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National Council On Problem Gaming Has A Better Idea For 1% Of Betting Revenue

As nearly two dozen states mull over sports betting legislation, and a sixth just passed a law about it, the debate rages on about the best frameworks to offer wagers.

The major sports leagues claim a small percentage of revenue should go to them. Why, you ask? To monitor the integrity of sports matches in their respective leagues.

Leagues are lobbying for as much as one percent of revenue for them written into legislation. Meanwhile, the National Council on Problem Gambling (NCPG) has a much better way to spend one percent of sports betting money: problem gambling-related funding.

The NCPG released its recommendations on how states should handle sports betting should the Supreme Court rule in favor of New Jersey in the state’s case challenging the Professional and Amateur Sports Protection Act (PASPA). The percentage going to problem gambling prevention is one of several suggestions by the group.

Regulation suggestions include same age limits for betting and DFS

The regulations are timely, as March is Problem Gambling Awareness month. The organization hopes any states considering legislation incorporates its suggestions into the bill’s language.

Here is a look at what the NCPG is asking for:

  • Dedicated funds to help support problem gambling prevention and research
  • Self-exclusion technology for bettors to limit money spent or self-exclude for a period of time
  • Appoint a regulatory body to oversee and monitor problem gambling prevention
  • Be consistent about age limits for fantasy sports and sports betting

That last point is the one that could ruffle some feathers. As many know, the daily fantasy sports industry insists it is not gambling. As such, the industry likely will not abide by excluding players between 18-20 years old. On the sports betting side, you are not going to convince US casinos to alter the 21 and up regulations just for the sports books either.

So where does that leave this last point? Currently, the only state with DFS restrictions of 21 and over is Massachusetts.

These DFS rules are already law, so it is extremely unlikely state will embrace the age-related suggestion from NCPG. Even if it makes total sense.

States need to dedicate money to problem gambling research, prevention

When it comes to how much states should spend on problem gambling-related causes, the NCPG has the same request as the sports leagues–one percent.

The organization wants more than just lip service too. It suggests programs with measurable goals and progress in its release:

Sports betting operators must be required to have responsible gaming programs. These programs should be specified in the regulations. The operator must have a written plan with measurable objectives, and an annual report on the progress towards these goals must be provided to the regulator and available for public review. Compliance with the RG regulations and plan performance should be a condition of licensure and renewal.

Additionally, the group says no state should be able to offer sports betting without RG funding written into the law.

Unlike the league’s vague ideas about what one percent of revenue would do to keep games on the up and up, NCPG has concrete goals and ideas for that money.

The money goes to programs. The group also suggests frequent research using surveys, especially about new technologies like mobile betting apps.

Most importantly though, the NCPG regulatory suggestions offer something no league has mentioned yet: accountability that the money going for responsible gambling measures yields results.


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West Virginia Sports Betting Bill Passes With No Integrity Fees

The U.S. Supreme Court is now the only thing standing in the way of West Virginia sports betting.

According to Legal Sports Report, West Virginia passed the WV Sports Lottery Wagering Act March 9, even without the governor’s signature.

With the bill’s passage, West Virginia becomes the first state of 2018 to pass a sports betting law and the sixth state overall in recent years.

While the House and Senate tore apart the measure before passing it, Gov. Jim Justice remained relatively silent. He did not veto the bill, despite public pressure. He may instead choose to call a special session to revisit the issue once the U.S. Supreme Court makes its decision.

Justice said this in a press release Friday evening:

“After the U.S. Supreme Court issues its decision on sports wagering, to address any provisions of the legislation that might be in conflict, I will ask the Legislature to look at the advantages of partnering with the major sports leagues. I believe there could be real value to this partnership. I expect the Supreme Court to rule on this issue in the next few months.”

How the sports betting bill became law

The bill fast-tracked through the state House and Senate less than six weeks after it was introduced. There was a single sports betting bill in 2017. Then four different wagering bills ended up in the legislature at the start of this year.

The bill that passed (S 415) came from the Lottery Commission after a full year of research.

The law will give the state’s five gaming facilities the opportunity to offer sports betting with Lottery oversight for the price tag of $100,000. The state expects $5 million in total tax revenue in its first year.

The NBA and MLB turned out to be the largest opponents of the bill. This could be an indication that they want in on the action with an integrity fee.

Here are the particulars of the new law:

  • Wagering in pro and collegiate sporting events
  • Set a minimum age of 21 for wagering
  • Authorize online and mobile wagering, if the lottery commission approves it
  • Create a structure for sports betting operators to get a license via a $250,000 application fee
  • Enable West Virginia to receive a 10 percent tax on gross gaming revenue from operators
  • Lay the foundation for integrity monitoring for sports wagering compared to real-world events

West Virginia has a history in sports betting

West Virginia is no stranger to sports betting legislation.

In January, the state introduced a sports wagering bill in the Senate and revived a piece of legislation in the House of Delegates: S 106 and H 2751. The two bills, almost identical, chose the State Lottery Commission as the designator of sports betting rules and regulation.

Furthermore, the legislation also called for a special revenue account to place a tax on bets and other fees, as determined by the Commission. The legislation also called out U.S. Congress as having no authority over state government authorization of sports betting as a form of gaming.

While other sports betting bills turned for the worst (similar to DFS), West Virginia does have two years of exploration under its belt.

Uncharacteristically for these types of bills, West Virginia has not burdened operators with a high tax rate or integrity fee (that sports leagues lobby for).

