Category Archives: Federal Policy

Congressional attempts to redefine Tribal Gambling to allow Florida Gambling Compact Underway

Casino Watch Focus has reported on the ongoing efforts to pass a legal gambling compact in Florida with the Seminole Tribe, however, the new mobile sports betting provision has sparked opposition and now formal lawsuits to stop such action. Federal law allows for tribal gambling, but there are limitations and the current regulatory language and legal precedent are fairly clear that tribal gambling must be on tribal land, making online or mobile gambling outside of the legal purview if the gambling in question is not legal in the state where mobile/internet gamblers could be located.  The Florida Seminole compact is facing two current lawsuits and is under review by the Federal Government, but two Congressional lawmakers are taking action to quickly change federal tribal gambling regulation to allow the Seminole Compact to circumvent the lawsuits and the Florida constitution.  An online source reports:

Two congressmen have filed legislation that would seek to help more tribal casinos implement online gaming. US Rep. Lou Correa (D-Calif.) issued a statement into the Congressional Record  Thursday to introduce HR 4308 

“This bill would clarify that, for purposes of tribal government gaming, the location of the wager occurs at the location of the server, unless a state and Indian tribe otherwise agree,” Correa said in his remarks.

“Making this clarification will keep intact the current system of tribal gaming and eliminate any frivolous litigation.”

The bill announcement occurred one day before a federal lawsuit was filed in Florida. That lawsuit seeks to stop the amended tribal gaming compact that would give the Seminole Tribe exclusive statewide mobile sports betting rights in that state.

It’s unclear how successful this blatant attempt to circumvent pending litigation and the Florida constitution will be given the time frame, but this isn’t the first time online-type tribal federal legislation has been filed.  However, those attempts have all failed.  Those attempts were more broad in scope, but still couldn’t receive the support needed.  Time will tell if this avenue impacts the current course of the Seminole compact.  

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IRS Issues new Federal Tax Requirements for Fantasy Sports impacting FanDuel and DraftKings beyond the economics of the tax revenue

Casino Watch Focus has reported on the many ongoing issues with one of the newest gambling fads, daily fantasy sports (DFS) betting.  After many years of legislators realizing how exactly DFS is actually gambling, many took efforts to ban them.  Then, the Supreme Court legalized sports betting, opening the door for states to legalize DFS as they saw fit. Now, the IRS has published its guidelines for the tax liability companies like FanDuel and Draftkings face as a result of their gambling business.  Yahoo Finance reports:

he IRS, in a July 23 internal memo made public on Aug. 7, issued new guidance that amounts to a major shot across the bow at daily fantasy sports (DFS) operators DraftKings and FanDuel.

The memo, which does not name those companies, concludes that DFS contest entry fees count as wagers, and thus fall under the existing excise tax on sports betting. The tax is 0.25% of the amount of a wager, or for DFS companies, a contest entry fee. In 2018, as an example, the DFS industry brought in $3.2 billion in fees  (that’s “handle,” not revenue), which would have meant $8 million in IRS excise taxes—significant for an industry that only generated $335 million in revenue that year.

The implications of such regulation actually extend beyond the simple tax revenue that companies owe.  The money owed will add up sure, but it’s the fact that paying the fees means the industry is stipulating that they are, in fact, gambling operations.  Even though it’s rather clear they are, they have long fought this distinction.  Their worry here is that acknowledgement in the tax code to being a gambling business will open them up to other gambling regulations that they would rather avoid clearly.  Yahoo Finance explains:

The companies will surely fight the IRS decision in court, a scenario that will reunite the two business rivals that worked together through 2015 and 2016 as they fought various state attorneys general to argue that their contests are “games of skill” rather than chance.

The companies won’t challenge the IRS merely because they want to avoid paying the taxes, but also because they have to challenge it on a reputation basis: agreeing to pay the taxes could amount to a concession that they do accept unauthorized wagers, which could open up the companies to additional legal penalties.

