Indiana Ditches Planned iGaming Legislation Amid Eberhart Guilty Plea
Unfortunately for online casino and poker players in Indiana, the wait for legal iGaming in the state remains. Lawmakers in Indiana have announced they will not introduce new legislation to expand the iGaming industry next year. Due to a recent scandal, it may be difficult to do so in the coming years.
Former Representative Sean Eberhart Took Bribes from Spectacle Entertainment
Due to a case involving former Representative Sean Eberhart, the state’s efforts to bring more online gaming to its residents and visitors have been thwarted. The former Rep. pleaded guilty to federal corruption charges earlier this month, and it has tainted the statehouse’s reputation.
Eberhart acknowledged taking a bribe from a gaming company known as Spectacle Entertainment. The company was a new operator seeking to move two Indiana gaming boats to land in Gary. In a report by WBAA-FM, Senate President Pro Tempore Rodric Bray stated that the scandal means that any legislation regarding iGaming cannot be pushed forward.
Bray stated that the case tainted the integrity of the statehouse and diminished the confidence that the people of the state have in their lawmakers. The Senator also feels that the actions of the former Rep. will affect expanding gaming beyond 2024, making it difficult to discuss policy changes.
Eberhart was accused of taking a bribe from Spectacle in exchange for a $350,000-a-year position at the company. The accused can face up to five years in prison and a fine of $250,000 plus three years of probation after serving a prison term for his actions. Eberhart has agreed to pay $60,000 in restitution to the state, which is his annual salary as a lawmaker.
Disappointment for the Gaming Industry
It is a bitter pill to swallow for those hopeful for an expansion in the gaming industry, considering that the state may be years behind in passing legislation. Indiana has been on the shortlist of states expected to expand into online casino services next.
Bills have been introduced yearly since 2021 to try to bring online poker and casino gaming to life in the state. All efforts had failed, but 2024 looked promising. Now, lawmakers feel that Eberhart’s actions will taint any effort, and the public will not be confident in what lawmakers propose.
The scandal involving Eberhart has been ongoing for quite some time. Back in mid-2018, Caesars purchased Centaur Holdings LLC. The group operated casinos and off-track betting facilities in Indiana. This included the Indiana Grand Casino and Racetrack, rebranded to the Horseshoe Indianapolis in 2022.
Former executives of Centaur created Spectacle after Centaur was sold. CEO Rod Ratcliff and the company hoped that the licenses from two riverboat casinos in Gary could be moved to land. A gaming bill was introduced by Eberhart in 2019 to allow the move, asking Spectacle to pay $20 million in transfer fees. This was far below the $100 million already required by law for a transfer.
The bill also gave Spectacle tax incentives. The bill was passed, and one of the transferred licenses went to Hard Rock, Northern Indiana. It opened in 2021. The other license is held by Churchill Downs Incorporated, with a new facility set to open next year.
From all this, it was determined that Eberhart took the bribe and created the legislation to favor Spectacle. Now, he must pay the price for his actions, along with the state and proponents of iGaming, which is the biggest disappointment connected to the case.
WynnBET Announces Online Casino & Sportsbook Shutdowns in Several States
In a surprising turn of events, Wynn Resorts announced the closure of its online gaming services in several US states late last week. Sportsbooks and online casino sites will close in specific areas across the country. The shutdown was unexpected, with the company stating it intends to use the allocated funds from iGaming for other investments.
Online Casinos in NJ & WV Shut Down
WynnBET focused on sports betting in the US with its iGaming operations but also offered online casino services in New Jersey and West Virginia. These two states will no longer feature online casino sites from the brand.
An email was sent out to players from WynnBET announcing the closure. Players were given a timeline to remove funds. The online casino in New Jersey is open through October 11, with players having just under two months to remove any cash from their account.
Any Wynn Rewards earned from casino gaming will remain in effect. Players can use the rewards at Wynn properties in the US. This includes Encore at Wynn Las Vegas, Wynn Las Vegas, and Encore Boston Harbor.
In a press release, Wynn Chief Financial Officer, Julie Cameron-Doe, stated that iGaming will remain a focus of WynnBET. However, it needs to move at a stronger pace for the company at this time. The CFO stated that the company believes in the industry’s long-term prospects; still, the need for more legislation for iGaming and the opportunity for other global investments led the company to decide to stop its capital investments in the sector.
Sports Betting Sites Close in Eight States
For sports betting services by Wynn, the brand has seen the largest closure. The company plans to shut down services in the following states:
- Arizona
- Colorado
- Indiana
- Louisiana
- New Jersey
- Tennessee
- Virginia
- West Virginia
Only two jurisdictions, including Nevada and Massachusetts, will remain unaffected by the closure. These are the two states where Wynn Resorts also operates physical casinos. CFO Cameron-Doe stated that the company feels there are better uses of capital deployment for Wynn Resorts shareholders in light of the continued requirement for outside marketing spending through user acquisition and promotions for online sports betting.
Interestingly, the news comes a few days after WynnBET relaunched an updated platform in six states. Additional information has not been provided on the pending closures.
Players continue to have time to remove funds, and WynnBET will pay out all outstanding sports bets. Members of the brand in affected states should have received an email detailing the steps to remove funds or wait for pending bets to close.
Michigan & New York Operations Under Review
WynnBET has decided to continue reviewing its Michigan and New York operations, with the option to remain open. The company does well in Michigan, with a 3.2% share of revenues from iGaming. The company is listed as the 7th of 15 in the state. In the past two years, WynnBET has earned around $50 million in revenues in the Wolverine State.
In New York, the operations are also under review. The company has a 0.6% lifetime handle in NY, which is relatively low. Wynn Resorts recently partnered with Related Companies in a bid to create a casino downstate with a $10 billion investment. If the casino plan is selected, it would be a reason for WynnBET to remain operational in New York.
Additional Closures in Sports Betting
WynnBET is not the only company to announce the closure of online sports betting services in the US. Fox Bet, Fubo Sportsbook, MaximBet, and TwinSpires all shut down within the past year. These companies could not obtain a market share when up against powerhouses like DraftKings, FanDuel, and BetMGM.
It’s important to note that it is not common for an online casino to close in the US. Most sites remain open even if they are at the bottom regarding revenue earnings to ensure a secondary income level for retail casino partners.
