Industry News of the Day for January 29, 2019

iDEA Growth in the News:

• Legal Sports Report, 1.28.19 – Officials Push For Rushed DC Sports Betting Contract For Lottery Provider (J. Pappas quoted as iDEA spokesperson)
  • The DC sports betting saga continues publicly this week as district officials push for a sweetheart deal for their current lottery provider.  The gaming industry argued from experience that competition is key to maximizing the benefits of regulated sports betting. Here’s John Pappas, representing iDEA Growth.
• Sports Handle, 1.28.19 – D.C. Sports Betting Hearing Exposes Lack of Trust: Outrage And A ‘Smell’ (J. Pappas tweet included as spokesperson)
  • No matter what phrase you use, the D.C. Council is in a hurry to get sports betting up and running.
• Washington Business Journal (also posted on WTOPNews.com), 1.28.19 – Debate over sole-source contract for D.C. Lottery vendor heats up (iDEA Growth included)
  • iDEA Growth, a D.C.-based gaming trade association, testified an open procurement process would allow the D.C. Lottery to make the best decision by considering the full range of options and products available from other potential vendors.

Washington, DC:

• Washington Post, 1.28.19 – D.C. legalized sports betting — but who gets to profit is a new source of drama
  • D.C. officials on Monday defended efforts to award a sole-source contract to run the city’s upcoming sports gambling program, insisting that the normal competitive bidding process would delay legal betting and cost the city tens of millions in lost revenue.
• Washington City Paper, 1.28.19 – D.C. Sports Betting Bill on the Fast Track After Four-Hour Hearing
  • The District’s chief financial officer said Monday that online sports gambling could begin as early as this fall. Bettors could wage phone-based bets on outcomes and performances of both pro and college sporting events.
• WTOP, 1.28.19 – DC lottery contract might impact timeline for legal sports betting
  • How soon people can place legal sports bets in D.C. will depend on how city lawmakers decide to handle the March 2020 expiration of the D.C. Lottery contract.

New York:

• The New York Times, 1.28.19 – Sports Betting May Soon Be Legal in New York, but Only 4 Casinos Upstate Would Offer It
  • New York moved a giant step toward legalized sports betting on Monday, as the State Gaming Commission offered initial approval of a 33-page set of proposed rules that would allow such wagers at four upstate casinos.
• Wall Street Journal, 1.28.19 – New York Takes Step Toward Allowing Sports Betting
  • New York’s Gaming Commission took the first step toward legalizing sports betting on Monday, setting the stage for casinos to begin accepting wagers within months.
• Sports Handle, 1.28.19 – New York Gaming Commission Approves Sports Wagering Rules For Upstate Casinos, Punts On Mobile Betting
  • The New York State Gaming Commission on Monday approved a set of proposed sports betting regulations for four existing upstate casinos, potentially setting the stage for the launch of legalized sports gambling in the Empire State.
• Legal Sports Report, 1.28.19 – Bill Sponsor Calls Integrity Fee ‘Moving Part’ In NY Sports Betting Legislation
  • New York Senator Joseph Addabbo, Jr., told Legal Sports Report he isn’t sold on including a royalty or integrity fee to sports league in legislation, though the sports betting bill he introduced this month includes one.
• Legal Sports Report, 1.28.19 – No Mobile In New NY Sports Betting Regulations Approved By Commission
  • The first phase of starting NY sports betting is in motion, but mobile wagering did not make the initial cut. The New York State Gaming Commission gave preliminary approval Monday to rules and regulations that would authorize sports wagering at four upstate casinos.
• Democrat & Chronicle, 1.28.19 – New York casinos could offer sports betting as soon as April
  • New York’s casinos could begin taking wagers on sporting events as soon as April after state regulators took a key step Monday toward authorizing sports betting, though not on mobile devices.
• WGRZ, 1.28.19 – NYS Gaming Commission approves sports gambling rules
  • After a U.S. Supreme Court ruling last year cleared the way for states to legalize sports gambling, New York has a tentative set of rules to regulate it. The state gaming commission approved regulations that would govern betting at four private upstate casinos.

