Author: Casino Connection Staff

After two years of Covid-19 delays, the 2022 NFL Draft in Las Vegas went off without a hitch. The three-day event is receiving rave reviews from officials while drawing ire from Vegas sportsbooks, who reported losses on the event for the sixth straight year.

According to the Las Vegas Review-Journal, NFL commissioner Roger Goodell said that the league was “really thrilled” that the draft event turned out to be “bigger than we ever imagined.” According to Goodell, overall it was “better than perfect.”

The league is estimating a total attendance of over 300,000 across the three-day, which is not quite the figure that city officials were expecting, but official figures have yet to be released.

Goodell was effusive in his praise of the city’s hospitality workers and event staff for their hard work and cooperation in putting the event together. “ Everyone had to work together, everyone had to find solutions and find creative ways to really have a great time,” Goodell told the Review-Journal. “I think that’s what showed through.”

Gov. Steve Sisolak was also proud of how Southern Nevada performed over the weekend, especially given the unfortunate two-year layoff. Sisolak said he views the draft as a win-win situation for all involved because there are no winners and losers–only passionate fans.

Despite the large crowd sizes, city officials told the Review-Journal that aside from a fan jumping into the Bellagio fountain, there were little to no major incidents. Clark County Commissioner Michael Naft said the event provided “a family friendly environment for people on the whole.”

Local sportsbook operators, on the other hand, did not have the same praise.

The Nevada Gaming Control Board authorized wagering on the draft back in 2017, and books have gotten hit hard every year by sharp bettors and insiders. Due to the fact that the draft is a live event that is based on quick decisions, it is nearly impossible to handicap effectively. Just one surprise pick or trade will inevitably set off a chain reaction, which is much more risk than bookmakers are normally willing to take. The interest is too high, however, to take it off the board completely.

“It’s not a game of chance, which is what betting is supposed to be about,” South Point sportsbook director Chris Andrews told the Review-Journal. “It’s not a sporting event where guys are out there playing and you can win or lose.”

All drafts are unpredictable but this year’s edition proved to be especially volatile, as a number of surprise moves proved to be costly for local bookmakers. The most notable example of this was the first overall pick, when the Jacksonville Jaguars selected Travon Walker. Walker, a star defensive end from Georgia’s national championship team, opened at most books with 40-1 odds to be selected number one overall.

As his odds gradually lowered, more fans joined in on the hype by wagering on Walker—by the time he was selected there were tickets all over the place, resulting in one-sided action, which is exactly what books seek to avoid.

SuperBook Vice President Jay Kornegay lamented the draft, calling it his “least favorite event to post.” Unlike regular games, Kornegay said, the draft is a niche event that is usually wagered on by sharp, attentive fans.

The other needle-moving selection came just two picks later, when the Houston Texans made a surprise choice by drafting Louisiana State cornerback Derek Stingley Jr. with the third overall pick. Stingley was not expected to be the first cornerback drafted, and was not even considered by some to be a first-round pick.

According to MGM Resorts Director of Trading Jeff Stoneback, that was the move that put them in the red. “We would be very happy to break even,” said Stoneback. “That’s our goal for the draft, which has yet to happen.”

During a first-quarter earnings call for 2022, Caesars Entertainment CEO Tom Reeg praised the recent NFL Draft event for the visitation-related revenue it brought to the Las Vegas economy but added, “It was not a particularly great gambling crowd. It was good for visitation, but the casino numbers were kind of average.”

Reeg was quick to point out that Caesars’ Las Vegas properties notched their highest 30-day room revenues ever in the month of April. This was only partly thanks to the draft event, as there were also two weekends’ worth of concerts from Korean pop sensation BTS as well as a five-day conference for the National Association of Broadcasters.

The Sports Betting Hall of Fame has announced its 2022 class, with four total inductees: Vinny Magliulo of the Las Vegas Dissemination Co. and Gaughan Gaming; Sandy Drozd of USBookmaking; Chris Andrews of the South Point Hotel, Casino & Spa; and Paul Burns of the Canadian Gaming Association.

This year’s class will be enshrined in a ceremony during the SBC North America Summit 2022 conference on Wednesday, July 13. The induction ceremony will be held at Meadowlands Racing & Entertainment in East Rutherford, New Jersey.

