If You Like Pina Coladas
Several North Carolina mobile sports betting licenses are still available, including the Catawba Indian Nation, which is currently in the process of choosing a partner.
The Bulletin Board
NEWS: A North Carolina tribe is still on the hunt for a mobile sports betting partner as the universal launch date (March 11) approaches.
NEWS: States and the federal government are looking closer at sports betting advertising.
LOOSE ENDS: Details emerge in AL baseball betting scandal; Bet365 launches in IN and AZ; Jackpocket sweepstakes game on GSN
VIEWS: Fanatics calls DraftKings’ lawsuit against a former employee “sour grapes.”
AROUND THE WATERCOOLER: 60 [more] Minutes; what did Sunday’s segment forget to mention?
STRAY THOUGHTS: Stop clogging my timeline.
Sponsor’s Message - Kambi Group is the leading provider of premium sports betting technology and services, empowering operators with all the tools required to deliver world-class sports betting and entertainment experiences.
The Group’s services not only include its award-winning turnkey sportsbook but also an increasingly open platform and a range of standalone sports betting services from frontend specialists Shape Games, esports data and odds provider Abios, and AI-powered trading division Tzeract. Together, we are limitless.
Visit: www.kambi.com
NC Tribe Seeks Partner: Getting Caught in the Rain Not Required
The Catawba Indian Nation has a valuable asset: a master sports betting license in North Carolina. By law, mobile betting operators must partner with a master license holder to gain access to the market. But the tribe is not rushing into a deal.
“Currently, we are in the process of vetting and choosing a partner for mobile sports betting,” Tylee Tracer-Anderson, director of communications for the Catawba Indian Nation, told Sports Handle. “We hope to have one chosen within the next few months and are looking forward to launching our new gaming venture.”
We know the eight licensees that are expected to launch on March 11, the universal launch date set by the NC Lottery:
Bet365 has partnered with the Charlotte Hornets.
BetMGM has partnered with Charlotte Motor Speedway.
DraftKings has partnered with NASCAR.
ESPN Bet has partnered with Quail Hollow Club (a PGA tour venue).
Fanatics has partnered with the Carolina Hurricanes.
FanDuel has partnered with the PGA Tour.
Underdog has partnered with Sedgefield Country Club (a PGA tour venue).
Caesars has partnered with the Eastern Band of Cherokee Indians.
That leaves the following entities with master licenses available:
The Catawba Indian Nation
The Carolina Panthers
The North Carolina Courage
FC Charlotte
North Wilkesboro Speedway
Is an Advertising Crackdown Coming to the US?
We’ve been told sports betting operators will rein in their advertising as markets mature and they move towards profitability. But actions speak louder than words. The new ad campaigns featuring Lebron James and Stephen A. Smith, along with a slew of other deals, indicate that operators still aren’t ready to cut back on advertising in a meaningful way.
Meanwhile, states and possibly the federal government are taking a closer look at gambling advertisements, which some in the industry feel is necessary to correct course.
In Kansas, State Senators Cindy Holscher and Virgil Peck have introduced a bill, SB 432, which would prohibit “advertising of sports wagering through internet websites and electronic device applications.”
The two relevant provisions are:
prohibitions on advertisements published through internet websites, other online mediums or electronic device applications.
No advertisements for sports wagering shall be published, broadcast or otherwise presented through any internet website, other online medium or electronic device application, except such advertisements may be published as part of the content offered by an interactive sports wagering platform that has been affirmatively accessed by an individual holding an account with such platform.
The exception is for on-site or in-app promotions.
Kansas isn’t the only state exploring the idea of advertising restrictions.
Massachusetts State Sen. John Keenan introduced a bill last year to rein in advertising further. Massachusetts already has several restrictions, including a 21+ requirement, and 75% of the audience must be over 21.
When crafting its sports betting regulations, Maine considered and nearly adopted some of the strictest advertising rules in the country.
And there is also the federal effort introduced by Rep. Paul Tonko, which he announced just before last year’s Super Bowl.
Tonko’s bill would Make it “unlawful to advertise a sportsbook on any medium of electronic communication subject to jurisdiction of the Federal Communications Commission, such as TV, Radio, or the internet.”
Ahead of this year’s game, Tonko resurfaced, calling out ESPN.
Advertising is a topic to keep a close eye on.
