetMGM MI Poker also contributed.

Behind BetMGM’s class-topping numbers

BetMGM’s high-performing online casino numbers for the month of May included $36,089,904 in revenue, $7,073,621 in state taxes, and $3,482,676 in local taxes. Those figures make it the second month in a row where BetMGM has held almost 40% of Michigan’s online gaming market.

Despite the pretty strong competition facing the operator – including giants FanDuel and DraftKings – BetMGM has managed to navigate its way to an undisputed top spot in Michigan’s online casino market since it launched in January.

The company experienced a drop in revenue from April, but much in the same vein as total online gaming revenue in Michigan, the difference was almost negligible. In April, BetMGM Online Casino brought in online gaming revenue of $36,813,468.11. That figure fell 1.9% in May with total revenue of $36,089,904.12.

Breakdown of BetMGM’s Revenue Since January

BetMGM’s combination of consistent promotion rollouts and a variety of casino games has seen the company take massive strides in the Michigan online casino market. Before May’s slight drop-off from May, the operator had gone from $11 million to $36 million in three months. (Michigan Gaming Control Board, 2021)

January – $11,075,980.37
February – $26,912,267.71
March – $30,792,815.02
April – $36,813,468.11
May – $36,089,904.12

It is impossible to know the exact amount online poker has contributed to these revenues, as the Michigan Gaming Control Board does not release poker revenue data away from casino revenue. However, the online gaming classification that it gives to the numbers means that revenue from BetMGM’s online poker offering must have been factored into calculations.

The first few months of online gaming in the Wolverine State have thrown up a three-way race between the top USA online casinos BetMGM, FanDuel, and DraftKings. But with a market share percentage that’s more than double their nearest competitors, BetMGM’s hold on top spot appears almost insurmountable.

Sources

Michigan Gaming Control Board, 2021 – https://www.michigan.gov/mgcb/0,4620,7-351-79263-561862–,00.html
Michigan Gaming Control Board, 2021 https://www.michigan.gov/mgcb/0,4620,7-351-79127_82898-244408–,00.html

New Jersey Records Huge Profits for May 2021

February 21, 2024 William Mcmaster

New Jersey has announced revenues made from total gaming for May 2021. According to reports filed by the Division of Gaming Enforcement, a total of $814.3 million was reported as profits. This showed an 8.9% rise from revenues generated in April. Sources have attributed a majority of this to the National Basketball Association (NBA) playoffs, as it raked in 27% of the entire profits for May alone.

According to the report, New Jersey online casinos made good profits as marked by a 25.9% rise in its third month, showing back-to-back increases since the calendar year started. With revenues tipping towards $108.2 million, and a tax bill of $18.9 million, business has been good for New Jersey online sportsbooks.

In a statement by the State Attorney’s office, compared to May 2020, there was a 290.4% increase. Information obtained between May 2020 and May 2021 shows internet gaming submitted a 25.9% increase. Sports wagering gross revenue was about $52.9 million for May 2021.

According to reports, Covid-19 also had a hand in the increase when revenues were compared between May 2020 and May 2021. Even though business has begun to pick up, there is still a long wait before normalcy returns back to USA online casinos.

Since the beginning of the year, New Jersey online casinos in particular showed an aggressive $895.9 million made. Internet Gaming Win saw a rise of 56.1% with $527.2 million reported. Sports wagering Gross Revenue also generated $297.1 million for the past 5 years. In total, the gaming industry made a total of $1.72 billion as compared to the period of the previous year.

For New Jersey online casinos, Borgata retained its position as the highest-earning casino, earning $32.8 million for the month. Golden Nugget Online Gaming followed suit, making $31.1 million last month. Resorts Digital and Caesars Interactive were next in line, making $21.6 million and $9.2 million respectively in iGaming revenue.

In terms of sports wagering revenue, Resorts Digital recorded a $9.5 million profit, Borgata following in second position with $3.8 million in sports betting revenue. The next was Ocean Casino, where sports wagering revenue made them $1.3 million and Hard Rock made $0.5 million.

It seems New Jersey Online casinos may be in contention with other USA online casinos from major states. Even though New Jersey has been at the forefront of sports betting since 2018, New York seems to be edging closer with their recent plan to host the Super Bowl. With 20% of New Jersey’s revenues coming from players from New York, according to Gov. Andrew Cuomo, the revenue of New Jersey may drop when New York implements its plan to commence online gambling.