Kentucky A.G. Suggests Sports Betting Solution To The State’s Massive Pension Fund Deficit
State will need between $39 billion and $70 billion over the next 30 years to pay pensions…and it dos not presently have that kind of money
Faced with a massive state pension fund deficit, Kentucky Attorney General Andrew Beshear has recommended to state lawmakers that they carefully consider a controlled expansion of gambling within state borders.
Financial experts have predicted that the state will need between $39 billion and $70 billion over the coming 30 years to pay the pensions of state employees.
In Kentucky at present only limited horserace pari-mutuel betting is permitted, and the AG observes that Kentucky residents are taking their money (an estimated billion dollars a year) to other states in order to gamble, depriving the Kentucky government of potential tax revenues.
In his recommendation, Beshear suggests: “The solution is not to cut legally promised benefits, but to create a new and dedicated stream of revenue solely for pensions that does not raise any Kentuckian’s taxes.
“The answer is simple – expanded gaming, including casino, fantasy sports, and sports gaming, as well as preparing for the eventual legalization of online poker.”
Limited new legislation is ready to be discussed in the state legislature early next year in the form of Representative Dennis Keene’s bill, BR15, which calls for the legalisation of intrastate sports betting under the supervision of the Kentucky Lottery Corporation (see previous InfoPowa report).
Draftkings Launches New Jersey Online Casino
Augments leading role in the state for sports betting
Enhancing its dominant position in New Jersey sports betting, DraftKings launched an online casino in the state on Monday, branded DraftKings Casino and integrated with the sportsbook via the app.
The app is currently available in Android format, with the introduction of an iOS version imminent.
At opening only online blackjack was available, but plans are active for further additions, according to the company; whether that will include online poker is at present unknown.
The casino operates via the partnership licence DraftKings has secured with Resorts Atlantic City.
Whether the launch of the DraftKings casino will spur rival Paddy Power Betfair Fanduel Sportsbook to follow suit is open to speculation; Paddy Power already operates the IGT-GAN-powered Betfair NJ online casino and the two could be combined, as suggested by Fanduel president Kip Levin earlier this year (see previous InfoPowa report).
In the first four months of reported revenue from legalised sports betting in New Jersey, DraftKings and BetStars NJ have delivered $23,738,695 to Resorts Atlantic in revenue.
Thescore To Launch Mobile Sportsbook In New Jersey
Through licensing partnership with Monmouth Park Racetrack operator
North American media company theScore, Inc. plans to launch online and mobile sports betting in New Jersey through a multi-year licensing partnership with Monmouth Park Racetrack operator, Darby Development LLC and the New Jersey Thoroughbred Horsemen’s Association (NJTHA).
Subject to receiving all required approvals and licenses from the State of New Jersey Division of Gaming Enforcement (DGE) and the New Jersey Racing Commission (NJRC), theScore intends rolling out its offer around the middle of 2019.
John Levy, Founder and CEO of theScore:
“Sports betting has long been part of our company DNA in how we’ve delivered content to fans. Providing the ability to actually bet on games is the natural next phase for theScore.
“With the rapid growth of mobile and in-game wagering, we are perfectly positioned to deliver a unique and amazing sports betting experience. Our large and engaged app audience spans every single U.S. state and highly indexes with sports betting enthusiasts. We can’t wait to bring a sports betting product to market and capitalize on this exciting opportunity in New Jersey and other regulated states.”
The agreement between Darby, the NJTHA and Score Digital Sports Ventures Inc. provides that Score will be the operator of a branded sportsbook pursuant to one of the sports wagering licenses conferred upon the NJTHA by the DGE. Darby will be entitled to a certain percentage of the revenue derived from Score’s operation of the sportsbook, subject to certain annual minimum guaranteed amounts as well as certain upfront fees and renewal fees.
The initial term of the deal is five years, with the option for two successive five-year extensions included in the deal.
