Category Archives: Fantasy Sports

Covid-19 Pandemic Expected to have Dangerously Impacted Super Bowl 54 Betting

Casino Watch Focus has reported on the significant amount of gambling on the Super Bowl each year, and the covid pandemic is expected to impact Super Bowl 54 the most yet. When Tom Brady and the Tampa Bay Buccaneers took on the Kansas City Chiefs in the Super Bowl, sports betting was legalized in more states than ever, and the unique situation of the pandemic saw an increase in sports betting in general.  So it might not be surprising to learn that even though ratings and viewership were down for this year’s Super Bowl, the amount of gambling was at an all time high.  NBC News reports:

Even as Super Bowl LV’s TV audience declined, the amount of money wagered on the game skyrocketed in some states — especially in New Jersey, where gamblers doubled their action, regulators said.

The lure of a game featuring Bucs quarterback Tom Brady, considered by many to be the greatest of all time, and his heir apparent, Chiefs signal caller Patrick Mahomes, drew many casual bettors, regulators said. “I believe people love great sports no matter of a pandemic,” said Wes Ehrecke, president and CEO of the Iowa Gaming Association. “This epic GOAT-baby GOAT matchup would have been hyped the same, either way,” referring to the acronym for “greatest of all time.”

Gamblers were able to make their first legal Super Bowl bets in Washington, D.C., Colorado, Illinois, Michigan, Montana, Tennessee and Virginia. Illinois books accepted a whopping $45.6 million in the state’s first Super Bowl wagers, the Gaming Board reported. Meanwhile, Colorado gamblers placed $31.2 million on Sunday’s game, according to the Department of Revenue.

Gambling of this magnitude is expected to prompt many gambling problems and will impact high-risk problem gamblers the most.  PBS Online explains:

Some 26 million people wagered almost $7 billion dollars on last year’s Super bowl, according to the American Gaming Association. That was a 15 percent increase from the previous year. This year’s figures are expected to go even higher. Zion Market Research predicts that sports betting will increase from $104 billion in 2018 to a whopping $155 million in 2024.

These kinds of escalating figures put high-risk problem gamblers in even greater peril, says Scott Anderson, the Ohio Department of Mental Health and Addiction Services Problem Gambling Treatment Coordinator. He works with the Ohio’s “Before You Bet” Campaign to attempt to identify and help problem gamblers. And, sports gamblers have been identified as one of the largest groups of addicted and potentially addicted gamblers. According to Ohio for Responsible Gambling, 24.4 percent of the at risk/problem gamblers are sports bettors.

Yet, Anderson says, that gambling and gambling situations are difficult to avoid. It is all around us from mobile phone day trading to state supported lotteries. Although problem gambling can be devastating to an individual’s personal, financial and professional life, it can sometimes be difficult to detect in its early stages. If someone is concerned about their gambling or the gambling of a friend or loved one, Anderson suggests that the person visit BeforeYouBet.org

Many think gambling on the Super Bowl is harmless fun, and for some, who do it legally, it could be that simple. However, the consequences for others can be extreme. A Fox News affiliate has reported that Super Bowl night is not only the biggest night for gamblers, but it also sees the most suicides as well. For those that don’t suffer the ultimate fate, they can still lose enough to cause irreparable harm to their finances and family. Fox Now online explains:

“Super Bowl is probably one of the biggest gambling days of the year,” said Gambling Addiction Counselor, Jim Harrison [a gambling counselor in Milwaukee.] He says the wagers placed on the Super Bowl are often not taken as seriously and can be seen as harmless and fun. “In reality it is betting, it is gambling,” said Harrison. Those compulsive gamblers see it as a day to make up for other sports losses this season.

Harrison says it’s not harmless at all for those with an addiction — betting is done with bookies and online and it could bring losses. “If it causes family problems, certainly financial problems,” said Harrison. “I’ve had clients who have literally lost over $300,000 gambling,” said Harrison. The Super Bowl can bring losses to those betting on it all, and it can be tempting to those dealing with gambling addiction.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


Covid Concerns in Florida are Driving Discussions of Legalized Mobile Sports Betting Via Tribal Gambling

Casino Watch Focus has reported on the various attempts at legalizing sports betting in Florida.  Most efforts have thus far failed, including attempts during the legislative session to open it at casinos.  Now that the coronavirus has shut down the economy and is keeping people indoors, the focus seems to have shifted to mobile sports betting.  An online source reports:  

The Seminole Tribe is currently in talks with state legislators to draft proposals on regulating mobile sports betting in the Sunshine State. The fallout from COVID-19 has devastated economic activity and led to widespread unemployment across Florida. In an attempt to make up the budget shortfalls, Florida legislators are eyeing out-of-the-box proposals such as regulated online betting activity.

