Author: Casino Connection Staff

New Jersey’s Lesniak Calls for Regulated Sports Betting Information

Though an architect of New Jersey’s fight to overturn a federal ban on sports betting, former New Jersey state Senator Raymond Lesniak says he would like to see a unified regulation of sports data to help protect the integrity of sports betting.

In an interview with CDC Gaming Reports, Lesniak said state’s need to share sports betting information just as information on stock trading is monitored.

 “That’s one thing that hasn’t happened yet but needs to happen,” Lesniak said. “Illegal acts are discovered by unusual investing patterns. There’s plenty of software around you can tie it in to raise red flags when a huge amount comes in on a certain game. That’s how these fixes are detected.

“States have to have uniform agreements to share the information. The operators can do it themselves, but government has to step in and make sure,” he said.

Lesniak also said that New Jersey’s move into sports betting and online casino gaming has greatly helped the state’s gambling market.

“Casino gambling and horse racing are not a young person’s sport anymore. But sports betting is,” he said. “It’s gone through the roof, as I expected. New Jersey and the Northeast are a hotbed of gambling.”

Lesniak said the Professional and Amateur Sports Protection Act, the 1992 federal legislation that effectively banned sports betting until overturned by the U.S. Supreme Court had a “noble intent” of stopping a proliferation of sports betting that could have threatened the integrity of sports.

“But that went out the window when Internet gambling came on board” and people could bet anywhere, Lesniak said. “There’s absolutely no reason for any state to not legalize sports betting. I’m just surprised more haven’t done it sooner.”

New Jersey to Stay In Charge of Atlantic City Through 2021

New Jersey will continue to control Atlantic City’s finances through 2021, despite Governor Phil Murphy’s campaign promise to end the control earlier.

When passed in 2016 under then Governor Chris Christie, the state was to control the city’s finances for five years as the city faced bankruptcy and default on several debts.

A timetable recently laid out by Lt. Governor Sheila Oliver would keep the takeover in place through 2021.

The law enacted in 2016 “was a 5-year statute,” Oliver said during a recent community meeting. “We anticipate the statute will run for a 5-year period.”

At the end of the five years, Oliver said, she hoped to demonstrate to the state Legislature that enough has been fixed in Atlantic City to end the takeover.

Under the takeover, the state has broad powers, including the right to overturn decisions of the city council, override or even abolish city agencies and seize and sell assets. The state monitors can also hire or fire workers, break union contracts, and restructure the city’s debt.

When enacted, the city faced some debilitating debt, mostly brought on by successful casino tax appeals as the city’s casino industry was struggling in the face of competition from casino in other states. Five city casinos closed starting in 2014.

The state has successfully renegotiated several of those tax settlements.

Mayor Frank Gilliam Jr. told the Associated Press that he supports the state’s timetable for ending control and praised a recently announced plan for the city developed by state and local elected officials and community leaders to improve the resort’s economy.

The plan calls for reforms in government effectiveness and accountability, job training and economic development, finding new revenue sources and providing more opportunities for youth. The plan also suggests a review of the city’s casino regulations and a possible cap on casino licenses issued in the resort.

“I don’t foresee this plan failing,” Gilliam said. “For so long, folks have believed that Atlantic City could not flourish within its own self. The Debbie Downers of Atlantic City need to jump off that horse.”

MGM Cuts Continue

When MGM Resorts Chairman and CEO Jim Murren announced the company’s MGM 2020 plan to usher the company into the next decade and beyond, he said that the plan would include $100 million in salary saving, which means job reductions. It started with buyouts of some of the company’s top executives and last week aimed a bit lower, with the loss of 254 management jobs across the company.

The job losses—along with another round scheduled soon, according to Murren—are “regrettable” but meant to be a “comprehensive change meant to be transformative,” said Murren in a memo to all employees

Murren acknowledged that the job cuts and the reorganization process would be “stressful” and “difficult” but that it would result in a stronger company.

Last week’s cuts affect only management level employees but no unionized employees.

Already gone from MGM are CFO Dan D’Arrigo, MGM Grand President Scott Sibella (who recently accepted the same position at Resorts World Las Vegas) and longtime spokesman Alan Feldman, who will stay on as a consultant.

PokerStars Fined $10K in New Jersey for Illegal College Betting

PokerStars has been fined $10,000 for violating New Jersey’s prohibition of accepting bets on games involving state college teams.

The state Division of Gaming Enforcement said PokerStars accepted 216 wagers on a game involving Rutgers and Eastern Michigan University totaling more than $2,700. The company also accepted a single bet on a game involving Monmouth University and the University of Pennsylvania.

The division did note that PokerStars had voided all the wagers and returned the money to bettors before the games began. It also indicated the company acknowledged the bets violated the law and that PokerStars had agreed to the fine as part of a settlement with the state, according to the Associated Press.

Matt Primeaux, senior vice president for Strategy & Operations, USA at The Stars Group—which owns PokerStars—commented on the case by email to the Press of Atlantic City.

“We generally don’t comment on regulatory matters like these, but we had a manual gating error from our international games into New Jersey,” he said. “We cooperated with the DGE as we always do, have learnt from the problem, and are confident it won’t reoccur.”

New Jersey legislators are currently considering a bill that would set fines starting at $20,000 and ranging up to $100,000 for companies that take prohibited bets on New Jersey college teams. The bill has cleared a state Assembly committee, but not yet gone before the full Assembly for a vote.

Previously, the Golden Nugget casino and Caesars Entertainment were also penalized for taking bets on New Jersey college teams. Caesars was fined $2,000 for taking bets on a Rutgers-Kansas football game in September, and Golden Nugget forfeiting $390 in bets that it took on numerous college games involving New Jersey teams, according to the AP.

State law prohibits wagers on college teams from New Jersey, regardless of where the game is played, or on college games that take place within the state.

In another matter, Wynn gaming has announced it will launch an online sport betting site in the increasingly crowded New Jersey market. The company, however, has not said which live sportsbook it will be partnering with. Online sportsbooks must partner with casinos or racetracks that offer sportsbooks.

The site will be launched with Scientific Games software, according to a press release from that company.

Wynn Resorts will utilize several Scientific Games products and services including: a sports betting and iGaming system; a managed sports trading service and Scientific Games’ market-leading content aggregation system that is home to more than 2,000 digital games, the release said.

A launch date was not announced.

Pennsylvania Licenses First Truck Stops for Gaming

Pennsylvania’s new truck-stop gaming market got closer to reality last week, as the state Gaming Control Board issued gaming licenses to five truck stops and gave conditional approval for 43 locations across the state to add up to five video gaming terminals each.

