Another Betting Scandal
Terry Rozier's name was added to a widening federal probe into the Jontay Porter betting scandal, the Wall Street Journal reports.
The Bulletin Board
THE LEDE: The Jontay Porter betting probe is widening, with professional and college athletes ensnared by the investigation.
WEEKEND ROUNDUP: DraftKings and NFLPA settle their lawsuit, as well as the Quote of the Week.
NEWS: Mississippi OSB bill advances to House floor, with a unique twist.
VIEWS: Does a Florida lawsuit hold the fate of sweepstakes in its hand?
AROUND the WATERCOOLER: Two things I can’t wrap my head around.
STRAY THOUGHTS: Mistaking luck for wisdom.
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The Lede: Jontay Porter Betting Probe Widens
The Jontay Porter betting scandal was already a major scandal, but it appears there may be even more to be uncovered.
According to the Wall Street Journal, authorities are looking into a March 23, 2023, game between the Charlotte Hornets and the New Orleans Pelicans, specifically unusual betting activity on Terry Rozier prop bets. The WSJ also reports that the investigation “is part of a wider government probe into a sprawling ring of gamblers and poker players who have allegedly rigged games across the sports landscape,” including college basketball games.
According to the WSJ, the probe is linked to the Jontay Porter scandal, which resulted in six arrests, including a guilty plea by Porter, which is likely to end in a prison sentence.
Rozier, an all-star-caliber player averaging 35 minutes a game, played just nine minutes before exiting the game and not returning. Matt Rybaltowski noted on X that Rozier was on track to hit the over in three key stats, before leaving the game.
In a statement, Rozier’s attorney said, "We're aware of the 2023 investigation, which determined there was no wrongdoing by Mr. Rozier. We're confident that the government investigation will arrive at the same conclusion."
Guilty, innocent, or inconclusive, as Straight to the Point has warned, these stories increase the possibility that states will further restrict betting or, worse, that the federal government will get involved.
As I wrote in 2022, there is no quicker way to draw (unwanted) attention from lawmakers and regulators than a scandal.
The industry can argue that legalization has helped uncover these scandals that existed before legalization. Still, in the court of public opinion (and in the halls of Congress and statehouses), a scandal is a scandal and requires a response. If history is an indication, the response will be an extreme overreaction.
As Jeff Edelstein wrote back in April 2024:
“For without legal sports betting, Porter might’ve gotten away with it scot-free! Says so right there in the NBA’s official statement: “The suspicious bets involving Porter’s performance in the Raptors’ March 20 game were brought to the NBA’s attention by licensed sports betting operators and an organization that monitors legal betting markets.”
“The only problem: People outside the legal sports betting industry bubble don’t exactly see it this way.
“They see the mad rush of legalized gambling has resulted in, at best, sports being soiled by unscrupulous gamblers, and at worst, the end of sport as we know it.”
Weekend Roundup: DraftKings and NFLPA Settle and the Quote of the Week
DraftKings and NFLPA reach settlement in NFT case: Last week,, the NFL Players Association and DraftKings announced that theythat reached a settlement in principle and requested a 60-day pause from the court to allow them to finalize their agreement. The suit stems from DraftKings’ shortlived Reinmakers NFT marketplace, which DraftKings abruptly pulled, causing the NFLPA to file suit claiming breach of contract.
Quote of the Week: “While the Commission may enter discussions with Saffa and relevant groups regarding the regulation of iGaming [in Arkansas], any change to the current laws would require a public ballot, even if the changes get the backing of lawmakers. This means that any possible move towards regulation would likely be at least a couple of years away. This will give Saffa and the Racing Commission a chance to get around the table and potentially negotiate any likely deal.” ~ Sponsored Post in the Arkansas Times
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News: Mississippi’s Bold New Approach to Overcome Online Betting Opposition
A mobile sports betting bill is on the move in Mississippi. After a substitute bill was put forth, HB 1302, sponsored by State Rep. Hulum Eure, passed the House Gaming Committee on Jan. 30. The legislation now awaits a vote on the House floor.
The bill has several consequential policies (incuding a credit card prohibition) aimed at bringing reluctant stakeholders on board, as it increases the number of online skins from one to two.
Most notably, it includes a first-of-its-kind revenue-sharing arrangement for land-based casino stakeholders who choose not to participate in the online sports betting market. STTP has recommended a similar policy position to overcome land-based stakeholder opposition.
As I noted in my premium offering, The Forecast (click here for more information on The Forecast and to inquire about becoming a subscriber):
“The idea solves two intertwined problems:
“A Compromise: By offering a stipend to regional casino operators who oppose online betting, the state acknowledges their concerns while pushing forward with legalization. This compromise aims to reduce friction among stakeholders and, at the very least, undercut the anti-online argument.