The Seminole Tribe of Florida owns and operates the hugely successful Seminole Hard Rock Hotel & Casino. As lawmakers continue to work feverishly on crafting a budget for 2020/2021, unforeseen expenses and the shuttering of non-essential economic activity has ramped up financial pressures on state coffers. According to the New York Times, there are currently over 36,000+ cases of coronavirus in Florida, with 1,378+ deaths, and rising.

This push is viewed as a financial boon for the city looking for quick tax money and a financial windfall for the Seminole Tribe.  The estimates are in the hundreds of millions, but its still unclear if such gambling would actually be legal, given the amendment passed by Florida voters that requires a vote on new gambling expansion.  The online source continues: 

Nonetheless, it has widely been reported that the Seminole Tribe will be paying the $500 million for the first year and the $700 million every year thereafter to the state of Florida for exclusivity vis-a-vis online sports betting services.

Lawmakers hope that legislation permitting mobile sports betting can mitigate the effects of severe budget shortfalls that are currently being experienced. Back in 2018, Florida voters decided by a margin of 71%-29% that they will have the final say on any further gambling expansion a.k.a. /Amendment 3./

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


Could Florida Legalize Sports Betting in a New Tribal Gambling Agreement?

Casino Watch Focus has reported on the ongoing efforts to renew the compact between the state of Florida and the Seminole Tribe, who has rights to exclusively offer various gambling table games. Parts of the compact have expired and both parties have generally been acting in good faith to honor the conditions lines out prior to their expiration (a few legal challenges aside). Even thought the tribe isn’t legally obligated to still provide certain payments to the state while a new compact is being worked through, they have still continued those payments. There are some in the state that want to see sports betting legalized in Florida after the recent Supreme Court ruling and its been suggested that these negotiations could allow for such legalization. An online source explains: 

There is neither a bill nor any proposal, but there is some ray of hope for *Florida* sports betting to sneak into the state’s short legislative session. A priority of the legislature is negotiating a new gaming compact with the *Seminole tribe*. *Senate President Bill Galvano* tells /Legal Sports Report/ he thinks legal sports betting would be part of any agreement.

“It’s definitely part of the discussion because that opportunity exists and they are as interested in participating in sports betting as other entities here in the state of Florida,” Galvano said. “We’re not at a point where we have a product agreed upon and know who gets that product, but we’re having those initial discussions and I think it’s something the tribe will want if we resolve this.”

Galvano was the key legislative negotiator of the 2010 compact with the Seminole. He tasked *Sen. Wilton Simpson* to meet with Seminole representatives to pursue a new compact. “Right now, from the state’s standpoint and speaking on behalf of the Senate, what is paramount is to see where we are ultimately with the tribe going forward,” Galvano said. “If we are able to restabilize that relationship, which provides substantial revenue to our state budget, then the opportunity is there for exploring sports betting in the state of Florida.”

The issue of which side would control this gambling is a more complicated matter as new gambling expansion must now be approved by the Florida voters. That change was made as a result of a statewide voter initiative last Nov when the measure passed by an overwhelming majority. They go on to explain: 

Complicating matters even further is a constitutional amendment Florida voters passed last November taking away the legislature’s authority to authorize casino gambling expansions in the state. *Marc Dunbar*, a government relations and gaming attorney who calls the Seminole a client, told /LSR/ that the only way FL sports betting can be offered without a constitutional amendment is through the tribes or the lottery.

Galvano indicated that the legislature would still attempt to move forward with a sports betting bill if it makes sense within the compact negotiation. He added that he had lawyers review the situation who think a reasonable argument can be made that sports betting doesn’t count as *Class III* casino gambling under Amendment 3.

“If we get within the red zone on a deal, the governor would engage and we would occupy the role of ratifying the compact, expansion on sports betting and any other changes in the parimutuel sector to come from the legislature,” Galvano said. “If it were to happen, it’s going to be pretty close to the end of the session before we can get everything lined up.”

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


With Sports Betting Now Legal, Super Bowl Betting Brings Even More Risk and the NFL Attempts to See Prop Bets Banned

Casino Watch Focus has reported on the numerous gambling impacts expected around the Super Bowl. Each year the amount of gambling seem to increase and the expectations for Super Bowl LIII (53) between the Las Angeles Rams and the New England Patriots is no different. However, the recent Supreme Court decision that has legalized sports betting will seemingly exacerbate addiction problems and open the door for people who may have otherwise avoided the pitfalls. The executive director of the Council on Compulsive Gambling explains through an online source in New Jersey, the state that is effectively responsible for fighting for expanded sports betting :

“This year we’re particularly concerned as sports betting is now legal, and we know that more people, even those who didn’t traditionally gamble may gamble on the big game,” Neva Pryor, executive director of the Council on Compulsive Gambling of New Jersey, said.