Back in 2015, as ESPN reported a former assistant U.S. attorney sent the IRS a letter about his belief that DFS companies “are clearly engaged in betting or wagering for purposes of the wagering excise tax.” If the IRS prevails, it would cost the two companies tens of millions of dollars—especially if a tax court decides the decision applies retroactively.

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As states like Florida end Greyhound Racing, a new Federal Bill has been filed

Casino Watch Focus has reported on the ongoing situation in Florida regarding greyhound racing and the most recent ban of live races by Florida voters.  Several states have made similar efforts to end an industry that many view as problematic in the area of animal treatment and rights and unnecessary as a gambling device.  Calls have come for a more uniform, federal solution, and the first step in such a journey is now underway.  As an online source reports:

U.S. Rep. Tony Cardenas, D-Calif., introduced House Resolution 7826 on July 29. The bill, also called the Greyhound Protection Act, would amend the Wire Act to prohibit gambling on commercial greyhound races. The bill would also prohibit gambling on open-field coursing where greyhounds and sighthounds are judged on their ability to chase down hares.

“Greyhound racing is cruel and must end,” Cardenas said in a statement. “My bill allows for a sensible wind-down of an already-declining industry that will ultimately outlaw greyhound racing. As a longtime animal welfare advocate, I am committed to always speaking up for the voiceless.”

U.S. Rep. Carenas takes the position that the industry is on its way out naturally, so he wants to establish a method for phasing the industry out in a way that is not only advantageous for the animals, but those in the industry as well.  The online source continues:

“Greyhound racing will soon end in the United States, and this bill allows for a managed phase-out of the activity to enable planning to provide homes for the dogs and certainty for the owners, workers, and breeders in the industry,” said Wayne Pacelle, president of Animal Wellness Action. “Greyhound racing is dying, and it’s best to manage the shutdown of the industry to allow for a soft landing for the people and the animals involved.”

GREY2K noted that greyhound racing is quickly losing the race for relevance in the 21st century. Gulf Greyhound Park, the last greyhound track in Texas, shut down last month. The Birmingham Race Course, Alabama’s last remaining track, closed in April. Southland Casino Racing in Arkansas, a Delaware North-owned property, announced last October that greyhound racing would be phased out by 2022.

In 2018, an amendment to the Florida Constitution was passed ending greyhound racing by the end of 2019, shutting down 11 racetracks in the state. The amendment was notable because Florida was the first state to legalize greyhound racing in 1931. 

“Momentum is building for a national phase out of greyhound racing,” said Carey Theil, executive director of GREY2K. “Since the end of the legislative session dog racing has ended in two more states, and West Virginia will soon be the last state to sanction the activity. According to state records, more than 9,000 greyhound injuries have been reported at Mardi Gras and Wheeling since 2008, including 3,254 dogs that suffered broken bones and 420 greyhounds that died. Greyhounds also  endure lives of confinement, and some dogs are trained by being given small animals to tear apart.”

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New Federal Legislation to Regulate Predatory Gambling-esque Loot Boxes in Video Games Announced by Mo Sen. Hawley

Casino Watch Focus has reported on the ongoing developments and many efforts by regulatory officials to bring awareness to a new form of gambling aimed at kids and video game players. Loot Boxes are a new gambling type mechanic that has the player pay money to open a mystery box in hopes of winning loot to help them in the video games they are playing. In some cases those items carry real value that can be sold, effectively making them video game slot machines aimed at kids. In other cases, loot boxes are implemented to play on the exact same psychology exhibited when people outright gamble, and regulators and studies agree. A lot of international efforts have been taken, but domestically, the reactions have been mostly to encourage the industry to fairly self regulate and to call for investigations into this gambling-esque video game mechanic that is largely targeting children. However, new federal legislation has now been announced by Missouri Senator Josh Hawley. NBC News Online reports: 

Senator Josh Hawley, R-Mo., is introducing legislation that seeks to ban exploitative video game industry practices that target children like loot boxes and pay-to-win, he announced on Wednesday.

