Change Of Plans
With budget talks at an impasse, North Carolina was desperate to find a solution. Its latest idea is to change the licensing requirements for mobile sports betting operators.
The Bulletin Board
NEWS: The North Carolina legislature is attempting to amend the sports betting law it passed earlier this year through the budget.
NEWS: Interpol busts organized crime ring for match-fixing and intercepting signals to gain an edge on bookmakers.
NEWS: The financial impact of the MGM cyberattack is already in the many millions of dollars.
NEWS: Online gambling is on the menu in Colorado.
AROUND the WATERCOOLER: DraftKings shifts to retention marketing and GTO Wizard teams up with PokerStars.
STRAY THOUGHTS: Maintaining a White Belt mindset.
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A Whodunnit Mystery in North Carolina
Gambling expansions have held up the North Carolina budget, but the latest news from the Tarheel State doesn’t have anything to do with the previous sticking points of commercial casinos, VLTs, or online gambling - all three were left out of a budget deal agreed to on Tuesday.
With the legislature unable to finalize a budget (which was due on July 1), North Carolina reached the point where you throw whatever you can find against the wall to see if it sticks. The latest attempt includes new requirements for mobile sports betting licenses that have a very Empire Strikes Back feel to them.
“I’ve altered the deal. Pray I don’t alter it any further.”
As reported by WRAL, rather than offering up to 12 mobile licenses, the “technical changes” require mobile operators to have a "written designation agreement" with a professional sports team, the owners of certain major sports facilities, or NASCAR or the PGA Tour.
The new language provides professional sports teams and certain venues with significant leverage. Not only would they have the final say over who can operate, but those teams and venues would be able to command a much better cut of any revenue sharing.
The news did not receive a friendly reception from the industry.
North Carolina isn’t the first state to suddenly change its sports betting law. Ohio doubled the tax rate on sports betting operators soon after the industry launched, and multiple states have passed laws to phase down promotional deductions.
What’s interesting is nobody knows where the new sports licensing language originated.
As WRAL’s Brian Murphy (the source for NC legislative happenings) wrote, no one wants to take credit for the change.
"I'm not familiar with that one," House Speaker Tim Moore said… But the original bill's top sponsors — Rep. Jason Sane and Sen. Jim Perry — said they were not behind the changes. "I didn't do that," Saine told WRAL. Said Perry: "I saw the language when it came out."
One has to wonder if this new language will survive the final negotiations. House Speaker Tim Moore stressed to WRAL, “There would be some changes in the final bill while negotiators were signing off on a final version Tuesday.”
Interpol Busts Sports Gambling Ring
Interpol has arrested 23 people in connection with match-fixing. During the investigation, it found the group was also intercepting signals to gain a 20-30 second lead time to place bets with sportsbooks during the 2022 World Cup, ATP and ITF tennis matches, and other leagues.
Per a release from Interpol:
"Through advanced technology, they gained access to live video signals from around the world, straight from stadiums, pitches and arenas.
"Intercepting these signals gave them a clear advantage on bookmakers, who were dependent on slower satellite feeds and relays for the same events.
“The process was repeated across Asian and South American football leagues, UEFA Nations League, Bundesliga, Qatar 2022 World Cup matches and ATP and ITF tennis tournaments.”
Among those arrested was a trader at a major bookmaker who was accused of working with the group and validating the wagers.
It will be interesting to see how many of these negative sports betting stories are brought up if and when Congress holds hearings (which I believe is inevitable).
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Hack Costs MGM One Way or the Other
How much is the now week-long cyberattack costing MGM? According to Jefferies analyst David Katz, the number is several million dollars per day.
“MGM Resorts International could be losing between $4.2 million and $8.4 million in daily revenue and around $1 million in cash flow every day it’s under a cyberattack,” the Las Vegas Review-Journal reported.
And from an Investopedia column, “Moody’s also warned the issue could impact MGM’s credit rating, saying the attack “highlights key risks” to its operations, because they have a heavy reliance on technology.”
But it could be short-lived.
Colorado Considers Online Casino Ballot Referendum
This is the way. As I previously opined, the path forward for online casino and online poker legalization is at the ballot box. And that appears to be how Colorado will approach the matter.
Bonus.com is reporting that “casino owners and existing sports betting operators” are in discussions about online casino gambling.
The revelation comes from Colorado Budget Director Mark Ferrandino, who told Bonus.com, “I have not been part of conversations. I was just referencing I know people are talking/interested in it,” in an email.
The email stems from previous comments made at the NCLGS Summer Meeting in July, where Ferrandino said, “Talks are underway about legalizing online casino gaming in the state.”
Based on those comments, Colorado moved into my Top 10 online casino-poker candidates list last month, comprising.
Indiana
New Hampshire
Iowa
North Carolina
Maryland
New York
Illinois
Maine
Massachusetts
Colorado
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Around the Watercooler
Social media conversations, rumors, and gossip.
Are established sportsbooks shifting to retention? It makes sense with the arrival of big-name entries like Fanatics and ESPN.
And this story from the online poker world has definitely sparked a social media conversation - Full story on Poker.org.
Some of the biggest names in poker have weighed in on both sides.
Stray Thoughts
Always learn. The minute you think you have all the answers and have nothing left to learn is the moment your thoughts and ideas begin to fade into irrelevancy. The world (especially the gambling world) moves fast, and what is true today may not be tomorrow. Ask any poker player what the proper strategy was in 1999, 2005, 2009, and all the way up to today.
Seek out the opinions of peers and, perhaps more importantly, outside opinions. There are likely many things you (and those in your bubble) overlook that a fresh set of eyes will spot immediately.