SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 9/25/24:
- Caesars Opposes Missouri Sports Betting Over Licensing Limits
- ESPN BET Clears Hurdle for New York Launch
- Aristocrat versus Light & Wonder Over Trade Secrets
- U.S. Online Sports Betting Regulations Fall Short on Player Protection Standards
- BetMGM Becomes Preferred Sportsbook for USA Today Network
- Illinois Gaming Board Introduces New Advertising Rules and License Renewals
Caesars Opposes Missouri Sports Betting Over Licensing Limits
Caesars Entertainment has strongly opposed Missouri’s upcoming sports betting referendum, contributing over $4 million to the “Missourians Against the Deceptive Online Gambling Amendment” campaign. Caesars’ main issue is the limitation of one sports betting license per company, despite operating multiple casinos in the state. In contrast, FanDuel and DraftKings have heavily backed the pro-referendum campaign, “Winning for Missouri Education,” with over $11 million. Polls show that 52% of Missouri voters support the measure, which is also endorsed by the state’s major sports teams. If passed, the amendment would legalize sports betting by December 2025, with revenues primarily funding education and problem gambling programs.
ESPN BET Clears Hurdle for New York Launch
ESPN BET has finally received approval to operate in New York after the state’s Gaming Commission unanimously approved PENN Entertainment’s acquisition of Wynn Interactive, which holds one of New York’s nine online sports gambling licenses. This approval was crucial for PENN, whose initial attempt to enter New York with Barstool Sportsbook was denied due to regulatory concerns. After selling Barstool, PENN secured a 10-year, $1.5 billion deal with ESPN to create ESPN BET. Delays in the licensing process pushed back the launch, but PENN expects ESPN BET to go live in New York in the coming days, just in time for the NFL and college football seasons.
Aristocrat versus Light & Wonder Over Trade Secrets
Aristocrat Technologies has secured a significant legal win against Light & Wonder (L&W) regarding the alleged infringement of its intellectual property, particularly concerning the misappropriation of trade secrets in L&W’s Dragon Train game. On September 23, 2024, U.S. District Judge Gloria M. Navarro granted Aristocrat a preliminary injunction, prohibiting L&W from any further commercialization of Dragon Train. The court determined that Aristocrat is “extremely likely to succeed” in proving that L&W used its trade secrets related to the successful Dragon Link and Lightning Link games to develop Dragon Train without adequate investment. Aristocrat’s Chief Product Officer, Matthew Primmer, expressed satisfaction with the ruling, emphasizing the importance of protecting intellectual property. The company plans to continue its legal efforts against L&W in the U.S. and is also exploring options in Australia, all while focusing on innovation and delivering quality products to its customers globally.
U.S. Online Sports Betting Regulations Fall Short on Player Protection Standards
A recent report by the National Council on Problem Gambling (NCPG) reveals that current online sports betting regulations in the U.S. are failing to meet key player protection standards, with an average compliance rate of less than 40% across 82 evaluated criteria. While top-performing states like Connecticut, New Jersey, and Virginia achieve nearly 60% compliance, many others fall significantly short, with 11 states meeting only 10 to 24 standards. The report highlights the fragmented nature of existing regulations and urges legislators to address these gaps to reduce gambling-related harm. The NCPG emphasizes the need for improvements in areas such as governance, staff training, and consumer support mechanisms, and will host a webinar to discuss the findings and recommendations further.
BetMGM Becomes Preferred Sportsbook for USA Today Network
BetMGM Sportsbook has secured a significant partnership with Gannett Media, becoming the preferred sportsbook for the USA Today Network, which spans 200 markets across the U.S. This collaboration will see BetMGM’s odds integrated into Gannett’s sports coverage, enhancing brand visibility in a competitive landscape. BetMGM CEO Adam Greenblatt emphasized the deal’s potential to engage a broad audience through local and national platforms. This partnership replaces Tipico, which exited the U.S. market unexpectedly, allowing BetMGM to step in as a more stable and recognized operator. This latest alliance follows other recent successes for BetMGM, including partnerships with the Associated Press and social media platform “X,” along with accolades as Operator and Employer of the Year.
Illinois Gaming Board Introduces New Advertising Rules and License Renewals
During a recent meeting, the Illinois Gaming Board (IGB) announced plans to implement new advertising and marketing regulations for sports betting, casinos, and video gaming, aiming to create consistent standards across all gaming markets under its jurisdiction. IGB administrator Marcus D. Fruchter emphasized that the updated rules will enhance safeguards for gambling advertisements and will also apply to casino gambling and video gaming for the first time. The board has been active in 2024, processing hundreds of license renewals, including significant ones for Rivers Casino and Hawthorne Race Course, while also approving numerous video gaming locations and terminal handlers. In light of National Responsible Gambling Education Month, Fruchter reiterated the IGB’s commitment to promoting responsible gaming practices and providing resources for those in need, including access to the Illinois Self-Exclusion Program and helpline services. The next IGB meeting is scheduled for October 24, 2024.
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