The case that started it all

In November 2016, West Virginia joined 19 other states in filing an amicus briefing in support of New Jersey in Christie vs. NCAA.

With seven casinos statewide, it’s likely that the state will wait to open any sports books until the Supreme Court gives the go-ahead in the Christie vs. NCAA case.

In December, SCOTUS heard arguments regarding the nature of sports betting and the issues with consumer protection and the massive illegal sports betting market.

This case pits New Jersey against the Professional and Amateur Sports Protection Act (PASPA) of 1992 to make sports betting legal beyond Nevada.

This game changer would reverse status quo. Nevada maintains legal sports betting as does Delaware, in part, with limited parlay sports betting, and Montana, with game square wagering.

The American Gaming Association also changed its view on PASPA.

It doesn’t help the naysayers that Nevada’s record-breaking sports betting handle came in at $247.8 million in 2017.

Another option of repeal for proponents is the Gaming Accountability and Modernization Enhancement Act (GAME). Introduced by Congressman Frank Pallone Jr. (D-NJ), the GAME Act, would potentially remove federal liability for gaming, keep federal oversight, and protect state rights.

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States are eager to join in

West Virginia is the only one stepping up to the plate. There are 15 other states considering sports betting legalization:

In fact, the majority of Americans support the idea.

Already, New Jersey, Pennsylvania, Mississippi, and Connecticut passed legislation to kick in once the federal law gets thrown out.

Photo by  Aspen Photo / Shutterstock.com

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PGCB Assures DFS Players Won’t Notice Much Difference With Regulated Sites

The Pennsylvania Gaming Control Board (PGCB) made license applications available for operators interested in hosting fantasy sports contests March 9.

These applications are now online on the PGCB website:

  • Enterprise Entity Application and Disclosure Information Form
  • Multi-Jurisdictional Personal History Disclosure Form (Multi-Jurisdictional PHD)
  • Principal/Key Employee Form – Pennsylvania Supplement to the Multi-Jurisdictional Personal History Disclosure Form (PA Supplement)
  • Principal Entity Form
  • Institutional Investor Notice of Ownership

The PGCB begins accepting those applications on March 19.

The DFS application package

These forms are required for:

  • Manufacturers
  • Suppliers
  • Designees
  • iGaming operators
  • Fantasy sports operators
  • Terminal operators

In addition to completing these forms as per the application package, the associated establishments must pay an application fee. Already, the PGCB posits that there could be additional costs related to processing and investigating applicants. These costs are the responsibility of the applicant.

The applicant can pay these by money order or check, but here’s the breakdown of fees:

  • Fantasy Sports Operator: $5,000
  • Affiliated Entities: $2,500
  • Principal/Key Employee: $2,500
  • Principal Entity: $2,500

The PGCB requires application and license fees be paid prior to receipt of the license. For fantasy sports licensed operators, the initial term of five years requires a payment of $50,000. The renewal term at five years is $10,000. Applicants, affiliated entities, principal/key employee qualifiers, employee permits and registration all equal about $14,010.

What does this mean for fantasy contests?

Those who provide fantasy sports can calculate revenue and taxes owed to Pennsylvania based upon entries made in the state by players. Pennsylvania will take in 15 percent of the adjusted revenue of fantasy contests for use in the General Fund.

As of March 7 of this year, the PGCB released temporary fantasy contest regulations. The PGCB expects to present the Temporary Fantasy Contest Regulations draft on March 21 for adoption. This could assist prospective applicants in completing the application process.

In other news, the PGCB also revealed the license application period, mid-April, which will be the first 90-day period where casinos can get an all-in-one license for $10 million. That includes online slots, online table games, and online peer-to-peer gaming.

What does it mean for players?

According to PGCB, Firms in the daily and season-long fantasy contest business will still offer normal sports games under this license. Those who already play fantasy sports will not see much of a difference.

The PGCB specifically states that these games are available to “beginners.” Thus, highly experienced players are excluded from these contests. Additionally, the PGCB prohibits those who use scripts as it unfairly impacts the field.

In order to play, players must be at least 18 years old. Players do not need to be in PA to participate in the fantasy contests. Players can also establish limits and self-exclude from participation in fantasy contests. This can relate to the amounts deposited, amount spent per day in fantasy contests entries, or number of entries per day.

The post PGCB Assures DFS Players Won’t Notice Much Difference With Regulated Sites appeared first on Play Pennsylvania.

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Poker Industry PRO: Poker Shines as GVC Boasts of Growth Across the Board

Net gaming revenue up 17% in 2017, with partypoker leading the charge.

GVC has released preliminary results for the full year of 2017, recording bumper figures across all divisions and growth in all primary verticals and markets.

Partypoker was frequently referred to as a shining star in the revitalized “games” brand in what was a strong finish for the group across the board.

Read the full article on pokerfuse →

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Poker Industry PRO: Partypoker Shows it Can Fill Seats Following Successful “Apology Sunday” Schedule

After going offline during the end of the KO Series last week, partypoker makes good on its promise to up Power Series Sunday tournament guarantees by pumping almost $2 million into the schedule.

Partypoker managed to avoid any major overlays on Sunday night after the operator significantly increased the guarantees into the MTT tournaments as a gesture of goodwill following the “server malfunction” that took the Knockout Series offline last week.

In order to restore faith with its customers, partypoker increased guarantees to Sunday’s Power Series schedule along with hosting the three ladies KO events that were all cancelled last week.

Read the full article on pokerfuse →