“Social media and video games prey on user addiction, siphoning our kids’ attention from the real world and extracting profits from fostering compulsive habits. No matter this business model’s advantages to the tech industry, one thing is clear: there is no excuse for exploiting children through such practices,” Sen. Hawley said.

“When a game is designed for kids, game developers shouldn’t be allowed to monetize addiction. And when kids play games designed for adults, they should be walled off from compulsive microtransactions. Game developers who knowingly exploit children should face legal consequences.”

There are many strategies for regulating microtransactions and loot boxes. Some places have banned them outright, others have looked at making sure the items cant be sold for cash, thus not being gambling, but a transaction and others have focused on the intent of the loot box or simply the age of those making these purchases. Sen Hawley’s approach is a bit of an amalgam with the emphasis on the age of the player and the legislation utilizes a unique lens, The Children’s Online Privacy Protection Act. An online source explains: 

Called “The Protecting Children from Abusive Games Act,” the bill would specifically seek to protect minors by focusing on games either targeted at, or played by, consumers under the age of 18. Determining what games are targeted at minors would apparently be based upon a number of factors, including the game’s subject matter, visual content, and other indicators similar to those used to determine the applicability of the Children’s Online Privacy Protection Act (COPPA).

For games that meet the bill’s criteria, the legislation would prohibit “several forms of manipulative design.” In particular, the announcement identifies that the legislation would prohibit loot boxes, defined as “microtransactions offering randomized or partially randomized rewards to players.” Further, it would outlaw “pay-to-win” game designs, including both (1) attempting to induce players to spend money to quickly advance through game content that is otherwise available for no additional cost; and (2) manipulating the balance in competitive multiplayer games to give players who purchase additional microtransactions a competitive advantage over other players who do not pay the additional fees.

The proposed legislation would be enforced by the FTC through its authority to curb unfair and deceptive trade practices. In addition, the proposed legislation would empower state attorneys general to file lawsuits against game makers to enforce the act. 

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DOJ Seeks to get State Online Lottery Lawsuit Dropped

Casino Watch Focus has reported on the Department of Justice’s reversal of the Wire Act and that decision’s impact on online gambling. Many said lawsuits would be the deciding fact as to whether or not they could reverse the out of place Obama Administration’s reinterpretation of the wire act, which lead to the massive expansion of online gambling. One area of concern for states has been the impact on state lotteries, specifically where those state offer online access to their lotteries. The DOJ recently extended the deadline as they wanted to more closely examine the full range of its ruling. The DOJ is now seeking a motion to dismiss a lawsuit brought by New Hampshire claiming they don’t have standing to sue yet and that the state hasn’t proven that the ruling would even impact them. The Associated Press explains: 

The U.S. Justice Department says in a federal court brief that the New Hampshire Lottery Commission has failed to demonstrate that it wouldn’t be immune from 1960s law enacted to crack down on the mob.

On Thursday, the Justice Department filed the brief in Concord, New Hampshire, in response to a judge’s order for it to clarify its interpretation of the Wire Act. States fear losing at least $220 million annually in lottery profits if the Wire Act is determined to apply to all forms of gambling that crosses state lines.

The department also affirmed any early promise to not prosecute state lotteries or their vendors while it continues to review whether the Wire Act applies to lotteries.

The concern goes beyond the state of New Hampshire. Several states offer online access to their lotteries and some lotteries extent to multiple states. Some believe the intent of the DOJ isn’t to stop lotteries, as Powerball and Mega Millions are too engrained as a societal norm, but the actual transactions might very well fit the original 1960 Wire Act. An online source explains: 

The states are anxiously waiting on a clarification from the Justice Department about its opinion that, if strictly interpreted, would outlaw lottery tickets sold online and prohibit all lottery-related activities that use the internet. Legal experts say Powerball and Mega Millions are at risk if the opinion is read to the letter, which would cost the states billions. 

Seven states now sell lottery tickets online and others offer residents internet-based lottery subscription services.

