SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 7/3/24:
- CFL Advocates for Self-Regulation Over Federal Oversight on Sports Betting Ads
- PGCB Fines Live! Casino $100K for Illegal Proxy Wagers
- New York Faces Delays in Casino License Selection and Online Gaming Launch
- Ohio Proposes New Rules on Betting Promotions Following Fanatics Ad Controversy
- Michigan Gaming Control Board Introduces Controversial Attestation Form for iGaming Suppliers
- Virginia Lawmaker Targets Fantasy Sports Regulation Amid Regulatory Concerns
- Washington DC Council Approves Budget for Expanded Sports Betting Market
CFL Advocates for Self-Regulation Over Federal Oversight on Sports Betting Ads
The Canadian Football League (CFL) opposes federal regulations on sports betting advertisements, advocating for self-regulation by professional sports organizations. CFL Commissioner Randy Ambrosie expressed this view in a letter to the Senate committee on transport and communications, in response to Bill S-269, which seeks to limit sports betting ads and establish national standards to prevent problem gambling. Ambrosie argued that current safeguards are sufficient to protect the sport’s integrity and that further regulation could disrupt an effective system. He emphasized the league’s history of self-regulation, particularly since Canada legalized single-event sports betting in 2021. Despite the financial benefits seen in provinces like Ontario, where sports betting generates substantial revenue, Ambrosie believes additional federal oversight is unnecessary. He acknowledged that self-regulation has room for improvement but maintained confidence in its effectiveness. The debate over Bill S-269 continues, with Canadians needing to determine the best approach to managing sports betting ads and preventing problem gambling.
PGCB Fines Live! Casino $100K for Illegal Proxy Wagers
The Pennsylvania Gaming Control Board (PGCB) fined Stadium Casino RE, LLC, operator of Live! Casino and Hotel Philadelphia, $100,000 for accepting nearly $300,000 in illegal proxy wagers by phone. Over eight days, sportsbook employees placed 15 bets for a patron not present at the casino, violating both casino policy and state law. The employees were terminated, their gaming licenses revoked, and the patron banned from gambling in Pennsylvania. After an internal investigation and self-reporting the violations, the casino implemented corrective measures, including increased scrutiny on large wagers, banning personal phones in the sportsbook, and enhancing staff training on proxy betting and suspicious activity. Additionally, the PGCB denied requests to remove individuals from the Involuntary Exclusion List for past violations, reinforcing their “Don’t Gamble with Kids” campaign.
New York Faces Delays in Casino License Selection and Online Gaming Launch
The committee responsible for recommending applicants for three downstate New York casino licenses is considering delaying the selection deadline by nearly a year, potentially extending the wait for what could be the nation’s most lucrative online casino market. The Gaming Facility Location Board set a new application deadline for June 27, 2025, emphasizing the need for robust competition and community involvement. This timeline also allows applicants to address local environmental and zoning regulations. State law requires applicants to collaborate with local officials before the board evaluates and recommends them to the New York State Racing and Gaming Commission, which will make the final decision by December 31, 2025. However, this delay conflicts with a state legislature-approved bill aiming to expedite the process with an August 31, 2024 deadline. The bill now awaits Governor Kathy Hochul’s signature, with potential economic benefits including $1.5 billion in licensing fees and millions in annual tax revenue. Major casino operators, including MGM and Genting, are among those interested in the bids. The delay also affects online casino gaming legislation, potentially postponing its launch until at least 2026.
Ohio Proposes New Rules on Betting Promotions Following Fanatics Ad Controversy
Last year, the Ohio Casino Control Commission (OCCC) ordered Fanatics Sportsbook to remove a sports betting ad offering a merchandise purchase matching bonus in Ohio, citing a breach of state gambling regulations. A year later, on Friday, the OCCC proposed new rules under “Promotions and Bonuses” to clarify how betting operators can offer such incentives. The proposal, 3775-16-09, aims to ensure gambling advertisements are clear and non-misleading, specifically prohibiting terms like “risk-free” bets. It includes provisions to safeguard against targeting underage or vulnerable individuals and requires verification of age before advertising to customers, pending public comment until July 12, 2024.
Michigan Gaming Control Board Introduces Controversial Attestation Form for iGaming Suppliers
The Michigan Gaming Control Board’s new six-page attestation form, issued in April, has sparked concern among licensed iGaming and sports betting suppliers. Aimed at curbing illegal gambling activities, the form seeks broad information from providers, prompting anxiety due to its vague terminology and potential implications for global operations. Stakeholders, uncertain of the form’s exact purpose and consequences, are cautious about disclosing sensitive information without clarity on how it will be used. The move reflects Michigan’s proactive stance on regulating its gaming market but raises questions about its practical implementation and impact on industry practices..
Virginia Lawmaker Targets Fantasy Sports Regulation Amid Regulatory Concerns
Virginia Delegate Paul Krizek plans to address concerns over fantasy sports in the state by proposing legislation in the 2025 General Assembly session. He aims to clarify the regulatory gray areas between legal sports betting and prop-centric fantasy sports, while also advocating to raise the age limit for cash-based fantasy games from 18 to 21. Krizek criticizes fantasy sports operators for offering prop bets similar to regulated sportsbooks without the same level of oversight. Virginia lawmakers and regulators are considering various approaches, including mirroring states that have banned pick ’em-style games or imposing stricter regulations and taxes on DFS operators to ensure compliance and fairness in the market.
Washington DC Council Approves Budget for Expanded Sports Betting Market
The Washington DC Council has unanimously passed a crucial budget bill that includes sweeping changes for mobile sports betting across the District. Pending Mayor Muriel Bowser’s signature and a 30-day congressional review, the bill is poised to revolutionize the local sports betting scene. The legislation opens the door for up to seven new mobile sportsbooks, each partnering with one of DC’s professional sports teams, expanding from the single-operator model dominated by FanDuel. Additionally, an amendment ensures continuity of sports betting kiosks, benefiting local retailers and small businesses. Despite some procedural objections, the Council’s move signals a shift towards a more competitive and consumer-friendly sports betting market in DC, heralding a significant departure from its previous restrictive framework.
