SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Click here to read our latest blog post: The Power Of Pressure
Topics 8/7/24:
- NY Bill Extends Gambling Ad Restrictions to Online Betting
- Missouri Sports Betting Campaign Faces Slowdown and Legislative Hurdles
- Bookie Pleads Guilty in Illegal Gambling Case Tied to Ohtani’s Former Interpreter
- Massachusetts to Revisit Sports Betting Limits with Public Meeting
- Bet365 Fined $519,323 by New Jersey for Odds Violations
- Brazil Sets New Regulations for Federal Online Gambling Market
- DraftKings to Surcharge Bettors, Rush Street Interactive Declines to Follow Suit
NY Bill Extends Gambling Ad Restrictions to Online Betting
New York Assemblyman Clyde Vanel has introduced Assembly Bill A10658 to extend existing advertising restrictions for retail gambling businesses to online sports betting, aiming to promote responsible gambling. The bill, referred to the Assembly’s Racing and Wagering Committee, requires online sports betting ads to include a problem gambling helpline number and prevents showing underage gambling. This move follows recent regulatory changes and lawsuits over allegedly misleading gambling advertisements, prompting many operators to already avoid terms like “risk-free” in promotions. While the bill is expected to pass without much controversy, other legislative actions related to the state’s gaming industry, such as the timeline for awarding downstate casino licenses, remain contentious.
Missouri Sports Betting Campaign Faces Slowdown and Legislative Hurdles
As the Missouri sports betting campaign awaits confirmation for the November ballot, the committee “Winning for Missouri Education” reported a quiet second quarter, with $70,384 in expenditures but no new contributions. The campaign’s funds, previously totaling $6.5 million from DraftKings and FanDuel, were used mainly for signature collection and debt repayment. The Missouri Secretary of State’s office is verifying 170,000 valid signatures from a total of 340,000 submitted. The ballot proposal seeks to establish in-person and online sports betting licenses, with a 10% tax rate, and has faced previous legislative challenges, including recent inaction in the House and a stalled proposal due to attempts to include video lottery terminal legalization. Polls suggest around 60% of Missourians support the measure.
Bookie Pleads Guilty in Illegal Gambling Case Tied to Ohtani’s Former Interpreter
Mathew Bowyer, an Orange County bookie who ran an illegal gambling operation for at least five years, has agreed to plead guilty to federal charges including operating an unlawful gambling business, money laundering, and filing a false tax return. His business, which had over 700 bettors and daily revenues exceeding $2,000, included high-profile clients like Ippei Mizuhara, former interpreter for Shohei Ohtani. Bowyer’s operation reportedly involved significant transactions with casino chips and cash. Mizuhara, who placed over 19,000 bets and owed Bowyer approximately $40 million, is also facing charges related to embezzling $17 million from Ohtani. Bowyer is set to face up to 10 years in prison and has agreed to cooperate with authorities.
Massachusetts to Revisit Sports Betting Limits with Public Meeting
Massachusetts regulators announced plans to schedule a future public meeting to further discuss sports betting limits after a recent roundtable saw a lack of participation from active operators, except for Bally Bet. The Massachusetts Gaming Commission (MGC) aims to include input from bettors and responsible gambling advocates in the conversation about potential regulations, which may require sportsbooks to report quarterly on banned bettors and the reasons for those bans. Operators had initially avoided the discussion due to the complexity of the topic and the presence of bettor representatives. The MGC is focusing on transparency and fairness in betting limits, with Commissioner Nakisha Skinner seeking detailed case studies from operators on bettor limitations. The upcoming meeting will feature operators first, followed by bettors and advocates, with a focus on ensuring a civil and informative discussion.
Bet365 Fined $519,323 by New Jersey for Odds Violations
The New Jersey Division of Gaming Enforcement has ordered sports betting operator bet365 to pay $519,323.32 to bettors for winnings from December 2020 to November 2022, after the operator adjusted odds without regulatory approval. The DGE criticized bet365 for multiple violations and warned that any future infractions would result in further disciplinary action.
Brazil Sets New Regulations for Federal Online Gambling Market
The Secretariat of Prizes and Betting (SPA) in Brazil has finalized the technical framework for launching a federal online gambling market, known as ‘Bets,’ with new rules and guidelines submitted to the government. The ordinance includes comprehensive measures for responsible gambling, such as promoting healthy gambling practices, enforcing self-exclusion rights, and ensuring transparent marketing. Operators must adhere to strict advertising standards, protect personal data, and comply with anti-money laundering regulations. Advertising targeting minors and promoting gambling as a financial solution is prohibited, with severe penalties for non-compliance. The SPA has set a launch date of January 1, 2025, for the new regulations, with immediate enforcement and substantial fines for violations.
DraftKings to Surcharge Bettors, Rush Street Interactive Declines to Follow Suit
Last week, DraftKings announced it would impose a surcharge on winnings in Pennsylvania, New York, Illinois, and Vermont to offset high state taxes, a move that sparked controversy. In contrast, Rush Street Interactive (RSI) stated it would not follow this strategy, emphasizing customer satisfaction and prioritizing player needs. RSI CEO Richard Schwartz described the decision as straightforward, reflecting the company’s commitment to its customers. Currently, DraftKings is the only major operator implementing such a surcharge, with other companies like BetMGM, Caesars, and BetRivers not planning to adopt similar measures. Meanwhile, BetRivers has seen improved market share in Pennsylvania, and RSI remains focused on maintaining its strong position without imposing additional costs on its bettors.
Click here to read our latest blog post: The Power of Pressure
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