When state lotteries use the internet to transmit data for online ticket sales, the network signal can cross state lines, and games that are played in multiple state s, like Powerball and Mega Millions, transmit data to a central database out of state, according to the North American Association of State and Provincial Lotteries.

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UPDATE: Wire Act Changes delayed by DoJ until June 14

Casino Watch Focus has reported on the developing situation surrounding the Department of Justices’ decision to restore the interpretation to the plain language of the Wire Act to ban all online gambling. The Obama Administration went against this long standing interpretation and concluded the Wire Act was only refereeing to sports betting, meaning all other forms of online gambling were not banned by federal law. This opened the floodgates to numerous state lottery programs as well other online gambling activities such as online poker. Now that the Trump Administration has announced its intent to restore the Wire Act to it original intention, many have objected and others have threatened to join in legal action. As a result, the DoJ is extending the recommended enforcement deadline to allow time for some of the legal challenges to play out. An online source explains: 

The U.S. Department of Justice extended any implementation of the agency’s revised Federal Wire Act opinion until June 14, according to a memo from outgoing Deputy U.S. Attorney General Rod Rosenstein.

The memo to all U.S. Attorneys, assistant attorney generals and the director of the FBI was signed Thursday. The Justice Department originally delayed the implementation until April 15. “We have decided to the extend that window an additional 60 day (through June 14, 2019),” Rosenstein wrote. “Providing this extension of time is an internal exercise of prosecutorial discretion and does not create a safe harbor for violations of the Wire Act.”

The move allow a legal challenge to the opinion, brought by New Hampshire, to moved forward in federal court. Rosenstein issued a memorandum on the 90-day delay the day after the opinion was announced, giving “businesses that relied on the 2011 (Office of Legal Counsel) opinion time to bring their operations into compliance with federal law.” Rosenstein is leaving office this week. Some in the gaming industry quietly hope new U.S. Attorney General William Barr – a state’s rights advocate – will simply opt not to enforce the opinion, just as the department doesn’t opt to prosecute for simple possession of marijuana. 

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New Jersey Plans to Sue the DOJ over Online Gambling Ruling

Casino Watch Focus has reported on the ongoing saga of the DOJ’s handling of the Wire Act as it pertains to gambling over both the Obama and Trump Administration. Most recently, the DOJ announced they had gone back to the long standing interpretation of the wire act that makes all forms of online gambling, not just sports gambling as the Obama Administration claimed, are illegal. This has understandably prompted a reaction from those that have decided to promote gambling in the online space. One of the more vocal states in regard to sports and online gambling has been New Jersey and they plan to sue the DOJ if they don’t reverse their stance. An online source reports:

New Jersey Senate President Stephen Sweeney has asked the Department of Justice to rescind its new opinion on the Wire Act. And if the DOJ does not, Sweeney has indicated NJ will go to court.

Sweeney’s letter to Rosenstein followed up on his statement days after the OLC opinion was made public in which he called on Lesniak, an attorney who served in the New Jersey legislature for 40 years, to come out of retirement to help protect the online gambling and sports betting industries that he helped bring to the state.

Lesniak then wrote a letter to Sweeney outlining how New Jersey could fight the opinion, and Sweeney used some of that language verbatim in his letter to the deputy attorney general.

Lesniak, who reactivated his license to practice law in the state of New Jersey on Monday, tells Online Poker Report that he plans to wait 30 days for new *US Attorney General Bob Barr* to get up to speed on the issue before filing the complaint requested by Sweeney.

The odds seem slim that the DOJ will resend their ruling. They aren’t taking a radical stance and they are simply going back to the clear intent of Congress that stood for so many years before the Obama Administration opened the flood gates of gambling by reversing the original intent. They have also been hinting at his position change for a while, so it truly seems unlikely that they would reverse their position based on New Jersey’s position. Time will tell if they follow through, but it seems likely that they will file a motion in court. 