Score will utilise Bet.Works (U.S.) LLC’s proprietary sports betting technology to power theScore’s online and mobile sports betting platforms. In addition, Bet.Works will be the exclusive supplier of sportsbook and casino technology to theScore in the United States and also provide certain operational services to theScore to facilitate its sports betting operations.
David Wang, Founder and CEO of Bet.Works, said, “We are extremely excited about working with theScore. They have a huge audience and one of the most comprehensive sports apps on the market, providing the connective tissue between hardcore sports fans and the teams they love. We are confident the Bet.Works team can help theScore to the forefront of mobile sports betting in New Jersey and beyond.”
Fanduel Expands Partnership With NBA
To include sportsbetting
Daily fantasy sports operator FanDuel has secured an expansion to its partnership with the National Basketball Association (NBA) to include sports betting along with fantasy sports.
FanDuel is now an Authorized Gaming Operator of the NBA, in addition to continuing as the Official Daily Fantasy Partner of the NBA and the WNBA.
FanDuel will gain access to official NBA betting data, along with league marks and logos, across FanDuel’s sports betting offerings.
“The core of our terrific partnership with FanDuel has been focused on innovation around the fan experience, and we are excited to extend it to include sports betting,” said Scott Kaufman-Ross, Head of Fantasy & Gaming, NBA.
“Together, we have broken new ground in the fantasy world on both the NBA and WNBA, and now with the use of our official NBA betting data, will continue to collaborate on new ways to engage our passionate fans.”
Washington DC Council Approves Sports Betting (Update)
Measure now awaits only Mayor Bowser’s signature
After months of hearings and debate, the Washington DC city-state is about to become the next US sports betting jurisdiction following an 11 vs. 2 positive vote for legalisation under the “Sports Wagering Lottery Amendment Act of 2018” Tuesday,
The bill now needs only Mayor Muriel Bowser’s signature to enter law, with an early 2019 implementation date planned.
The bill creates two classes of sports gambling licenses, one for bars and restaurants and another for the four active, major sports venues in the District: Nationals Park, Capital One Arena, Audi Field and the Entertainment and Sports Arena in Ward 8. RFK Stadium was excluded from the list because it has no professional tenants and there are prohibitions against gambling on federal land.
Revenue that the District sees from sports betting will be dedicated to funding the city’s “Birth to Three” early childhood development program and the Neighborhood Safety and Engagement Fund, a Council spokesman revealed.
Draftking’s New West Virginia Move
Mobile sports betting launch follows launch earlier this week of company’s New Jersey online casino
Just a day after launching its online casino in New Jersey (see previous InfoPowa report), DraftKings has announced another new initiative as it prepares to offer mobile and online sportsbetting in the state of West Virginia.
The venture is in partnership with Penn National Gaming’s Hollywood Casino at Charles Town Races in West Virginia, and is conditional on regulatory approvals.
Matt Kalish, CEO at DraftKings, expressed confidence in his company’s ability to provide WV punters with an efficient, safe and quality service which augments the betting services already offered by PNG Hollywood in collaboration with William Hill US. West Virginia gaming regulators have not yet approved any operator’s mobile betting product.
New U.S. Federal Sportsbetting Bill Emerges
Proposes U.S. Justice Department set minimum standards
A new bipartisan U.S. Federal sports betting bill emerged Wednesday.
The Federal bill authored by New York Democrat Senator Charles Schumer and soon-to-retire Republican Senator Orrin Hatch of Utah would have the regulation of sportsbetting fall under minimum standards set by the U.S. Justice Department.
Other provisions in the bill include:
- Utilisation of Federal sports betting taxes to fund problem gambling.
- The establishment of a nationwide self-exclusion list.
- Betting on the Olympics and college sports would be permitted, but amateur sports betting banned.
Sports wagering operators would be required to use data provided or licensed by the leagues and a National Sports Wagering Clearinghouse would be established to disseminate sports wagering data and suspicious transaction reports among operators, state regulators, sports organisations and federal and state law enforcement.
“I knew that Congress had an obligation to ensure that the integrity of the games we love was never compromised,” Schumer said of the Sports Wagering Market Integrity Act of 2018. “That is why I believe the time is now to establish a strong national integrity standard for sports betting that will protect consumers and the games themselves from corruption”.