She said an estimated $4.7 billion was bet illegally last year on the game, but with sports betting now permitted “we don’t really have any forecast — but I would imagine that’s going to be even more.”

She said for some, betting adds to the fun and excitement of the game. But for others it’s a destructive seduction that can ruin lives and families. “We’re concerned that people will overextend themselves or might possibly create a problem,” Pryor said.

Ease of access and the variety of gambling types around the Super Bowl are the primary drivers of this year’s concern. Executive Director Neva Pryor continues:

Pryor said added element of concern is all of the side bets that can be placed on a football game — including who scores first, who will make the first interception, the first fumble. People may bet “on the coin toss, on what they think the color of somebody’s hair will be, or whatever.”

She said people can easily bet online “so they can be sitting at home and placing a bet, they can be at the office and placing a bet, so there’s more opportunity and more ease of play.”

She said the ease of online gambling has definitely created new concerns.

“That’s why we have such a high rate of problem gamblers in the state, we have over a 6 percent ratio of people who possibly have a gambling problem in the state of New Jersey,” Pryor said. 

The NFL sees issues with Super Bowl betting and prop bets beyond the addiction concerns of Council on Compulsive Gambling. Their primary worry is that bets that focus on individual performances can leave the game open to game fixing scandals. As reported by one Fox News source, the NFL spoke to Congress in hopes of getting such bets banned: 

But if the National Football League had its way, bets on things like passing touchdowns for New England Patriots quarterback Tom Brady or rushing yards for Los Angeles Rams running back Todd Gurley would be restricted — or even outlawed as too risky and vulnerable to manipulation or cheating.

Proposition bets — also known as prop bets — are less popular during the regular season but gain steam during the Super Bowl each year as a way to bet on the outcome of more than one thing at a moment the sports world is intensely focused on a single game.

In testimony before a U.S. House of Representatives committee on Sept. 27, NFL Executive Vice President Jocelyn Moore asked Congress to let professional sports leagues and gambling regulators ban prop bets that involve the performance of individual athletes over the course of a game.

“Examples might range from the number of passing yards by a quarterback in a football game or the number of points or rebounds by a team during a quarter of a basketball game, to the number of ‘throw-ins’ in a soccer match, or even how many flags a referee might throw in a contest,” she testified. “These types of bets are significantly more susceptible to match-fixing efforts, and are therefore a source of concern to sports leagues, individual teams, and the athletes who compete.

“To address concerns regarding risky betting fixtures, we encourage Congress to allow professional and amateur sports organizations to identify which types of bets simply pose too significant a risk to the integrity of sports and to work with regulators not to authorize them,” she said.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

 


NFL Called out as Hypocritical with its First Official Casino Partnership

Casino Watch Focus has reported on the many dealings with the NFL as it relates to gambling. For the longest time, the NFL has opposed sports betting and cited integrity concerns among others. Even as the Supreme Court legalized sports gambling, the NFL has been involved in lobbying efforts to keep gambling heavily regulated. There has been a shift where the NFL is engaging in name based marketing deals that allow casinos to use the NFL Shield, but limit how gambling can be mentioned. The Action Network explains:

On Thursday, the NFL announced that it signed a sponsorship deal with Caesars Entertainment to be the league’s first ever official casino partner. It was received by some as a sign that the NFL was finally coming around to cashing in on sports gambling.

It is and it isn’t. Caesars is doing the deal because they can use the NFL logo while promoting their brand. But they can’t do much more than that.

This isn’t a sports betting deal, it includes no rights to marks on boards at Caesars sportsbooks — physical or virtual. It’s not even a gaming deal: Caesars isn’t getting into daily fantasy.

It’s a money deal: Sources say the deal is worth $25 million a year and that it doesn’t include any provision for sports gambling, meaning Caesars wouldn’t automatically get a gambling designation.

One sports analyst reviewed their deals in this new gambling space, and has called out he league as being hypocritical with the actions, especially as it relates to players. The Action Network continues:

The NFL is playing a precarious game, allowing teams to do deals with casinos, and even sportsbooks, as long as they don’t mention anything about betting.

The decision by the NFL to go so slowly into the gambling space is a baffling one, from an outsider’s perspective. The NFL’s sports-betting shift is going to be the most embarrassing, which means Roger Goodell will end up eating more crow than any of his counterparts.

Remember, this is the same league that opposed players *even being in a Vegas casino*. Nearly 100 players were barred from participating in a football convention in Vegas back in 2015 because it took place in a casino.

In fact, players /still/ can’t promote casino properties. And now the league is doing a deal to … promote a casino property. Talk about hypocrisy. “NFL signing casino deal, teams signing casino deals and NFL players are still not allowed to do any endorsements with casinos,” a current NFL player texted me after I tweeted about the deal Thursday morning. “So messed up.” 