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Guest Article: DOJ opinion will help protect kids from dangers of online gambling

Casino Watch Focus has reported on the new Department of Justice ruling that reestablished online gambling to be illegal under the wire act. The need for this ruling existed because the long standing intend of the wire act was erroneously reinterpreted by the Obama Administration to only apply to sports betting. This opened the flood gates to all other forms of online gambling. John Kent, Law and Economics Professor at the University of Illinois and the Senior Editor of the United States International Gaming Report opined why this reversal will help protect kids in an article published by The Hill: 

Until 2011, this DOJ ban had been in place for 50 years via the DOJ’s use of former U.S. Attorney General Robert F. Kennedy’s Wire Act, 18 U.S.C. sec. 1084, which was initially passed to fight organized crime.

In concert with the recommendations of the 1999 U.S. National Gambling Impact Study Commission established by Congress, the DOJ’s use of the Wire Act protected the public — and particularly kids — from 24/7 online gambling, including gambling on video games.

However, on Dec. 23, 2011 via a 13-page memo, the DOJ’s Office of Legal Counsel (OLC) reversed its long-held interpretation of the Wire Act to allow online non-sports gambling.

This 2011 OLC opinion was immediately vilified by the national press as reflecting corrupt influences and conflicts of interest, as detailed by the editorial board of the Christian Science Monitor on Dec. 27, 2011.

During a congressional hearing on Sep. 27, House Judiciary Chairman Bob Goodlatte (R-Va.) again raised these bipartisan concerns, including OLC conflicts of interest. On Dec. 11, incoming Senate Judiciary Chairman Lindsey Graham (R-S.C.) signaled to Gambling Compliance that he thought that the 2011 OLC opinion was incorrect.

Showing a picture of a child on his wireless ipad, Newsweek’s front cover on Aug. 14, 2014 stated:
“How Washington Opened The Floodgates To Online Poker, Dealing Parents a Bad Hand.”

Subsequently, the severe social and economic consequences of online gambling were highlighted in congressional hearings on March 25, 2015, and most recently on Sep. 27 before the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations, chaired by Rep. James Sensenbrenner (R-Wis.).

The full article can be viewed HERE. 

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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.

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Online Gambling in Jeopardy in Wake of New Dep of Justice Ruling

Casino Watch Focus has reported on the impact of the Obama Administration’s reinterpretation of the long standing Wire Act. It very clearly made online gambling that crossed state lines illegal, but the Obama Administration said it only covers sports betting, thereby opening the floodgates to all forms of online gambling except sports betting. This understandably led to a lot of concerns and questions over the safeguarding of those with access to online casinos, poker rooms or lotteries. Casino Watch reported two years ago that the Trump Administration was heavily considering reversing that reinterpretation and restoring the Wire Act to its original congressional intent. The Associated Press is reporting that the Department of Justice has followed through: 

The 2011 opinion opened the door for cash-strapped states and their lotteries to bring online gambling to their residents, as long as it did not involve interstate sports betting.

Nevada, New Jersey and Delaware legalized online gambling after that opinion was issued, and the three states have agreements allowing poker players to compete online across the states. Pennsylvania became the fourth state to legalize online casino gambling in 2017.

Now, the Justice Department says the previous opinion misinterpreted the statute.

“Based upon the plain language of the statute, however, we reach a different result,” attorneys for the department wrote in the opinion dated Nov. 2. “While the Wire Act is not a model of artful drafting, we conclude that the words of the statute are sufficiently clear and that all but one of its prohibitions sweep beyond sports gambling.”

The Wire Act was enacted in 1961 to target the mob and its gambling activities.

The full scope of the impact of this decision by the Depart of Justice is still unknown and this story will continue to develop. It’s very possible that a sea of litigation will be opened up, but the Depart of Justice hasn’t fully explained how severely they plan to enforce this interpretation. The AP continues: 

Jennifer Roberts, associate director of the International Center for Gaming Regulation at the University of Nevada, Las Vegas, said the impact of the opinion rests on how strictly the Justice Department is going to enforce the new interpretation of the statute.