The other conference events will be held at the Meadowlands Exposition Center in nearby Secaucus.

The Sports Betting Hall of Fame was started in 2016 by SBC Gaming, with the goal of recognizing “individuals who have contributed a great deal to the industry over the course of their careers with a lasting legacy.”

According to the company, the purpose of the Hall is to “honor, preserve and perpetuate the names and outstanding accomplishments of personalities who have brought lasting fame to the sports betting sector.”

In a release, SBC executive Sue Schneider said that the company was excited to see how the Hall would continue to grow over the next few years as “the industry enjoys substantial growth in multiple U.S. states and Canada.”

Over the course of its first seven classes, the Hall has honored inductees from all over the world, including the U.S., U.K., Canada, and South America. Inductees range from industry leaders to politicians and other sports betting figures, such as Jukka Honkavaara, the man who placed the first online sports bet ever back in 1996.

For more information about the trade show or to register, visit SBCevents.com.

Facing a session end date of May 23, the Minnesota House and Senate still are debating the sports betting bills. The House bill, HF 778, would limit sports wagering to tribal casinos, but a competing Senate measure also wants to allow it at horse racetracks to avoid granting tribes a monopoly.

The bill has passed in eight committees in the past few months and most recently passed the House Ways and Means Committee. Now it will go to the House floor although no date has been set.

The legislation, sponsored by state Rep. Zack Stephenson, would allow online and retail sports betting to be offered by the state’s 11 tribes at their casinos and through apps. Sports betting revenue would be taxed at 10 percent, with half going to responsible gambling initiatives. Stephenson said, “I take it really seriously, and the advocates who work in problem gaming can tell you that we’ve incorporated every suggestion that they’ve ever made into the bill,” Stephenson said. The rest of tax revenue would fund youth sports programs in communities with high levels of juvenile crime.

The bill would create two “master mobile sports betting licenses.” Each would be valid for 20 years and would be granted to organizations consisting of two or more tribes. One license would be given to an organization of northern tribes and another to southern tribes. Each tribe in a licensed organization could partner with an online sportsbook operator to run their app.

The tribes would have to negotiate new compacts with Governor Tim Walz, who has said he’s open to a bill that includes tribal interests.

Stephenson said, “The path has gotten a little murkier and harder to see how we can get it done, but I think there’s still an opportunity.”

The Ohio Casino Control Commission announced the 30-day window for sports betting license applications will begin June 15. The first application window will be for proprietors that want to launch sports betting on the universal start date, unknown for now, when all licensees will go live. After that window closes, the OCCC will process applications from prospective proprietors as they are received. Observers said it could take the OCCC between 60 and 90 days to approve applications.

Public comment recently closed on draft applications issued by the OCCC. The applications will be available to operators June 1. The OCCC will take applications for 25 Type A licenses, which allow retail and digital wagering at sports arenas and casinos; the application fee is $150,000. Forty Type B licenses, allowing wagering at brick-and-mortar facilities only, will have a $20,000 application fee.

Type A, B and C proprietors, first-designated mobile management service providers, management service providers and suppliers may apply during the June 15 to July 15 window. A second window for Type C sports gaming hosts and second-designated MMSPs will be open between July 15 and August 15.

Under Ohio’s sports betting law, the OCCC must launch wagering by January 1 of next year.

A Vermont lawmaker is considering filing a law that would legalize online wagering. Sports Handle obtained a draft of the bill but didn’t say which legislator was the author.

According to the draft, which hasn’t yet been filed, the state’s Board of Liquor and Lottery would regulate the mobile wagering, with six mobile platforms authorized. Operators would need to go through a competitive bidding process to qualify for one. As part of their bidding, applicants would name their preferred tax rate.

The bill does not appear to address retail wagering. If adopted, Vermont would become the third state to have digital-only wagering. The others are Wyoming and Tennessee.

A measure by online gaming operators based outside of California has gathered 1.6 million signatures, which should be enough to qualify it for the November ballot.

One million signatures are required to put a measure on the ballot. Some of the operators backing the measure are FanDuel, DraftKings and BetMGM.