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


Will Florida Amendment 3 Push the NFL’s Jaguars to London?

Casino Watch Focus has long reported on the many faces of sports betting. With a fairly recent Supreme Court decision that allows for sports betting, many states have expanded in many ways. Florida had yet to pass legislation to legalize sports betting, so everything from daily fantasy sports to full sports books, remains open in Florida. Recently, the NFL has started shifting advocacy to support sports gambling and individual teams will be able to set up sponsorships like the Dallas Cowboys have done with a casino in their market. The Miami Dolphins came out against Amendment 3 and now there is talk about the Jaguars being more open to moving to London to avoid the current lack of open sports betting options in Florida. The NESN sports network explains: 

The future of legalized sports betting in Florida looks bleak at best, and one prominent NFL reporter thinks that could significantly alter the league’s landscapes in years to come. Pro Football Talk’s Mike Florio on Wednesday morning wondered whether the new law makes it more likely Jaguars owner Shad Khan will ultimately move the team to London. “The passage of the new amendment that, as a practical matter, will make it much harder to adopt sports wagering (and in turn create revenue streams like in-game prop bets) could make a relocation to London even more attractive to Khan,” Florio wrote. 

Speculation about Khad moving the Jaguars to London has existed almost since Khad bought the team in 2011. Khan’s purchase of English soccer club Fulham in 2013 only fanned those flames, and there’s been increased chatter about a potential relocation in recent years. Sports betting is far more prominent in the English soccer world, with no shortage of English Premier League partnerships. What’s more is that in-game betting is also allowed, and fans can place those bets from inside the stadium. The latest developments in Florida not only ensure in-game wagering won’t be coming to the Sunshine State anytime soon. It will also make it harder for the state’s pro sports teams to partner with sportsbooks because, well, the sportsbooks aren’t coming to Florida.

There are a lot of variables to the level of profitability form gambling NFL teams will even see, not to mention all of the logistical issues with the NFL having a team in London in general. Its hard to imagine that the chance of side gambling profits, profits that barely exist in the league at the moment, would be enough to move a team. This will undoubtedly be a developing story, but the move to London has been a topic since 2011, so its unlikely Florida NFL fans have much to worry about right now. 

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

 


Despite Supreme Court Ruling to Legalize State Sports Gambling, Florida doesn’t Seem Likely to See Such Gambling Expansion this Soon

Casino Watch Focus has reported on the ongoing efforts by New Jersey to legalize sports betting, including the news that the Supreme Court may have just put forth the largest expansion of gambling policy ever by allowing all states to now legalize it. For months states have been gearing up for this possible scenario and the sports leagues have likewise been in communication with state legislatures to ensure they see a piece of the new gambling pie. However, Florida may be one of the few states that wont see an immediate rush to capitalize on this new gambling expansion frenzy. The Florida Times Union online explains: 

in Florida, two major obstacles — a ballot initiative and the need for a special legislative session — stand in the way of joining states such as Mississippi and Pennsylvania, which have cleared the decks to allow gamblers to bet on professional and collegiate sports teams as soon as the NFL season begins in the fall.

A proposed constitutional amendment on the November ballot will allow Florida voters to decide if they want to control decisions about gambling, something now largely left up to the Legislature. If Amendment 3 passes, voters statewide would have to sign off on future gambling expansions.

Sen. Bill Galvano, R-Bradenton, who has been a lead negotiator on gambling issues for several years, said Monday the high court ruling won’t have an immediate impact on Florida, where sports betting is illegal.

Galvano and his House counterpart, Jose Oliva, R-Miami Lakes, last month raised the possibility of a special session to address perpetually elusive gambling issues but abandoned the notion after Gov. Rick Scott secured a yearlong gambling deal with the Seminole Tribe. The agreement is focused on the tribe’s promise to continue making payments to the state in exchange for “exclusivity” over “banked” card games, such as blackjack. A special session in reaction to Monday’s court decision is unlikely, Galvano said.

John Sowinski, the chairman of Voters in Charge, a political committee behind the amendment, called the court ruling another reason to support the proposed constitutional amendment because the measure would give voters a say in gambling activities. “A lot of people in Florida would be relieved to know that, if we’re going to have sports gambling in this state, it’s going to happen by design of Florida voters, not by Tallahassee politicians and gambling lobbyists,” he said.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

 


UPDATE: Supreme Court Strikes down Federal Sports Betting Ban, Creates ‘Wild West’ for Sports Gambling and Potential Devastation for Problem Gamblers