The first five “truck stop establishments” are spread throughout central and western Pennsylvania: Four sit generally along the Interstate 80 corridor in Emlenton, Snow Shoe, Loganton and McElhattan; and the fifth along Route 22 in Cambria County, near Loretto.

Under the 2017 gaming expansion law, retail locations can add five VGTs each if they meet established criteria as a truck stop. Such establishments must be situated on at least three acres of land, must be a Pennsylvania Lottery sales agent, must have a convenience store, must have no less than 20 parking spaces for commercial motor vehicles and must have diesel islands for refueling such vehicles. The establishments are also required to provide proof that they have sold or expect to sell an average of 50,000 gallons of diesel/biodiesel fuel on a monthly basis for a period of 12 months.

PGCB Executive Director Kevin O’Toole told board members at last week’s meeting that he expects the first gaming machines to be up and running at truck stops sometime this summer. Each licensee will have to meet physical requirements, get their employees who will be supervising the games licensed, and submit internal controls for review before going live.

Last week’s gaming board action leaves 58 VGT licenses pending across the state. O’Toole said those licenses will considered at future meetings. Five additional applicants have withdrawn, presumably because they are not able to meet some of the statutory requirements.

Atlantic City Casino Revenue Up 25 Percent in March

Atlantic City saw another good month for total gaming revenue in March bringing in $273.7 million, up more than 25 percent over March 2018.

Sports betting in New jersey also had a strong month as the NCAA Basketball tournament unfolded with the state seeing a total handle of about $372 million with an 8.5 percent hold of about $32 million. FanDuel Sportsbook at the Meadowland’s Racetrack reported $17.5 million of that revenue, with more than $13 million coming from online betting.

More than $2.3 billion has been bet at the state’s sportsbooks—which includes sportsbooks at the Meadowlands and Monmouth Park racetracks—since sports betting went live in June. New Jersey’s sports books have made over $63 million from sports betting and paid $7.7 million in state taxes in the first three months of this year, according to an analysis by the Associated Press.

Though the opening of two new casinos in June 2018 has contributed to a dip in overall profits for Atlantic City casinos, total revenue has climbed for 10 consecutive months. The New Jersey Division of Gaming Enforcement, however, recently reported that casino profits for 2018 fell 15.4 percent.

James Plousis, chairman of the New Jersey Casino Control Commission, attributed the lower quarterly report profit numbers to investments the city’s casinos have made to attract more business.

“Earlier this week, the casinos reported tighter profit margins in 2018, but we are seeing results from the investments they’ve made,” said Plousis. “The regional economy is benefiting, and the industry is hiring. More than 2,000 jobs are open, including about 700 full-time positions.”

Through the first three months of 2019, total gaming revenue is up 22.2 percent over 2018. Seven city casinos operated for the entire year in 2018 with the Hard Rock Atlantic City and The Ocean Casino Resort opening in June. The city’s nine casinos have now reported total gaming revenue of $726.65 million this year.

Online casino gambling revenue has also been climbing steadily with the casinos and their online partners taking in $39.1 million in March, an increase of 53 percent compared to the same month last year. The number reflects a new record for the state.

The Golden Nugget Atlantic City and its online partners led the market bringing in more than $14.2 million in March.

The figures also indicate that online sports betting has helped advance online casino gaming in the state as several major sports betting sites such as DraftKings and PokerStars have added online casino sites to their platforms. Resorts casino online division—which is partnered with both sites—took in about $8.5 million in online casino revenue, according to online poker report.

Borgata Hotel Casino & Spa led in total gaming revenue in March with $65.7 million, more than double the next-closest property. Bally’s Atlantic City, Harrah’s Resort Atlantic City and Tropicana Atlantic City all reported decreases in total gaming revenue in March compared to last year, according to the Press of Atlantic City.

Report: DraftKings, FanDuel Made $1 Million in Campaign Contributions

DraftKings and FanDuel have both added sports betting to their product lines and a report by PlayUSA finds that along with their lobbying efforts for their traditional daily fantasy sports products, the two companies have made more than $1 million in campaign contributions in state’s looking to legalize sports betting.

The report found that the two companies have also been focusing on Illinois, where they face the threat of being excluded from the market due to a proposed “bad actor” clause in that state’s proposed sports betting legislation.

The clause, introduced by Illinois State Rep. Bob Rita, could exclude the two companies for operating daily fantasy sports in the states. The state’s attorney general ruled in 2015 that DFS was gambling and issued an opinion that it violated the state’s gambling laws.

DraftKings has issued a statement that the bad actor amendment is an attempt to restrict competition in the state.

However, the two companies continue to operate DFS games in the state and, according to the Play USA report, have been making political contributions there.

In 2016, FanDuel made $62,500 in campaign contributions in Illinois, according to records from the Illinois State Board of Elections. DraftKings contributed $38,500 during the same year.

In 2017, records show DraftKings contributed another $26,000 to state Democratic lawmakers while FanDuel dropped to $3,500. However, in 2018, as the U.S. Supreme Court struck down a federal ban on sports betting, DraftKings made $94,500 in campaign contributions while FanDuel made $64,500.

According to the report, DraftKings has contributed a total of $159,000 to individual lawmakers and political committees. Additionally, FanDuel has spent $130,500.

In another example, according to the Florida Department of State Division of Elections, FanDuel contributed $101,000 to campaign funds during the 2016 election cycle. DraftKings made $86,500.

Over a three-year period, FanDuel and DraftKings combined to make $602,500 in contributions in Florida. The state is involved in a controversial debate over whether to legalize sports betting.

First N.Y. Racino Closes Its Door

The gaming floor at Monticello Casino & Raceway became the first ever to close in New York when owner Empire Resorts followed through last week on plans to shutter the struggling operation, a fate that was all but predestined after Empire’s giant Resorts World Catskills debuted just six miles away.

“There is not enough business that remains at that VLT facility to justify the cost of operating it,” said Ryan Eller, president and CEO of publicly traded Empire (Nasdaq: NYNY).

The casino’s 1,100 video lottery terminals, which had been taking bets since 2004, were unplugged on April 23, and all players’ points and perks were transferred to Resorts World. The casino’s 160 or so employees were offered either a job at Resorts World or a severance package.

Empire has promised to keep open the 60-year-old harness track, which employs around 40, but observers believe its future is problematic as well as both attendance and handle have plummeted over the years.

“The guardians of racing are the horsemen. Track operators are the guardians of their pocketbooks and nothing else,” said Joe Faraldo, president of the state’s Standardbred Owners Association.

It was not expected that Resorts World’s opening last February would necessarily doom the racino, at least not according to Empire, which hoped the two would serve distinct markets. But when Resorts World struggled out of the gate

Encore Boston Harbor Changes Skyline

Some people like the new skyline feature in Everett, the Encore Boston Harbor casino, and some look at the bronze-colored 27-story skyscraper “like an evil person watching over me,” according to a report in the Boston Globe. To others it simply looks like a typical feature of Las Vegas planted into what used to be a blighted landscape next to the Mystic River.

