Category: Sports Betting News

iGaming lead generation firm and affiliate company, Leadstar Media, is thrilled to announce that it has been granted a state license by the New Jersey Division of Gaming Enforcement, a governmental agency in the U.S. state of New Jersey that was established in 1977 in order to ensure the integrity of the casino gaming industry which includes sports wagering at horse racetracks in the state.

Online lead generation company within iGaming, Leadstar Media’s main focus is to convey top-notch leads to iGaming operators.

Eskil Kvarnstrom, Chief Executive Officer of Leadstar Media, commented that their ultimate goal is to be one of the main iGaming affiliates in the U.S.   He added that they are therefore thrilled that they have received their first state license, the first of many they expect as license applications have also been sent for Pennsylvania and Indiana.

Kvarnstrom went on to say that New Jersey allows players to create an account and place bets online from anywhere within state lines, which is essential for their business model to be successful.  He added that this makes New Jersey a key market for them compared to Iowa or Rhode Island, where in-person registration hinders market growth.

Eskil Kvarnstrom also said that as a team, they are highly ambitious and always looking forward to the next project and the next market and that they truly believe in their products and what they are doing as a company and  want as many sports bettors and casino players to benefit from their work.

With the sports betting scene coming to a screeching halt in the United States, following the cancellation or suspension of all major tournaments and competitions, sportsbooks have had to start looking for alternative betting markets.

Which types of markets are sports betting groups offering, in lieu of sports itself?

Some, like Bovada, have started dabbling in the most mundane betting of all – lines on the weather. This wasn’t a very successful attempt, and it seems that weather bets are off for now.

While political betting isn’t quite legal in the United States, some operators have been offering a line or two on US Politics. However, looking across the pond, bookies are well versed in this type of market, and are going all out to attract bettors to these options. 

European sportsbooks also regularly offer lines on reality shows and award shows such as the Oscars, and these markets are proving to be more popular than ever.

But what if players want to bet on sports? Are there any markets left?

The answer is yes, although the range is obviously not wide.

Some of the options are Australian Rules Football and Rugby, Turkish Super LIG Soccer, MLB Pennants, World Series and Super Bowl Futures, and boxing for the latter part of 2020. Also available is Mexican soccer, eSports, virtual horse races and chess.

New Jersey’s sportsbooks have taken a crushing hit, following the suspension or cancellation of all major sports season. One after the other, the NBA, NHL and MLB suspended their seasons due to the spread of the coronavirus, followed by the NCAA Tournament, which was cancelled altogether. On Friday, it was announced that the 2020 Masters Golf tournament was also postponed.

Before the virus reached US shores, New Jersey’s sports betting industry was booming. Its numbers were at their highest since the state introduced legal sports betting 21 months ago. This could be seen in January 2020, when a whopping $540 million was bet in the Garden State in the time leading up to the Super Bowl LIV.

USA Today quotes Daniel Wallach, an attorney specializing in the sports betting industry saying: “The ripple effect to sports betting will be profound because this extends so far beyond the sports wagering bubble. This is just one subset of a broader impact across every segments of American life, and that is going to have a continued impact.”

Wallach notes that we are living in unprecedented times, and predicts that the gambling industry will take a huge hit, along with many other industries around the world.

“There will be an immediate impact and a trickle-down impact over time,” he added.

Senate Bill 4, introduced by Maryland lawmaker Craig Zucker, received the green light by the State House of Representatives this week, after the committee approved amendments made by the House Committee on Ways and Means. As a result of these amendments and additions to Zucker’s bill, the House voted 129-3 in favor of sending the bill off to Governor Larry Hogan for signing.

The stripped-down sports betting bill passed in the legislature’s final hours

Some of the key points of Senate Bill 4:

  • It requires that, in an upcoming referendum on the bill, a question be set, asking Marylanders: “Do you favor the expansion of commercial gaming in the State of Maryland to authorize sports and event betting for the primary purpose of raising revenue for education?”
  • It sets a $2.5 million licensing fee which sports betting operators will need to pay. This is in addition to an annual $250,000 renewal fee.
  • It sets a tax rate of 20%.
  • It allows online operators to offer sports betting on behalf of the holder of an existing sports betting license in Maryland. This is as long as they pay a $5,000 license fee.
  • It allows sports betting at three local racetracks, namely Laurel Park, Maryland State Fairgrounds and Pimlico Race Course.
  • It does not specify which companies will be able to apply for a license. 

The Corona virus pandemic could cost sportsbooks in the United States a whopping $200 million in revenue and $2 billion in handle, according to a report in Legal Sports betting.  Almost every sports organization around the world has suspended, delayed or cancelled play, and this will cause a direct hit on the global sports book industry – the US included.

The first event to take a giant loss will no doubt be March Madness, the common name for the NCAA Men’s Basketball Tournament.  US sportsbooks in particular rely heavily on the first two rounds of the tournament, and the announcement last week that the NCAA is cancelling the tournaments altogether, will deal a heavy blow to the industry.

In a statement made on Thursday, the NCAA said: “This decision is based on the evolving COVID-19 public health threat, our ability to ensure the events do not contribute to spread of the pandemic, and the impracticality of hosting such events at any time during this academic year given ongoing decisions by other entities.”

The country’s most established sports betting market, Nevada, traditionally has March accounting for over 11% of its annual revenue.  If we look at the numbers resulting from the cancellation of sports events as large as March Madness, it is not far-fetched to predict that the US sports betting market will lose literally hundreds of millions of dollars as a result of COVID-19.