“Some could go really far and say even if you send a text message to a casino customer in another state and you are saying ‘Come play blackjack this weekend here’s a deal,’ arguably you can say that is information that assists in the placement of a wager,” she said. “I doubt it will go that far, but we will once again be subject to the interpretation.”

The new legal opinion will likely be challenged in court, an issue acknowledged by the department attorneys in their document.

Daniel Wallach, co-founding director of the University of New Hampshire School of Law Sports Wagering and Integrity Program, said the opinion could have “an immediate chilling effect” on the ability of states to conduct lotteries online.

“I think the most obviously impacted stakeholders are the lotteries that do internet sales, and that group is the most likely stakeholder to challenge this opinion in court.”

Advocacy group Coalition to Stop Internet Gambling and former U.S. Sen. Blanche Lincoln of Arkansas in a statement cheered the new opinion, characterizing the previous one as “problematic legally as it was morally” and calling the new one a “win for parents, children and other vulnerable populations.”

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Bipartisan Federal Sports Betting Regulations Introduced

Casino Watch Focus has reported on the ongoing battles to legalize sports betting outside of Las Vegas. Since the recent Supreme Court decision effectively allows individual states to pass sports betting legislation, many have called for a federal response to provide uniform and consistent guidelines. Now, a new bill has been brought forth and it’s a bipartisan effort. Forbes explains: 

Days before he is scheduled to retire, Orrin Hatch has a parting gift for the Senate. Hatch and Sen. Chuck Schumer introduced bipartisan legislation on Wednesday that would create uniform federal standards for the legalized sports betting market. The bill, the Sports Wagering Market Integrity Act of 2018, is being introduced less than eight months after the Supreme Court’s landmark decision in May that struck down a 26-year federal ban on sports gambling.

“This bill is the first step toward ensuring that sports betting is done right in the states that choose to legalize it. Just as importantly, it provides protections for states that choose not to go down that path,” Hatch said in a statement.

The proposed legislation includes a mandate that would require sports wagering operators to use data provided or licensed by sports organizations to determine the outcome of sports wagers through 2024. Upon the completion of the transition period, the proposed bill allows operators to use alternative forms of data if they can prove that it is sufficiently similar to the data provided by the leagues.

Each state has 18 months to come into compliance with the legislation before the bill takes effect. Hatch, a Utah Republican, was an original author of the Professional and Amateur Sports Protection Act, a 1992 federal law that prohibited sports betting.

This bill has garnered the support of the NFL and others as its viewed as having the necessary regulatory guidelines and enforcement tools to help regulate the industry as best as it can. Forbes continues: 

“The bipartisan legislation that Senator Hatch and I have introduced, follows the principles laid out in the federal framework that I released in August and will serve as solid foundation upon which we build the appropriate guardrails around the burgeoning sports betting industry,” Schumer said in a statement.

In the months since the Court rendered its decision, the NFL has advocated for the imposition of robust federal guidelines that could mitigate some of the societal risks posed by sports gambling. On Wednesday, NFL Executive Vice President Jocelyn Moore applauded the senators for establishing positions in the bill that “closely aligned,” with the core standards she articulated in testimony before Congress. Specifically, Moore appeared pleased with guidelines that could provide law enforcement with tools to penalize unscrupulous actors closely tied to the dark underbelly of gambling.

Not everyone supports the bill and others see it as a vehicle for expanding the Wire Act to involve all interstate betting, not just sports betting. The changing political landscape will also complicate the issue. Forbes wraps up by reporting: 

There were also reports on Wednesday that the Department of Justice is prepared to reverse a 2011 opinion from the Office of Legal Counsel on the Federal Wire Act. When the department issues the opinion, the government could find that the act pertains to all forms of online gambling, not just sports betting, according to Online Poker Report. In an opinion seven years ago, the office wrote that the act only applied to the latter.

The bipartisan bill from Hatch and Schumer, a New York Democrat, seeks to update the Wire Act to allow certain interstate wagers. The draft also proposes the creation of a new mechanism that could allow the Justice Department to target unlicensed, illegal offshore sports betting websites.

