MLB's Betting Dilemma
As scandals pile up, MLB Commissioner Rob Manfred has joined NBA Commissioner Adam Silver and NCAA President Charlie Baker as open to federal oversight.
The Bulletin Board
THE LEDE: MLB Commissioner open to federal oversight of sports betting.
ROUNDUPS: NH iCasino bill hearing; SD mobile sports betting bill; Maine’s only retail sportsbook loses license; MO sports betting draft rules.
NEWS: Illinois Attorney General lumps PrizePicks in with Bovada.
VIEWS: New Jersey bill lessens underage gambling penalty, putting all the onus on the casino.
AROUND the WATERCOOLER: PBS NewsHour tackles gambling addiction before the Super Bowl.
STRAY THOUGHTS: Make your mistakes when the stakes aren’t as high.
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The Lede: MLB Commissioner Welcomes Federal Oversight
Major League Baseball Commissioner Rob Manfred addressed the recent firing of umpire Pat Hoberg for violating the league’s gambling policies and how legalization has put the leagues in a better position to identify and “figure out” when betting anomalies occur.
“I think that we have a much greater ability to monitor what’s going on and determine if there’ s something that’s going on that shouldn’t be going on today than we did when gambling was all in backrooms and illegal,” Manfred said, per Mike Mazzeo at Sports Business Journal. “We spend a lot more time and money, get a lot more information, and just have access to a lot more information now that it’s legal.
“And I think that the fact that you’ve seen more instances in all sports is a product that we’re in a better position to figure out what is going on than we were when it was all illegal.”
Like remarks from NCAA President Charlie Baker and NBA Commissioner Adam Silver, Manfred believes that federal intervention is the best path forward, or somewhat inevitable:
“I may be a federalist in the broadest sense of the word. I do think a single (federal framework) when you have something like this that’s nationwide, I’ve always believed that a single set of rules is probably better than going state by state. To the extent that we’re active in states, we are active in trying to make sure that those states adopt the kind of safeguards that we feel are important in terms of types of bets and like. That’s our principle focus when we lobby.”
As STTP has been tracking, the federal government already has numerous tentacles probing the gambling industry, which I’ve divided into three categories:
Significant Threats:
Minor Threats (that could open the door to something more extensive):
The GRIT Act and the industry’s desire to end the federal excise tax
The Department of Interior’s new tribal compact rules and the hub-and-spoke model
Classifying problem gambling as a coverable mental health disorder
An Existential Threat:
There is the possibility of (yet another) rewriting of the Wire Act by the Department of Justice Office of Legal Counsel. Bottom line: There wasn’t closure to the case, and there isn’t clarity around the issue, evidenced by the numerous interpretations and opinions we’ve seen since 2002.
Weekend Roundup: NH iCasino Bill; SD OSB Bill; Maine Sportsbook Loses License; MO Sports Betting Rules
New Hampshire hearing on online casino bill results in no vote: The New Hampshire Ways and Means Committee listened to testimony on State Sen. Tim Lang’s online casino bill, SB 168, but failed to vote on the measure. Besides Lang, only two other speakers testified: Brianne Doura-Schawohl, who spoke on behalf of the Campaign for Fairer Gambling, and Alicia Preston, president of the New Hampshire Charitable Gaming Association. Doura-Schawohl talked about the likelihood of increased harm, and Preston voiced concerns about decreased foot traffic at the state’s charity casinos.
South Dakota bill would put mobile sports betting on the 2026 ballot: A new bill in South Dakota, SJR 507, has been introduced by State Sen. Steve Kolbeck and referred to the Senate Commerce and Energy Committee. If passed, the bill would put a constitutional amendment on the 2026 ballot that would authorize wagering on sporting events via mobile or electronic platforms and authorize a state lottery, VGTs, and other games of chance (in a limited capacity). Two previous efforts saw little support.
