SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Topics 7/17/24:
- WNBA Secures $2.2 Billion Media Rights Deal
- Brazil Mandates AML Rules for Betting Operators Amid License Applications
- Fanatics Betting Fined $15,000 for Prohibited College Wager in Massachusetts
- Charges Dropped Against Patriots’ Kayshon Boutte for Underage Gambling
- Southern Ute Tribe Sues Colorado Over Tribal Gaming Rights
- FSU Athletics Secures 10-Year Multimedia Partnership with Legends
WNBA Secures $2.2 Billion Media Rights Deal
The WNBA is set to receive approximately $2.2 billion over the next 11 years in new media rights deals with ESPN, NBC, and Amazon, averaging $200 million annually with potential for additional earnings. These agreements, negotiated alongside the NBA’s recent $75 billion media rights contracts, reflect a significant increase from the WNBA’s current $50 million annual deals. The league plans to sell two additional rights packages, potentially bringing in another $60 million annually. This surge in media spending underscores the growing interest in women’s sports, with built-in provisions for renegotiation to ensure the deals reflect the league’s growth.
Brazil Mandates AML Rules for Betting Operators Amid License Applications
Brazil’s Ministry of Finance has issued a new ordinance mandating anti-money laundering (AML) responsibilities for betting operators, requiring compliance by the end of this year. Currently, only Superbet and Betano have applied for licenses under the upcoming regulatory framework, with a deadline approaching next month. The ordinance, based on international guidelines, mandates risk assessment policies for customer registration and requires operators to report suspicious transactions to Brazil’s financial intelligence unit. Despite delays in the regulatory process, operators must secure licenses by December 2024 or face penalties, with expectations that more applications will follow once final rules are clarified.
Fanatics Betting Fined $15,000 for Prohibited College Wager in Massachusetts
The Massachusetts Gaming Commission (MGC) has fined Fanatics Betting and Gaming $15,000 for accepting a prohibited wager on a Boston College men’s basketball game, violating state regulations that forbid betting on in-state college teams. The fine, approved unanimously in a 4-0 vote, comes after Fanatics canceled the wager before the game started, though it was part of a larger parlay that ultimately lost. Fanatics’ past compliance issues, including a previous fine in May 2023 for a similar infraction involving Boston College football, influenced the penalty. This incident mirrors broader challenges in regulating sports betting, with ongoing discussions about NCAA rules and state laws affecting college sports betting across the country.
Charges Dropped Against Patriots’ Kayshon Boutte for Underage Gambling
Louisiana has dropped underage gambling and computer fraud charges against Kayshon Boutte, the Patriots wide receiver, who was arrested earlier this year in Baton Rouge for allegedly placing illegal sports bets while at LSU. Investigators found Boutte used an alias to bypass age restrictions, placing over 8,900 wagers including bets on NCAA football games, some involving LSU. Despite the charges being dropped, Boutte’s NFL status remains pending league review, with the Patriots monitoring the situation as he competes for a roster spot amidst recent draft selections in his position.
Southern Ute Tribe Sues Colorado Over Tribal Gaming Rights
The Southern Ute Indian Tribe in Colorado has filed a lawsuit in the U.S. District Court for the District of Colorado, challenging the state government’s efforts to regulate tribal gaming under state law. The tribe claims that the state is disregarding its exclusive rights to manage its gaming operations as outlined in a 1993 compact under the Indian Regulatory Act. Despite attempts to educate state officials, the tribe felt compelled to take legal action due to what it perceives as the state’s improper analysis of the compact and efforts to extend state regulation for financial gain. The lawsuit names Governor Jared Polis and Colorado Division of Gaming Director Chris Schroder as defendants, alleging that the state is motivated by the potential tax revenue from state-regulated sports betting, which does not apply to tribal gaming. The tribe seeks a court order to ensure its gaming operations comply with federal law and to prevent further bad faith negotiations by the state. Tribal Chairman Melvin J. Baker emphasized that litigation was a last resort after years of trying to resolve the issue amicably.
FSU Athletics Secures 10-Year Multimedia Partnership with Legends
Florida State University Athletics has announced a new 10-year multimedia rights partnership with Legends, a global premium experiences company, aimed at enhancing the university’s multimedia rights and maximizing commercial platforms. This agreement extends their existing relationship, with Legends already supporting premium seating and hospitality services for the $260 million renovation of Doak Campbell Stadium. Mike Behan, President of Legends College, highlighted FSU’s forward-thinking approach to revenue generation in the evolving collegiate landscape. Legends, known for its expertise in revenue generation and premium experiences, will work closely with FSU Athletics to improve broadcasting, licensing, and sponsorship opportunities. This partnership will see the formation of Florida State Global Partnerships and an integrated staff dedicated to driving success. Legends’ college business includes similar partnerships with the University of Notre Dame, the University of Miami, and Georgia Tech, providing comprehensive services across various facets of sports and entertainment.
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