State of the Union: California sports betting scandal, BlueBet exit, proposed MD regs

Welcome to iGB’s State of the Union, a look at the biggest North American sports betting stories we’ve covered over the week and briefs on others we found interesting.

Another California illegal bookie pleads
Professional poker player Damien LeForbes Monday (26 August) agreed to plead guilty to running an illegal sportsbook in California. His business is likely tied to Mathew Bowyer’s. Bowyer is the illegal California bookmaker who took wagers from former Shohei Ohtani interpreter Ippei Mizuhara. Bowyer last month agreed to plead guilty to multiple federal counts

Both operated illegal sportsbooks in Los Angeles and Orange counties in California and Clark County, Nevada.

LeForbes, according to Legal Sports Report, wagered $148 million at “Casino A,” as it is referred to in court documents. It’s possible that casino is Resorts World. A May Nevada Current story said he owed Resorts World $12.3 million. Resorts World was identified as a casino at which Bowyer laundered illegal funds. Earlier this month, the Nevada Gaming Control Board issued a list of violations against Resorts World that could result in disciplinary action and fines.

LeForbes used bitcoin to transfer money to customers as a way to stay under the radar, and he used payment processing companies.

Report: ESPN Bet to launch in NY soon
Newsday reported Wednesday (28 August) that Penn Entertainment executives are pointed to a September launch of ESPN Bet in New York. The company was able to access to New York, which is capped at nine platforms, when Wynn exited the market.

“We’re ready to go,” executive vice president for ESPN Bet Mark Walker told Newsday. “Just press that button to launch, as soon as New York says we can.”

That timeline is later than the company has previously pointed to. Penn CEO Jay Snowden said on the company’s Q2 earnings call on 8 August that the platform would be live by the start of college football season. The first full Saturday of college games is set for tomorrow. On the same call, chief technology officer Aaron LaBerge pointed to a late August launch. Either way, September now seems more likely.

BlueBet to exit US
Australian-based BlueBet Thursday (29 August) announced it is exiting the US to focus on its “core” Australian business. The company merged with Betr (an Australian business) in April with a goal of increasing Australian market share to more than 10%. BlueBet operates as ClutchBet in the US and is licensed in Colorado, Iowa and Louisiana.

According to the press release, BlueBet made the decision, in part, because “slower than expected [US] regulation has hampered total market growth and hindered interest in the Company’s B2B SaaS platform, which BlueBet viewed as a significant opportunity”. More details of the exit will be available during the company’s quarterly earnings call in October.

Proposed MD regs outline how to shut down a book
The Maryland Lottery and Gaming Control Agency Thursday (29 August) posted multiple proposed rule changes. Included in the mix is two pages of regulations that would govern how an operator would exit the state. Several companies, including Betr, SuperBook and Wynn have opted to shut down operations in various US jurisdictions this year, including Maryland.

Under the proposal, the regulator would require seven days advance notice before a platform shuts down, and would allow 182 days to return funds to bettors or turn the money to the state comptroller. In addition, the regulator would require a clear shut-down plan.

Will Massachusetts require multi-factor authentication?
The Massachusetts Gaming Commission Thursday (29 August) started a discussion about multi-factor authentication (MFA) and about whether or not mandate its use for every sports betting login. MFA is currently optional in the state.

Commissioners were split on which direction to go in. Interim chair Jordan Maynard said he uses MFA wherever he can, even when optional. But commissioner Nakisha Skinner said she doesn’t, in part because it can be an annoyance.

The commission did not come to a consensus. It discussed how MFA can be a useful responsible gaming and data protection tool. It seems likely the commission will consider at least two models.

Thursday’s meeting was the last for director of sports betting Bruce Band, who is retiring. Band has more than 45 years of casino operations and gambling regulatory experience. Maynard called him a “living legend”.

Watch this: View of Hudson Yards casino from High Line
Related Companies and Wynn Resorts this week shared additional renderings and an animated video showing what their New York City casino project would look like. The animated video features a walk down the High Line that ends at the casino, which would have an 80-story tower. The complex would include a casino, hotel, residential and office space, restaurants and retail.

A multi-billion dollar skyscraper casino will be built in New York.
In general, the project has been known for a long time, but local residents expressed dissatisfaction with the construction. Wynn Resorts specially released a video to show that the facilities will not cause… pic.twitter.com/Tx7qCdeILU

— Trending News (@Trend_War_Newss) August 28, 2024

Related and Wynn are among 11 probable bidders for three downstate casino licences that are planned to be awarded in the summer of 2025.

Hard Rock goes live online in Illinois
Hard Rock Digital Monday (26 August) launched its wagering platform in Illinois. The platform is tethered to the Hard Rock Casino Rockford, and marks the eighth state in which the platform is live. Hard Rock Bet is already live in Arizona, Florida, Indiana, New Jersey, Ohio, Tennessee and Virginia.

The company opened its brick-and-mortar sportsbook at the Rockford location Thursday (29 August). The sportsbook has five wagering kiosk and three teller windows.

See you in court
The fate of Missouri’s legal digital sports betting initiative could be decided as soon at Sept. 5 in Cole County Circuit Court. Political consultants Jacqueline Wood and Blake Lawrence last week filed a lawsuit claiming that the Missouri Secretary of State improperly certified voter signatures for the initiative. It’s not clear what either Wood’s or Lawrence’s interest in the initiative is.

The latest Missouri sports betting poll also underscores the generational divide toward sports betting; More than 60% of likely Missouri voters under age 44 support legalizing sports betting; only about 43% of respondents over that age backed legalization

— Ryan Butler (@ButlerBets) August 30, 2024

The initiative would allow for retail and statewide digital wagering. Each professional sports team/venue and casino company would get one digital skin (platform) and there would be two stand-alone mobile licenses available.

In other news …
Penn Entertainment and Light & Wonder announced Tuesday (27 August) that they are teaming up to offer live dealer games in Michigan. Using Hollywood Casino at Greektown branded tables, the offerings include blackjack and Penn’s “Lucky Cat Baccarat”.

Caesars Sportsbook in June took a $31,000 on 80-1 odds that the Raiders will win the Super Bowl, per the Las Vegas Review-Journal. Should that happen, Caesars will have to pay out $2.48m. The wager is the biggest to date of any NFL futures bet at any sportsbook across the country.

Worth the read
Private equity is turning up all over lately – there’s been an influx into the gambling world, and now the NFL has agreed to allow franchises to sell up to 10% of common shares to private equity companies. For a deeper look at what that means for the NFL, check out Sportico’s story.

ICYMI on iGB
SEC now requires injury reports

DraftKings agrees to terms to buy Simplebet

California tribes want their day in court

Nevada has a big YoY GGR decrease in July

Tropicana implosion set for 9 October, along with fireworks, drone show

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