Category Archives: Sports Betting

Florida Cruise Ship Industry turns to Sports Betting as land based Sports Betting Awaits its Fate.

Casino Watch Focus has reported on the various attempts to legalize sports betting in Florida following the landmark Supreme Court Decision that allowed sports betting outside of Las Vegas.  Nothing has passed in Florida, but sports betting bills are poised for the upcoming legislative session, including one bill that is mostly leverage to move forward a new Seminole gambling compact with the state.  Now adding to that pressure is the move by Florida’s cruise ship industry to allow sports betting in international waters.  A local Orlando new source explains:

With states now facing pandemic-impacted budgets, some are looking at expanding gambling as a way to make up the difference. Since 2018, when a federal statute restricting regulated sports betting was ruled unconstitutional, more than a quarter of all states have legalized sports betting in some fashion. Three bills have been filed in Florida to legalize sports wagering. Now cruise lines are looking at the same tool to help them recover from more than a year of no cruises.

Multiple casino games are also available via the Ocean Casino app developed via a partnership with gaming technology firm Miomni. The Ocean Casino app, part of the OCEAN Guest Experience Platform, will now include a sports wagering section.

Like other onboard gambling, it will only be available when in international waters, or, according to Princess, “wherever permitted by Law.” Seeking Alpha’s senior editor,Clark Schultz, believes that sports betting will spread to other cruise lines, including Norwegian and Royal Caribbean. All major cruise lines have onboard Wi-Fi making a move to mobile gaming easy.

It’s still too early to know if Florida Senate Bill 392, which aims to legalize sports wagering in the state, will pass. The legislative session begins March 2.

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


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


Florida Sports Gambling Legislation Leveraged to Push Seminole Gambling Compact

Casino Watch Focus has reported on the ongoing attempts to solidify a new Seminole Compact to govern over tribal gambling and exclusivity rights on various forms of gambling in Florida altogether.  The compact’s exclusivity clause expired a few years ago and a series of events have prevented a new deal.  There have been various stalls and subsequent attempts to bring everyone back to the negotiation table though, including a push last summer over sports gambling exclusivity in a new Compact.  Given the coronavirus pandemic, more people were at home, spending more time online, so mobile sports gambling became a carrot to negotiations.  Those efforts also stalled and questions over the legality of its expansion in light of the voter approved Amendment requiring voter approval for gambling expansion were left unanswered.  Now, a similar effort is being made to leverage exclusivity in sports betting to bring everyone back to the gambling table.  An online source explains:

Sen. Jeff Brandes, R-St. Petersburg, filed three bills Monday that would allow the state’s lottery department to issue licenses and oversee legal sports wagering in Florida with revenue dedicated to education beginning Oct. 1, 2021.

Brandes’ Senate Bill 392 authorizes the state’s Department of the Lottery to operate a sports wagering program and lays out the parameters of how it would operate. SB 394 imposes a 15-percent tax on “sums received from a sports pool” and SB 396 establishes $100,000 application and renewal fees for state-issued sports wagering licenses.

Brandes’ 2021 proposals are similar to the trio of bills he introduced in the waning days of the 2020 legislative session as lawmakers prepared to leave Tallahassee in March without a new gaming pact with the Seminoles. The bills are essentially a prod to spur urgency in talks between Florida and the Tribe and to stop leaving money on the table – some estimates top $700 million annually – when the state’s current year and next year budgets face unanticipated pandemic-induced shortfalls.

The Seminole gaming compact remains in negotiation with the Tribe objecting to the state’s taking control of sports wagering, especially since such an expansion could be outlawed under the November 2018 passage of Amendment 3, which requires any “expansion of gambling” be approved by at least 60 percent of voters in a ballot measure.

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


Regional Fox Sports Networks to be Rebranded and Potentially Push Online Sports Betting Right on the Television

Casino Watch Focus has reported on the ongoing progression of legalized sports betting after the Supreme Court ruled sports betting doesn’t violate the wire act.  In multiple states, this has translated to typical sports betting experiences with online companies such as FanDuel and DraftKings or other sports bookies for betting directly on sports. These interactions have always been at arms length and required would-be gamblers to seek out such opportunities.  It would appear, however, that for most major sports markets, the experience is about to change and sports gambling will be thrust into consumers’ homes.  The NY Post reports:

Sinclair Broadcast Group and casino operator Bally’s Corp. are teaming up to bet big on sports gambling, The Post has learned. The two companies just signed a deal for Sinclair to rename its 21 sports networks Bally Sports, source said. Bally’s, which owns Bally’s Atlantic City Hotel & Casino, will pay Sinclair $85 million over a 10-year period for the naming rights, giving it exclusive access to fans of 42 major teams, including the Arizona Diamondbacks, the Detroit Tigers, the Tampa Bay Rays and the Kansas City Royals, sources said.

