SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 11/6/24:
- Missouri Votes on Sports Betting Legalization for Education Funding
- KSA Enforces Stricter Rules on Gambling Sponsorship to Protect Minors
- Brazil Cracks Down on Unlicensed Betting Sites Ahead of Market Regulation
- Key Gambling Measures on State Ballots: Voters Weigh Casino Expansions and Sports Betting
- New York Leaders Address Gambling Risks Following Lancet Report
- Diamond Sports Partners with FanDuel to Launch FanDuel Sports Network
- ESPN BET Launches Account Linking
Missouri Votes on Sports Betting Legalization for Education Funding
Missouri’s potential to legalize sports betting hinges on voter approval of Amendment 2, a constitutional amendment on the ballot to allow online and retail sports wagering under the oversight of the Missouri Gaming Commission. If passed, the amendment would grant each sports team and casino in Missouri one retail and one online license, enabling the state to issue up to 19 retail and 21 online licenses. The initiative includes a 10% tax on revenues, with proceeds aimed at funding educational institutions in Missouri. Led by Missouri’s sports franchises like the St. Louis Cardinals and Kansas City Royals, supporters argue that legalized betting will prevent tax revenue from flowing to other states. Pro-betting supporters, including FanDuel and DraftKings, have heavily funded the campaign, raising over $42 million. Meanwhile, Caesars Entertainment opposes the amendment, investing $14 million against it due to concerns over the distribution of licenses. Legislative efforts for sports betting have repeatedly stalled in Missouri, largely due to opposition tied to the inclusion of video lottery terminals (VLTs), a sticking point that led sports franchises to push for this voter-driven amendment instead.
KSA Enforces Stricter Rules on Gambling Sponsorship to Protect Minors
The Dutch gambling authority, KSA, has reinforced its strict sponsorship rules, which bar gambling companies from sponsoring TV programs and events, allowing sports sponsorship only until July 2025 with safeguards to protect minors and vulnerable groups. Recent enforcement actions involved three cases of non-compliance, where operators inadvertently exposed their branding to vulnerable groups or failed to end sponsorship displays promptly. The KSA issued formal reminders, stressing that gambling companies must closely monitor third-party partnerships and take proactive measures to prevent such violations, warning that repeated offenses may lead to harsher penalties.
Brazil Cracks Down on Unlicensed Betting Sites Ahead of Market Regulation
Brazil’s Ministry of Finance has ordered Anatel, the National Telecommunications Agency, to block 1,443 unlicensed betting and iGaming platforms that missed the September 17 authorization deadline, marking a second wave of enforcement in its efforts to regulate the online betting industry. Issued on October 31, the Ministry’s directive tasks around 21,000 telecommunications providers across Brazil with gradually implementing these blocks. This follows an earlier list of 2,027 unauthorized sites flagged in October, while a growing list of 219 authorized operators is already active. Full regulation begins on January 1, allowing only licensed operators to serve Brazilian customers.
Key Gambling Measures on State Ballots: Voters Weigh Casino Expansions and Sports Betting
Voters across multiple states are facing significant gambling-related ballot measures. Virginia’s Petersburg voters are deciding on a $1.4 billion casino-resort proposal by The Cordish Companies, a project promising economic and tax revenue boosts despite a controversial selection process. Missouri voters are addressing sports betting legalization and an amendment to add a casino near the Lake of the Ozarks. The Missouri sports betting measure has received strong support from professional sports teams but remains uncertain due to closely divided polling. In Arkansas, Issue 2 could end a years-long dispute over a casino in Pope County by repealing the constitutional allowance for the Cherokee Nation’s project. Colorado’s Proposition JJ asks voters to permit the state to retain all sports-betting tax revenue above an initial cap to fund water conservation, while Chesapeake Beach, Maryland, revisits its stance on gaming expansion, with residents historically opposing it.
New York Leaders Address Gambling Risks Following Lancet Report
A recent report from the Lancet emphasizes the need for a public health approach to the rapidly growing gambling industry, highlighting its potential harms. In response, New York State gambling leaders convened at Del Lago Casino to discuss initiatives aimed at promoting responsible gambling and preventing problematic behavior. Robert Williams, Executive Director of the NYS Gaming Commission, acknowledged the challenges of balancing regulatory duties and the industry’s portrayal as harmless entertainment while noting that the Lancet report predicts nearly 450 million individuals could be impacted by online gambling, leading to global losses of around $700 billion by 2028. To address these issues, the state has launched various measures, including a self-exclusion program starting November 12, behavioral tracking, deposit limits, and enhanced treatment services for problem gamblers. Additionally, the Gaming Commission is proposing regulations for sports wagering operators to report data uniformly, which will aid in understanding the needs of those facing gambling challenges. Enhanced training for gaming employees to identify potential problem gamblers is also being implemented. The meeting underscored a collaborative effort between state agencies and local organizations to raise awareness and provide support for individuals struggling with gambling issues.
Diamond Sports Partners with FanDuel to Launch FanDuel Sports Network
Diamond Sports Group and FanDuel announced a significant long-term partnership, which includes renaming Diamond’s 16 regional sports networks (RSNs) as the FanDuel Sports Network and enhancing digital offerings. This collaboration allows for integrated media placements across live NBA, NHL, and MLB games, as well as a shared goal to create a unified direct-to-consumer app that will syndicate FanDuel’s programming. David Preschlack, CEO of Diamond, highlighted that the partnership aims to improve fan experiences and strengthen connections with local audiences, while FanDuel’s President, Mike Raffensperger, emphasized the opportunity to solidify the FanDuel brand among dedicated RSN viewers. The rebranding of the Bally Sports RSNs to FanDuel Sports Network took place on October 21, 2024, and additional collaborative elements will be revealed in the coming months. Financial terms of the agreement remain undisclosed, and fans can access local games through the FanDuel Sports Network website.
ESPN BET Launches Account Linking
PENN Entertainment and ESPN have launched account linking between ESPN BET and ESPN, enhancing the integration of media and betting experiences for users. This feature allows fans to easily track their bets—upcoming, live, and settled—within the ESPN app and on ESPN.com. Additionally, the linked accounts will enable personalized betting options and timely promotions tailored to users’ favorite sports, teams, players, and fantasy rosters. Users can access this functionality through prompts in the ESPN BET app or the settings in the latest versions of the ESPN BET or ESPN apps. PENN’s Chief Technology Officer, Aaron LaBerge, emphasized that this feature is a significant step towards creating a fully interconnected media and betting ecosystem, while Mike Morrison, VP of ESPN BET and ESPN Fantasy, highlighted that this integration offers a unique level of personalization in the betting space.
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