Federal Tea Leaves
The NBA has expressed support for federal oversight of sports betting, which is becoming more and more likely with each passing scandal.
The Bulletin Board
NEWS: The NBA would support a federal sports betting bill.
WEEKEND CATCHUP: Bally’s launches social casino; MLB players relay threats; More arrests in Porter scandal.
QUICK HITTER: Mass Gaming Commission determines Rece Davis’s “Risk-Free bet” joke violates state regulations.
QUICK HITTER: NCPG Executive Director Keith Whyte wants to know why the industry opposes the GRIT Act.
NEWS: New York authorities arrest 17 people connected to an organized crime family that ran an illegal sports betting ring.
AROUND the WATERCOOLER: Why is responsible gambling messaging so easily ignored?
STRAY THOUGHTS: Step-by-step: The only way to learn.
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NBA Supports Federal Sports Betting Framework
NBA deputy commissioner and COO Mark Tatum said legalization and regulation allowed the league to track the betting irregularities around Jontay Porter. But it was Tatum’s follow-up comments that were more intriguing.
“We’ve always been, again, an advocate for a federal regulatory framework here,” Tatum said last week. “I think it creates transparency that we didn’t have previously, which allows us to maintain the integrity of the sport, which is essential to all sports leagues.”
Several organizations are now calling for federal action. In addition to the NBA, there is the NCAA, which wants a national ban on player prop bets, and the National Council on Problem Gambling (and other GRIT Act supporters).
I’ve been sounding the federal oversight klaxon for several years. It’s a topic I first broached in 2018 when Senators Orrin Hatch and Chuck Schumer proposed a federal sports betting oversight bill.
In 2023, I revisited the topic following the introduction of Rep. Paul Tonko’s sports betting advertising bill, writing:
“The more attention sports betting and online gambling receive (positive or negative), the more likely Congress will jump into the conversation. And that is not something anyone should take lightly.”
And as I wrote in the newsletter’s Stray Thoughts section in February (pre-Jontay Porter):
“Most people dismiss the idea of federal action, but the stories above, the interest in election betting (here and here), and the GRIT Act indicate that it’s not out of the realm of possibility.
“We’ve had a few brushes with scandals (Alabama baseball, Iowa and Iowa St., and plenty of other examples), and it will only take one to capture the attention of Congress.
“If you’re still not convinced how quickly things can change, read up on the DOJ’s Wire Act opinions in 2002, 2011, and 2018.”
Federal action is inevitable, but it could take many years. As Chris Grove often says, Congress can’t even pass a budget. Still, gambling oversight is fodder for Congress.
Responsible Gambling consultant Jamie Salsburg tweeted there is too much smoke for Congress not to go looking for the fire:
“Privately, I’ve been saying it’s an oddly quiet time for RG/PG stuff. I think that quiet time has ended. Seems like this tsunami of bad press is about to get much, much worse with all the hottest and worst takes sure to surface, inevitably leading to congressional hearings. There’s just way too much smoke to avoid looking for the fires. Buckle up.”
Weekend Catchup: Bally’s Launches Social Casino; MLB Players Relay Threats; More Arrests in Porter Scandal
Bally’s early prep for online casino legalization: Bally’s has launched a free-to-play social casino dubbed Bally Play in conjunction with Ruby Seven Studios. “As part of our growth strategy, we have been seeking to complement our brick-and-mortar and interactive gaming offerings with a social casino,” said Bally’s Corporation Chief Product Officer Sina Miri. Miri added that the social casino could help the company attract new players.
Multiple MLB players describe threats from bettors: Need more fodder for federal intervention? Here you go. Several MLB players and staff went on the record with USA Today about the threats they receive from disgruntled sports bettors. The abuse ranges from public heckling and threatening private messages to death threats and being followed home. At least one player noted the change since the legalization of sports betting. “My first year… It was just, ‘Oh, you suck. You shouldn’t be on the team.’” San Francisco Giants pitcher Logan Webb told USA Today. “Now, you’re getting, ‘You just cost me money.’ They say some (messed) up (expletive).”
The fallout from the Jontay Porter betting scandal continues: Two more people have been charged in the Jontay Porter betting scandal. The latest named defendants are Timothy McCormack and Mahmud Mollah. Long Phi Pam was previously named and charged, leaving just one unnamed coconspirator — Porter has not been charged yet.
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Quick Hitter: Rece Davis “Joke” Violates MA Regulations
An unscripted attempt at humor during an ESPN segment could cost Penn Entertainment a chunk of cash in Massachusetts.
In March, Rece Davis jokingly said, “Some would call this wagering, gambling. I think the way you’ve sold this; I think what it is, is a risk-free investment.”
