iGaming Weekly Recap (February 24–March 2, 2025): A Series of Unfortunate Events

A new bill in New Jersey, A5207, proposes a complete ban on online sports betting advertisements. If passed, this legislation would prohibit the promotion of sports betting on digital platforms and mobile apps. It would also restrict sponsorships and digital ad funding by sportsbook operators.

Supporters argue that limiting exposure to gambling ads will help reduce problem gambling and protect young audiences. However, opponents raise concerns about the economic impact on the gaming and sports industries. Neal Eskin of UConn warns that banning sponsorships could threaten funding for sports programs, urging lawmakers to clarify the bill’s provisions.

New Jersey’s gaming industry is pushing back against a proposed tax increase on online gambling and sports betting. The plan would raise tax rates to 25%, sparking criticism from both operators and lawmakers who fear it could hurt the state’s competitiveness, investment, and job market.

Operators are urging customers to voice their opposition, warning that higher taxes could drive players toward unregulated platforms. Analysts predict financial losses for major companies like Flutter Entertainment and Entain.

DraftKings has agreed to a $10 million settlement in response to a class-action lawsuit involving its NFT platform. The lawsuit alleged that the company sold unregistered securities through its NFT marketplace, violating state and federal laws. The settlement covers individuals who bought, sold, or traded NFTs on the DraftKings platform within a specific timeframe.

The legal dispute led to the shutdown of DraftKings’ NFT platform and sparked a conflict with the NFL Players Association over the use of player likenesses. Settlement funds will be used to compensate affected users and cover legal expenses.

Proposed legislation in Florida, outlined in HB 953 and SB 1404, aims to tighten regulations on online gambling and lottery-style games, potentially imposing strict penalties on operators and individuals involved in the industry. The bill enforces harsh penalties for illegal gambling while strengthening the authority of the Florida Gaming Control Commission.

A key point of controversy is that the legislation does not impact the Seminole Tribe’s existing rights to operate and expand gambling under its current agreement with the state, raising concerns about a potential monopoly.

PENN Entertainment’s 2024 financial report reveals a mix of successes and challenges. The company recorded a revenue increase to $6.58 billion, yet reported a net loss of $313.3 million. While its brick-and-mortar operations performed well, the interactive segment, including online casinos and sports betting, faced some obstacles.

On a positive note, ESPN BET attracted over 2 million new users, and online casino revenue saw significant growth. Looking ahead, PENN plans further investments and expansion, with 2025 forecasts projecting revenue and EBITDA growth. Additionally, the company announced plans to repurchase at least $350 million worth of shares.

Light & Wonder achieved record revenue of $3.2 billion in 2024, driven by strong performance across all segments, including gaming, SciPlay, and iGaming. The company also reported double-digit profit growth and actively reinvested capital through share buybacks. Strategic moves, such as the acquisition of Grover Gaming’s charitable gaming business, have expanded Light & Wonder’s market reach and distribution network.

The company is also considering listing on the Australian Securities Exchange (ASX) as part of its global growth strategy. Additionally, an antitrust dispute was resolved, clearing a path for future expansion. With rising revenue and strategic capital allocation, the outlook for Light & Wonder remains strong.

Bet365 has secured a sports betting license in Tennessee, joining the state’s online-only wagering market. Recall, unlike other states, Tennessee does not require retail sportsbooks, allowing operators to enter without a physical presence.

This seems to align with Bet365’s U.S. expansion strategy, as the company now holds licenses in 11 states and is preparing to launch operations in Illinois. Tennessee’s sports betting market continues to grow, with increasing handle and regulatory activity, including the recent exit of offshore operator Bovada.

The Texas Lottery Commission (TLC) has ruled that lottery courier services are illegal, reversing its previous stance. This decision follows a class-action lawsuit and pressure from lawmakers, who raised concerns about underage ticket sales and potential lottery manipulation.

In response, TLC plans to revoke licenses of retail locations working with couriers to prevent their operations. Meanwhile, the Texas Senate is considering SB28, a bill that would explicitly ban lottery couriers statewide. Lieutenant Governor Dan Patrick has voiced concerns over fraud and money laundering risks tied to mass online ticket purchases. He has also threatened to block TLC’s reauthorization if regulatory loopholes are not addressed.

Maryland is considering a ban on online sports betting starting in 2026, citing concerns about gambling’s impact on low-income communities, despite the industry’s significant contributions to education funding. Similar discussions are taking place in Vermont, where lawmakers are debating a full repeal of sports betting and lottery games.

In both states, legislators worry about the potential harm to vulnerable populations. A ban in Maryland could lead to a major drop in tax revenue, raising budgetary concerns.

Let’s complicate it a bit more: aside from the total ban, Maryland’s governor is also proposing a sports betting tax increase.

Missouri’s launch of sports betting is facing delays, despite the approval of a constitutional amendment. The state’s Gaming Commission initially aimed for an expedited rollout, but opposition from the Secretary of State, who cited the lack of a public health emergency, has forced a standard regulatory process instead.

As a result, the expected launch date has been pushed to August 2025, rather than the previously anticipated summer timeline. Once regulations are finalized, operators will still need time to obtain licenses before accepting bets. The Missouri Gaming Commission will oversee the market, with online sports betting revenue taxed at 10%. The state has until December 1, 2025, to officially launch its sports betting industry.

We’ll be back with our regular Weekly Recap next week… unless the industry throws us another curveball.

To stay on top of the latest news and hot topics shaping the market, subscribe to our newsletter and follow US iGaming Hub!