“The legislation we’ve introduced today is the culmination of eight months of high-level meetings, discussions, and negotiations, and will serve as a placeholder for the next Congress, should they decide to continue working to address these issues,” Hatch added.
The bill has reportedly received the support of the NFL, ESPN reports. Jocelyn Moore, executive vice president of the NFL, in a letter to the senators, said: “Without continued federal guidance and oversight, we are very concerned that sports leagues and state governments alone will not be able to fully protect the integrity of sporting contests and guard against the harms Congress has long recognized as being associated with sports betting.”
The MLB also weighed in saying: “Legalized sports betting is rapidly spreading across the country, creating a clear need for a set of consistent, nationwide integrity standards to protect the sports that millions of Americans love.”
Nevada, New Jersey, Delaware, West Virginia, Mississippi, Pennsylvania and Rhode Island have already legalised sports betting, while Washington awaits Congressional approval.
Other states Kentucky, Ohio, Virginia, Missouri and Tennessee have reportedly pre-filed bills for early 2019.
“No bet is ever a guaranteed win, but it’s a smart bet that I will strongly advocate for this bill to move forward and that Congress will vote to pass federal legislation very soon,” Schumer concluded.
September Sports Betting Glitches Lead To Penalties For Two New Jersey Casino Operators
DGE fines Caesars Entertainment and Golden Nugget
The New Jersey Division of Gaming Enforcement has released details of two minor offline sports betting glitches in September (the legalised sports betting market opened in June) which led to the imposition of fines on New Jersey licensees Caesars Entertainment and Golden Nugget.
Both issues involved the illegal accepting of bets on New Jersey college football games, one was a complaint filed in November and the other – at Caesars – saw the operator acknowledging the error, for which it paid a fine of $2,000.
In a separate ruling, Golden Nugget was similarly found to have accepted 10 bets from unknown individuals on several New Jersey college football games in September. The filing claims that Golden Nugget cancelled the illegal wagers once they came to light, but was unable to process refunds as it could not locate the punters. The company was required to pay the $390 is winnings due to the gamblers as a fine.
When New Jersey passed its sports betting legislation in June, it prohibited sportsbooks from accepting wagers on college sporting events involving Garden State-based colleges such as Rutgers, Princeton and Seton Hall universities, along with any college games played inside New Jersey.
A.G.A. Again Rejects Us Federal Law Involvement In Sports Betting (Update)
Trade body for US land casino companies is cautions against “unnecessary” federal involvement
The American Gaming Association (AGA) has been quick to push back against the “Sports Wagering Market Integrity Act of 2018,” introduced by Senate Minority Leader Chuck Schumer and Senator Orrin Hatch in the US Congress this week (see previous InfoPowa report), with spokesperson Sarah Slane making the following strong observations:
“This bill is the epitome of a solution in search of a problem, representing an unprecedented and inappropriate expansion of federal involvement in the gaming industry, which is currently one of the most strictly regulated in the country.
“Across the country, nearly 4,000 dedicated public servants already regulate all forms of gaming, including sports wagering, with more than $500 million committed to ensuring the integrity of commercial casinos’ operations and $822 million spent on regulation of tribal gaming in 2015 alone.
“These state and tribal regulators have decades of experience effectively overseeing gaming operations within their jurisdictions.
“Additional areas this bill seeks to address – including the mandatory use of official league data and the creation of a national sports wagering clearinghouse – can, and should, be decided by marketplace negotiations between private businesses and cooperative agreements among jurisdictions. In the mere six months since the U.S. Supreme Court paved the way for legal, regulated sports betting, significant developments on both of these fronts have already occurred without any federal involvement.
“While federal regulation of sports betting will continue to be a non-starter for the gaming industry, we appreciate the sponsors’ recognition that more must be done to curb illegal sports betting operations, which continue to pose the biggest impediment to the success of a legal market that will benefit and protect consumers, sports leagues and casino operators alike.”