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It doesn’t matter what your favorite sport is; everyone is a sports fan during Masters weekend. It is not who will be sporting the green jacket on Sunday that is grabbing our attention. We are taking notice just how cozy daily fantasy sports (DFS) and the PGA seem to be getting these days.

Three newsworthy headlines from this week involving the PGA and DFS have people talking:

• DraftKings launched a new contest format ahead of the Masters
• PGA Tour took a position on sports betting
• FanDuel gained approval to offer daily fantasy golf in New York

The PGA has been cautious about taking a stand on sports betting, and DFS has been careful about offering single-game contests on golf. This week, the training wheels finally came off.

“We’re intrigued by daily fantasy; we’re intrigued by gaming, said PGA Tour commissioner Jay Monahan told Golfworld last year. “Fan engagement I think it’s important for any sport and you look at the activity in other sports and you look at the activity in golf, it’s significant.”

PGA Tour takes a position on sports betting

During a recent hearing in Illinois, testimony included the PGA’s support of the legalization of sports betting. They are supporting the stance as outlined by the NBA and Major League Baseball.

“The PGA Tour supports the regulation of sports betting in a safe and responsible manner,” a spokesperson told Legal Sports Report. “We believe regulation is the most effective way of ensuring integrity in competition, protecting consumers, engaging fans and generating revenue for the government, operators, and leagues.

“We are aligned with the NBA and MLB in this area, and we are looking for ways to collaborate with legislators, regulators, operators, and others in the industry on regulation that serves the interests of all involved.”

It’s a positive sign to have the PGA Tour coming out in support of sports betting ahead of the much-anticipated Supreme Court decision.

DraftKing introduces new single-game format for The Masters

Draft Kings introduced a single-game contest called Single-Round Showdown just in time for the Masters. Cash games and guaranteed prize pools are available for each of the final three rounds of the tournament.

Since golf is a position-less sport, DraftKings modified the positional requirements for this next phase of contest formats. With Single-Round Showdown, participants select six golfers using a $50,000 salary cap just like traditional fantasy golf contests. The significant difference is the time frame of the sporting event.

Single-Round Showdown isn’t the only new contest format golf fans have seen recently. Towards the end of March, Draft Kings unveiled a new Match Play format with an innovative and new scoring component.

FanDuel is finally able to offer fantasy golf in New York

In 2016, the fantasy sports law went into effect in New York. At that time, golf was not part of FanDuel’s offerings in the U.S.

A lack of golf wagering at the time the law went into effect was a problem for the DFS company. State regulations prevented any operator from offering contests on sports they did not already provide.

A decision by the New York State Gaming Commission cleared the way for FanDuel to begin offering golf contests in time for Masters weekend.

Welcome to the big leagues

There have been indications that the PGA was leaning towards taking a favorable position on sports betting. Those indications mainly came in the form of statements from Moynahan.

The fact that the PGA is taking a public stance in support of sports betting when it has been reluctant to do so in the past is a positive sign for both bettors and DFS players going forward.

The post While Golf Starts To Embrace Sports Betting, DFS Is Embracing Golf appeared first on Play USA.

Gaming regulators in Pennsylvania have come to a decision on how many online gambling websites licensees can launch. It will allow the sites as many skins as they want.

Lawmakers in the Keystone State passed legislation authorizing online gambling in October 2017. The Pennsylvania Gaming Control Board announced this year existing PA casinos could begin applying for online gambling licenses beginning April 16. The board also said week it would begin accepting applications for interactive gaming platforms, the software providers for the sites, on June 4.

Regulations related to PA online casinos and online poker were also rolled out by the gaming board in March. However, language addressing whether or not there will be a limit on the number of online gambling websites licensees can launch was missing. The different online gambling websites operating under a single license holder are usually referred to as skins.

Bigger skin limits, more revenue

New Jersey limits the number of skins allowed to operate under a single online gambling licensee to five. However, experts say larger limits like this have helped maximize operator and state revenue from online gambling.

Two of Pennsylvania’s largest casino organizations, Parx Casino and Racing and Hollywood Casino at Penn National Race Course, told the board they wanted to see a limit of just one skin per licensee. Apparently, the casinos felt a limit on skins in PA could help prevent the new online gambling sector from cannibalizing the existing land-based casino industry.

However, most experts agree allowing multiple skins is good for the entire industry. Plus, it can only help revenue growth across the board. Evidence from New Jersey clearly shows that is the case.

Additionally, two PA lawmakers, Reps. Rosita Youngblood and Jason Ortitay, recently came out claiming legislators never had any intention of placing a limit on skins.

No limit on skins

This week, the gaming board today approved another set of temporary rules and regulations that address the issue of skins. According to a press release, there will be no limit:

“What the Pennsylvania Gaming Control Board did at its public meeting of April 4, 2018 was to approve temporary regulations that enable a very open and competitive market for internet gaming while at the same time assuring transparency and accountability for the consumers. Under these temporary regulations there is no limitation on the number of skins that a slot machine licensee may employ to deliver games, but every “skin” that a casino offers must be branded in a manner that makes it clear that it is offered on behalf of the slot machine licensee consistent with language of the act.”

This indicates there will be no limits on skins. Plus, it says the only strict regulation is all skins must clearly identify the license it is operating under. It allows operators and software providers to apply for licenses knowing exactly what they can do with them.