The timing of a vote still remains in question. Besides Hatch’s retirement, a leadership change in the House of Representatives could complicate matters.

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Supreme Court Betting Case Lawsuit Against NFL and other Sports Leagues Shot Down by Court

Casino Watch Focus has reported on the New Jersey Monmouth Park lawsuit against the sports leagues in the wake of the Supreme Court legalizing sports betting. For years New Jersey attempted to legalize sports gambling, and for years, the courts shot down all their efforts. In the states most recent attempt however, the managed to get their case before the Supreme Court and they emerged victorious. Most simply moved forward with sports legalization efforts, but New Jersey’s Monmouth part saw an opportunity to sue the sports league. Their claim was that the various leagues had blocked years of sports betting revenue. Unfortunately for Monmouth Park, a court rejected their claim. ESPN reports:

Late Friday, United States District Judge Michael A. Shipp denied a claim filed in May by the New Jersey Thoroughbred Horsemen’s Association (NJTHA) — a group associated with the Monmouth Park racetrack and casino — asking “for judgment on $3.4 million injunction bond plus interest and damages.”

The New Jersey-based group had filed the renewed claim against the NFL, NCAA, NBA, NHL and Major League Baseball within weeks of the Supreme Court’s May 14 decision that opened the door for states to authorize sports betting nationwide.

“The Court … finds NJTHA was not wrongfully enjoined,” wrote Judge Shipp in a just-released nine-page ruling obtained by ESPN. “The Court, accordingly, finds good cause exists to deny NJTHA damages under the injunction bond.”

With the courtroom win, the NFL, NCAA, NBA, NHL and Major League Baseball avoid a ruling that would have allowed other bookmakers to claw-back money allegedly lost during the time between when the five leagues sued to enforce the federal law banning single-game wagering outside of Nevada, and the date the Supreme Court declared the ban to be unconstitutional.

Monmouth Park and the NJTHA could potentially appeal Judge Shipp’s ruling in the coming weeks. The group had previously claimed “that the Leagues acted in bad faith by wrongfully blocking the NJTHA from operating a sports betting venue at Monmouth Park.” Neither current New Jersey Governor Phil Murphy nor former Governor Chris Christie were part of the case.

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Military Personnel to be Screened for Problem Gambling under new Trump Directive

Casino Watch Focus has reported on the concerns of gambling in the military. The Department of Defense actually operates gambling facilities where service personnel gamble on slot machines. A few years ago Sen. Elizabeth Warren pushed an amendment to study the issues of problem gambling saying, “If the military is going to operate gambling facilities that bring in tens of millions of dollars in revenue, it also needs to ensure there is adequate prevention, treatment, and financial counseling available for service members struggling with gambling addictions.” She explained that over 36,000 service members fit the definition of problem gamblers. Now the Trump Administration has passed an initiative to screen for problem gambling during service member’s medical examinations. An online source explains: 

Members of America’s armed forces will now have to undergo screening for gambling addiction thanks to a new provision contained within the *National Defence Authorisation Act* that was signed into law by *President Trump* this week.

Section 733 of the House Armed Services Committee Report 115-874 requires the Department of Defence (DoD) to incorporate medical screening questions specific to gambling disorder in the next annual periodic health assessment conducted by the Department as well as in the Health Related Behaviours Surveys of Active-Duty and reserve component service members.

NCPG executive director *Keith Whyte* said: “Previous DoD surveys have found active duty personnel are two to three times more likely to have gambling problems than civilians. Better detection of gambling problems improves overall health and reduces social costs. Undetected gambling addiction exacerbates substance use disorders, depression and suicidal behaviour.”

He added: “NCPG strongly believes military personnel need and deserve effective gambling addiction prevention, education, treatment, enforcement, research, responsible gaming and recovery services. With the provision requiring members of the Armed Forces to be screened for gambling addiction, championed by Senator Elizabeth Warren, we take a vital step to improving the lives of service members and their families.