The goal, sources said, is for viewers to eventually be able to bet on games using a Bally’s online gaming tool directly from their TVs. Sinclair’s channels are currently named after Fox Sports because it bought them last year to help clear Disney’s purchase of 21st Century Fox.

Not only does Bally’s plan to offer online gambling, they are buying up other online gambling resources to drive additional traffic to those sites as well. The Post continues:

Separately, Bally’s is buying sports-betting software company Bet.Works for roughly $100 million and will attempt to drive traffic to its site through Sinclair, sources said.

The casino company, controlled by Soo Kim’s Standard General hedge fund, can launch the new online gaming tool in the states where sports betting is legal, including Nevada, Louisiana, Colorado and New Jersey, if it also has a physical casino there.

Bally’s, which recently changed its name from Twin River Worldwide Holdings, currently has casinos in 10 states, including Nevada, Mississippi, Missouri, Rhode Island, Colorado, New Jersey and Louisiana. MBL, the NBA and NHL still need to sign off on whether Bally’s can sponsor broadcasts to advertise their sports betting tools, sources said.

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


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.

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


Congress hears Testimony from NCAA on Why Collegiate Sports Betting should be Banned

Casino Watch Focus has reported on the dramatic impact and subsequent explosion of sports betting since the Supreme Court decision.  Virtually all states have looked into what legalizing sports betting would mean for its jurisdiction, but some states have still not moved forward.  For those venues where sports betting is legal, most of the focus has been on the major professional sports leagues, but collegiate sports have long been a focus of would be sports betters.  As such, Congress has agreed to hear arguments in favor and against allowing sports betting on collegiate sports.  An online source reports:  

College sports betting is slowly being legalized across the United States. The practice has sparked a debate about the morality of the practice so much that the US Senate Committee had to weigh in and hear arguments from both proponents of the measure and those who opposed it.

The meeting was entitled “Protecting the Integrity of College Athletics” and it included a number of college representatives, educators, lobbyists and industry specialists.

Heather Lyke, the athletic director at the University of Pittsburgh was present on the behalf of the Atlantic Coast Conference (ACC) and the University both.

Those in favor of a ban on collegiate sports approach the situation from a few different angles.  The online source continues:

Ms Lyke said that while the repeal of PASPA was understandable and sports betting was here to stay, the U.S. Congress was supposed to take action so as to preserve the integrity of intercollegiate athletics. She directly asked for a prohibition on any sports betting that targets collegiate contests.

Her argument ran on the lines that the practice would be detrimental to the integrity of collegiate sports: “The introduction of legal wagering on intercollegiate athletics will have a corrosive and detrimental impact on student-athletes and the general student body alike. Gambling creates pressures and temptations that should not exist.”

She explained that students may become victims of corrupt practices and fall victim to gambling firms who want to push their interests. Ms Lyke said that even if the NCAA were to enact far-reaching measures that warn students and athletes of the dangers of gambling and outright prohibit it as per current law, the “corrosive effect” would be nevertheless widespread.

She further explained that sports teams have both the finances and man power to enforce integrity whereas most colleges in the country would  struggle to do the same.

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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


March Madness Gambling Takes an Unexpected Turn due to Covid-19

Casino Watch Focus has reported on the massive amount of gambling that takes place during the NCAA College Basketball Tournament.  Known as March Madness, its one of the most prominent gambling events next to the Super Bowl. Typically Casino Watch Focus reports on the varying levels of devastation that result from this gambling, however, this year there won’t be an NCAA tournament due to the covid-19 pandemic.  Forbes explains:

The cancellation of March Madness is sad on so many fronts. Beyond the impact of coronavirus (COVID-19) and the health pandemic sweeping across America and the world, millions of fans are missing out on watching and wagering on the NCAA Tournament.

