Category Archives: Sports Betting

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.

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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


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

 


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


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.

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