The $2.6 billion tower is unlikely to ever go away, but who ends up owning and running it is currently up in the air as the Massachusetts Gaming Commission is currently deliberating over whether the pull the gaming license of the Wynn Resorts over sexual allegations against former CEO and founder Steve Wynn—and more important to the commission—how the company dealt with those allegations, and whether what the new CEO and board claim is a totally changed corporate culture and way of dealing with sexual harassment claims is enough to allow the company to operate in the Bay State.

Nevertheless, according to the Globe report, a lot of people who don’t live in Everett, but who pass through the city on the Orange Line on their way to Boston or elsewhere, have strong opinions about the town, which some call “an eyesore,” although as comedian Steve Sweeney quipped, “It’s not exactly blocking trees or a beautiful waterfall. It’s freakin’ Everett.” Helicopter reporter Kristen Eck added, “Look at the other stuff around it — a power plant, a junkyard, an oil tank farm. It’s probably the most attractive thing in the neighborhood.”

Wynn Resorts spokesman Michael Weaver points out that the company originally submitted a design that wasn’t so “Las Vegas,” but that the commission asked that it be designed to look like something from that city. He adds, “It offers a beautiful reflection of its surroundings at night. And it creates a very warm, inviting glow inside the rooms.”

Iowa Sports Betting Bill Awaits Governor’s Signature

In a 67-31 vote, the Iowa House approved legislation to legalize sports betting and fantasy sports. The Senate earlier voted 31-18 for the measure. It now goes to Republican Governor Kim Reynolds, who has not publicly indicated if she’ll sign it into law. Reynolds said, “We’re going to do the same process that we do with any legislation that passes. My policy team and I will sit down and we’ll review the bill at hand and then we’ll make a decision.”

If Reynolds signs the bill into law, the Iowa Racing and Gaming Commission would begin establishing rules for betting on professional, collegiate and international sporting events, including motor racing. The rules would be adopted this summer, giving casinos time to prepare for college sports and National Football League games, said IRGC Administrator Brian Ohorilko. Iowans at least age 21 would be able to wager on sporting events on-site at any of the state’s 19 casinos and online after registering in person. Net sports betting receipts would be taxed at 6.75 percent, and taxes and licensing fees could generate annual revenue of $2.3-$4 million annually.

State Rep. Bobby Kaufmann, the bill’s sponsor, said, “This is an industry that is here. This bill regulates it, taxes it and polices it.” He added he was “cautiously optimistic” that the governor would approve the legislation, especially since lawmakers added funding for problem gambling services.

At least four versions of sports betting bills were introduced. One gave regulating authority to the Iowa Lottery, another to professional sports leagues and another to the horseracing industry before the final version put casinos in charge.

And Iowa casinos are gearing up for the change. Jill Beasley, vice president marketing, Harrah’s and Horseshoe Casinos, said, “We’re really excited to get sports betting in Iowa.” She said Caesars Entertainment officials recently visited Council Bluffs. “They walked both properties, Harrah’s and Horseshoe to identify the best location to have sports betting at our facilities. We have quite a few options so we’re going to get those back and hopefully put things in place. What we’re really excited about, it’s going to create an alternative for sports fans who like to bet but in a regulated and safe way and that’s what’s really important to Caesars Entertainment.”

At Ameristar Casino in Council Bluffs, Penn National Gaming Vice President Public Affairs Jeff Morris said, “The sports wagering bill was thoughtfully crafted with a reasonable tax rate and appropriate regulatory oversight so that Iowa’s casinos can effectively compete with the off-shore illegal market. Legalizing sports betting will help drive new visitation to our property and provide our guests with another exciting amenity to enjoy at Ameristar Council Bluffs.”

Prairie Meadows Racetrack and Casino near Des Moines recently completed an 8,600 square foot sports book on its fourth floor. Prairie Meadows Chief Strategic Officer Brad Rhines said, “We are excited to expand our resort offerings with a fully renovated clubhouse that includes both our racing center and new William Hill sportsbook. Once the legislative process is complete, this innovative partnership will provide many fun and unique sports betting options for our guests.” Rhines stated if the governor doesn’t sign the sports betting bill, the new space will be used for horseracing simulcasts.

Also, Catfish Bend Casino in Burlington announced it will remodel its gaming floor to accommodate a $1 million sportsbook, featuring a sports bar, multiscreen video and odds display wall and other gaming options. New Jersey-based PointsBet will operate retail and mobile wagering.

Sports Betting off the Table in Massachusetts House—For Now

As the Massachusetts legislature begins debate on a $42.7 billion budget, leaders of the House have indicated that amendments having to do with legalization of sports betting will not be considered at this stage. They want to wait until later in the session for that, and for any discussions of new or increased taxes, or online lottery sales.

The Senate will begin discussing the budget next month.

Governor Charlie Baker’s proposed budget includes $35 million in estimated revenue from sports betting. He also proposed a sports betting bill in January. In the Bay State governors are allowed to introduce bills directly.

His bill would allow the state’s three casinos to offers sports book onsite and online. It would also allow daily fantasy sports operators including the homegrown DraftKings to take bets on professional sports.

The governor wants to move quickly, House Speaker Robert DeLeo is less in a hurry. DeLeo was a strong supporter of the bill that authorized the three casinos and one slots parlor, but he wants more discussion on sports betting. He has also said that legalizing sports betting won’t be as simple, “as some people think it may be.”

The Speaker and House Ways and Means Committee Chairman Aaron Michlewitz say they are open to taking up revenue measures later in the session, but they want full vetting by committee first.

Indiana Governor Expected To Sign Gambling Bill

The Indiana Senate recently passed HB 2015 in a 37-12 vote; the House passed it 59-36. The comprehensive gambling bill legalizes sports betting at the state’s casinos, racinos and off-track betting facilities, among other provisions. The measure now goes to Governor Eric Holcomb who is expected to sign it.

Mobile sports betting was removed from the measure a few weeks ago but it was put back in just 48 hours before the bill passed. State Rep. Terri Austin said, “To me, this is being progressive, and it’s recognizing that in a free market, you had better stay on your toes or you’re going to be left behind.”

Sports betting adjusted gross revenue would be taxed at 9.5 percent. The measure also would ban betting on eSports or amateur athletes under the age of 18. Operators would pay a $100,000 license fee with an annual renewal of $50,000.

The legislation does not include an integrity fee or royalty, but it gives the Indiana Gaming Commission the option to require using official league data for in-game wagering.

Indiana now joins Montana and Iowa in waiting for governors to sign sports betting legislation into law.