Asher told Stuart Varney of FOX Business Network that the “first three days of March Madness equate to Super Bowl Sunday” in terms of betting activity and volume in Nevada. How much is that? A total of $154.7 million was wagered on Super Bowl LIV in Nevada this year.

Overall, the 2019 NCAA Tournament had approximately $349 million wagered in Nevada according to Nevada Gaming Control Board research analyst Michael Lawton. Sportsbooks across the Silver State took in profits of $36.5 million, which is nearly 7% of the total handle.

The cancellation of March Madness will have a tremendous financial impact on bookmakers and sportsbook operators. You can bet on it.

Whereas it’s very true that the cancellation of the tournament will be felt hardest for those in the tourism industry near these events and certainly those collegiate seniors who will miss out on their last opportunity at an NCAA championship, its clear that there will be countless families spared the devastation that this gambling brings each year.  That’s not much of a silver lining given the overall impact of Covid-19, but it’s one of the few that has presented itself. 

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


Florida not Likely to Legalize Sports Betting this Legislative Session

Casino Watch Focus has reported on various efforts to legalize sports betting in Florida, including methods that would attempt to get around the Voters in Charge initiative.  That initiative saw the passage of a constitutional amendment that requires a vote of the people to expand gambling. It would appear that fears over such methods can be set aside, as it’s being reported that its unlikely sports betting will be legalized this legislative session.  An online source reports:

Sports betting isn’t likely to make much, if any, headway in Florida this year, according to state political insiders with connections in Tallahassee. The Florida Legislature is currently in session until mid-March. But with 2020 being an election year, incumbents’ priorities may boil down to passing a budget, not drawing the ire of constituents and not much else.

The Tampa Bay Times recently surveyed 150 “insiders” – defined as lobbyists, politicians, activists, party workers, campaign staff and donors – to assess the odds of various high-profile bills making their way to the desk of Gov. Ron DeSantis (R-FL). Sixty-three percent of the connected group said sports betting is a no-go in the Sunshine State this year.

“It doesn’t seem like there’s any chance it’ll be legalized in time for the 2020 football season,” said Brian Edwards, founder of Florida-based BrianEdwardsSports.com, in an interview with Casino.org. “In fact, we might be looking at three to four years before Florida gets on board.”

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


Super Bowl LIV (53) expected to break all previous gambling records…but at what cost?

Casino Watch Focus has reported on the significant amount of gambling on the Super Bowl each year, and Super Bowl 53 is poised to be the most impactful yet.  When the Kansas City Chiefs and San Francisco 49ers take the field, there will be more states with legalized sports betting than ever.  As a result, experts see record amounts of money being bet on this year’s game. Fox Business breaks down the numbers:

About 26 million Americans are expected to bet on the game through various means, including brick-and-mortar sportsbooks and online platforms, the American Gaming Association said. The record total marks a 15 percent increase compared to the estimated betting turnout from last year’s game, which drew wagers from approximately 22.7 million Americans.

The bets will be worth an estimated $6.8 billion, up from $6 billion last year. The projected total includes both legal betting venues, such as brick-and-mortar sportsbooks, and illegal methods, such as bookies and offshore mobile platforms.

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


Missouri Legislators to introduce Sports Betting Bills, this time with a cut for Professional Leagues

Casino Watch Focus has reported on the ongoing growth of sports betting after the Supreme Court’s ruling to allow states to legalize sports gambling.  Many states have done just that, with Florida being the most recently reported state to consider its legalization. Nothing has passed in Florida and Missouri attempted last year to introduce legislation, but it lacked any fees to pro sports organizations.  Now it would appear that with the pre filing of two new sports legalization bills, Missouri is going to reattempt legalization, but this time with the addition of integrity fees.  An online source reports:

Lawmakers in Missouri have pre-filed legislation to legalize and regulate sports betting, following the issue of a favorable special committee report. The new proposals are similar to bills introduced earlier this year, which failed to pass before the end of the 2019 legislative session.

However, sponsors of new bills have called for the inclusion of integrity fees to be paid to professional sports leagues, and as much as 0.75% of handle.