Casino Watch Focus has reported on the ongoing efforts lead by New Jersey to reverse federal bans of sports betting. After many failed attempts, New Jersey has finally succeeded in opening the door for them to regulate sports gambling. This obviously opens the door for every state as well, and the ramifications will be serious. In an op-ed piece published by the Hill, John W. Kindt, a professor of business and legal policy in the Department of Business Administration at the University of Illinois’ Gies College of Business, who for 20 years has focused his specialty research on the societal, business and economic impacts of decriminalizing gambling activities, outlines how such a reversal of policy creates a Wild West: 

On Monday, the Supreme Court issued its decision in Murphy v. NCAA, a case brought by the State of New Jersey to overturn the 1992 Professional and Amateur Sports Protection Act (PASPA), which was sponsored, ironically enough, by former Sen. Bill Bradley (D-N.J.), a professional basketball legend, to protect the integrity of U.S. sports. Trying to legalize sports gambling, New Jersey lost twice in U.S. district court and twice in the Third Circuit U.S. Court of Appeals between 2012-2014. In a perplexing move, however, the Supreme Court accepted New Jersey’s appeal and heard the case on Dec. 4, despite the recommendation of the Office of the Solicitor General advising the court to reject New Jersey’s appeal.

Generally ignoring the practical economic and social effects of enabling unregulated “real time” sports gambling, for example by kids on cell phones, a divided court decided “to destroy PASPA rather than salvage the statute” complained Justice Ruth Bader Ginsburg in her dissent.

The majority decision focused almost exclusively on New Jersey’s myopic arguments invoking the “anti-commandeering” principle of a 1992 case New York v. United States, while ignoring the obvious interstate impacts and the well-established Commerce Clause empowering congressional action on interstate sports.

While appearing innocuous to the uninitiated, the Murphy case will quickly generate ubiquitous and unregulated “Wild West” sports gambling. It is academically well-documented that this type of gambling is poised to explode with local and strategic economic impacts negatively affecting the U.S. economy.

While unlikely, immediate congressional actions regulating the practical impacts of the Murphy case are necessary.

While the Supreme Court cited the U.S. Gambling Commission’s 1999 Final Report, the court missed the Final Report’s numerous recommendations against gambling in cyberspace — particularly sports gambling.

Sports gambling in real time on cell phones and computers was highlighted as an example of the “crack cocaine” for hooking college students, teens and kids into addicted gambling. The Supreme Court also missed a wide spectrum of negative economic and financial issues associated with widespread sports gambling.

The complete editorial can be read HEREAdditionally, its important to understand this move might be the single greatest expansion of gambling seen by a single court case. The ramification of such explosive legalized gambling cant be overstated. A Press Release by the National Council on Problem Gambling explains their position: 

“Today’s ruling by the Supreme Court is the largest potential expansion of gambling in our nation’s history now that an additional 49 states have the opportunity to legalize sports betting. NCPG believes the expansion of legalized sports gambling in the United States will likely increase gambling participation and gambling problems unless steps are taken to minimize harm,” says Marlene Warner, President of the NCPG Board of Directors.

NCPG’s wide-ranging and deep experience in these fields since 1972 allows the organization to provide a clear-eyed perspective on both the benefits and pitfalls of legalized gambling, and to find a middle way that addresses concerns on all sides. Revenues from legalized sports betting must be viewed in the context of social costs. Research has shown that current gambling activity generates over $115 billion in overall revenue to local, state and federal government, but also results in $6.5 billion in associated costs, including criminal justice and healthcare costs. These costs are often hidden and difficult to see. Approximately 2% of adults experience gambling problems, or approximately 5 million people. These social and economic impacts must not be ignored.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


Florida Bill Seeks to Legalize Daily Fantasy Sports, but Might Violate the Seminole Gambling Compact

Casino Watch Focus has reported on the various attempts at legalization of Daily Fantasy Sports DFS), especially in Florida, a state that has been heavily lobbied due to major DFS companies DraftKings and FanDuel physically residing there. Last January an attempt was made to officially legalize, but it never materialized. New efforts have surfaced and have now passed committee. Florida Politics reports:

A proposal to exempt fantasy sports from state gambling regulation cleared a Senate committee Thursday—but with one notable opponent.

“I don’t think the issues raised are clear,” said Sen. Dorothy Hukill, a Port Orange Republican and vice-chair of the *Regulated Industries Committee, which handles gambling policy.

Aside from Hukill’s ‘no’ vote, that committee otherwise moved the bill (SB 374) by *Dana Young, a Tampa Republican, on an 8-1 vote. Similar measures (SB 840 223) have been filed for the upcoming Legislative Session.

In the online games, players pick teams of real-life athletes and vie for cash and other prizes based on how those athletes do in actual games.

Asked to clarify her position after the meeting, Hukill said, “Is this a game of skill or not? I don’t think that’s clear, at least for now.”

