Congressional Committee Hearing On Sports Betting Concludes
Sub-committee chair lays out three possible courses for the future
Thursday’s House of Representatives’ Judiciary Committee’s Subcommittee on Crime, Terrorism, Homeland Security, and Investigations hearing on whether the US federal government should be involved in the emerging liberalised sports betting market took just 90 minutes to conclude, with anti-gambling spokespersons generally outnumbering the more rational presentations.
Much of the debate centred on whether regulation of sports gambling should be largely enforced by the federal government or left to individual states, and there seemed to be little doubt from Republican chairman Jim Sensenbrenner’s opening comments that he favours federal involvement.
Expert witnesses gave testimony under oath (and some of them were stretching credibility with their statements and opinions)
Representatives for sports data companies and bookmaking enterprises were among the hundred or so people in attendance, listening as Sensenbrenner laid out three potential future results of the hearing, saying:
“One option, of course, would be for Congress to re-enact a federal ban on sports gambling. Another possibility would be for Congress to defer to the states and allow them to legalize and regulate the sports gaming business. … And a third option would be for Congress to adopt uniform, minimum federal standards, which would guide the imposition of sports wagering across the nation, in states that desire to legalize the practice.”
Arch online gambling opponent, Republican politician and author of the Unlawful Internet Gambling Enforcement Act (UIGEA), Rep. Bob Goodlatte focused on the harm that gambling goes to society and families, and tried to portray himself as a respecter of states’ rights whilst at the same time declaring that modern technology was making it impossible to properly enforce regulation at state level.
He appeared to believe contrary to an overwhelming body of evidence and empirical experience that geo-location technology is not effective.
Goodlatte’s solution would be to “modernize” the Wire Act and properly enforce UIGEA, judging by his remarks.
The NFL’s veep for communications and public affairs, Jocelyn Moore, hewed to the now well-worn company line that the league should control all sports betting data, that federal involvement is necessary (despite Nevada successfully running sports betting at state level for decades without federal help) and a plea for the authority to control operator use of its intellectual property and betting integrity.
Moore used the word “integrity” 24 times in her seven-page written testimony. She urged Congress to limit legal gambling to those 21 and older, require operators to use official data from leagues and bar risky bets on in-game action.
Stop Predatory Gambling’s Les Bernal had little new to offer from his usual lengthy diatribe against gambling and the involvement of US states, and he was followed by the fact-based presentation of American Gaming Association VP for public affairs Sara Slane, who observed that by experience, state regulation and practise tribal groups and individual states have already demonstrated that they are full adapted to regulate and enforce compliance in the sports betting context, without the need for federal involvement.
Slane argued that there was “no need to overcomplicate or interfere with a system that is already working” and suggested that there was no requirement for federal involvement in sports data deals between leagues and operators, which should properly be the subject of negotiation between leagues and operators.
One of the more aggressive witnesses was Coalition to Stop Internet Gambling councillor, lawyer and former Nebraska AG Jon Bruning, although he leaned heavily on the standard misinformation touted by almost all CSIG speakers in the past, even to the rather theatrical brandishing of a cellphone as the “casino in your pocket”.
Bruning was critical of what he sees as a lack of enforcement on UIGEA and the Wire Act and touted for a return to the original pre-2011 Wire Act and its outdated and misinterpreted 1961 pre-internet provisions. He went a little off track with attacks on online gambling, which he claims is particularly vulnerable to organised crime, terrorism and money laundering – all staple CSIG contentions.
He also incorrectly characterised PokerStars as still a fugitive from US law that has been granted licensing by New Jersey, ignoring the huge DoJ settlements reached by the poker provider and the fact that the ownership has long changed.
Bruning was of the view that the strike down of PASPA notwithstanding, sports betting remains unconstitutional, saying:
“Even though the Supreme Court tossed the federal sports betting ban, online sports betting is still illegal. The Wire Act applies to all forms of gambling and even under DOJ’s current interpretation; the Wire Act applies to sports betting. This means sportsbooks wanting to hedge their risk by establishing a national pool, creating interstate compacts, or laying off bets across state lines – all would do so in violation of the Wire Act.”
The chair of the Nevada Gaming Control Board, Becky Harris, pointed out that Nevada has been dealing with legal wagering for decades without any problems…or federal involvement.
She cautioned that the imposition of overly ambitious federal regulations would hamper licensed operations from providing a fair, legal and sound alternative to offshore illegal operators, and predicted that the status quo prevailing currently will continue to enable sports betting to grow and evolve in a safe and effective industry.
“We’ve been in this business for decades and not had any problems,” Harris emphasised. “What we have here is a regulatory process specifically to monitor what happens on both sides of the counter. This is all we do, and we’re good at it.”
After a Q&A session which mainly served to show that sub -committee lawmakers do not have a full and adequate grasp of the sports betting or indeed gambling issues, little that was fresh and new had emerged and Sensenbrenner adjourned the hearing.
He made the point that the purpose of the exercise was to improve lawmakers’ information but managed to insert a further call for federal involvement by commenting that federal inaction at this point was the worst possible scenario, and that there is a need for federal lawmakers to initiate both short-term and more lasting “solutions”.
Forbes offered one of the best summaries of the hearing, which can be found here:
https://www.forbes.com/sites/mattrybaltowski/2018/09/27/house-subcommittee-hears-spirited-debate-on-role-of-federal-government-in-regulating-sports-gambling/
U.S. National Hockey League Could Reap A Bonanza From Sports Betting
Nielsen study says greater fan engagement and viewership could boost the NHL’s total annual revenue
The National Hockey League’s (NHL) annual revenue may increase by $216 million annually due to widely available, legal, regulated sports betting, according to a new Nielsen Sports study commissioned by the American Gaming Association (AGA).