It becomes the second sportsbook measure to qualify for this year’s ballot. The first is sponsored by a consortium of gaming tribes who only want retail sports book at tribal casinos and the state’s four racetracks.

The operators’ measure, which the tribes oppose, doesn’t clash with their measure. They claim it complements it by allowing online sports betting, but only tethered to tribal casinos.

As the largest state in population, the Golden State is the Golden Apple of sports betting markets, 39 million, compared to the next largest sports betting marketplace, New York, with 19 million. It could be worth as much as $3.5 billion annually say some experts. Peter Schoenke, a board member of the Fantasy Sports and Gaming Association calls the California market “the holy grail.”

In a tip-of-the-hat to California’s biggest issue, homelessness, the measure, called the California Solutions to Homelessness and Mental Health Act, would set aside 85 percent of its tax revenues for homelessness and mental health support. The rest would go to tribes that don’t take part in the market. The online activity would be taxed at 10 percent.

The proponents, Californians for Solutions to Homelessness and Mental Health Support, claim this would raise $500 million annually. Nathan Click, their spokesman, commented, “This is the state’s No. 1 need, its greatest humanitarian challenge, and right now there is no permanent revenue source for housing and the services required to help elevator people out of homelessness.”

To become law, the rival measures each need 50 percent plus one vote, to pass.

It is already certain that hundreds of millions of dollars, and perhaps as much as $1 billion will be spent by the sides—the campaign could be the largest in the state’s history. The tribal campaign has already started to target the sportsbook operators with TV ad saying measure would make it easy for youth to bet using their parents’ accounts.

The online proponents argue that facial recognition software and background checks will protect against this problem.

The online measure is supported by some homeless advocates. Tamera Kohler, CEO of the Regional Task Force on Homelessness San Diego, issued a statement: “These states are using this revenue to solve big challenges. California should be next.”

Fresno Mayor Jerry Dyer, added, “This ballot measure would give cities like Fresno a guaranteed funding source to address homelessness.” He added, “To truly solve this critical issue and give those most vulnerable among us the housing, mental health and addiction treatment they need, there must be an ongoing revenue stream. This initiative would do just that.” If passed, it could go “live” as early as next January.

Dyer’s endorsement has also drawn fire in the form of TV and online ads. One declared, “Mayor Dyer: Please protect our kids! Reject the Corporate Online Gambling Proposition.”

A major criticism of the operators’ measure is the large fee for a sports betting license, $100 million. Gaming companies also must be licensed in 10 states or operate in five states and run 12 casinos. Critics say that would effectively lock out all but the largest operators.

To compare, New York, to date the most expensive, charges a $25 million licensing fee.

The high fees do not apply to tribes, who would pay a one-time $10 million license fee, renewable every five years for $1 million.

The measure would also create a new division within the state’s Department of Justice to regulate online sportsbook.

The two measures are not the only ones active. Another tribal backed coalition (but a different one), called Californians for Tribal Sovereignty and Safe Gaming, would allow tribes to exclusively offer sports betting at brick and mortar casinos, and online. The measure is supported by three tribes: the San Manuel Band of Mission Indians, the Rincon Band of Luisueño Indians, and Wilton Rancheria.

Tribal ads are pushing the narrative that tribes should exclusively control sports betting because they have been reliable caretakers of gaming for more than 20 years.

A recent University of California poll showed 45 percent of voters support amending the constitution to allow sports betting, with 33 percent opposed and 22 percent undecided.

Maine Governor Janet Mills, May 2 signed a bill into law that gives the state’s tribes exclusive control of online sports betting. It also reduces tribal taxes and creates a framework for more collaboration on expanding tribal sovereignty.

Maine’s two land-based casinos, the Hollywood Casino and the Oxford Casino, off-track betting facilities, and racetracks may operate retail sportsbooks under: LD 585. It goes into effect 90 days after the current legislative session ends.

LD 585 has three parts. The first creates a tribal state collaboration, which says the governor and tribal leaders should meet annually and creates liaisons between tribes and departments. The second part creates tax exemptions for certain incomes and persons. The third piece is specific to online and sports betting.