The bill also will allow the one of the Majestic Star casinos, owned by Spectacle Entertainment, to move inland for $20 million; originally the fee would have been $100 million. Some lawmakers and officials were unhappy about the decrease. Hammond Mayor Thomas McDermott Jr. said Spectacle owner Rod Ratcliff “played it like a master. All the steak dinners, all the airplane flights, all the convention center work, it all paid off for him. The legislature got bought out, the governor got bought out, the speaker of the House got bought out, everybody got a piece. A $100 million transfer fee goes down to $20 million. Rod Ratcliff saved $80 million. The whole thing is very shady. The whole thing is very corrupt.”

According to Indiana Campaign Finance records, Holcomb did not receive any individual contributions from Ratcliff during his 2016 gubernatorial campaign. However, Holcomb did accept two flights in Ratcliff’s private jet. In fact, prior to the passage of the bill, at a press conference scheduled with just 23 minutes’ notice at the Indiana state capitol, Terre Haute Mayor Duke Bennett and Gary Mayor Karen Freeman-Wilson hoped to shift attention from those flights to how new casinos would benefit their cities’ economies.

“We want to continue to make sure that everyone stays focused on the economic development opportunities, not only in Gary and Terre Haute, but the entire state of Indiana,” said Bennett, who has been promoting a casino in Terre Haute for three years.

Also, Spectacle will have to surrender its other casino license, which will be offered in a bidding process for a casino in Terre Haute in Vigo County. But first Vigo County voters would have to approve a ballot referendum to allow a casino. That vote could occur during next month’s primary or the November election.

Negotiators were able to settle differences regarding helping cities that might be impacted by the new casinos. Under the agreed-upon deal, Gary will make payments to Hammond, East Chicago and Michigan City from its expected growth in casino taxes; the selected Terre Haute casino operator will make payments to Evansville over three years.

The legislation also allows racinos in Anderson and Shelbyville to have live table games starting January 1, 2020—18 months earlier than allowed under current law.

Wynn Resorts Mulls Banning Founder

The board and executives team of Wynn Resorts International has come up with a novel formula for convincing the Massachusetts Gaming Commission that it is a changed company since found Steve Wynn resigned from the company and ended all ties with it more than a year ago: Banning him from all of the company’s casinos worldwide.

The company delivered a brief with this suggestion to the MGC last week. Banning Wynn from the casinos that each reflect his personality and ego could be considered a bitter personal blow to the ex-CEO.

The brief included 13 suggestions that the commission set as requirements for the company. According to someone who has seen the brief, it states: “Such measures if accepted by the commission and incorporated into a decision in this matter, will provide additional assurances that the allegations and misconduct that led to the investigations… do not occur again and ensure that the most important changes implemented by the company over the last year may be enforced as license conditions.”

It also reportedly says it was “deeply sorry that it failed to live up to its values and that, in doing so, it let its employees down.” It said that over the past year and more, it had “taken drastic and meaningful measures” to protect employees against sexual harassment.

They hope this may be sufficient to persuade the commission not to yank the company’s license to operate a casino in the Bay State. The $2.6 billion Encore Boston Harbor (which was originally named after Wynn) in Everett, overlooking the Mystic River and the Boston skyline, is set to open June 23.

The company will offer Wynn’s banning from all Wynn properties, including those in Macao as a condition for keeping the license. The company said it would also accept other conditions, such as forbidding any company executives to have social contact with the disgraced former CEO and founder.

The commission spent a year investigating the accusations of sexual misconduct against Wynn, but most especially how his subordinates, company executives and board members reacted when they first heard inklings of his conduct, and whether they did anything to cover it up and prevent the MGC from finding out about it when it was in the process of granting a gaming license to the company.

Two weeks ago the commission held three days of dramatic testimony when it grilled company executives and board members, and appeared to be especially intense in its questioning of current CEO Matt Maddox, demanding that he explain how, in his lofty position in the company he never had inklings of Wynn’s alleged misbehavior, something Wynn still denies.

The commission is now behind closed doors determining what it will do. This could include huge fines like the Nevada gaming board imposed on the company, it could include withdrawing the license, and possibly the banning proposal put forward by the company.

A decision is expected within a couple of weeks.

During the hearings executives detailed the extent to which the company has gone to jettison Wynn down the memory hole, including removing his recorded voice from hotel phone system and his image from every location in the Wynn Las Vegas resort.

The new chairman of the board, Philip Satre told the panel: “There was a concerted effort to make sure that the people who worked there did not have to see that on a daily basis.”

At the end of the hearings the company’s attorney Jed Nosal described the changes the company adopted on many levels to “enhanced accountability.”

Maddox by far underwent the harshest questioning, to an extent that many left the hearing feeling that perhaps he personally would be held unsuitable to hold his post with the company. Not that the commission has that authority. If the company chooses to defy the commission, it could sell its interests in Massachusetts, which amount to something like 2 percent of its total holdings.

After the hearings the company pushed back at the idea that the commission might require Maddox’s ouster. In a brief issued after the hearing, the company noted that commissioners did not believe their own investigators, who found no evidence that Maddox helped hide the allegations against his erstwhile boss, including that Steve Wynn did not disclose a $7.5 million settlement payment in 2005 to a woman who said she was forced to have sex with him and become pregnant.

The 49-page legal brief also criticized Commissioner Gayle Cameron for her questions to Maddox about his leadership during the days before Wynn left the company. Observers said that the brief could indicate that the company will take the commission to court if it withdraws its license. This could draw out in time the state’s hopes to have a functioning casino in the Boston Metro area and thus might be seen as placing a chip in a complicated chess game between the company and the commission.

It is, after all, of some concern to the commission that the casino open and begin paying taxes to the state on schedule. The commission wants to be perceived as being tough, but perhaps not so tough that it wants to dismiss millions of dollars in taxes. Not to mention the 5,000 employees, many of who are being interviewed three months ahead of the casino’s opening.

It cannot forced Wynn to sell the Encore building to another gaming company.

Meanwhile the House introduced a $42.69 billion budget last week that includes $264 million in anticipated gaming revenue for the next fiscal year, among that revenue from the Everett casino.

Rep. Aaron Michelwitz, chairman of the House Ways and Means Committee, told The Republican, “I think we are looking closely at what happens with Encore. It is assuming that Encore opens at the approximate time.” That statement may or may not put pressure on the commission, which is theoretically an independent commission beyond the reach of politicians.

An expert on risk management who advises clients on sexual misconduct investigations and compliance told the Las Vegas Review-Journal last week that in his opinion Wynn Resorts has done everything right to change the atmosphere of easy acceptable of sexual harassment that pervaded the company when Wynn headed it.

