US news diary (19 - 25 June 2015)
A look back at some of the top stories from across the pond over the last seven days
PokerStars turns up the heat in Californiaâ¦
PokerStars is on a major charm offensive in the Golden State. This week the operator, along with its tribal and card room coalition partners, launched a major radio and online ad campaign calling on Californians to back the passage of legislation that would legalise and regulate the activity in the state.
California has made unprecedented progress in terms of getting an online poker bill across the line this year, with a bill passing out of Committee and onto the Assembly floor for the first time. But challenges remain, with stakeholders unable to reach an agreement on the role of the racetracks and so called ‘bad actors’.
As such, the campaign will certainly ruffle the feathers of some of the state’s other tribes and coalitions, particularly Pechanga, who vehemently oppose PokerStars being eligible for licensure in the state after they continued to take bets from US players post UIGEA 2006.
But the fact that Stars is investing its lobbying dollars in the state is a clear indicator that it want’s in on the California gold rush if and when it happens.
A step in the wrong directionâ¦
Although Amaya’s efforts may eventually prove futile if a second bill seeking to “restore” the Wire Act and ban online gambling in the US that was introduced to the Senate yesterday gains any momentum.
The bill was tabled by Senators Marco Rubio and Lindsey Graham (who co-sponsored last year’s ban bill) and in short would ban all forms of online gaming, with the exception of the racetracks and fantasy sports. Even states that are already live – Nevada, New Jersey and Delaware – would be forced to pull down the shutters on licensed sites if the bill passes into law.
Whether the bill is able to gain traction remains to be seen. Companion legislation was introduced to the House of Representatives at the start of the year by Congressman Jason Chaffetz. And while a number of hearings were held to discuss the bill and the merits of banning internet gambling, the initial enthusiasm appears to have waned.
DraftKings scores huge ESPN dealâ¦
DraftKings has become the exclusive daily fantasy sports partner for US sports media giant ESPN, scoring a major coup over its fierce market rivals FanDuel. But the deal has been overshadowed somewhat by unconfirmed reports that DraftKings will no longer receive $250m in equity investment from ESPN parent company The Walt Disney Group.
Reports of a Disney investment in DraftKings surfaced a few months back in a complex deal that would see the DFS operator spend more than $500m in advertising with ESPN over the next three years. But rumours soon began to circulate that some Disney execs were unhappy about being associated with a “gambling” firm, and have since pulled the plug on the investment.
Regardless, the partnership should prove lucrative for both parties, as DraftKings continues to go head to head with FanDuel over market share and player signups. Both operators are expected to complete major funding rounds in the coming weeks that would value them at around $1bn each, big money for two companies yet to turn a profit.