Mills declared, “This law provides meaningful economic opportunities for the Wabanaki Nations. It incentivizes investment in tribal communities, and it formalizes a collaboration process on policy that sets the foundation for a stronger relationship in the future.”

Because of the convoluted nature of the law, it may be almost two years before sports betting actually occurs.

“Maine is not Las Vegas; Maine is not Atlantic City. But that doesn’t make it lesser of a regulatory responsibility on my part, and so I’m going to make sure we get things done correctly,” said Milton Champion, executive director of the Maine Gambling Control Unit, the state’s regulatory body.

Champion said he would consider the experience of other states.

“If (another state’s) law is particularly close to ours, I may venture in and take a look at their rules and see what they’ve done,” he said. “Obviously, we’re a little late in the game here in Maine, so I’m hoping to have lesser hiccups than other states have had.”

But Champion believes Maine is so unique it might take a while to get it right.

“Depending on that response and the pushback and how detailed that is, I may have to go back to the drawing board, republish new rules, have another hearing, or at least a 30-day time frame for written comment,” Champion said.

The law did not come close to satisfying tribal aspirations for sovereignty such as other states’ federally-recognized tribes enjoy. They had sought the passage of LD 1626 to alter the status quo that was created by the Maine Indian Land Claims Settlement Act of 1980. That Act of Congress treats the Wabanaki tribes—Penobscot Nation, Passamaquoddy tribes at Indian Township and Pleasant Point, Houlton Band of Maliseets and Mi’kmaq as municipalities subject to state law rather than sovereigns equal to the state.

During a testimony to lawmakers, Penobscot Indian Nation Chief Kirk Francis said the Settlement Act hobbles the tribe’s ability “to provide services to our people, create an economy that benefits our community and those around us, and excluded us from many federal laws intended to benefit tribal nations.”

Governor Mills opposes LD 1626. She promised to veto the sports betting bill she herself negotiated and supported, if lawmakers had insisted on passing both. She wrote to tribal and legislative leaders: “I do not wish to have a confrontation. It would serve no constructive purpose and only inflame emotions on all sides of the discussion.” Still, the legislature will return to work on May 9, and some would like to revive the bill.

The tribes issued this statement: “Permanent sovereignty restoration remains the legislative priority for the Wabanaki Nations, and it will continue to be our priority moving forward.”

They wrote a separate letter to Mills and legislative leaders. “Time is on our side,” they wrote. “Our people have lived with the negative consequences of the settlement act for over 40 years. However, we have made more progress in our sovereignty restoration efforts in the past four years than we did in the previous several decades.”

Mills offered the sports betting bill as half a loaf in lieu of full sovereignty. She prefers to improve the lot of the tribes through small, incremental steps. Such as LD 906, which allows the Passamaquoddy Tribe to seek alternate forms of groundwater on the reservation without state approval, or amending the Settlement Act to give some tribes the authority to prosecute domestic violence cases against non-tribal members in tribal courts. She has also led the enactment of legislation changing Columbus Day to Indigenous Peoples’ Day.

Mills and the tribes negotiated for many months. Although it is true that Maine’s tribes remain uniquely unsovereign compared to other states, it is also true that Maine now is one of just a few states that have a formal tribal-state collaboration process in place.

The law also finally gives the tribes an entrée into gaming, something they have unsuccessfully sought for 40 years.

Last year the Massachusetts House passed a sports betting bill that includes college football, which many consider one of the more lucrative aspects of sports wagering. However, the Senate last week passed a bill that excludes college betting.

Up until recently House Speaker Ron Mariano had said that a bill without college betting was a “dealbreaker.” However, lately he has seemed to soften that stance.

The difference between the two bills is subordinated in many critics’ minds by the way that the Senate vote took place. During a joint press conference by Governor Charlie Baker and Senate President Karen Spilka, she was peppered by questions about why the vote was done by voice, rather than a roll call.

Spilka answered, “That was what the senators went forward with,” she said. “It wasn’t one person or two people. It was a general consensus they were ready to move forward.” She implied she voted against the bill.

It is hard to determine who voted for the bill with a voice vote.

Progressive Mass Policy Director Jonathan Cohn told MassLive the vote appeared to be “intentionally opaque” for a vote on major policy. “It’s almost like they’re designing for failure,” he said.

