Knives out for college prop bets
NCAA prop betting move, the Ohtani controversy develops, New York casino delay, Oz/Curaçao cooperation +More
Mad props: The NCAA really doesn’t like prop betting on college sports.
In +More: French regulator’s global review.
Politicos swing after Ohtani controversy.
There will be no quick decision on New York casinos.
Australia and Curaçao regulators cooperate over illegal operators.
Squash his head, put him in the pot.
NCAA prop bet ban builds steam
No props: National Collegiate Athletic Association (NCAA) president Charlie Baker on Wednesday asked all states that have legalized sports gambling to pass laws banning the availability of individual prop bets for college athletic events.
The NBA is currently conducting an investigation into prop betting activity that took place earlier this year.
It is reviewing suspect activity involving wagers placed on Toronto Raptors forward Jontay Porter, who left two games early and caused heavy betting on unders to be cashed.
Or better still, just stop the train: “Sports-betting issues are on the rise across the country with prop bets continuing to threaten the integrity of competition and leading to student-athletes and professional athletes getting harassed,” Baker said in a statement.
“The NCAA has been working with states to deal with these threats and many are responding by banning college prop bets.
“This week we will be contacting officials across the country in states that still allow these bets and ask them to join Ohio, Vermont, Maryland and many others and remove college prop bets from all betting markets.”
Baker said the NCAA is “drawing the line” on sports betting to protect student-athletes and to protect the integrity of the game.
“Issues across the country these last several days show there is more work to be done,” he said.
Wipeout: Analyst Jordan Bender of JMP said the push “stands to materially impact sports-betting companies if the ban is eventually put in place.”
“Prop betting has served as a diversification away from traditional game results in recent years to protect against negative sporting outcomes, accounting for nearly half of bets across all sports in recent quarters,” Bender said in a note to clients.
JMP estimates such a ban could remove around $200m of revenue and cause a spike in black market activity if enacted.
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France’s national gambling authority has finalized a global review of the general conditions of use for online operators, which has amended multiple clauses within the country’s regulatory framework. Changes involve operator liability clauses, those that limit the ability of punters to take legal action and restrictions on the means of proof available to consumers making claims.
Germany has granted Lottoland Deutschland a license to broker state lotteries and offer sports betting and virtual slot machines. Further licenses for sports betting and virtual slot machines will be handed out soon, regulators said.
New lobbyist klaxon: Seven of the largest US online sports-betting and gaming operators have formed an independent trade body, the Responsible Online Gaming Association. Members include BetMGM, bet365, DraftKings, Fanatics Betting & Gaming, FanDuel, Hard Rock Digital and Penn Entertainment.
ROGA will carry out research, raise consumer and industry responsible gaming education and awareness, promote responsible gaming best practices and launch an independent certification program.
The Ohtani controversy
Field of screams: Lawmakers floating bills aimed at kneecapping the sports-betting industry said the scandal following squeaky clean LA Dodgers baseball megastar Shohei Ohtani is a good thing.
Ballpark figure: Rep. Paul Tonko and Sen. Richard Blumenthal filed a pair of bills before it emerged Ohtani’s interpreter Ippei Mizuhara had allegedly stolen $4.5m from the man with the largest contract in baseball history to pay off bookies in Southern California, who are under a federal probe.
Not wanting to waste a good crisis, the pair said the saga, which has blown up before the start of the season, will shine a light on gambling addiction and the “Wild West” of sports betting.
“This situation clearly demonstrates the impact and harm that gambling addiction can inflict,” said Tonko, who this month introduced the SAFE Bet Act to counter a “public health crisis.”
“The widespread legalization and promotion of sports gambling will only make this type of incident more common moving forward,” Tonko told NBC News. “We have an obligation to address the predatory practices of this industry and protect consumers, which is precisely what my SAFE Bet Act aims to do.”
Tonko’s act requires states to meet certain criteria related to sports betting, with limits on advertising, player deposits and the use of artificial intelligence.
You can tell that one goodbye: Lobbyists from the American Gaming Association pushed back and said the Ohtani case concerns illegal gambling, which should be the focus of legislators. Mizuhara, a once close friend of Ohtani, was fired last Thursday after lawyers for the two-way baseball star said their client had “been the victim of a massive theft.”