Maine’s only retail sportsbook fights license revocation: the Maine Gambling Control Unit pulled Oddfellahs’ retail sports betting license, and the establishment is trying to figure out why. "We didn't break a rule, we didn't do anything wrong,” General Manager David Moran said. “It was nothing to do with our operations, it was just that the state changed its mind.” At issue is the type of license the MGCU granted Oddfellahs: “Oddfellahs is not a Commercial Track facility, and therefore, it cannot use the same license.” Oddfellahs’ owner, Michael Cianchette, noted, “They knew that when they gave us the initial license. It wasn’t a surprise to anyone, and the Director and other staff from the state came and did a site visit."
Previous STTP coverage of Maine’s retail betting fight and Oddfellahs success
Missouri sports betting draft rules sent to Gov. Mike Kehoe: It won’t be ready for the Super Bowl or March Madness, but Missouri appears on track for a June launch. Per Legal Sports Report: “Missouri Gaming Commission Chair Jan Zimmerman said this week that a draft of the Missouri sports betting rules was sent to Gov. Mike Kehoe’s office for review. Once Kehoe and the secretary of state approve the draft, there will be a 30-day public comment period.”
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News: IL AG Includes PrizePicks and Licensed Sites in Illegal Betting Warning
In the lead-up to the Super Bowl, several states issued PSAs warning residents to only use legal betting options and to avoid gray and black market sites, some of which impersonate local casinos.
Among the states that have sent alerts are Arizona and Florida.
Another state, Illinois, took it a step further and included PrizePicks, a DFS 2.0 operator with licenses in many states, in the mix. In a consumer alert sent by Illinois Attorney General Kwame Raoul on February 7, the state singled them out by name alongside Bovada (both companies were sent cease-and-desist letters last week).
The alert reads in part:
“If you decide to bet on the Super Bowl or any other sporting event, take the time to determine that you are placing your bet with an entity that is licensed by the Illinois Gaming Board and operating legally in the state. Using an unlicensed betting service puts your personal information and your money at risk.
“[…]
“This week, the Gaming Board issued cease and desist letters to alleged unlicensed sports wagering sites Bovada.com and PrizePicks, warning them to cease unlicensed sports betting in Illinois.”
Licensed operators also caught a few strays, as Raoul said, “Even if a sports betting website or app is licensed, it’s also important to read the details of any promotional offers to ensure there are no hidden costs or obligations.”
Views: Good or Bad? New Jersey Bill Lessens Underage Gambling Penalty
A New Jersey bill that would change underage gambling violations from a misdemeanor to a civil penalty has passed the Assembly.
Under AB 5086, underage gambling would result in a fine of $500 for the first offense, up to $1,000 for a second offense, and up to $2,000 for subsequent offenses. More importantly, the violation would not go on the person’s criminal record. The previous penalty was six months in prison and up to $1,000 in fines.
This isn’t the first time the New Jersey legislature has tried to reduce the penalties for underage gambling. However, one noticeable difference between AB 5086 and previous efforts is the current bill doesn’t require mandatory problem gambling treatment.
I agree with Jon Bruford of The Gaming Boardroom, who called the effort “puzzling” in a newsletter last week.
“Does this mean that any property or online operator accepting a bet from an underage gambler will no longer be subject to punishment, then? Of course, it doesn't,” Bruford wrote. “But it removes a deterrent for an underage player to try and puts more pressure on the operator.”
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Around the Watercooler
Social media conversations, rumors, and gossip.
PBS NewsHour looks at the rise of sports betting (and gambling addiction) ahead of the Super Bowl.
As I recently reported, the amount of negative press continues to grow and should be near the top of the industry’s list of concerns. Think of it this way: No one in the mainstream press is writing any “Here are the benefits of sports betting” columns, let alone creating an eight-minute segment about it.
Stray Thoughts
I often discuss the consequences of the mad rush to legalize and launch online sports betting and how a slower approach would produce better long-term results.
That reminds me of one of my most often-used sayings when people inevitably mess something up or struggle in class: “Better to die 1,000 times in the dojo than once in reality.”