iGaming Weekly Recap (January 6–12, 2025): Legislative Frenzy Heats Up Again
The new year in the U.S. sports betting and iGaming industry is kicking off almost as strongly as the last one ended. The first days of 2025 have been packed with developments, particularly in the areas of legislation and legal matters. Unfortunately, much of the news in this week’s Weekly Recap leans negative. DraftKings faces fresh legal troubles, Nevada reported disappointing financial figures for November, and those hoping for progress on sports betting legalization in Alabama and Minnesota have little reason for optimism after this week’s events.
Penn Entertainment and ESPN are doubling down on their collaboration. By early 2025, 10 more retail sportsbooks at Penn properties will be rebranded as ESPN BET Sportsbooks, pending regulatory approval. This move will expand the ESPN BET footprint to 19 locations across six states. The rebranding spans Penn’s top casino brands, like Hollywood and Ameristar, in key markets such as Iowa, Pennsylvania, Ohio, Colorado, Indiana, and West Virginia.
Minnesota lawmakers are tackling the complex issue of sports betting. On January 8, 2025, the Senate Finance Committee, led by Senator John Marty (DFL-Roseville), hosted a hearing to explore its potential societal and financial impacts. Testimony from experts and individuals with firsthand experience highlighted concerns. Stories emerged of lives upended by gambling, supported by research linking legalized betting to spikes in bankruptcy, domestic violence, and mental health struggles. The session revealed deep divisions among legislators and stakeholders, keeping the future of sports betting in Minnesota uncertain.
DraftKings is in hot water after being sued in Illinois, Kentucky, and New Jersey. Plaintiffs claim the company misled players with offers like “risk-free bets,” which reportedly came with hidden, complicated conditions. Deposit match promotions also came under fire, with allegations that they encouraged large deposits and rapid wagering. The lawsuits argue these tactics disproportionately targeted young and inexperienced gamblers, potentially violating consumer protection laws. DraftKings, already facing scrutiny over unrelated legal matters, has yet to address these new allegations publicly.
Alabama’s journey toward legal gambling hit a roadblock in 2024, and the outlook for 2025 remains unclear. Anthony Daniels, House Minority Leader, emphasized the importance of Senate action in moving forward. Last year, the Alabama House passed two gambling bills—one permitting limited gaming and another proposing a constitutional amendment to allow gambling in select counties. However, Senate revisions derailed negotiations, and both bills ultimately failed. Daniels noted that the Senate must lead the charge if gambling reform is to succeed in the upcoming session.
Nevada’s gaming revenue fell 4.21% year-over-year in November 2024 to $1.31 billion. The Las Vegas Strip experienced a 3.9% decline, with lower attendance at the 2024 Formula 1 Grand Prix and reduced slot machine earnings contributing to the drop. Smaller markets like Elko County and Sparks saw revenue increases. Sports betting, however, surged 65% compared to November 2023, offsetting some losses.
Bonus: What You Might Have Missed in the First Days of 2025
The holiday season isn’t exactly known for intense mental focus. But if you’ve finally managed to figure out what day of the week it is (hint: Sunday), it might be the perfect time to catch up on the key events shaping the industry.
On one hand, things have been slow to pick up after the new year. On the other, we’ve been flooded with legislative proposals set to heat up state sessions in 2025. Oklahoma, Minnesota, and Texas are once again seriously considering sports betting legalization, while Maryland and Virginia have their sights on iGaming. Each of these proposals remains far from enacting real legal changes, and if previous years have taught us anything, the road ahead will be long and full of obstacles.
What else is happening? DraftKings has launched its Sportsbook+ subscription service in New York, sparking uncertainty and debates almost as intense as those surrounding the tax surcharge. Yet, there’s no denying that the Boston-based operator continues to emerge as one of the industry’s most creative players, constantly surprising with fresh ideas. Case in point: the not-yet-officially-announced partnership with Delta Air Lines.
Meanwhile, poor Q4 results have forced Caesars and Flutter to revise their financial projections for both the fourth quarter and all of 2024. On a brighter note, bet365 has announced its return to profitability, giving the operator something to celebrate.
Comebacks can be tough—but not for us. With full energy, we’re back with our Weekly Recap, delivering the most important updates from the U.S. sports betting and iGaming industry every week in 2025. Subscribe to our newsletter to stay informed, and stay tuned!
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