Loose Ends: Amateur Hour in AL; Bet365 in IN and AZ; Jackpocket’s New TV Show
Remember that Alabama Baseball betting scandal? Well, some of the details have come to light, and it can best be described as an amateur-hour operation. Among the statements made to sportsbook staff were, “If only you guys knew what I knew,” and showing sportsbook staff messages from Bohannon indicating Alabama was scratching its starting pitcher.
A week after its Indiana launch, Bet365 launched in Arizona and is now up and running in nine states. Bet365 partnered with French Lick Casino in Indiana and the Ak-Chin Indian Community (previously partnered with the now-defunct Fubu Sportsbook) in Arizona.
Jackpocket is spreading its wings. The lottery courier service recently launched its first online casino in New Jersey, and this week, it announced the debut of a national television sweepstakes slated for February 5-23. The sweepstakes will appear on the game show Blank Slate on Game Show Network.
SPONSOR’S MESSAGE - SUBSCRIBE NOW to Zero Latency, the new podcast from Eilers & Krejcik Gaming that provides unparalleled insight into the U.S. online gambling industry through interviews with industry insiders and analysis from EKG experts.
Shots Fired: Fanatics Calls DraftKings Lawsuit Sour Grapes
On Tuesday, we learned about a lawsuit filed by DraftKings against its former Head of VIP, Michael Hermalyn. According to the lawsuit, Hermalyn had broken his noncompete and taken confidential items with him after accepting a similar role with Fanatics.
Fanatics is calling it “sour grapes.”
“DraftKings is understandably upset that one of its employees left for the greener pastures at Fanatics,” A fanatics spokesperson told Legal Sports Report. “The fact that they are trying to drum up ridiculous allegations on one of their well-respected executives in an attempt to ruin his reputation sheds some light on why employees may be choosing to leave that organization.”
Per the lawsuit, “While there, and while still employed by DraftKings, Hermalyn accessed and downloaded confidential and important DraftKings information—some of which only a handful of other DraftKings employees could access.”
Among the confidential items Hermalyn is said to have downloaded are:
A detailed list of business partners, such as representatives of teams and leagues, as well as athletes, celebrities, influencers, vendors, and corporate officers and directors attending the 2024 Super Bowl.
A presentation reflecting DraftKings’ marketing strategy and value proposition for prospective business partners to enter into commercial engagements with DraftKings.
The lawsuit also notes Hermalyn had access to/knowledge of:
VIP Player Lists - Hermalyn received comprehensive VIP player lists containing a wide range of information critical to forging personal connections with VIP players
Research and Development - [including] DraftKings’ Dynasty Program to identify and reward customers based on their loyalty and repeat business.
DraftKings’ strategies for identifying loyal customers, providing tailored incentives and rewards, building relationships with them, managing their questions and interests, and ensuring ongoing loyalty.
This is fast becoming one of the stranger stories in gambling (which is an impressive feat). One lawyer on X summarized the situation this way (a TRO is a temporary restraining order):
Around the Watercooler
Social media conversations, rumors, and gossip.
One of the big complaints I kept seeing on social media regarding the recent 60 Minutes segment on sports betting was how it glossed over the illegal industry.
As iDEA Growth founder Jeff Ifrah wrote in a piece for SBC Americas:
“Online sports betting is one of the most highly regulated industries in the United States, and its alternative is highly accessible illegal sites that pose significant risks to consumers. With no oversight or regulation, illegal online gambling operators create a gateway for organized crime, allow underage betting and don’t pay taxes.”
Ifrah’s statement was made soon after GeoComply released a five-minute video titled “Become an Ally, Stop Illegal Gambling.”
the AGA has also made combating illegal gambling a top priority, and while these are solid arguments, conflating the legal and illegal markets has been an issue for more than a decade, and thus far, attempts to separate the two have been brushed aside.
Stray Thoughts
I’m far from a social media expert. I’m not super-active on social channels, as I use it almost exclusively for work-related purposes - mainly for research.
There is one thing that drives me crazy, and that’s timeline cloggers. That’s what I call the people who post the same story someone else posted 5 minutes ago, that someone else posted 15 minutes before that, and someone else posted 5 minutes before that.
The wild part is that it’s often a news item that gets close to zero engagement. Eight people will post about the same press release and receive five likes collectively, four from colleagues.
For big items, “BREAKING: North Carolina legalizes mobile sports betting,” it makes sense. The right retweet and you could drive a ton of engagement. But nobody is engaging with tweets relaying boilerplate PRs about a random company.
If you don’t have something to add to the conversation, leave it be [Michael Jordan “Stop It” meme].