SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 10/9/24:
- Brazil’s President Threatens Ban on Online Sports Betting Over Addiction Concerns
- New York Codifies Sports Betting Ad Rules
- Michigan Gaming Control Board Targets Illegal Sportsbook Operations
- Tribes Sue Colorado Officials Over Online Sports Betting Access
- BetMGM Faces Compliance Issues Over Prohibited Bets in Massachusetts
- ESPN Welcomes Shams Charania as Senior NBA Insider
Brazil’s President Threatens Ban on Online Sports Betting Over Addiction Concerns
Brazilian President Luiz Inácio Lula da Silva is considering a ban on online sports betting if current regulations fail to address the growing addiction among bettors. Sports betting, legalized in Brazil in 2018, has surged in popularity, with concerns rising that it is consuming household incomes and leading to financial hardship, particularly for low-income families receiving social security through programs like Bolsa Familia. In August alone, over 3 billion reais were spent on bets by Bolsa Familia recipients. While Brazil’s Secretariat of Prizes and Bets has introduced new regulations, including prohibiting credit card usage for betting, Lula emphasized that if these measures do not curb addiction, he will not hesitate to ban betting altogether. Despite this, Lula acknowledged that even with restrictions, illegal gambling activities have persisted, referencing the long-standing practice of “jogo do bicho” in Brazil.
New York Codifies Sports Betting Ad Rules
New York has officially codified its sports betting advertising rules into state law after Governor Kathy Hochul signed Senate Bill S1550 and Assembly Bill A1118. These regulations require all NY sports betting advertisements to include the state’s problem gambling hotline number, solidifying practices already followed by sportsbooks. The New York State Gaming Commission emphasized the importance of responsible gaming, and the new law strengthens their commitment to protecting bettors. Regulators will continue to monitor ad compliance, ensuring legibility of problem gambling messages, while other states like Ohio and Massachusetts have also implemented strict advertising rules. The state’s gambling addiction hotline has seen a steady increase in contacts, highlighting the growing need for education and support as betting opportunities expand. Since the launch of online sports betting in New York, the state has collected over $2.2 billion in tax revenue, with funds directed towards problem gambling programs, youth sports, and education.
Michigan Gaming Control Board Targets Illegal Sportsbook Operations
The Michigan Gaming Control Board (MGCB) has issued cease-and-desist notices to Ace23 and its management, Ace Per Head, for operating an illegal sportsbook and casino service in violation of the state’s Lawful Internet Act. Ace23, which falsely claims to be part of the Ace Gaming Network and licensed in Canada and Costa Rica, allows “agents” to run bookmaking operations while charging fees for player management. The MGCB emphasizes its commitment to maintaining the integrity of legal gaming and protecting consumers from illicit operations, urging residents to report any suspected illegal gambling activities. This week, the MGCB also sent a cease-and-desist letter to Papaya Gaming for similar illegal gambling practices, requiring both companies to stop their operations in Michigan within 14 days.
Tribes Sue Colorado Officials Over Online Sports Betting Access
Tribal and state authorities in Colorado are embroiled in a legal dispute over online gambling, as the Mountain Ute Tribe has joined the Southern Ute Indian Tribe in a lawsuit against Governor Jared Polis and Colorado Division of Gaming Director Christopher Schroder. The tribes allege that state authorities are obstructing their access to online sports betting, violating a 1995 Tribal Compact that granted them the right to self-regulate gaming. Since the legalization of sports betting in Colorado in 2020, the state has maintained that tribes can only operate online sportsbooks if they are geo-restricted to reservation land, a requirement not mentioned in the original compact. The tribes argue that they should be allowed to operate statewide and have accused the Colorado Division of Gaming of intimidating vendors and content providers to hinder their operations. They cite a recent U.S. Supreme Court ruling in Florida that legitimized tribal online sports betting, arguing that their case is similarly valid. The tribes contend that the state’s actions are driven by a desire for tax revenue from their online gaming activities, which they believe is a misguided interpretation of the compact.
BetMGM Faces Compliance Issues Over Prohibited Bets in Massachusetts
Gaming Labs International has identified several compliance issues within BetMGM’s operations in Massachusetts, revealing that the operator accepted prohibited prop bets on college football and basketball games, as well as improper wagers on Belarusian sports leagues and unsanctioned Glory Kickboxing events. This audit follows previous concerns raised by the Massachusetts Gaming Commission (MGC), which found that BetMGM had taken over 15,000 illegal prop bets on college football players, amounting to more than $200,000. In response, BetMGM initiated a review of its operations with Gaming Labs International, leading to the current findings. An adjudicatory hearing will be held to discuss these compliance issues, and while the MGC has yet to take action, BetMGM could face fines and other penalties. As the third-largest sportsbook in Massachusetts, BetMGM reported a gross gaming revenue of $7.7 million in the second quarter of 2024.
ESPN Welcomes Shams Charania as Senior NBA Insider
ESPN has appointed Shams Charania as its new Senior NBA Insider following the retirement of Adrian Wojnarowski, who announced his departure from journalism on September 18 after a 37-year career, including seven years at ESPN. Charania, previously with Stadium and The Athletic, expressed his excitement about joining ESPN, emphasizing his eagerness to collaborate with the network’s talented team and serve a global sports audience. Both reporters have long been competitors in breaking NBA news, and with Wojnarowski now serving as the general manager for the St. Bonaventure Bonnies men’s basketball team, Charania steps into this prestigious role. Despite earlier negotiations, Charania’s hiring was seen as highly likely, especially after ESPN’s Pat McAfee advocated for his appointment. The announcement comes amid significant changes within ESPN, including layoffs and a recent rights deal with the NBA, although it remains unclear if further adjustments to the company’s structure will follow Wojnarowski’s exit.
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