Pennsylvania:

• Legal Sports Report, 1.28.19 – Mohegan Sun Pocono Selects Kindred Group As PA Sports Betting Partner
  • Kindred Group’s US expansion plans are closer to fruition as it signed a five-year deal with Mohegan Sun Pocono. The deal covers online and retail PA sports betting, together with online casino, in Pennsylvania. The deal includes options for two additional five-year periods.
• PA Homepage, 1.28.19 – Online sports betting coming soon to Mohegan Sun Pocono
  • The big game is this Sunday, and it’s the first Super Bowl since sports gambling became legal outside the state of Nevada.
• WNEP, 1.28.19 – Sports Betting Coming to Mohegan Sun Pocono
  • Late last year, Pennsylvania legalized sports betting in the commonwealth, but it hasn’t been available anywhere in our area.

New Jersey:

• NJ Gambling Sites, 1.28.19 – Going Live: Hard Rock AC Soft Launches Its Online Sportsbook In New Jersey
  • The 2019 Super Bowl takes place Sunday, and at long last, Hard Rock Atlantic City will be part of the NJ sports betting scene just in time for the biggest sporting event of the year.

Rhode Island:

• WPRI, 1.28.19 – Sports betting has generated $500K in revenue since it was legalized in RI
  • Sports betting in Rhode Island is gaining momentum since it became legal late last year. According to Paul Grimaldi of the R.I. Department of Revenue, sports betting has generated more than $1 million in revenue since it was legalized, with the state taking 51% of that. That includes numbers from Twin River’s Lincoln and Tiverton casinos.
• WJAR, 1.28.19 – First month of sports betting in RI less lucrative than anticipated
  • The inaugural month of sports betting in Rhode Island has proved to be far less lucrative than budget projections. The approximately $1 million profit produced about $500,000 for the state. Rhode Island had predicted approximately $2 million a month.

North Dakota:

• AP, 1.28.19 – Testimony: Sports betting must have problem gambling fund
  • The Legislature should be prepared to set aside money to treat problems that will result from legalizing sports betting in the state, lawmakers were told Monday.
• INFORUM, 1.28.19 – Head of North Dakota gambling addiction program seeks funding as lawmakers consider sports betting
  • The head of a state-funded gambling addiction program implored North Dakota lawmakers to set aside money for treatment and prevention if they follow a national trend and expand betting options to sporting events Monday, Jan. 28.
• KXNet, 1.28.19 – Sports betting may be legal in North Dakota
  • North Dakota lawmakers are considering two bills legalizing sports betting. Both of them had committee hearings today. State-by-state sports betting became legal in May of 2018 when the Supreme Court overruled a prior decision.

South Dakota:

• iGaming Business, 1.28.19 – South Dakota senators propose sports betting amendment
  • A group of South Dakota senators and representatives have put forward a new amendment in an effort to legalize sports betting in the US state. Senate Joint Resolution 2 (SJR2) sets out plans to amend the state’s constitution in order to allow its residents to place legal wagers on sports events from inside the city limits of Deadwood.

Federal News:

• The Nevada Independent, 1.27.19 – DOJ’s Wire Act reversal disregards existence of effective state regulation
  • 2018 was a big year for gaming – the Supreme Court delivered a huge win for state sovereignty, gaming operators, consumers and the sports leagues. Today, legal sports betting exists in 10 states and the District of Columbia, including Nevada. However, an unusual reversal of opinion from the Department of Justice (DOJ) has the potential to hamstring proven models of intrastate wagering.
• Legal Sports Report, 1.28.19 – DOJ Goes All-In Against Online Gambling, But Can Wire Act Opinion Withstand Scrutiny?
  • On Jan. 14, the US Department of Justice (DOJ) sent shockwaves through the online gambling world by releasing an updated opinion regarding the interpretation of the Wire Act of 1961 (18 U.S.C. § 1084) (the “Wire Act”), applying its prohibitions to all online wagering, not just online sports betting.

Sports League News:

• NBC Sports, 1.29.19 – NASCAR unveils Sports Betting Policy
  • NASCAR’s new Sports Betting Policy prohibits team owners, drivers, crew members and series officials from gambling on NASCAR and lists minimum penalties that could include indefinite suspension or termination and/or a fine of $150,000-$200,000.

iDEA Growth Member News:

• Street Insider, 1.28.19 – Scientific Games (SGMS) and Caesars Launch Sports Betting in Pennsylvania
  • Scientific Games Corporation and Caesars have enhanced their partnership through the launch of sports betting at Caesars’ Harrah’s Philadelphia Casino and Racetrack.