Nicole Lamb-Hale, a managing director of New York-based Kroll Inc., said the compliance program established, which includes an independent review by a former Boston police commissioner, ought to satisfy the commission if anything will.

“There’s not much you can do to turn back the clock, but you can, going forward, with some things that hopefully will set a tone within the organization that will prevent it (harassment) from happening in the future,” Lamb-Hale told the Review-Journal in a phone interview.

She added, “It’s important to elevate sexual misconduct prevention and compliance at the same level as any other enterprise risk issue. The #MeToo movement has taken sexual harassment out of the shadows. These issues have been around as long as men and women have worked together in the workplace.”

She noted that besides the enhanced workplace compliance and sexual harassment avoidance training, the company made it clear that any employee who knew about the allegations against Wynn and did nothing could not stay, and elected three new women to the board of directors.

It also hired a new general counsel and created the new position of senior vice president of human resources and named a new president to Wynn Las Vegas. These new officials, all women, testified at the hearings.

Lamb-Hale said that creating a new corporate culture is a long and drawn out process. “It’s something that you can’t just put together and put on a shelf,” she said. “You have to continue to refine it, you need to audit it and evaluate it to show the regulators they’re doing that.”

At the end of the last day of hearings, on April 4 commission Chairman Cathy Judd-Stein said she and her colleagues would need several days to reach a decision. The decision will be delivered in a written form.

Gaming analyst John DeCRee of Union Gaming told investors recently that he expects the Encore Boston Harbor to open as planned. “Based on the company’s clear and decisive transformation, we believe current management should be able to adequately prove current suitability to keep the license and open the property,” he said. “However, if the commission determines the company is unsuitable (even after appeal), and Wynn is required to vacate its license, we envision a trustee to oversee the opening of the property and an orderly sale process.”

Sands Bethlehem Fined for Underage Gambling, Free Play

The Pennsylvania Gaming Control Board has slapped the Sands Casino Resort Bethlehem with two separate fines totaling $230,000. One fine is for allowing underage gamblers on the floor, the other for abusing the free-play system of rewards. In addition to the penalties, the casino will be required to pay $5,000 in administrative frees.

The first fine resulted from a January incident in which an underage person gained access to Sands Bethlehem’s casino floor by presenting identification that belonged to his older brother. While on the floor, where he was for four hours and 39 minutes, the patron gambled at a blackjack table and was served five alcoholic beverages.

Two days later, he returned, walking onto the floor after the same ID was scanned. This time around, he spent three hours and 22 minutes on the floor, gambling at two tables and consuming three drinks, before he was discovered as underage while exiting the casino floor’s retail store.

The patron was one of 11 underage customers, ranging from 18 to 20 years old, discovered on the casino floor over a 10-month period stretching from March 2018 to January, according to a report in the Allentown Morning Call. The 11 underage gamblers spent a total of around 24 hours on the casino’s floor. Some entered without being asked for ID, while others used someone else’s ID or a fake.

For these incidents, Sands Bethlehem will pay a $120,000 fine to the gaming board, as well as another $2,500 to cover the state’s costs related to the case.

For the free-play penalty, the state discovered 6,428 free slot play transactions that violated the approved “comp matrix,” with employees issuing about $1.05 million in excess of authorized amounts. Sands has since updated its internal controls.

Sands Bethlehem will pay a fine of $110,000 to the board and a $2,500 fee to cover the board’s costs in connection with the matter.

Sands Bethlehem is in the process of being sold to Wind Creek Hospitality, an arm of Alabama’s Poarch Band of Creek Indians.

Atlantic City Headliners for May 2019

Borgata Casino Hotel & Spa

The Empire Strips Back – A Burlesque Parody
The Music Box – Borgata
The Star Wars Burlesque Parody titled, “The Empire Strips Back” started as a one-off event in Australia back in 2011. It was then turned into a full show in 2014 and now it’s headed to tour the United States! Be prepared for some seriously sexy Stormtroopers, a dangerously seductive Boba Fett, some tantalizing Twi’leks, a delightfully luke-warm Taun Taun, a lady-like Skywalker, the Droids you are looking for and much, much more! Get your tickets now and come along to celebrate everything Star Wars…and the removal of clothing.

Date & Time: Friday, May 3, 2019, 9:00 P.M.
Ticket Prices: $39 – $45
Contact: 609-317-1000; https://www.theborgata.com

 

Michael Carbonaro
The Music Box – Borgata
Michael Carbonaro is a famous actor, magician and improvisational artist. Best known for his TruTV series, The Carbonaro Effect, he will be sure to amaze with his incredible close-up magic. Don’t miss his live performance at Borgata’s Music Box in Atlantic City on May 4, 2019.

Date & Time: Saturday, May 4, 2019 • 7:00 P.M.
Ticket Prices: $35 – $39
Contact: 609-317-1000; https://www.theborgata.com

Kevin James
Event Center – Borgata
Actor, comedian, screenwriter, and film producer Kevin James comes to Borgata this month! James is known for his roles in movies and television, including the King of Queens, I Now Pronounce You Chuck and Larry, Hitch, Grown Ups, Paul Blart: Mall Cop, and more.  While some siblings can hardly stand being in the same room, Kevin’s supporting act will be his older brother, actor and comedian, Gary Valentine! They are known to appear alongside each other in various tv shows and movies; and now they’ll both take the stage at Borgata!

Date & Time: Sunday, May 26, 2019 • 7:00 P.M.
Ticket Prices: $59 – $79 / $99 – $129
Contact: 609-317-1000; https://www.theborgata.com

 

Golden Nugget Atlantic City

Flashback Fridays – Tribute Bands from Your Favorite Era!
The Showroom – Golden Nugget

Admission is free, so grab your friends and head to The Showroom at Golden Nugget on Friday May 3 and May 10 for a flash back in time with tribute bands from your favorite eras! Doors are at 7pm, show starts at 9pm. Seating is limited, so make sure you get there early!  May 3rd will feature Elton Rohn, a tribute band to the legendary Elton John, who have headlined in over 250 festivals and theaters across North America! The featured band on May 10th will be Echoes, a tribute band to Pink Floyd, who have proven to capture the hearts of the audience by devoting their focus to accurately depicting the brilliance of Pink Floyd.

Date & Time: Friday’s May 3 and May 10 • Doors Open at 7:00 p.m., Show starts at 9:00 p.m.
Tickets: Free Admission
Contact: 609-441-2000; https://www.goldennugget.com


Dick Fox’s Golden Boys: Frankie Avalon, Fabian, and Bobby Rydell
The Grand – Golden Nugget

Frankie Avalon, Fabian, and Bobby Rydell, also known as Dick Fox’s Golden Boys, represent 3 of the most popular idols of the late 1950s and early 1960s. The Golden Boys will highlight their greatest hits live in concert on Saturday, May 4 in The Grand at Golden Nugget Atlantic City.