The comment went viral and caught the attention of the Massachusetts Gaming Commission, which tasked the Investigation and Enforcement Bureau with investigating whether it violated the state’s prohibition on “no-risk bets.”
As reported by SBC Americas, even though Davis is an ESPN employee, the mashup between ESPN and Penn led IEB to determine that the comment violates Massachusetts regulations. The MGC will hold an adjudicatory hearing to determine the punishment.
Quick Hitter: NCPG Questions Opposition to GRIT Act
When it comes to the gambling industry’s opposition to the GRIT Act, Keith Whyte, the executive director of the National Council on Problem Gambling, has some questions.
Whyte was quoted by SBC Americas (the entire interview is worth a read) as saying:
“I don’t have a problem with the AGA opposing the GRIT Act, but if they do oppose it, then I think they should sketch out an alternative. The GRIT Act would provide a minimum of $125 million in national funding for problem gambling every year for 10 years. Show me how else we’re gonna get that. If you can, we’d be happy to drop GRIT like a hot potato.”
“The industry could push to cut the other half or it could be used to go after illegal offshore sportsbooks or crack down on grey market slot machines etc… Delivering a 50% tax cut to their members and/or achieving a major policy priority plus getting a big PR win by supporting national funding for problem gambling seems a win win win.”
New York Busts Illegal Sports Betting Ring
New York officials made 17 arrests in connection with an illegal gambling ring connected to the Gambino crime family. Among the people arrested was a former New York City police officer.
The group is alleged to have run an illegal bookmaking ring, utilizing an unlicensed offshore sportsbook. According to the New York Daily News, they took nearly $23 million in wagers from 70 individuals, and when bettors couldn’t pay, they “bailed them out” with high-interest loans.
Per the New York Daily News reporting:
“Seventeen suspects with alleged ties to the Gambino crime family were arrested as part of an 84-count indictment detailing an illegal gambling enterprise that handled more than $22.7 million in illegal sports bets, along with an illegal loansharking business that brought in weekly loan payments on about $500,000 in exorbitant-rate loans.”
The story is largely unremarkable but serves as a good reminder that some people (who bet on credit and can’t afford to lose) will never be interested in legal betting options, which is an opening for organized crime.
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Around the Watercooler
Social media conversations, rumors, and gossip.
In last week’s feature column, I took a critical look at the current responsible-problem gambling campaigns and argued for bringing in outside perspectives to shatter the current bubble.
This weekend, a video made the rounds on social media showing an Australian comedian going around Vegas casinos and deploying typical problem gambling messaging to gamblers — Click here to see how it went.
As the Director of Strategic Initiatives & Responsible Gaming at UNLV’s International Gaming Institute, Alan Feldman tweeted:
Obviously, the video was edited to make it entertaining, but I think it illustrates how flat the current messaging falls. Or, as Jamie Salsburg tweeted in response to the video:
“For 6 years, I’ve been telling anyone who would listen that the current research, campaigns, and strategies to reduce problem gambling were all wrong.
“The reasons were all so obvious. And yet they go on. Or create new, equally ineffective stuff.
“I’ve tried to highlight the things that could actually work. And I tried (and sometimes failed) to do it in the nicest way possible, despite my frustration.
“But there’s no appetite for it. Why? Well, that part is complicated, but predictable.
“All this and more is why I no longer show up or associate with many people in the space. Until there’s a desire for change, it’s a complete waste of time. Good luck with that next campaign! I’m sure it will be a hit.”
Stray Thoughts
I’ve been watching old UFCs with my son and had to write down this line from Ben Perry (one of the co-creators of the UFC) in UFC 2: “The best way to teach someone nothing is to show them everything.”
Like I mentioned previously. The American sports betting industry needs to watch the uk and other international markets to see what potential template that federal oversight would bring. Yes it would take years as you said and yes the gambling industry and I don’t know how Dina Titus a congresswoman in my state in Nevada that doesn’t want the feds to get involved for now.
Look none of us want federal intervention in the industry but they are making alot of dumb mistakes e.g. misleading promos on ads, the blowing off of the Massachusetts gaming commission when discuss limits plus the porter debacle that should of been either not allowed on the board or very low limits. In addition the gambling addiction stories plus harassment of athletes have been something bad for the industry.
The three ways I think the feds to get involved. A major scandal these we’ve had are minor compared to a star athlete or big university or team, two gambling addiction stories as seen in the uk which led to their reform act. Or three some disgruntled bettor that physically harms an athlete over a bet. Clearly the industry if they see federal involvement will of brought it on themselves as they didn’t do enough self regulation via their really bad mistakes