Roundup: Is Florida In Play For Betting, Again?

Barstool fined, Florida developments, affiliates focus on US

Welcome to our new weekly cadence -- to your inbox Monday-Wednesday-Friday morning with news and updates in sports, gambling, and media. On Thursday, takes directly from our text threads.

We're fond of saying "man, we hate being right all the time" around here. We told you on Monday that this time of year, slow in so many industries, can pop surprisingly in ours. Today's newsletter will show you what we meant.

In the email today: 

1) Barstool Sports fined "not less than $250,000" by the Ohio Casino Control Commission for targeting new consumers under the age of 21, including college students 😟

2) Florida's move toward legalizing sports gambling lands in the United States Court of Appeals ⚖️

3) Catena and XL Media look to sell European assets as they pivot toward going all-in on legalized sports gambling in North America 🇺🇸

Let's kick it.

1) BARSTOOL SPORTS TAKES A BIG "L" IN O-H-I-O 🥵

"What about the children" is a fairly common refrain in the news cycle with regard to the legalization of sports gambling as it sweeps the nation. It's like the weather. People talk about it but nobody does anything about it.

Until now.

The fine stems from a Barstool Sports event at the University of Toledo on November 15 in the run-up to Toledo's game against rival Bowling Green. 

"Barstool was given notice of the violation after the OCCC claimed it was in violation of two statutes." The laws in question prohibit "targeting or advertising gambling to those under the age of 21" and "advertising on or near a college campus."

Barstool's parent company, Penn Entertainment, said through a spokesperson that the company looks "forward to the opportunity to address this directly with the Ohio Casino Control Commission through its regulatory process."

We are not lawyers...but we are having a tough time figuring out what Penn Entertainment's defense to the OCCC is going to be. Based on the reporting to date, it appears that one of two things happened:

  • Penn Entertainment and/or Barstool Sports did not know the statutory prohibitions, or

  • Penn Entertainment and/or Barstool Sports knew about the statutory prohibitions, thought about it, and went ahead with promoting their sportsbooks at the Barstool Tailgate Show at Toledo anyway.

Penn Entertainment stock is down more than $3/share (trading at $33/share now) in the past five days in the wake of this news.

2) UNITED STATES COURT OF APPEALS THE LATEST TO DEAL WITH FLORIDA'S POTENTIAL LEGALIZATION OF SPORTS GAMBLING ⚖️

Did you know that none of the three most populous states in the country do not have legalized sports betting? It's true. California and Texas are both many months if not years away from approving online gambling. Their nearly 70 million residents are going to have to be patient.

But over 21 million Floridians are watching and waiting to see what happens with the continued battle between the Seminole Tribe of Florida and comparatively small-time Florida pari-mutuel operators over the Tribe's efforts to make sports gambling legal -- and to control it.

CBS News Miami has an excellent breakdown of what has happened to date and what is at stake.

The very, very short version though:

The local casinos in this legal action (Magic City Casino, Bonita Springs Poker Room) are fighting to keep online sports betting illegal in Florida because, once it is legalized, pari-mutuel betting on horse racing et cetera stands to become much less profitable. 

We think in the end, as always, that the money is going to talk. The Seminole Tribe has agreed to pay Florida "a minimum of $2.5 billion over the first five years and possibly billions more over three decades" once the Tribe assumes control of legalized online betting.

If this were to happen, it would spell bad news for DraftKings and FanDuel as the tribes would have a grip on the market. If it doesn't get overturned, expect the big online guys to make another run at the ballot in 2024.

Doesn't sound like a winning hand for the Bonita Springs Poker Room to us.

3) CATENA, XL MEDIA MOVING HEAVILY, QUICKLY TOWARD NORTH AMERICA 🇺🇸

We read with great interest this item from Dan Kleiner at igamingbusiness.com. Kleiner reports that "Gaming Innovation Group (GiG) has agreed to acquire AskGamblers from Catena for €45m (£38.8m/$47.7m)." 

It's the first subhead in the piece that jumped out at us: "Catena Shifts Focus to North America." Related: "Catena considered divesting all its European and igaming assets in order to focus on the North American markets."

Catena Media's CEO, Michael Daly, essentially confirmed that this is Catena's path moving ahead: "Today's agreement is a major step on our journey to focus the business on online sports betting and casino affiliation in high-growth, regulated markets in the Americas."

Catena isn't the only affiliate looking to make such a move.

Oliver Haill at proactiveinvestors.com wrote recently that XL Media "has said it is exploring the potential sale of its personal finance division as part of a restructuring...these actions reflect the company's decision to prioritise resource allocation to its core activities."

Those core activities apparently include "fully capturing the North America market opportunity in sports and gaming."

Regulation, maturing markets, and frustrated investors have led all the major Euro-based affiliates to double down on the high-growth NA market. Count these are two more notable examples.

Disclaimer: Kyle and Jason sold their business to XLMedia, used to work there, and are XLMedia shareholders.

JOB LEAD OF THE DAY 💰

We're always innovating here at Raising Stake, and we're also men of the people. Help us help you, etc. Thus, this new item in the newsletter.

Today's Job Lead of the Day is Director, Commercial Marketing for Fanatics. The base salary range for this role is $151,952 per year - $249,635 per year.

Go on:

"Optimizing these long-standing partnerships, a database of more than 80 million global consumers and a trusted, recognizable brand name, Fanatics is expanding beyond its position as a global leader for licensed sports merchandise to now becoming a next-gen digital sports platform, featuring an array of offerings for fans across the sports ecosystem."

If it walks like a nascent sportsbook, and talks like a nascent sportsbook....

So what will the successful candidate be doing for Fanatics in this role? Take a look: "You will be responsible for all facets of commercial planning & performance. Reporting into the VP of Commercial, you will play an integral role in the wider Marketing team, as well as the wider Fanatics Betting & Gaming team."

Plus, you'll be working for a company valued at $31 billion whose CEO is apparently intent on global domination. If this sounds like it's for you, go get it.

WHAT ELSE IS GOING ON? 😎

  • As Apple TV and the National Football League continue to dare each other not to consummate their relationship, the possibility remains that both sides are being unreasonable. 🤼‍♀️

  • NetFlix thinks the sports documentary, despite what Kyle thinks, is not dead. They'd better hope this next wave of tennis stars have more to say than Roger Federer ever did. 🎾

  • SimpleBet and Caesars announced a multi-year deal to make in-game wagering part of the Caesars Sportsbook. ⏱

  • FuboTV is the latest (but surely not the last) online-based service provider to get nailed with a cyber attack at an inopportune time. 💻

  • The decision to flex the Kansas City Chiefs/Denver Broncos football game off Sunday Night Football led to SNF's worst ratings since 2008. 🏈

  • Sky Sports has signed a five-year deal with the USTA to broadcast the U.S. Open to the United Kingdom and Ireland. 🎾

  • The English Premier League's AFC Bournemouth was purchased by American Bill Foley for approximately $120 million. They'll call it soccer yet! ⚽️

WHAT TO KEEP AN EYE OUT FOR BEFORE THE NEXT SEND 👁️

This emailed was compiled today by the Raising Stake staff. Jason and Kyle contributed. Images from Getty.

How was the email today?

Choose one

Login or Subscribe to participate in polls.