He added, “There is a fundamental opacity in the legislative process in Massachusetts and a damning lack of transparency here.” He continued, “This is something you see again and again across issues — a tendency to avoid taking difficult votes as a way of asserting power.”

Senator Diana DiZoglio echoed those concerns. She told MassLive, “It’s extremely centralized,” adding “This is yet another example of why we need shared leadership. There should be full transparency and accountability around policy.”

Because leadership controls staff members’ salaries and committee appointments, it has a large influence on what bills are passed. Ella McDonald of Act on Mass, a legislative watchdog group, told MassLive: “That combined with the general lack of transparency means representatives and senators more accountable to the speaker or senate president than they are to the voters.”

Now the real work shifts to a conference committee, which will try to hammer out the differences and produce a bill that satisfies both chambers. Negotiations could be contentious, but, since they will occur behind closed doors, few people will know.

Lawmakers have tried to legalize sports betting for five years, since the U.S. Supreme Court lifted the federal ban. The House twice passed bills that later died in the Senate. This is largely attributed to Spilka’s control over the process.

Public pressure may have caused Spilka to relent and allow the vote. Add to that a recent poll showing that 60 percent of the Senate supported legalizing sports betting.

The legislative session ends July 31.

The state’s three casino owners have made their wishes known. They want a lower tax rate than is proposed and with college sports. A joint letter by Penn National Gaming, owner of Plainridge Park Casino, Wynn, owner of Encore Boston Harbor and the MGM Springfield, went to the legislature one day before the Senate debate.

SB 2844 allows for statewide mobile betting on digital platforms tethered to existing casinos and retail sports betting. Profits would be taxed at 20 percent for retail and 35 percent for mobile. College sports are banned. Sports betting advertising would be prohibited during live televised games.

The House bill would tax retail wagers at 12.5 percent and digital bets at 15 percent. It allows college sports bets and doesn’t address advertising during events.

The letter asks the Senate to use the House’s tax rate and allow college bets. Such rates are in line with other states, they wrote. They also ask that promotional play credits be deductible from taxable receipts.

They also asked for multiple skins, as opposed to one operator per casino. Pointing to states that allow multiple skins, the letter adds, “The data relative to existing mobile operations in other states is clear that this model serves the largest possible market, will create efficiencies for the implementation of consumer protections and regulatory control for the Massachusetts Gaming Commission, and generate more tax revenue.”

One oft-mentioned argument for sports betting is that neighboring states like New Hampshire make a hefty profit from Bay Staters who cross the state line.

Statistics from the New Hampshire Lottery Commission show that Massachusetts bettors account for about 15 percent of mobile bets in the Granite State. However lottery director Charlie McIntyre seems unworried about losing Massachusetts customers. He said in a statement, “We’re not surprised other states would look to replicate our success.”

Maverick Gaming has filed a legal challenge to the tribal exclusivity of sports gaming in Washington state has been moved by a federal judge from the U.S. District Court for the District of Columbia to the Western District of Washington.

Maverick Gaming, based in Washington, alleges that the Indian Gaming Regulatory Act (IGRA) has been misapplied in giving the state’s gaming tribes exclusivity on some forms of gaming—and not allowing commercial casinos, of which Maverick owns 19 of Washington state’s 44 licensed cardrooms.

The Washington Indian Gaming Association, which represents most of the 29 gaming tribes in the state, issued this statement from Executive Director Rebecca George, applauding the move to a Western District court: “Maverick Gaming’s lawsuit seeks to invalidate all tribal gaming compacts in Washington state and undermine the carefully crafted, limited and successful system of gaming we have developed here over three decades. Their plans would cause irreparable harm locally, not just to historically marginalized Tribal communities but also to the general public.”

Twenty-nine tribes has Class III gaming compacts and 22 tribes operate 29 casinos. Seventeen tribes have been approved to offer sports betting since the legislature approved sports betting in March 2020. The Snoqualmie Tribe opened the state’s first sportsbook last September.