 

 

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NFL Commissioner Roger Goodell Asks Federal Government for Sports Betting Oversight while States Fight for Their Right to Regulate

Casino Watch Focus has reported on the ongoing efforts to legalize sport betting. The Supreme Court ruled that the federal law that prevented nationwide sports betting was unconstitutional. As a result, states are now able to legalize this form of gambling. Naturally, the sports leagues are very concerned given their position has always been to oppose legalized sports betting due to worry of the integrity of the game. Now that federal law has been overturned however, the leagues are getting involved in a variety of ways. NFL Commissioner Roger Goodell is asking Congress to establish uniform policies based on four core principles. Yahoo sports provides Goodell’s statement:

As it was for my predecessors, there is no greater priority for me as the Commissioner of the National Football League than protecting the integrity of our sport. Our fans, our players and our coaches deserve to know that we are doing everything possible to ensure no improper influences affect how the game is played on the field. This week’s ruling by the Supreme Court has no effect on that unwavering commitment.

We have spent considerable time planning for the potential of broadly legalized sports gambling and are prepared to address these changes in a thoughtful and comprehensive way, including substantial education and compliance trainings for our clubs, players, employees and partners. These efforts include supporting commonsense legislation that protects our players, coaches and fans and maintains public confidence in our games. We are asking Congress to enact uniform standards for states that choose to legalize sports betting that include, at a minimum, four core principles:

1. There must be substantial consumer protections;
2. Sports leagues can protect our content and intellectual property from those who attempt to steal or misuse it;
3. Fans will have access to official, reliable league data; and
4. Law enforcement will have the resources, monitoring and enforcement tools necessary to protect our fans and penalize bad actors here at home and abroad.

At the same time Goodell and the leagues are looking after their interests, the states are also positioning themselves to get a cut of this new wave of gambling. Unfortunately for the states, it appears federal legislation is already in the works. An online source explains: 

State gambling regulators are fighting back against the major sports leagues’ assertion that US sports betting would be better regulated by the federal government than by individual states. A statement on Tuesday issued on behalf of four state regulators in Nevada, Michigan, Massachusetts and Louisiana by the International Center for Gaming Regulation at the University of Nevada, Las Vegas, concludes that “coordinated action among jurisdictions” — rather than federal regulation — will be the key to protecting sports integrity and battling the black market. Goodell called on Congress to “enact uniform standards” for states that opt to regulate. It doesn’t take a genius to work out the subtext: why lobby for your interests in dozens of states when you can save a lot of money by just lobbying Congress? US Senator Orrin Hatch (R-Utah) is known to have had talks with the NFL and is planning to introduce federal sports betting legislation which, when it surfaces, is likely to include the league’s “core principles.”

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Unsurprisingly, Casino Lobby Joins New Jersey in Attempt to Sway Supreme Court in favor of Legalized Sports Betting

Casino Watch Focus has reported on the many attempts by New Jersey to legally allow sports betting in their state, despite federal law that makes it illegal. Every attempt made has resulted in the courts shutting down the illegal sports gambling. The case will finally be resolved one way or another later this year when the Supreme Court will examine the issue. The list of opponents of this expanded sports betting is long and includes all the major sports and collegiate organizations such as the NFL, MLB, NBA, NHL and the NCAA. Not surprisingly, the casino lobby is coming to the side of New Jersey and they have submitted a brief to the Supreme Court. The Washington Examiner reports: 

The American Gaming Association filed a brief on Tuesday supporting Republican New Jersey Gov. Chris Christie in his upcoming Supreme Court fight with top U.S. athletic leagues over sports betting. Christie’s team argues that federal law banning sports betting violates states protections under the 10th Amendment. More than two decades ago, New Jersey failed to take advantage of a window in federal law to run sports gambling, but then decided to do so on its own in 2011.

The National Collegiate Athletic Association challenged the New Jersey law, along with the NBA, NFL, NHL, and Major League Baseball. The Supreme Court has yet to set a date for oral arguments this term in the sports gambling case, which will be closely watched as its outcome could change sports gambling rules throughout the country.

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