Initial reports alleged that wire transfers were made from Ohtani’s account totalling at least $4.5m to a Southern California bookie under a federal probe.
Major League Baseball has opened an investigation into Mizuhara and his alleged links to illegal gambling.
New York casino delay
He’s never early, always late: The chances of New York issuing three downstate casino licenses before the middle of 2025 are drifting. Gaming regulators in the Big Apple have said they don’t intend on making the decision for at least a year, pushing the likelihood of an opening until later in 2026.
For any movement to occur, the City Council has to approve a change of land use in order to build a casino inside the five boroughs. No bid will be evaluated until state-appointed advisory committees get together to review the applications.
“I think the word frustrating just doesn’t capture my emotions,” said state Sen. Joseph Addabbo Jr, who has been leading the charge.
In 2022, state lawmakers approved legislation that would speed up the process, in an effort to kickstart the bidding and move efforts along. But without the zoning change, nothing will happen.
Waiting for the man: Regulators have indicated they may wait on accepting applications until some of the bids get the right approval, be it through state legislation or city zoning updates, unique to the individual project.
“The board is cognizant of the many factors relating to the zoning requirement, including New York City’s proposed text amendment relating to gaming facilities and of the many zoning-related questions posed by applicants during the first two rounds of questions,” the Gaming Commission said in a statement.
“The updated timeline, expected to be finalized soon, will consider these and other factors,” it said.
Next Tuesday, the council’s subcommittee on zoning and franchises is holding a hearing on a citywide amendment to enable casino development.
A further wrinkle is the need for each project to gain approval from various casino boards appointed by the state; none of the boards have as yet been created.
“I’m just disappointed with the delay that we’re experiencing, because not only are we missing the licensing revenue, but we’re missing income tax revenue from the people that would be working there,” said Assembly member J. Gary Pretlow, who chairs the Legislature’s gaming committees.
More dead than alive: The stakes couldn’t be higher for hopefuls given New York is the US’s largest prospective market, and while optimism was high at the start of the year, hopes are fading for quick resolution. Each project will cost billions and involve some of the most iconic locations in the city.
New York Mets owner Steve Cohen has lobbyists pushing for an $8bn casino with Hard Rock near the baseball club’s Citi Field ground.
Sands is planning an enormous resort on Long Island, while Wynn Resorts has partnered with noted developer Related Cos. to develop a $12bn venue in the westside of Manhattan.
Two of the favorites, MGM’s Empire City in Yonkers and Queens’ Resorts World New York City, are positioned to open in-person casinos within months.
The pair already have video lottery terminals and racetracks on site and, crucially, have local backing, while the projects still on drawing boards may not become a reality until 2027 or beyond, analysts estimate.
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Oz/Curaçao cooperation
Let’s get together: The Australian Communications and Media Authority (ACMA) has discussed its investigations into Curaçao-licensed iGaming operators with its counterparts at the Curaçao Gaming Control Board (CGCB).
The Curaçao authorities assured ACMA officials that it takes breaches of Australian law very seriously and would do everything possible to stop Curaçao operators from targeting Australia.
The CGCB assured ACMA that contraventions by operators in other jurisdictions (such as Australia) would be taken into account when assessing the suitability of a licensee under the new regime.
First impressions: Since those initial conversations, revealed via a freedom of information request by The Sydney Morning Herald, the first licenses under Curaçao’s new regime were granted in February.
White Star, part of Rhino Entertainment Group, Games and More, Geeka Corporation and Small House were the first licensees under the new regime.
An update to operators from the CGCB stated: “Applicants and license holders are expected to demonstrate reasonable efforts to secure compliance with law and financial sanctions guidelines in the countries where their services are accessed.”
ACMA first wrote to Curaçao minister of finance Javier Silvania last year after it realized a large number of the companies on its 945-strong blacklist were licensed in the Caribbean island. Despite the Curaçao promises, the blacklist continues to grow.
Calendar
Mar 28: Player Protection Forum, London
May 6: Gaming in Spain
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