Date & Time: Saturday, May 4, 2019 • 9:00 P.M.
Ticket Prices:: $55 – $75
Contact: 609-441-2000; https://www.goldennugget.com

Caesars Atlantic City

NeedToBreathe: Acoustic Live Tour
Circus Maximus Theater – Caesars

Grammy-nominated rock band, Needtobreathe is bringing their Acoustic Live Tour to Circus Maximus Theater on Saturday, May 4. Hailing from South Carolina, the band is comprised of brothers Bear Rinehart (vocals, guitar) and Bo Rinehart (guitar, vocals), Seth Bolt (bass, vocals) and Josh Lovelace (keys, vocals). Nashville singer-songwriter Trent Dabbs, will be supporting the band on tour. Don’t miss out on an intimate acoustic evening!

Date & Time: Saturday, May 4, 2019 • 7:00 P.M.
Ticket Prices: $35 – $65
Contact: 609-348-4411; https://www.caesars.com/caesars-ac/shows


Atlantic City Ballet Present Cinderella

Circus Maximus Theater – Caesars

Join us for this timeless fairy tale of rags-to-riches and love conquers all as Cinderella transforms from a sad young woman into a beautiful princess, despite the best efforts of her overbearing evil stepsisters. Set to Serge Prokofiev’s hauntingly beautiful score and as if stepping between the pages of a beloved storybook, AC Ballet’s Cinderella vividly delights audiences with the beauty and majesty of classical ballet, wrapped in the promise of “happily ever after,” and generously sprinkled with a wonderful dose of humor. Complete with a fairy Godmother, a handsome prince and an unforgettable ball, the magnificent staging, music and costumes make this production a delight for all ages.

Date & Time: Saturday, May 18, 2019 • 7:00 P.M.
Ticket Prices: $38 – $45
Contact: 609-348-7201; https://www.acballet.org/attend

 

Hard Rock Casino Resort

Tropicaliente 2
Mark Etess Arena – Hard Rock

After the huge success from last year’s show, Tropicaliente is returning to the Hard Rock in Atlantic City, NJ with another great show!  The lineup is at its finest with the greatest Tropical Salsa artist ever. Grammy winner Gilberto Santa Rosa along with Latin Grammy winners Victor Manuelle and India will energize the stage with performances from each artist. Do not miss this special event, Saturday May 4, 2019 at 9PM, doors at 8PM.

Date & Time: Saturday, May 4, 2019 • 9:00 P.M.
Ticket Prices: $59 – $150
Contact: 609-449-1000; https://www.hardrockhotels.com


Kinky Boots
Sound Waves at Hard Rock Atlantic City

Kinky Boots is the winner of every major Best Musical award, including the Tony, the Grammy and London’s Olivier Award. Based on true events, this huge-hearted hit tells the story of two people with nothing in common—or so they think! Featuring 16 original songs by Cyndi Lauper, a book by Harvey Fierstein, and direction and choreography by Jerry Mitchell, this joyous sensation “struts its stuff with sparkle, stilettos and heart!” (Sydney Morning Herald).

Dates & Times: Saturday and Sunday, May 4 and 5, 2019 • 3:00 P.M. and 8:00 PM each night
Ticket Prices: $35 – $75
Contact: 609-449-1000; https://www.hardrockhotels.com


The Band Perry
Sound Waves – Hard Rock

Siblings Kimberly Perry, Reid Perry, and Neil Perry—better known as The Band Perry—bring their country-inflected pop to the Hard Rock. The band signed to Republic Nashville in 2009 and released their self-titled debut album the following year. Early in their career the band experienced success in the country music genre, but have recently begun to explore a new electronic-pop sound that is sure to impress all listeners.

Date & Time: Friday, May 10, 2019 • 8:00 P.M.
Ticket Prices: $59 – $89
Contact: 609-449-1000; https://www.hardrockhotels.com


Kenny Chesney: Songs for the Saints Tour
Etess Arena – Hard Rock
With 20 albums, 14 of which have been certified Gold or higher by the RIAA, Kenny Chesney has become a country music legend. After a brilliantly successful year in 2018, Chesney is scaling things back and has determined to deliver a more intimate experience with his Songs for the Saints Tour.

Date & Time: Saturday, May 11, 2019 • 7:00 P.M.
Ticket Prices: $300.00 – $400.00
Contact: 609-449-1000; https://www.hardrockhotels.com


Styx
Sound Waves – Hard Rock
Since the early 1970s Styx has been an iconic band on the American rock scene. The band just released their 16th studio album called The Mission, which explores a fictional depiction of the first manned mission to Mars, which takes place in the year 2033. Come enjoy the album that James Young says “resonates with the best parts of our past” at the Sound Waves venue at Hard Rock!

Date & Time: Friday, May 17, 2019 • 8:00 P.M.
Ticket Prices: $79.00 – $99.00
Contact: 609-449-1000; https://www.hardrockhotels.com


Kansas
Sound Waves – Hard Rock
Kansas is an American rock band that became popular in the 1970s initially on album-oriented rock charts and later with hit singles such as “Carry On Wayward Son” and “Dust in the Wind”.

Date & Time: Friday, May 31 & June 1, 2019 • 8:00 P.M.
Ticket Prices: $60.00 – $75.00
Contact: 609-449-1000; https://www.hardrockhotels.com


Harrah’s Casino Resort

DL Hughley
Concert Venue – Harrah’s
The original King of Comedy, DL Hughley is coming to The Concert Venue on Friday, May 31. As one of the most popular and highly recognized standup comedians on the road today, Hughley has made quite an impression in the television, film and radio arenas. He also hosts a nationwide afternoon radio show “The DL Hughley Show”.

Date & Time: Friday, May 31, 2019 • 9:00 P.M.
Ticket Prices: $49.00 – $69.00
Contact: 609-441-5000

 

Resorts Atlantic City Casino

Tony Orlando
Superstar Theater – Resorts Casino

Tie a Yellow Ribbon for Tony Orlando, one of America’s most endearing and enduring stars, as he lights up Resorts’ Superstar Theater. 2019 finds Tony bringing his exhilarating energy, warmth and humor to a tour of live concerts across the nation as he celebrates over five decades as a beloved entertainer.

Days & Times: Sunday, May 26, 2019 • 8:00 PM
Ticket Prices: $45.00 – $65.00
Contact: 609-344-6000

 

Tropicana Casino Resort

After 7 and Dru Hill
Tropicana Showroom
Two of the greatest R&B artists from the last 30 years, After 7 and Dru Hill, will be at the Tropicana Showroom on Sunday, May 12, and with that much talent in one place, it’s an opportunity you won’t want to miss.

