Spin Cycle: NFT, NIL, NFL, And More Acronyms Highlight Week In Gambling

Welcome to “Spin Cycle,” Casino Reports’ weekly Friday roundup of all things impactful, intriguing, impressive, or idiotic in the gambling industry. Pull up a chair, grab a stack of chips and a glass of your beverage of choice, and take a spin with us through this week’s news cycle …

NFLPA v. DK

Remember the NFT craze? It feels like a million years ago, but the NFL Players Association hasn’t forgotten about it and is suing DraftKings over money the sportsbook operator allegedly owes related to DraftKings’ recently discontinued “Reignmakers” NFT marketplace.

The NFLPA filed a civil suit this month in New York, claiming DraftKings has not paid the full minimum guarantees for the NFT likeness rights for NFL players, an amount estimated to be in the range of $65 million.

In the complaint, attorneys for the NFLPA wrote: “The impetus for DraftKings’ decision to repudiate its license agreement with Plaintiffs is simple: the once white-hot market for NFTs has cooled down. DraftKings is also facing a civil lawsuit and regulatory inquiries into its product. Buyers’ remorse, however, is not a basis to terminate a contract.”

It will be interesting to see how this shakes out. If DraftKings loses the case, one presumes the company will be required to pay the $65 million in some sort of relatively fungible currency.

From BetMGM to JetMGM

This is the best time of year for a New York Jets fan — when hope is alive, when the quarterback is healthy, and when your team is actually the favorite at most sportsbooks to win the AFC East and is even as low as +1800 to win the Super Bowl!

After Week 1, who knows if any of those details will be true.

Anyway, next Thursday, Sept. 5, BetMGM Casino is capitalizing in New Jersey on the excitement of Jets season closing in by hosting a “Kickoff With the Stars” live dealer blackjack event, welcoming former Jets players Tony Richardson and Wayne Chrebet to Evolution’s Atlantic City studio to host a session of the game from 7:30 to 10 p.m.

“By bringing together the star power of Jets legends Wayne Chrebet and Tony Richardson with the thrill of live dealer blackjack, BetMGM is creating an exciting event to celebrate the start of the NFL season,” said BetMGM Vice President of Gaming Product & Content Oliver Bartlett in a press release. “This showcases our live dealer offering and commitment to delivering new and entertaining experiences for our players.” 

The blackjack table will be “infinite” style, meaning it’s not limited to seven seats, but rather accommodates hundreds of players all sharing the same hand. That means a whole lot of bets. Or, perhaps we should say, a whole lot of B-E-T-S, bets, bets, bets!

Savings and moans

Ya know that phrase, “There’s no such thing as bad publicity”? Well, there are exceptions — such as NBC News publishing an article with the headline, “Sports gambling takes a toll on Americans’ checkbooks, research shows.”

The article, published last weekend, conveyed, “In separate papers released this month, academics have found that households in states where gambling was legalized saw significantly reduced savings, as well as lower investments in assets like stocks that are generally considered more financially sound.

“Meanwhile, states that legalized sports betting saw their residents’ aggregate credit scores decrease, while bankruptcies increased.”

One of the key statistics cited was that, compared to states without regulated sports betting, states that legalized sports betting have seen a 28% increase in bankruptcies and an 8% increase in debt transferred to debt collectors.

Not the best of PR for those hoping to see more gambling expansion in the near future.

Delaware: Another month, another record

In July 2023, total online casino revenue in Delaware was $1.18 million. July 2024’s total? $5.19 million, a new state record.

The impact of the changeover from 888 to Rush Street Interactive as the state’s sole operator, which started in January, continues to be felt every month. Under 888, revenue never reached $2 million in a month; under Rush Street, it’s never been under $3 million.

Online slots revenue in July was $3.58 million, 68.9% of the pie. Table games produced the other $1.61 million.

The RSI product in Delaware is spread across skins associated with the state’s three land-based casinos. Delaware Park led the way in July with $2.85 million, Harrington Casino & Raceway was second with $1.32 million, and Bally’s Dover ranked third at $1.02 million.

The Shuffle: Other news and views

THE SWEEP SPOT: Advantage players have found edges in sweepstakes casinos

TURF TIMES: Pennsylvania sportsbook closes, 31 people to be laid off

IS THIS HEAVEN?: It’s a race against the clock for Cedar Rapids casino backers in Iowa

NO, IT’S IOWA: Iowa’s biggest iGaming advocate doesn’t plan to file bill in 2025

INTEGRAL ROLE: The little-known company that caught basketball’s big betting scandal

INSTANT GRATIFICATION: Yes, Massachusetts iLottery will include ‘wide variety of instant game options’

A SIGHT TO SEE: Stunning video reveals what proposed $12 billion NYC casino complex would look like

MICRO MANAGEMENT: DraftKings’ acquisition of microbetting specialist Simplebet was long time in making

RAISING THE BAR: Red Rock Resorts set to open first of seven Vegas taverns

LIVE DEALER DEAL: PENN partners with Light & Wonder for branded live dealer games in Michigan

NOT QUITE OCEAN’S 11: Thieves set off fire extinguisher, steal casino chips at MGM National Harbor

IN THE TRENCHES: NFL implements comprehensive integrity safeguards and responsible gaming initiatives ahead of new season

BIG DIG: Bally’s Chicago casino project takes step forward as demolition begins on River West site

DISPOSABLE INCOME: 18 surprising things Americans spend less money on per year than lottery tickets

WHERE THE BUFFALO ROAM: Buffalo slot manufacturer opens factory in Henderson

THE DATA-ING GAME: Old school meets new: a conversation between two friends about data

GEORGIA ON THEIR MIND: Why Culinary is focused on a Swedish gaming equipment company

NEW ATTITUDE: AGA survey says Americans more accepting than ever of gambling, sports betting

LONG-TERM RELATIONSHIP: Kambi extends major Pan-Americas partnership with Rush Street

WHALES RESURFACING: Sportsbook VIP market heats back up ahead of football season

The Bonus Round

Completing the Spin Cycle with some odds and ends and our favorite social media posts of the week:

• NFL season is almost here! To celebrate, a bettor at Caesars in Las Vegas decided to flush $31,000 down the toilet, betting on a team whose quarterbacks are Gardner Minshew and Aidan O’Connell to win the Super Bowl. As the Las Vegas Review-Journal reported, someone put $31K on the Vegas Raiders to win it all at 80/1, which would pay $2.48 million if the bet had a snowball’s chance in hell of cashing. In case you’re wondering, the Raiders’ win total at the sportsbooks this season is 6.5.

• For you folks who enjoy watching a good implosion, word is Tropicana Las Vegas is scheduled to come tumbling down on Wednesday, Oct. 9, at about 2:30 a.m. local time. There will be a drone and fireworks show immediately preceding the implosion. And when it’s over, work begins on the new A’s ballpark.

Interesting numbers, courtesy of iGB:

• Size of the U.S. gambling market in the first half of 2024: $39.9 billion

• Amount of that coming from unregulated/illegal platforms: $29.1 billion

More interesting numbers, courtesy of the Las Vegas Review-Journal: 

• Nevada FY 2024 casino-related taxes collected: $1.23 billion, a 4.75% increase over 2023 and 4.8% above projection

• Nevada FY 2024 taxes on GGR: $997.7 million, up 3% over 2023

And with that, happy Labor Day weekend, everyone! Please remember to acknowledge the existence of your family once or twice in between fantasy drafts.