Public Gaming International Gaming July/August 2021

50 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2021 Sports Betting Awaits Ohio Lawmakers After Summer Break Among the conversations that'll take place between now and when lawmakers return from summer break will be the future of sports betting in Ohio. The Senate has spent the last few months working on a bill that would allow for sports betting along with other forms of gaming, including e-bingo at fraternal halls and charitable organizations and exploring the possibility of an online platform for lottery games. A coalition of Ohio's professional sports teams has been pushing to legalize sports betting with most surrounding states already doing so. The Senate betting plan created three types of licenses: to allow gambling through mobile devices (Type A license), in-person (Type B License), and at self-service kiosks (Type C License). In the language amended into HB29, Ohio would allow for up to 25 Type A licenses, 40 Type B licenses, and 20 Type C licenses. New Jersey Lawmakers want voters to expand the state’s sports-betting law to allow for bet- ting on college games played in NJ The NJ Assembly last month approved a resolution, SCR-133, asking voters if they want to allow gamblers to bet on college sports involving New Jersey teams, as well as any collegiate games played within the state. These are currently prohibited under the state’s three-year old sports betting law and would need voter approval. Lawmakers want, in particular, to be able to collect revenue from the NCAA Eastern Regional basketball finals expected to be held in New Jersey in 2025. The state taxes sports-wagering revenue at 8.5% for in-person betting and 13% for Internet wagers. But a recent poll said voters oppose the expansion by a two-to-one margin, with only 25% saying they support the change. Meanwhile, 49% stated they oppose betting on college sports, another 23% were unsure. With the election still four months away, people have plenty of time to change their minds. DraftKings Slumps as Hindenburg Research Alleges SBTech Ties to Illegal Gambling and Organized Crime Shares of DraftKings slid recently after noted short-selling activist Hindenburg Research published a lengthy report. The report alleges the gaming company’s SBTech unit operates in jurisdictions where sports betting is illegal and may have con- nections to money laundering and organized crime. Founded by Shalom Meckenzie, one of the richest men in Israel, SBTech was part of a 2020 three-way reverse merger involving DraftK- ings and special purpose acquisition company (SPAC) Diamond Eagle Acquisition Corp. That transaction paved the way for DraftKings to become a publicly traded entity. At that time, SBTech, which is based in Bulgaria, contributed a quarter of the combined company’s revenue and “was the only positive contributor to operating income, providing both finan- cial stability and technology to the deal,” according to Hinden- burg. However, the research firm, which took a short position in the gaming stock, adds there’s a dark side to those benefits. “Unbeknownst to investors, DraftKings’ merger with SBTech also brings exposure to extensive dealings in black-market gaming, money laundering, and organized crime,” said the re- search firm. “We estimate that roughly 50 percent of SBTech’s revenue continues to come from markets where gambling is banned, based on an analysis of DraftKings’ SEC filings, con- versations with former employees, and supporting documents.” In just over a year as a freestanding public company, DraftK- ings garnered plenty of praise on Wall Street, and even with today’s controversy, at least one bank is stepping up to defend the sports betting stock. The potential for match-fixing hovers over a changing sports betting landscape Yana Sizikova lost her first-round match at the French Open with partner Ekaterina Alexandrova. It turns out that was the least of her problems. The Russian player, ranked 101st in doubles on the WTA Tour, was arrested at Roland Garros shortly after her match in June over allegations of match fixing. Sizikova is being investigated for her loss at the 2020 French Open, when the 26-year-old and her partner lost to a Romanian pair. Red flags were raised within a French police unit special- izing in betting fraud and fixing by the amount of money bet on the Romanians to win a particular game in the second set, when Sizikova served two double-faults. Washington state panel approves sports betting The Washington State Gambling Commission has approved amendments to gambling compacts for 15 Native American tribes that are a major step to allowing those tribes to offer sports betting at their casinos. This was the next step in the complicated process of allowing sports betting, following ap- proval last year by the state Legislature. If the governor approves, the issue will be sent to the federal government for approval. Wyoming Gaming Commission OKs Latest Sports Betting Rules Wyoming is expected to launch sports betting on Sept. 1. In June, the Wyoming Gaming Commission (WGC) met for a special meeting to finalize the state’s online sports betting rules. Earlier in the same day, the WGC posted its latest draft of the rules and eventually decided to send them to Gov. Mark Gordon. Single-Event Sports Betting Coming Soon to PlayNow.com BCLC is gearing up to offer single-event sports bets and bets on racing and fighting on PlayNow.com, follow- ing the Senate’s third and final reading in June of Bill C-218. Shortly after Bill C-218 re- ceives Royal Assent, BCLC will enable PlayNow.com players to wager on the outcome of a single game or match. n