Date & Time: Sunday, May 12, 2019 • 6:00 P.M.
Ticket Prices: $58.00 – $83.00
Contact: 609-340-4000; https://tropicana.net/entertainment


The Australian Bee Gees Show: A Tribute to the Bee Gees
Tropicana Showroom
One of the most successful and adored acts in musical history is recreated By the Australian Bee Gees Show on the Tropicana Showroom stage in a 75-minute multi-media concert event. You’ll hear hits like Staying Alive, You Should Be Dancing, How Deep Is Your Love, and Jive Talkin’.

Date & Time: Saturday, May 25, 2019 • 8:00 P.M.
Ticket Prices: $35.00 – $55.00
Contact: 609-340-4000; https://tropicana.net/entertainment

 

Rush Street Interactive Launches Everi Remote Game Server in New Jersey

PlaySugarHouse.com is premiering Everi’s Remote Game Server with an exclusive launch of the player popular Smokin’ 777, for the month of April.

Rush Street will add four of Everi’s best performing land-based titles to its New Jersey online casino, including Star Magic®, Double Jackpot®, Vortex®, and Tiger 7® in the coming weeks, the company said in a press release.

PlaySugarHouse.com is now fully integrated with Everi to deliver land-based gaming content, opening up a wide array of new and popular casino games to its online players for real-money gaming via mobile and desktop, the release said.

“We are excited for PlaySugarHouse.com to be the first to debut Everi’s RGS platform in New Jersey, which enables us to tap into Everi’s expansive library of three-reel mechanical and video multi-line games” said Richard Schwartz, President of Rush Street Interactive. “Our loyal players know we are the market leader in historically launching new games and this integration with the Everi RGS allows us to continue to deliver high quality premium games to our players. We will be adding Everi titles to PlaySugarHouse.com over the coming weeks, continuing our commitment to bring new games to our online audience.”

Operators Form Sports Betting Monitoring Group

A group of 26 casino operators, sports betting operators and gaming equipment providers have announced the formation of the non-profit Sports Wagering Integrity Monitoring Association.

The organization will monitor the sports betting industry to detect and discourage fraud and other illegal activity, the group said.

George Rover, is serving as chief integrity officer for the association. He said it is modeled after ESSA, a European integrity monitoring association, and that the new association has worked with ESSA on its initial rollout and will continue to work with the group on global sports betting issues, according to a press release.

“We are eager and ready to assist all stakeholders involved in the sports betting market to ensure a safe and secure betting environment for consumers across the country,” Rover said in the release. “In partnership with gaming regulators and law enforcement officials, we are determined to help prevent fraudulent and manipulative behavior that could negatively affect the integrity of sporting event—something that does not occur with the widespread illegal sports betting market.”

SWIMA is designed as a collaborative entity to partner with state and tribal gaming regulators; federal, state and tribal law enforcement; its member sports betting operators and other various stakeholders, the release said.

Rover is responsible for the organization’s day-to-day functions. Serving on SWIMA’s Board of Trustees are Stephen Martino, chief compliance officer for MGM Resorts International and formerly the chief gaming regulator in Maryland and Kansas, and Jan Jones Blackhurst, executive vice president of public policy and corporate responsibility for Caesars Entertainment and the former Mayor of Las Vegas.

SWIMA’s primary goal is to establish a multi-jurisdictional reporting system to protect consumers, operators and other stakeholders from potential fraud caused by the unethical and illegal manipulation of events on which betting is offered, the release said.

Twenty-six casino operators, sports betting operators and gaming equipment providers, make up the organization’s membership, each represented on the board of delegates.

Big Bookmakers Back Total Ban on Broadcast Gambling Advertising in UK

The two leading bookmakers in the UK, William Hill and GVC Holdings have come out in favor of stronger gambling safeguards including a complete ban on gambling ads during sports broadcasts, with the exception of horseracing.

The companies said advertising specifically promoting responsible gambling and safer gambling campaigns would be permitted, but strictly limited to one advertisement per commercial break, according to the release.

GVC is backing a more severe ban than a whistle-to-whistle advertising ban which is set to be introduced at the start of the 2019-20 football season in August. The company said in its release that while GVC helped to bring about the new restrictions, the company believes they do not go far enough, and is therefore calling on its industry peers to join it in helping to revolutionize the marketing of gambling brands.

“Whilst the vast majority of our customers enjoy our products responsibly, it is high time that the industry did more to protect its customers from potential harm,” said GVC CEO Kenny Alexander. “As the UK’s largest gambling company, and owner of Ladbrokes and Coral, we at GVC are doing exactly that. I call on our industry peers to help us bring about an end to broadcast advertising which promotes sports-betting in the UK no matter the time of day.”

The move comes after similar calls for a total ban during live sports telecasts in the British Parliament. A bill before parliament would place an unspecified tax on all gambling revenue to fund research into the effects of gambling addiction as well as funding gambling addiction clinics and improving safeguards for children and vulnerable people.

“This bill aims to help a different sort of vulnerability, that of the increasing amount of addiction to gambling which, in extreme circumstances, has led, and does lead, to suicide,” said MP Richard Graham in introducing the bill. “There is nothing more sad than meeting a constituent, or non-constituent, who has lost a child to suicide from the pressures of gambling debts. Even one life destroyed by gambling is too many, and the depressing thing is that we simply do not know how many people have committed suicide from gambling.”

GVC is also calling for other initiatives as part of its Changing for the Bettor safer gambling campaign. They include, according to the release:

• A shirt sponsorship and perimeter advertising ban. GVC wants to end all shirt sponsorship deals with UK football teams and banning match-side banner advertisements at football stadiums.

• Increased investment in research, education and treatment of gambling addiction. The company says it will raise its contribution to programs to one percent of its gross gambling revenue by 2022—or about 10 times current requirements.

• Funding gambling addiction treatment centers. GVC is establishing a new independent trust with the aim of making charitable contributions to fund treatment of problem gambling. The Leon House treatment center in Manchester has been identified as the first preferred recipient.

• Safer gambling software. To help those customers that are struggling with their gambling, GVC will offer the GamBan software, free to any individual who is showing signs of problematic play.

“Increasing investment in research, education and treatment ten-fold by 2022, funding treatment centers and using technology to intervene before a problem develops, alongside our existing behavioral analytics, brings to life our commitment to be the most trusted and enjoyable betting operator in the world,” Alexander said. “The industry should and can do more to protect the vulnerable, and today’s announcement demonstrates GVC’s commitment to delivering on that.”

Also in the UK, the Gambling Commission has released a business plan for the next year that outlines a continued focus on protecting consumers, preventing gambling-related harm and raising overall standards in the industry.

