😳 The Death of Amateur Sports

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Welcome back to the Bandit Betting Newsletter, where we deliver the top stories in sports and gambling directly to your inbox, every Sunday.

In today's email:

• Just in: several states have increased online sports betting taxes.

• Q1 Recap: looking ahead at the top gambling stocks to invest in.

• Follow up: amateur sports officially died Thursday as the NCAA and its five power conferences agreed to pay athletes directly.

Let's gamble...

INCREASED SPORTS BETTING TAXES

Will PA, NJ and IL legislators increase taxation?

Pennsylvania might consider raising its online sports betting tax to increase revenue, following the example of neighboring states.

New York’s 51% tax rate has generated $1.9 billion in three years.

Other states like New Jersey and Illinois are also looking to increase their rates, with New Jersey considering a jump from 13% to 30%, and Illinois aiming to more than double its current rate.

Pennsylvania’s current tax on online sports wagers is 36%, bringing in $14.7 million from $41 million in bets for April alone.

If taxed at New York’s rate, the state could have earned $20.8 million.

GAMBLING STOCKS - Q1 DEEP DIVE

A look at MGM Resorts (NYSE:MGM) and its peers.

Casino Earnings Overview: Q1 Performance and Trends

Q1 earnings reveal the direction for casino operators like MGM Resorts and its peers.

Despite limited competition due to regulation, casinos face risks from regulatory changes and the shift to digital gambling, such as online poker and sports betting.

MGM Resorts (NYSE:MGM):

MGM, a major player on the Las Vegas Strip, reported $4.38 billion in revenues, up 13.2% year-over-year, surpassing analyst expectations by 3.7%. CEO Bill Hornbuckle highlighted the company's growth plan and strong cash flow generation.

Despite the strong performance, the stock dipped 0.5%, now trading at $39.52.

Golden Entertainment (NASDAQ:GDEN):

Golden Entertainment, operating casinos and gaming platforms, posted $174 million in revenues, down 37.4% year-over-year but exceeding analyst expectations by 3.2%.

Despite the revenue drop, it outperformed earnings estimates. The stock fell 7.3%, currently at $28.41.

Caesars Entertainment (NASDAQ:CZR):

Caesars reported $2.74 billion in revenues, down 3.1% year-over-year, missing analyst expectations by 3.1%.

The company had the weakest performance in the group, with its stock down 7.8% to $33.09.

Monarch (NASDAQ:MCRI):

Monarch, known for luxury casinos, reported $121.7 million in revenues, up 4.3% year-over-year, but missed analyst expectations by 0.5%.

The stock dropped 6.2%, trading at $65.09.

Boyd Gaming (NYSE:BYD):

Boyd Gaming, operating properties across the U.S., reported $960.5 million in revenues, down 0.4% year-over-year, aligning with analyst expectations but missing earnings estimates.

The stock plummeted 18.1%, now at $51.51.

THE DEATH OF AMATEUR SPORTS

$3 billion plan to set stage for dramatic change across college sports

The NCAA and the top five conferences have agreed to pay nearly $2.8 billion to settle antitrust claims, paving the way for a new revenue-sharing model that could direct millions to athletes by fall 2025.

The Pac-12 was the last to approve the deal, following the SEC, Big Ten, Big 12, and ACC.

NCAA President Charlie Baker and the conference commissioners called it a significant step in college sports reform.

The agreement signals the end of the NCAA's amateurism model, allowing athletes to receive direct payments from schools.

Schools can set aside up to $21 million annually for athlete compensation.

This landmark decision moves college sports closer to professional models, significantly increasing athlete compensation and rights.

Thereby, ‘killing’ amateur sports.

I call upon all readers - what are your thoughts on this model?

“QUICK PICK” STORIES FOR THE ROAD

• Colorado D1 football players allegedly shown gambling in newly surfaced 2023 video.

• Stake.com releases new set of original online slot games.

• ‘Gambling addiction on steroids’: fears of betting crisis at heart of US military.