The issue isn’t as simple as legislation clarifying if it’s a game of skill or change and gambling or simple recreation. There is also the issue of the major gambling compact between Florida and the Seminole Tribe. They have issued a letter that clearly outlines they view Fantasy Sports as gambling and in violation of the compact and they have threatened to withhold payments to the state if such gambling expansion is pushed through by the legislature. On online source explains:

In a Tuesday letter to the state officials, the Seminole Tribe made it clear that the regulation of sports contests is to violate the tribe’s exclusive rights and the Seminole is to stop making payments to the state. The letter was signed by the Tribe’s general counsel Jim Shore and addressed to Sen. Travis Hutson and Rep. Mike La Rosa. The letter points out that the bill is to reduce the Tribe’s exclusivity. Furthermore, it states that the tribe is ready to discuss the issue with the state representatives. According to the letter, the bill is to violate Part XII of the 2010 Gaming Compact between the State and Tribe.

At present, the state reaps more than $200 million per year for granting gambling exclusivity to the tribe. Supposing that the state to tax daily fantasy sports contests, the tribe threatened to cease payments to the state. Industry insiders believe that the tribe’s warnings may change the officials’ stance on the matter and the DFS regulation may hit the rail. This seems to be the likely scenario as Florida is eyeing DFS regulation since 2015. Two years later, the bill is pending a stamp by the local government. 

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

 


Billions in Illegal Gambling on Super Bowl comes with Serious Consequences for Many

Casino Watch Focus has reported on the significant amount of gambling on the Super Bowl each year, and each year the impact seems to grow. This year the amount of total gambling on the Super Bowl is estimated to be around $4.7 million. An online source breaks that number down:

Americans will bet $4.7 billion on Super Bowl 51 between the New England Patriots and the Atlanta Falcons, according to an estimate released Tuesday by the casino industry’s top lobbying group on Capitol Hill. That would 11 percent more than what was wagered on last year’s Super Bowl.

According to the American Gaming Association, only $132 million of the $4.7 billion will be done legally through Nevada’s casino industry. The 1992 Professional and Amateur Sports Protection Act banned traditional sports betting outside of the Silver State.

Many think gambling on the Super Bowl is harmless fun, and for some, who do it legally, it could be that simple. However, the consequences for others can be extreme.   A Fox News affiliate has reported that Super Bowl night is not only the biggest night for gamblers, but it also sees the most suicides as well.  For those that don’t suffer the ultimate fate, they can still lose enough to cause irreparable harm to their finances and family. Fox Now online explains: 

“Super Bowl is probably one of the biggest gambling days of the year,” said Gambling Addiction Counselor, Jim Harrison [a gambling counselor in Milwaukee.] He says the wagers placed on the Super Bowl are often not taken as seriously and can be seen as harmless and fun. “In reality it is betting, it is gambling,” said Harrison. Those compulsive gamblers see it as a day to make up for other sports losses this season.

Harrison says it’s not harmless at all for those with an addiction — betting is done with bookies and online and it could bring losses. “If it causes family problems, certainly financial problems,” said Harrison. “I’ve had clients who have literally lost over $300,000 gambling,” said Harrison. The Super Bowl can bring losses to those betting on it all, and it can be tempting to those dealing with gambling addition.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


Florida Legislator Attempts to Exempt Daily Fantasy Sports Industry from Gambling Regulations

Casino Watch Focus has reported on the ongoing path of newest gambling fad, daily fantasy sports (DFS). Many jurisdictions are viewing these daily contests as simple gambling given there isn’t the same skill level involved in playing with one drafted fantasy team over the course of a season and instead players pick a new team of players, most often with the ability to pick the exact same player, each day. Others have tried to pass legislation to call them games of skill and thus not gambling. Florida is a key jurisdiction given the major companies involved, DraftKings and FanDuel have corporate offices located in the state. Florida has sought to address the issue legislatively over the past two years, but with no true outcome. This session seems to be no different as a new Bill has been introduced that seeks to make DFS legal by exempting them from regulation. An online gambling site reports:

Florida state Rep. Jason Brodeur recently filed HB149, which would declare daily fantasy sports is a game of skill, not luck, thereby removing it from oversight by the Department of Business and Professional Regulation, which oversees parimutuels, poker, slots and other gambling.

Last year state Senator Joe Negron and state Reps. Matt Gaetz and Ritch Workman filed similar bills. The House Business & Professional Subcommittee passed Gaetz’s and Workman’s bill to allow and regulate DFS in Florida, but it died because lawmakers considered blackjack and fantasy sports to be gambling expansions.

Florida gaming lawyer Daniel Wallach pointed out, “In Florida it is illegal to bet or wager on both games of chance and contests of skill. So calling it a ‘contest of skill’ does not insulate the games under Florida law because wagering in those types of contests is also illegal. In my view, DFS would probably be considered ‘gambling’ under Florida’s broad test.” As a result, Wallach said, Brodeur’s bill is “a straight-up decriminalization measure that comes at a potentially heavy cost for consumers, with no regulatory oversight, and, even worse, no regulations unlike in other states.”