Operator licenses for online slots, table games, and poker will cost $10 million for all three. Or, $4 million separately. The interactive gaming platform licenses come with a $1 million licensing fee attached.

The application process begins soon but will take several months to complete. Therefore, the first online gambling sites in PA won’t likely open until at least the fourth quarter of 2018.

The post PA Takes A Cue From NJ And Opts For More Skins Online appeared first on Play USA.

Washington State is well known for its archaic online gambling laws, but no one could have anticipated the ruling that came down from a federal appeals court last week.

In a ruling that has reverberated throughout the gaming and social gaming worlds, Judge Milan D. Smith of the Ninth Circuit of U.S. Court of Appeals found that Big Fish Casino’s play money social app constituted illegal gambling. Smith elaborated in his opinion:

“Without virtual chips, a user is unable to play Big Fish Casino’s various games. Thus, if a user runs out of virtual chips and wants to continue playing Big Fish Casino, she must buy more chips to have ‘the privilege of playing the game.’ Likewise, if a user wins chips, the user wins the privilege of playing Big Fish Casino without charge. In sum, these virtual chips extend the privilege of playing Big Fish Casino.”

Cheryl Kater originally filed the case in 2015. Kater sued Big Fish parent company Churchill Downs. However, Churchill Downs has since sold Big Fish to Aristocrat Technologies. Kater claims she spent over $1,000 buying Big Fish Casino chips. As such, the chips represent “something of value.”

Initially, a US District Court threw out Kater’s case in 2016. The Appeals Court’s ruling sends the case back to the District level though. Or, Churchill could choose to escalate the case to an appeals court panel, or even petition the Supreme Court.

Right decision, but for the wrong reason?

I’m of the opinion that the Appeals Court’s ruling was correct, but for the wrong reason.

In addition to claiming that the value of the chips was “the privilege of playing the game,” Smith’s ruling brought up another point about Big Fish Casino chips: the ability to sell them on a secondary market.

In his ruling, Smith called this mechanism irrelevant. He ignored it on the grounds that these types of transactions violate the terms of service of Big Fish Casino. However, the market exists. Big Fish Casino virtual chips are sold for money.

Frankly, it’s pretty difficult to claim your chips don’t have value when they’re being sold for money. Even if it is without your consent.

Some legal experts and industry watchers believe the multiple mentions of the secondary market makes it material to the ruling, even if it was deemed irrelevant:

The mechanism is cited a couple of times in the decision. Have to think it’s material.

— Chris Grove (@OPReport) March 29, 2018

The Court seems to have dismissed the secondary market concern in its footnote, but yes, @SteveRuddock at the same time, it seems the ability to so-called “cash out ” was a major concern.

— Jeff Ifrah (@jifrah) March 29, 2018

Secondary market creates the third pillar of gambling

It’s important to note that the secondary market only exists because Big Fish allows players to transfer virtual chips to other players.

If the virtual chips weren’t transferable, the ability to exchange them on a secondary market vanishes. To wite, several other sites have such rules in effect. Without a secondary market, the third pillar of gambling is no longer present:

1. Consideration: The risking of something of value
2. Chance: A random element in awarding the prize
3. Prize: Winning something of value

Video game loot boxes dealing with similar issues

Disallowing peer-to-peer transfers is how loot boxes in video games avoid the gambling designation.

As UK Gambling Commission Executive Director Tim Miller wrote in a statement regarding loot boxes in Star Wars Battlefront II:

“A key factor in deciding if that line has been crossed is whether in-game items acquired ‘via a game of chance’ can be considered money or money’s worth. In practical terms this means that where in-game items obtained via loot boxes are confined for use within the game and cannot be cashed out it is unlikely to be caught as a licensable gambling activity.”

Or, as the Danish Gambling Authority Spillemyndigheden wrote in its opinion on loot boxes:

“The winnings that can be obtained from a loot box in Star Wars Battlefront 2 cannot be converted into financial resources, as the fictional items in the loot box cannot be sold or otherwise converted into money. Therefore, loot boxes in their present form in Star Wars Battlefront 2 are not covered by the gaming act.”

In the same ruling, Spillemyndigheden wrote that skin betting (the wagering, trading, or selling of special in-game items) constitutes gambling.

The only difference between Star Wars loot boxes and “skins” in other games, is the capability to transfer them to another player. Without that mechanism, in-game purchases only tick off two of the three gambling boxes.

Fallout already underway in the US

The ruling is already having an impact. The Washington State Gaming Commission noted that several operators, including PokerStars, decided to leave the Washington State play-money market:

We’ve received questions about #FreePoker sites denying access to Washington residents. Please read below to learn more. Our agency did not order these sites to deny access to free poker. If you have concerns, please contact the websites directly. pic.twitter.com/idhLg95GGF

— WA Gambling Comm (@WAGambling) April 4, 2018

It’s likely Washington is only the tip of the iceberg. The lax regulation of the social gaming industry, and micro-transactions that turn free-to-play games into “freemium” games, seems to be heading towards a day of reckoning. They occupy a very confused space that blurs the lines between video games and gambling as well as free-to-play games and pay-for-play games.

Furthermore, many freemium games and video games have minimum age restrictions. And when it comes to social casinos, the old adage of “it looks like a duck and quack like a duck,” seems to come into play.

At the end of the day, these games may not fall into the “gambling” category, but it’s a pretty safe bet they will see stiffer regulations down the road.

The post It’s About Time We Start Scrutinizing Social Casinos appeared first on Play USA.