SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 10/16/24:
- Massachusetts Awards $3.1M for Gambling Prevention and Treatment
- Brazil Cracks Down on Irregular Gambling Websites
- Global Gaming Expo Panel Urges Collaboration to Tackle Illegal Gambling’s Impact
- FanDuel Set to Acquire Naming Rights for Bally Sports Networks
- MLBPA Teams Up with Fanatics as First Licensed Sportsbook Amid Legal Disputes
- Missouri’s Gambling Amendments Spark Multi-Million Dollar Battle
Massachusetts Awards $3.1M for Gambling Prevention and Treatment
The Massachusetts Department of Public Health (DPH) has announced $3.1 million in grants to support problem gambling prevention among youth and workforce development for treatment providers. This includes $2.1 million for the Youth Leaders in Problem Gambling Prevention initiative, which empowers young people to lead gambling prevention efforts, and $1 million for Project Build Up 2.0, aimed at strengthening workforce development for outpatient substance use and gambling treatment programs. These initiatives are focused on preventing youth gambling and enhancing the capacity of treatment providers.
Brazil Cracks Down on Irregular Gambling Websites
Brazil has begun blocking over 2,000 irregular gambling websites as part of a broader effort to regulate online betting, following concerns over addiction and financial abuses, particularly among vulnerable populations. The government’s actions come after the signing of a law in December 2023 that regulates and taxes betting companies, with many active firms complying while their licenses are reviewed. Online betting, legalized in 2018, has grown rapidly, with 52 million Brazilians engaging in it over the past five years, but the rise in addiction and misuse of welfare funds has prompted stricter measures to protect consumers and address fraud. Despite the regulation push, concerns remain about the potential loss of revenue for soccer clubs and other sports teams that rely on betting company sponsorships.
Global Gaming Expo Panel Urges Collaboration to Tackle Illegal Gambling’s Impact
At the Global Gaming Expo panel titled “The Far-Reaching Negative Impact of the Illegal Gambling Market,” experts discussed the challenges of illegal gambling without quantifying its effects. They emphasized the need for stronger prevention and law enforcement measures, particularly at the federal level, as illegal gambling poses significant consumer protection issues. Former New Jersey gaming enforcement director David Rebuck noted a rise in legal site usage in states that targeted illegal operators like Bovada. Panelists called for partnerships between state governments and legal operators, better regulations, and increased cooperation among law enforcement to effectively combat the issue and create a safer gambling environment.
FanDuel Set to Acquire Naming Rights for Bally Sports Networks
FanDuel, currently the leading sportsbook operator in the U.S., is set to enhance its brand visibility by becoming the title sponsor of the regional sports networks (RSNs) formerly known as Bally Sports, owned by Diamond Sports Group (DSG). The deal, which has been in negotiation for several months, will grant FanDuel a small equity stake in a reorganized DSG and performance-based warrants for potential ownership expansion. This sponsorship is crucial as DSG prepares for a bankruptcy confirmation hearing on November 14, aiming to emerge as a viable entity while simultaneously shedding nearly all of its Major League Baseball rights agreements, which could significantly impact the sport. DSG’s current financial obligations are substantial, owing over $253 million to the NBA and nearly $135 million to the NHL for the upcoming 2024–2025 season, highlighting the severe decline in RSN value from $10.6 billion five years ago to an estimated $600 million to $1 billion today. Additionally, DSG has confirmed that Amazon is no longer a potential investor but is discussing distributing RSN content on Prime Video. However, DSG’s ability to successfully reorganize hinges on securing additional financing commitments.
MLBPA Teams Up with Fanatics as First Licensed Sportsbook Amid Legal Disputes
MLB Players, Inc., the commercial arm of the Major League Baseball Players Association (MLBPA), has signed a non-exclusive licensing agreement with Fanatics Sportsbook, making Fanatics the first officially licensed sportsbook for MLB players. This agreement allows Fanatics to utilize MLB player likenesses in its sports betting products and promotions, amid ongoing legal disputes with other betting platforms over the unauthorized use of player images. The MLBPA has filed lawsuits against major operators like DraftKings and FanDuel for leveraging player likenesses without proper licensing, alleging they gained commercial advantages without official arrangements. While the details of the Fanatics deal remain undisclosed, it signals a willingness from the MLBPA to explore similar partnerships with other operators. This agreement strengthens Fanatics’ relationship with Major League Baseball, further solidifying its presence in the sports betting market, particularly after its recent expansion into Washington, D.C. The implications of this deal for other sportsbooks facing litigation are still uncertain
Missouri’s Gambling Amendments Spark Multi-Million Dollar Battle
In Missouri, significant funds are pouring into gambling-related ballot measures ahead of the election. Amendment 2, backed by DraftKings and FanDuel, has garnered $32 million in support to legalize sports betting, while Caesars Entertainment has invested $14 million to oppose it, claiming the proposal favors online platforms over local interests. Meanwhile, Amendment 5, which seeks to build a new casino at the Lake of the Ozarks, has raised over $9 million in support, with proponents highlighting educational benefits. Both measures frame their arguments around potential education funding, but skeptics question the financial benefits for the state.