The study analyses the revenue streams that legal sports betting could generate for the NHL: revenue as a result of spending from betting operators on advertising, data and sponsorship, and revenue generated as a result of increased consumption of the league’s media and products.
According to Nielsen Sports, greater fan engagement and viewership could boost the NHL’s total annual revenue from media rights, sponsorships, merchandise and ticket sales by 3.5 percent, producing $151 million in new revenue from increased consumption of the league’s products.
Legal sports betting could help the NHL generate an additional $65 million in revenue as a result of spending by betting operators and data providers. The study projects that gaming operators may spend $24 million on advertising, which will directly increase the league’s rights fees by the same amount. An additional $35 million in sponsorship revenue and $6 million in data is also projected for the league and its teams.
“Today’s announcement reaffirms that legal, regulated sports betting will create significant new revenue opportunities for sports leagues,” said Sara Slane, senior vice president of public affairs for the American Gaming Association. “Much like the NHL’s recent successful expansion into Las Vegas, legal sports betting will continue to expand across the country, bringing with it a $216 million opportunity for the league.”
To quantify the value of a legal sports betting market to the NHL, Nielsen Sports surveyed more than 1,000 adult sports fans – including NHL fans – and self-identified sports bettors nationwide to model how a national, legal sports betting market would affect the sports consumption habits of non-bettors, casual bettors and avid bettors, and how this change in consumption would translate to increased revenue.
Pennsylvania Issues First Two Sports Betting Licences
Parx Casino in Bucks County and Hollywood Casino in Dauphin County were approved at Wednesday morning’s Pennsylvania Gaming Control Board’s hearing
The US state of Pennsylvania has entered the US sports betting sector following the award by the Pennsylvania Gaming Control Board Wednesday of the state’s first two licenses, which were awarded to Parx Casino in Bucks County and Hollywood Casino in Dauphin County.
The certificates don’t take immediate effect, but both casinos expect to launch on-site sports betting later this fall according to PennLive.
Pennsylvania becomes the sixth US state to legalise and implement sports betting, with more licenses almost certainly in prospect.
Last month, Parx and Harrah’s Casino in Chester were approved for Internet-based gambling, although the Gaming Control Board at the time did not establish a date for the beginning of the “interactive gaming” at the casinos.
Land Casino Operator Delaware North Prepares To Enter Sports Betting Sector
Partnership agreement with retail and mobile sports wagering technology provider Miomni Gaming signed
US regional land casino group Delaware North has signalled its intentions to enter the retail and mobile US sports betting sector in several states by signing an exclusive partnership agreement with turnkey retail and mobile sports wagering services company Miomni Gaming.
Delaware executive Brian Hansberry said in a company statement Wednesday: “In working with Miomni, a recognized expert firm on the technology side, Delaware North is uniquely positioned to become a leader in the emerging sports wagering sector in the United States.”
The statement went on to explain that initial plans are to launch sportsbooks and online sports wagering at Delaware North’s two West Virginia casinos, Wheeling Island Hotel-Casino-Racetrack and Mardi Gras Casino and Resort.
West Virginia is the latest state to have legalised state-regulated sports betting after the Supreme Court overturned PASPA earlier this year (see previous InfoPowa reports).
The agreement makes Miomni the exclusive sportsbook platform and technology provider for Delaware North including in expansion plans to states which legalise sports betting now and in the future, and see further business opportunity and potential in B2B deals with other operators.
The Delaware North casino group is active in the states of Arizona, Florida, New York, Illinois, Ohio, West Virginia and Arkansas. It is a “hospitality conglomerate” with additional businesses, operations and assets in nearly 40 US states.
Miomni is no stranger to the gambling industry, and has worked with Caesars on a mobile sports betting app for use in Nevada, where it has held a technology supplier licence since 2014.
League’s Request For Integrity Fee Rebuffed In West Virginia
Despite state governor’s support, lawmakers reject league’s attempt to get a slice of the sports betting action
West Virginia regulators approved intrastate sports betting regulations Wednesday, simultaneously rejecting an attempt by national sports leagues to get a cut of the action through an “integrity fee” that was supported by state governor Jim Justice.
The West Virginia Lottery Commission rebuffed efforts by Major League Baseball, the National Basketball Association and the PGA Tour to carve out their own slice of the state’s sports betting revenue following the launch of the state’s legal wagering market in August.
The leagues had demanded an ‘integrity fee’ and the mandatory use by operators of league-supplied data (at a price).
Gov. Justice owns the state’s Greenbrier Resort, which hosts a PGA Tour event, local media writers were quick to point out.
Regulators were backed by members of the state Legislature, who vehemently opposed the leagues’ demands and refused to include them in the legislation, and this week the state’s casino operators threatened to sue if the state revised its emergency sports betting regulations to accommodate the leagues’ demands.
Justice recently appointed John Myers as the WV Lottery’s new director, and WV Metro News reported that Myers made a strong pitch for the leagues’ demands at the Lottery Commission’s meeting on Wednesday.
However, commissioners rejected all seven of the leagues’ proposed changes to the emergency betting rules, saying it was up to the operators if they wanted to negotiate deals with the leagues, but that it would not make such collaboration compulsory.