“We put consumers at the heart of our approach, which requires us to strike a balance between the enjoyment people get from gambling and the risks that gambling can present,” Commission chief executive Neil McArthur said in a press release. “Managing those risks is not just the responsibility of the individual consumer, and that is why we assess risks by looking at the providers of gambling, the products that are offered and the places in which people gamble. Our approach allows us to respond to emerging risks and issues, whilst constantly seeking ways to drive up standards.”

On the commission’s agenda for the year is a study to determine if credit cards should be banned at gambling sites, continued emphasis on fighting gambling addiction and awarding a new license for the National Lottery.

Scientific Games Launches ‘OpenSports’; Partners with Wynn

Scientific Games Corporation has launched OpenSports, the company’s new suite of sports betting technology.

OpenSports signals the transformation of its sports book product vision through an enhanced stack of solutions and speed-to-market delivery with player experience at the core of the proposition. The completely redesigned sports book solution offers customers a modular portfolio of products that can be mixed and matched to meet specific needs:

OpenBet remains the core sports betting technology solution, the backbone on which a sports book can operate through SG Digital’s proprietary betting engines tested for scale through global sporting events;

• OpenPlatform provides world-class, fully compliant player account and wallet services and functionality;

•OpenTrade, powered by recently acquired Don Best Sports, offers 360-degree managed trading services including pricing, odds, and feeds;

• OpenEngage powers sports book operators with player-focused flexible and innovative interfaces for digital (mobile apps, mobile web and desktop) and retail (SSBT, EPOS and Content Display); and,

• OpenAccelerate helps operators implement, manage and run the day-to-day business of their sportsbook. A team of experienced industry personnel designing and executing critical strategy and world class performance across acquisition, retention and player engagement.

“This evolution of our sports book products and services has been in line with our goal of providing unrivaled player experiences for our customers,” said Keith O’Loughlin, senior vice president, sportsbook for SG Digital. “The unification of our portfolio under a single brand allows us to help our customers connect better with their players and deliver next-level engagement.

“As a business, we’ve grown through strategic M&A and continued to invest in our cutting-edge technology solutions to meet our customer and players’ evolving needs. OpenSports acknowledges and embraces that change by giving our customers exactly what they need to win in the sports betting arena. It’s a natural next step for us to continuously improve the way we connect customer needs with world class player experiences.

“The game has changed. We’ve changed. We’re here to set the new standard by which this industry operates.”

The new technology will have at least one very high-profile user. In a separate release, the company announced a partnership with Wynn Resorts, supporting the launch of Wynn Resorts’ unique digital sports betting and iGaming applications in the U.S.

Wynn Resorts intends to initially launch in New Jersey and utilize several Scientific Games products and services, including a sports betting and iGaming system, a managed sports trading service, and Scientific Games’ market-leading content aggregation system that is home to more than 2,000 digital games such as 88 Fortunes, Raging Rhino, Zeus and more.

It will be the first foray into New Jersey iGaming and sports betting for Wynn, which does not operate a casino in Atlantic City.

“The deal positions Wynn for online gambling market entry and expansion both in the states where it operates retail casinos (Massachusetts, Nevada) and in select states where online gambling legislation is pending,” said Eilers & Krejcik gaming analyst Chris Grove in an interview with CDC Gaming Reports. “Wynn continues to tack toward online gambling in the post-Steve Wynn era.”

Delaware North Sues Over Sportsbook Closures

Delaware North recently filed a civil lawsuit seeking monetary damages against United Kingdom-based Miomni Gaming and its Chief Executive Officer Michael P. Venner. Miomni is involved in a contract dispute with a third-party technology supplier which has prevented Delaware North’s West Virginia casinos–Mardi Gras Casino in Nitro and Wheeling Island Hotel-Casino-Racetrack, plus its BetLucky app–from taking new sports wagers since March 6.

The lawsuit claims “Miomni Gaming and its chief executive officer fraudulently misrepresented its ownership of a key part of the BetLucky sports wagering platform and breached the companies’ joint venture contract.”

In the lawsuit, Delaware North said it believed it was getting a full sports betting solution from Miomni; the fact that a third-party dispute could lead to the shutdown came as a shock. However, part of the public record from the West Virginia Lottery indicated Miomni does not have end-to-end sports betting capability in-house, and that it does work with third parties to help supply sports betting apps, for example in Nevada.

The lawsuit states, “During negotiations for the joint venture, Miomni and Venner repeatedly represented to Delaware North that Miomni owned the intellectual property rights in the platform, including the source code underlying the ‘front-end interface’ and the ‘back-end’ of the platform. Delaware North relied on those representations when it decided to contract with Miomni. In the joint-venture agreement, Miomni represented that it owned and controlled the platform and that Miomni’s performance would not be impaired by any third-party contracts.”

Miomni’s relationship with Cyprus-based Entergaming is central to the lawsuit. In a June 2018 letter from Miomni to Delaware North, Venner indicated Entergaming had agreed to sell and transfer to Miomni the software, source code, object code and all other rights in the platform. But the deal between Entergaming and Miomni never materialized. Miomni never notified Delaware North or its affiliates that it was using Entergaming as a third-party vendor, and Miomni never sought approval from Delaware North or its affiliates to use Entergaming. The lawsuit states Delaware North and its affiliates only later learned that Miomni was using Entergaming as a subcontractor.

The BetLucky License Agreement required Miomni to seek prior approval before retaining any third parties to perform services in connection with the platform. Miomni disclosed several entities that were providing such services, products or materials, but did not include Entergaming and never obtained approval for Entergaming to play any role in the operation or support of the platform.

“On February 5, 2019, the platform stopped working for several hours. Miomni representatives told Delaware North they did not know the cause of this loss of functionality. On March 6, 2019, the platform ceased working again. This time, service was not restored. When the March 6, 2019 outage occurred, Miomni personnel initially represented to Delaware North they did not know the cause of this loss of functionality,” the lawsuit states.

It continues, “As Delaware North continued its investigation and pressed for answers, Miomni claimed, for the first time, that Entergaming had been providing ongoing ‘technical support’ for the ‘back-end’ of the platform. Miomni, through Venner, also alleged that Entergaming had caused the recent platform failures as part of a ‘scheme’ to ‘extort’ Miomni and that Entergaming had engaged in ‘criminal’ activity by ‘hacking’ into the platform.”

Delaware North said in reality Entergaming shut down its services when Miomni didn’t live up to an “option agreement between the two companies” and never paid Entergaming any portion of the option fee, and also never executed a perpetual license agreement with Entergaming for the source code. As a result, Entergaming ended its services. Miomni knew the cause of the March 6, 2019 platform outage was not the result of any “criminal” behavior or “hacking,” according to the lawsuit.

Meanwhile, Delaware North continues to lose revenue as sportsbooks remain unavailable at its two West Virginia casinos and BetLucky app.