Maverick CEO Eric Persson disagrees. He issued this statement: “While we disagree with today’s decision by a D.C. District Court Judge to relocate our litigation to the Western District of Washington, we have always believed that the final decision on this issue will most likely be settled by the United States Supreme Court. We look forward to continuing our litigation in the Western District of Washington and believe that the defendants’ decision to pursue a different venue instead of confronting the merits of our litigation only underscores the strength of our position.”

Persson said an “inclusive and regulated marketplace” would generate more tax revenue for public services, create jobs and reduce black market sports betting. His 19 small casinos employee about 2,000.

Persson argues that Washington is misinterpreting the intent of IGRA. His attorney, Theodore Olson, added, “Contrary to the act’s own words, the law is being used to insulate tribes in Washington State from competition that exists in many other states with legal gaming marketplaces.”

Last month, the Mid-American Conference asked the NCAA for more guidance on sports wagering constraints. What the conference requested concerned a portion of the Division 1 manual which says athletes, school staff and conference employees may not offer information that could end up associated with sports wagering, according to Sportico.

On April 27, The Division I Interpretations Committee responded and decided that an individual, school, or conference can provide stats to sports wagering companies, as long as the same information can be accessed by the public at large.

The decision should open the doors for universities and other schools to sell their data and other info to sportsbooks. Such deals have proven lucrative to pro leagues like the NBA and NFL, as have associations with sportsbooks. The MAC moved in that direction when it signed a deal with Genius Sports last month. The NCAA ruling could allow the conference to sell data to Genius which can sell it to sportsbooks.

And whatever the MAC earned on this deal, the mammoth Big Ten and SEC will make that much more.

It’s all part of a new approach by the NCAA to defer its authority to the individual schools or conferences. The old worries of integrity and possible cheating scandals fell by the wayside. The fear spoke to the fact that college athletes were not compensated beside room and board in college. Even that could be drawing to a close.

NBA, NFL teams have to pay a set percentage of team/league revenue to the players. So, revenue from data deals goes to the athletes. The NFL players association revenue-sharing agreement with the NFL. Licensed player data is included in that section of the CBA, ensuring players receive compensation for those deals.

“One theoretically could attempt to make an argument that the players in professional sports leagues, based upon the salaries that they’re receiving, are engaging in a work-for-hire,” said Marc Edelman, a law professor at Baruch College, who has extensive experience working with sports, gaming, and antitrust legislation.

Last December, Emagine Entertainment opened the nation’s first movie-theater-based sports betting-lounge in Royal Oak, Michigan. The venture caught the attention of Caesars Entertainment and recently Caesars and Emagine announced their partnership. The venue was rebranded as Caesars Sportsbook Lounge Powered by Emagine. The theater doesn’t have a gambling license but its “Vegas-style sports lounge” offers sports fans an area to wager online.

The lounge will feature betting odds on dedicated displays and games will be broadcast on several huge screens. Amenities include a cinema sound system, heated leather recliners, individual tables and free high-speed WIFI.

Caesars Digital Co-President Eric Hession said, “We are excited about this partnership with Emagine Entertainment and applaud their ingenuity in creating a sports lounge in a movie theatre. This concept should provide an exciting environment for people to enjoy a televised sporting event and for us to connect with new customers while also rewarding our existing loyal customer base.”

Emagine Entertainment Chief Executive Officer Anthony LaVerde stated, “Our commitment to building innovative entertainment experiences for our guests led us to the creation of the sports lounge at Emagine Royal Oak. Partnering with Caesars is a major milestone in our ongoing commitment to being the most innovative theater chain in the country.” He added more locations are expected to open later this year.

VegasWinners, a subsidiary of Winners Inc. and a supplier of sports betting content, analysis, research and data, has been approved by the Pennsylvania Gaming Control Board as a sports wagering service provider able to refer customers to licensed sportsbooks for commission payments.

“Gaining approval to operate in Pennsylvania is a massive statement for our business,” said Andy Scott, chief marketing officer of VegasWinners. “The appetite for sports betting in this market is clearly significant, and we believe that our handicapping service will resonate well. Being recognized by the PGCB as a legitimate provider of sports betting content is also critical to our wider strategy as we enhance our marketing opportunities.”

VegasWinners is licensed in several states, and is an applicant in additional jurisdictions as sports betting spreads in the U.S.