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


DraftKings Sued for $4 million for Non-Payment of Advertising Deal

Casino Watch Focus has reported on the many woes of the Daily Fantasy Sports (DFS) industry. They have come under fire for being sports gambling and various legislation has been passed on a state by state basis. Some have banned it, others have regulated it. They were scrutinized for insider-trading type scandals and hacking vulnerability. They have been exposed for their role in being used by the NFL to market to kids and the risk they put on corporations that allow fantasy sports in the workplace. Now one of the two major daily fantasy sports companies, DraftKings, is being sued for over $4 million for not paying their bills and backing out of contractual agreements. Forbes Online explains:

DraftKings has been sued in the U.S. District Court for the Southern District of New York, with the plaintiffs seeking no less than $4.16 million in damages. The stated damages include $575,000 in alleged unpaid invoices as well as benefits that DraftKings is claimed to have received from an agreement that DraftKings entered into.

On April 4, 2016, after four invoices were past due, the plaintiffs allegedly contacted Robins via text and Robins responded ensuring that payments would be made. That same day, DraftKings Chief Financial Officer Janet Holian asked the plaintiffs to stop producing the DraftKings-related programming. A week later, Holian said that DraftKings would not be making any further payments.

The plaintiffs claim that they are entitled to additional damages based on DraftKings’ promise that it would execute a contract reflecting the totality of the deal terms as well as the expenses that the plaintiffs incurred (well over $1 million, per the Complaint) due to DraftKings’ promises. Additionally, the plaintiffs allege that DraftKings was enriched at the plaintiffs’ expense. 

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Fantasy Football Costs Employers a Shocking $17 Billion and Puts Companies at Legal Risk

As America enters into another year of the National Football League, gambling is set to take center stage yet again. Casino Watch Focus has reported on the emergency of daily fantasy sports as the newest form of sports gambling. Some jurisdictions have appropriately labeled it gambling and either outlawed its practice or regulated it accordingly. Other states have yet to make a formal proclamation about this form of gambling. But as with other forms of sports gambling, like NCAA March Madness  or the Super Bowl, the impact from such gambling will be felt in the workplace at home. Fortune Magazine has reported on the staggering amount of money fantasy football will cost employers, the results are nothing short of shocking:

According to Chicago-based employment research firm Challenger, Gray & Christmas, the sheer number of fully-employed fantasy football freaks could cost U.S. employers close to a whopping $17 billion (with a “b”) in lost productivity. That total eclipses the amount of total revenue the NFL took in last year, which was a mere $13 billion or so.

These numbers are hard to crunch, acknowledges Challenger, which came to this sum using the estimated 57.4 million people in the U.S. and Canada (ground zero for the NFL fandom) who play fantasy football, according to the Fantasy Sports Trade Association. The FTSA also estimates that 67% of those players (38.5 million people), work full time. And using U.S. Bureau of Labor Statistics data, the company estimated those players earn roughly $25.69 per hour, on average.

If you assume that to be the case, each hour spent poring over matchups and obsessing over results costs employers in aggregate $898.1 million in lost or unproductive wages. And assuming each player spends an hour of work time each week fiddling with lineups every week of the regular season, the total would come to $16.8 billion. 

Not all of this lost productivity is without employee consent as some workplaces even allow office pools and fantasy football leagues in which even senior members of leadership participate. However, just because some companies are aware of such activities, it doesn’t lessen the legal consequences when the gambling is deemed illegal. The Miami Herald explains:

Office pools and fantasy leagues remain a great way to bring positivity and fun to the workplace. Used properly, fantasy leagues can be a valuable team-building exercise, similar to an office March Madness pool during the NCAA tournament. Employers must be cognizant of issues related to gambling and increased work distractions, however. By creating an office pool or fantasy league, employers must be aware that creating such a pool or league may inadvertently encourage employees to spend part of their work day focused on their fantasy teams rather than work-related activities.

Employers must always be mindful of the potential impact on productivity in the workplace and ensure that any office pools or fantasy leagues are not out of bounds of the law. In order to ensure that employers are operating within legal boundaries, they should consult with an employment attorney.

