SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
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Topics 8/14/24:
- Missouri Sports Betting Referendum Certified for November Ballot
- Ontario Seeks Global Online Gaming Expansion
- California Signs New Tribal Gaming Agreements
- Crackdown on Illegal Gambling Operations in Connecticut and Mississippi
- Endeavor Markets OpenBet and IMG ARENA for Sale Amid $13B Deal
- Nevada Regulators Propose Easing Rules on Past-Posted Bets
- Congress Raises Antitrust Concerns Over Venu Sports Joint Venture
- Ireland’s Betting Reforms: Balancing Protection and Uncertainty
Missouri Sports Betting Referendum Certified for November Ballot
Missouri’s sports betting referendum is set to appear on the Nov. 5 General Election ballot after the Secretary of State’s Office certified the validity of approximately 340,000 petition signatures. The measure, backed by the group Winning for Missouri Education, seeks to amend the state constitution to legalize both online and in-person sports betting. The proposal includes a minimum betting age of 21, a $500,000 fee for online sports betting licenses, a $250,000 fee for retail licenses, and a 10% revenue tax directed towards education, administrative expenses, and a gambling addiction fund. The Missouri Gaming Commission would oversee the launch, required by Dec. 1, 2025, but opponents could still challenge the certification before the Aug. 27 deadline. Voters will have options for early voting starting Oct. 22, with Election Day procedures running from 6 a.m. to 7 p.m.
Ontario Seeks Global Online Gaming Expansion
Premier Doug Ford’s government is seeking a groundbreaking court ruling on whether Ontario’s regulated online gaming sites can legally allow residents to play with individuals outside Canada. The case, prompted by an order from Ford’s cabinet, centers on whether such cross-border gaming would remain lawful under the Criminal Code. Industry insiders suggest that a favorable ruling could significantly boost Ontario’s poker and daily fantasy sports markets by attracting more players to provincially regulated platforms. However, other provincial gaming agencies oppose the move, fearing it could encourage illegal online gambling in their regions. The outcome of this case could have major implications for Ontario’s gaming industry, which has already generated billions in wagers and hundreds of millions in provincial revenue since the launch of iGaming Ontario.
California Signs New Tribal Gaming Agreements
Governor Gavin Newsom of California has signed new gaming contracts with three Native American tribes, allowing the Timbisha Shoshone Tribe to operate Class III gaming activities, authorizing over 300 gaming devices for the Elem Indian Colony, and extending the current agreement with the Augustine Band of Cahuilla Indians. These agreements include financial contributions to state programs and strict regulatory standards. The new compacts come amid ongoing debates over legalizing sports betting in California, with tribal cooperation seen as crucial to any future efforts.
Crackdown on Illegal Gambling Operations in Connecticut and Mississippi
Authorities in Connecticut and Mississippi have recently intensified their crackdown on illegal gambling, leading to multiple arrests and the seizure of illegal operations. In Connecticut, police found seven illegal gambling machines, drugs, and fake firearms at Cocchia’s Liquor Store in Norwalk, resulting in charges against Felix Galinda-Castillo and Jose Gerado Fuentes-Lima. Similarly, in Mississippi, law enforcement uncovered an illegal gambling operation at AK Express in Grenada County, arresting Amy Watson and seizing one machine while destroying others. This heightened enforcement is part of a broader national effort, with Florida shutting down 11 illegal casinos and Michigan removing 167 gambling machines, underscoring the risks of unregulated gaming and the lack of consumer protection in these operations.
Endeavor Markets OpenBet and IMG ARENA for Sale Amid $13B Deal
Endeavor, preparing for a $13 billion go-private deal with Silver Lake, is actively marketing its Sports Data & Technology segment, including OpenBet and IMG ARENA, and has listed them as discontinued operations in its Q2 2024 financial statements. Despite not disclosing potential buyers or prices, Endeavor is seeking to sell OpenBet quickly, following its $1.2 billion acquisition from Scientific Games in 2021, which was later adjusted to $800 million. OpenBet, originally founded as Orbis Technology in 1996, has changed ownership several times over the years.
Nevada Regulators Propose Easing Rules on Past-Posted Bets
The Nevada Gaming Control Board (NGCB) has proposed relaxing rules for handling past-posted bets—wagers placed after the outcome of an event has been determined. The recommendation, set to be reviewed by the Nevada Gaming Commission on August 22, would remove the requirement for sportsbooks to seek state approval before canceling these bets. This change aims to reduce the NGCB’s workload and simplify reporting for sportsbooks. The board argues that since most bets are now placed online and the concept of past-posting no longer involves a personal relationship with the bookmaker, the reporting requirement is outdated. If approved, sportsbooks would still need to report canceled past-posted bets every 45 days but could manage cancellations without prior state consent.
Congress Raises Antitrust Concerns Over Venu Sports Joint Venture
Three U.S. Congress members—Senators Bernie Sanders and Elizabeth Warren and Representative Joaquin Castro—have voiced concerns to the Department of Justice about Venu Sports, a new joint venture between Warner Bros. Discovery, FOX, and ESPN. They argue that Venu Sports could stifle market competition and reduce consumer choice by controlling over 80% of syndicated U.S. sports and half of all national sports content. This joint venture could leverage extensive media rights and broadcast capabilities to dominate the market, potentially leading to higher subscription prices and unfair competition against other broadcasters and streaming services. FuboTV has also challenged the venture, citing similar antitrust concerns
Ireland’s Betting Reforms: Balancing Protection and Uncertainty
As Ireland considers implementing new betting regulations, there is growing curiosity about how these changes will affect regular gamblers. Currently, Ireland’s betting industry is largely self-regulated, but the rise of online gambling has prompted the government to propose stricter oversight, particularly to protect vulnerable individuals such as children and those prone to problem gambling. The proposed regulations would restrict advertising for betting sites, require individuals to opt in to receive such advertising, and limit incentives like welcome offers for new members. The situation in Ireland is often compared to New Jersey, where similar regulations were introduced in 2011. Although online gambling in New Jersey has surged, generating $2.4 billion, it has also led to a $180 million decline in economic activity due to the negative impact on other industries. While New Jersey’s experience raises concerns, Irish legislation focuses more on individual protection than economic impact, leaving the potential outcomes uncertain.
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