Here’s what’s included in the bills: SB 567 from Sen. Denny Hoskins calls for the Missouri Lottery Commission to oversee sports betting with 0.25% of handle paid to the leagues. SB 754 from Sen. Tony Luetkemeyer seeks 0.75% of handle to be paid to the leagues. The bill would put the Missouri Gaming Commission in charge of regulation.

The decision to include an integrity fee might not actually help the legislation get passed this year considering the issue has been vehemently opposed in other states.  The online source continues:

The issue of integrity fees is a thorny one and is bitterly opposed by operators, who argue that they would eat into their slim profits from sports wagering. Operators usually only keep around 5% of the total handle and, should this be compromised, the additional costs would then have to be passed onto players in the form of un-competitive lines and less enticing promotions.

Integrity fees have been advocated most notably by the National Basketball Association (NBA) and Major League Baseball (MLB), as a way of profiting from the proliferation of sports betting in the U.S. However, none of the states to launch legal sports betting so far have approved such a fee, with New Jersey  going so far as calling the idea “insulting”.

Whether or not such gambling efforts violate the Missouri constitution that limits gambling to the Missouri and Mississippi rivers remains to be seen.  However, the possible inclusion of mobile operators would sure seem to make that question more discernible, which could make the passage harder than typical legislation.  The new legislation is vague, but does seem to want to set up such a system. The source concludes: 

The committee report, which was presented to the state House on Dec. 5, does at least include a potential sweetener for the operators:statewide online/mobile wagering. While vague on the subject, the report stated it is interested in mobile wagering and “creating a level playing field insofar as that is possible”“.Whether that means the market will be opened up to several mobile operators or ensuring retail sportsbooks aren’t dominated by single operators is unclear.”

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


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.

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


Despite Recent Supreme Court Ruling, most NCAA March Madness Gambling will be Illegal and Cost Employers Millions in Lost Productivity

Casino Watch Focus has reported on the ongoing problems that come with the NCAA March Madness tournament each year. Millions is lost to employers through a decline in work place productivity and people continue to gamble away money at unprecedented rates. Most of this gambling is illegal and despite the recent legalization of sports betting by the Supreme Court, that trend will continue. An online source explains:

America has seen a boom in legalized sports betting over the past year, and March Madness betting will highlight that. Nevada certainly remains the top dog, but New Jersey has come on strong. Yet illegal offshore sportsbooks continue to thrive. The American Gaming Association (AGA) set out to determine how much legal versus illegal wagering will take place with *March Madness *betting.

Over the first week of March, the AGA utilized Morning Consult to conduct an online survey among more than 11,000 adults. The study found that some 47 million people will wager on the NCAA men’s basketball tournament, which began Tuesday with the First Four. The AGA found that $8.5 billion will be bet during the tourney, shared by legal and illegal sportsbooks. Legal sports betting continues to expand, but this report found that offshore operations and local bookies will still attract more action than regulated sportsbooks. 

The general legality of such gambling continues to be a prominent issue this time of year as many people view office pools as harmless fun. Unfortunately, it’s anything but and its almost always illegal gambling. ESPN explains:

“Generally, if the office pool charges a fee for entering the pool and awards prizes to the winner(s), then there is a serious question as to its legality. Some states exempt small pools from their gambling laws and regulations,” said Washington, D.C.-based attorney Steven Eichorn of Ifrah Law.

Sports betting is currently legal in only a handful of states, with Nevada the only state permitted to offer single-game wagering, the most popular form. The Nevada Gaming Control Board does not track the amount bet on the NCAA tournament separately, and combines the NBA and college basketball into one “basketball” category on its monthly revenue reports. The spike in action from March Madness is easy to see, though.

In terms of cost to employers, the Charlotte Observer points to a Chicago-based study which says as much as $1.7 billion will be lost by employers in productivity, which breaks down to $109 million lost for every 10 minutes spent following the tournament. They believe there will be over 37 million workers participating in pools with 1.5 million watching games and results online from their desks. ESPN recently quantify the financial impact of just the gambling:

 On the low end, the FBI estimated in 2013 that $2.6 billion was bet illegally on the tournament. On the high end, veteran bookmakers estimate the number to be anywhere from $12 billion to $26 billion. Friendly bracket pools are everywhere, with most everyone betting on the NCAA tournament in some form. But there are bets, and then there are bets. You don’t get to $26 billion with $20-per-sheet office pools.

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.”

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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. 

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