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Daily Fantasy Sports Face Security Issues from Hackers and Insider Trading Scandals

Casino Watch Focus has reported on the ongoing saga of America’s newest form of gambling, Daily Fantasy Sports (DFS). Many people participate when they see advertisements for DraftKings or FanDuel without realizing it could be an illegal form of gambling. Others may know, but assume the risk is low and play because it seems so prevalent. Few, however, consider the risks beyond its legality and assume it’s a safe environment to pay and collect money. Unfortunately, that is hardly the case. Casino Watch Focus has already reported on one insider type trading incident as a DraftKings employee wont $350K at its rival FanDuel’s site. As on employee of one site, they have access to betting trends and outcomes and can use the information unfairly when “competing” against others. Now, its appears another type case has manifested itself. Deadspin explains the details:

Stefon Diggs had a fantastic game last night , torching the Green Bay Packers and helping his team win in the first game at their new stadium. His nine catches and 182 yards with a touchdown also played a key role in securing Al Zeidenfeld first place in DraftKings’ biggest contest of the weekend, the NFL $5M Fantasy Football Millionaire. That’s a $1 million prize, even before his other Week 2 entries.

Zeidenfeld is also a regular DFS contributor to ESPN and, in his words, a “sponsored professional Daily Fantasy Sports player at DraftKings.com. On air personality and content provider for DraftKingsTV and Brand Ambassador/endorser.” It’s at least curious that the winner of DraftKings’ flagship contest is someone paid to give advice to his ostensible competitors, but a Draftkings contractor raking in a big prize is an unwelcome callback to last year’s controversies.

But even if such cases don’t seem like the norm and something players consider when playing these games, then surely the protection of their personal and financial information should be? Cybersecurity experts are warning of the large target such DFS communities pose. And the threat isn’t limited to hackers stealing financial information outright either, there are legitimate concerns or them manipulating the data used to determine winners as well. An online tech source explains:

A growing chorus of cybersecurity experts is warning that fantasy sports websites represent a prime target for hackers. The volume and sensitivity of data on these sites is significant. And many have failed to put expansive data protection measures into place.

The daily fantasy industry netted $290.7 million in revenue just in the US in 2015. DraftKings accounted for $174 million of that revenue and FanDuel for $106 million. It is predicted that growing competition in the market will push the total revenue for daily fantasy sports into the billions in the near future.

In addition to the money itself, these sites store the personal and financial data of million of users. These sites may not rank in the Top 10 of consumer-facing websites, but their appeal as targets for hackers is significant.

Theft is not the only concern. Experts have also warned that hackers could manipulate the data used to determine winners and losers to award legitimate prizes to fraudulent users. The explosion in traffic these sites face on the Sunday morning before most football games also puts them at risk of denial-of-service and zero day attacks.

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New York Fantasy Sports Legislation Might Be Subject to Lawsuits Seeking to Stop Expanded Sports Gambling

Casino Watch Focus has reported on the ongoing developments in the Daily Fantasy Sports (DFS) industry. These daily fantasy games are essentially taking the skill based game of fantasy sports that typically lasts and entire season and boiling it down to a daily gambling activity which lacks the same skill based approach as typical fantasy games. The industry was called out for being a very obvious form of illegal sports gambling at both the state and national level. Feeling the pressure, the industry has at temped to self regulate to have the appearance of safeguards for players and they have spend tons of time and money in lobbying efforts to legalize their gambling product. Each state has, however, chosen to regulate the industry in a different way, and some have defined DFS as games of skill, thus making it immune to gambling laws. One of the newest states to enter the debate is New York, and they may be facing lawsuits. The Buffalo News reports: 

A national anti-gambling group may sue to try to reverse a new law legalizing daily fantasy sports contests in New York State.

“We believe in improving the lives of New Yorkers, and part of that mission is to repeal the state’s predatory gambling policies, and litigation is part of that effort,” said Les Bernal, national director of the Washington, D.C.–based Stop Predatory Gambling.

Critics of the new law, signed by Gov. Andrew M. Cuomo two weeks ago, say the Legislature needed to go through a lengthy constitutional amendment process to legalize a new form of gambling. Instead, the bill’s sponsors relied on a statutory change that declared the fantasy sports contests to be “games of skill” instead of illegal games of chance.

The anti-gambling group Stop Predatory Gambling, isn’t the only organization that has an interest is stopping this form of gambling. There have been talks of local casino companies bringing suit. Additionally, the new legislation may very well violate the state’s exclusivity agreements with tribal groups in New York. Stop Predatory Gambling has been clear, however, that they wont partner with such groups and they have their own, more altruistic reasons for trying to protect the citizens of New York. The Buffalo News continues:

Where the money to fund the litigation by the national anti-gambling group would come from is not certain, but Bernal said his group would not partner, directly or indirectly, with any casino companies that also opposed the June legislation.

Bernal pointed to a May Siena College poll that found 45 percent of New Yorkers opposed daily fantasy sports and 37 percent supported it.

“There is no single act of New York State government that creates more inequality of opportunity than its sponsorship of predatory gambling,” Bernal said. “And now what state government is trying to do is force predatory gambling into every home and smart phone in the state as a result of a push by very powerful gambling interests.” 

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