“An Economic Incentive: For casinos opting out, the fund acts not just as compensation but as an investment in the broader online gambling ecosystem's success. Structurally, the revenue sharing could be performance-based, or structured as flat payments, like the Revenue Sharing Trust Fund (RSTF) used by Native American tribes in California. This structure gives non-participating entities a vested interest in the overall health of the gambling sector, even if they are not direct competitors in the online space.”
So, how is the Mississippi stipend structured?
The bill creates the Retail Sports Wagering Protection Fund, which will receive the first $6 million in tax revenue sent to the state. That money would then be divided amongst non-participants:
“The [Mississippi Gaming Commission] shall allocate funds in the Retail Sports Wagering Protection Fund proportionately among eligible applicants, but in no case shall a licensed gaming establishment without a platform receive more funds than the amount of the difference between its current year retail sports wagering revenue and 2024 sports wagering revenue.”
But Mississippi is not all sunshine and puppy dogs. Significant stakeholder concerns remain, and Senate Gaming Committee Chair David Blount said he plans to file an OSB bill only if the Mississippi Gaming Commission requests it.
Views: The FL Case That Could Decide Sweepstakes’ Fate
The latest installment of the Indian Gaming Association's (IGA) New Normal webinar series featured two Holland & Knight LLP attorneys, James Meggesto and Samir Patel.
The pair joined hosts Victor Rocha and Jason Giles to discuss the varied lawsuits the sweepstakes industry is facing, particularly a case in Florida, Knapp v. VGW Holdings Ltd., that they believe could be pivotal, given it names payment processors as defendants.
According to Patel, Florida’s concrete sweepstakes laws remove much of the ambiguity that lawsuits in other states need to overcome.
In an article on the Holland & Knight website, the pair write:
“These platforms exploit legal loopholes, which undermines licensed casinos, particularly Tribal operations, prompting stakeholders and state attorneys general to challenge their legality.”
“At the center of the case is VGW's business and its use of a two-coin so-called freemium model, which is ubiquitous to the sweepstakes casinos.” The plaintiff argues that this model “constitutes illegal gambling disguised as a sweepstakes.”
“VGW's defense will presumably be based on the notion that players do not need to wager consideration to enjoy their online casino, thus eliminating one element from the lottery test.”
The pair also agree with Daniel Wallach, who has likened the case to a prior case about sweepstakes cafes, AGO 98-07 from 1998, which addressed the legality of machines dispensing telephone cards with attached sweepstakes tickets.
“In that opinion, the attorney general determined that such machines constituted illegal gambling under Chapter 849 of the Florida Statutes.
“The opinion found that even if a consumer product, such as a phone card, is attached to the transaction, the inclusion of a sweepstakes based on chance makes the operation illegal under Florida law.”
In their closing remarks, they write:
“The Knapp v. VGW Holdings Ltd. case underscores the growing urgency for gambling states to clarify and enforce their gambling laws in response to emerging online gaming models. As sweepstakes casinos continue to expand, they challenge traditional interpretations of gambling regulations, raising critical questions about the boundaries of legal and illegal gaming.”
You can find STTP coverage of previous New Normal webinars on sweepstakes here:
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Around the Watercooler
Social media conversations, rumors, and gossip.
I simply can’t wrap my head around the ongoing interest in table tennis in Colorado:
I also can’t for the life of me understand the resistance to Gambling Diversion Courts. They won’t solve the problem, or even put a big dent in it,, but they will can help a handful of people get out of a terrible cycle every year (I wrote this piece on Nevada’s Gambling Diversion Court in 2021 for Gaming Law Review — paywalled).
Stray Thoughts
Another quote from the book I’m reading, Sengoku Jidai: Nobunaga, Hideyoshi, and Ieyasu: Three Unifiers of Japan, by Danny Chaplin:
“When luck runs out, the mirror of one’s wisdom clouds up as well.”
Meaning: Don't automatically attribute wisdom to someone just because their past decisions have led to success. Or, in poker terms, don’t be results-oriented. Success in decision-making can sometimes be more about luck, timing, or external factors rather than profound understanding or insight.
This is a terrific, if somewhat dry read on one of the most intriguing periods in history. I’d rank the Sengoku Period in Japan (which lasted about 200 years) behind only the 18th Dynasty in Egypt (about 250 years) in that respect. One problem, Japanse daimyos routinely changed their names, which makes keeping up with who is who a bit difficult.
To chime in on the scandals in college and pro hoops. I commented Steve previously in this letter that one possibility that would potentially bring the house of cards down for the sports betting industry is a major scandal would these cause the industries existence to be in jeopardy maybe….. we will have to find out. Either way certain state legislatures and the feds to restrict sports betting passing bills on that passes. Certain states it’s highly likely I’d put it at 80 percent the feds it goes up to 35 percent and a lot of people don’t want the feds to get involved including myself but the industry and their dumb pr moves caused the backlash and possible collapse of the industry and they brought it on themselves.