The voters in Maryland will see a ballot question in November regarding the legalization of sports betting. Question 2 will state plainly, “do you approve the expansion of commercial gaming in the State of Maryland to authorize sports and events betting for the primary purpose of raising revenue for education?” If the ballot measure should pass, the Maryland legislature will work to lay out a framework for the industry in the new year.

Senator Craig Zucker of Montgomery sponsored the recent legislation. “I feel like we would have had a more comprehensive piece of legislation to present the voters had a global pandemic not happened.” He went on, “we just made a judgement call to get it on the ballot and allow voters to have their say.” The legislation he proposed included mobile wagering as well as brick and mortar sports betting instillations. His bill passed the state Senate unanimously however, the House was only able to approve a paired down version before the legislative session was ended early due to the Covid-19 pandemic. Senator Zucker expects that the mobile gaming issue will ultimately be approved. “I can’t imagine a scenario where we wouldn’t allow mobile betting. Eighty to ninety percent of sports betting is done online.”

Specifically For Education

Industry experts have estimated that legal sports betting could raise annual revenues for the state of roughly $20 million. Both the legislation and ballot question itself specify that these funds would be set aside for state education initiatives.

“Given the horrific economic impact of Covid-19, any additional revenue that we can get that would help toward education is important,” said Senator Zucker. This is a key time for the state to be raising education funds. Just this past March, the state legislature passed the Blueprint for Maryland’s Future, a bill aimed at education reform in the state. The bill was comprised largely of recommendations by Maryland’s Commission on Innovation and Excellence in Education. Unfortunately, the economic downturn associated with the Covid-19 pandemic put pressure on lawmakers to keep spending down. Governor Larry Hogan vetoed the multimillion-dollar bill in Spring of this year.

Not all lawmakers were behind the bill. Delegate William Wivell voted against the sports betting legislation and was one of only three legislators to do so. “The legislature has a spending problem, and the amount of revenue that’s going to be generated by sports betting is not going to bail them out of that problem,” said Wivell. He also expressed concern about widening the scope of gambling within the state. “I just think at some point we have to set limits on what we’re gambling on. We don’t have to bet on everything.”

A Growing Trend

Sports betting is a major industry in the United States and several states have taken active measures to bring the practice under a legal framework. New Jersey, Pennsylvania, West Virginia, and Washington D.C. have legalized sports betting as has Delaware and Virginia. Many in the state of Maryland do not want to be left behind and lose out on beneficial state revenue streams. “I hope Maryland voters approve this, because if we don’t get this done in November, by the time voters have an opportunity to vote on it again, maybe 75% of all states in the U.S. will have sports betting up and running,” said Senator Zucker.

Tennessee approved three sports betting licenses at the end of September and looks on track to bring a sports betting market to the state before the end of the year. The Tennessee Education Lottery Board’s Sports Wagering Committee is charged with processing license applications. The Committee has conditionally approved licenses for BetMGM, LLC, Crown TN Gaming, LLC which owns DraftKings, and Betfair Interactive U.S., LLC which owns FanDuel.

In addition, the Sports Wagering Committee approved a number of licenses for suppliers and vendors, bringing the count well past 30 and giving the Tennessee sports gambling market a healthy diversity of online sports gambling options. The Sports Wagering Committee is scheduled to convene again in mid-October in order to review more applications and digest feedback from the sports betting operators that have already been issued licenses. There is currently no limit to how many licenses can be approved. Every license holder will be required to adhere to strict guidelines as set down by the Tennessee Education Lottery Corporation which is responsible for regulation of online sports wagering in the state.

Concerns had been expressed about how disruptive getting the industry up off of the ground in Tennessee would be. “I think people in Tennessee will be very familiar with the companies based on the fantasy sports side of things.” Brian Pempus is an industry expert from New Jersey and works for one of New Jersey’s online gambling platforms. He has seen all three operators succeed quickly in the New Jersey market and in other legal sports betting states across the country. He went on, “it was a very seamless transition for them to go into real money traditional sports betting.”

Legislative History

Online sports betting was legalized in Tennessee on July 1, 2019 despite opposition from Governor Bill Lee and by a very narrow margin in the state legislature. He stated that he did not believe that, at this time, passing online sports wagering legislation was “in the best interest of the state.” The Senate passed the bill with a vote of 19 to 12 and the State House of Representatives passed it 58 to 37. Yet the industry is estimated to bring in roughly $50 million each year into state coffers. That is much needed state revenue that will be set aside for education initiatives, local government budgets, and gambling addiction treatment programs.

New Territory

However, like many states that have recently passed sports betting legislation, they have yet to see their first bet. The state does not have brick and mortar gambling venues so the online market will be a first for Tennessee.

In April of this year, the Lottery Board approved rules and guidelines to govern the sport. The process was lengthy, taking several months and seeing the creation of the mandated, nine-member, Tennessee Education Lottery Corporation and an advisory council. Currently the state law allows online sports wagering in a number of ways including, via the internet, mobile devices, and telecommunications. Patrons will be required to be physically located in the state and at least 21 years of age or older.

In the wake of legalization, Virginia legislators have presented a draft of the sports betting regulations for public comment. There has been a significant rebuttal from online sports betting platforms such as FanDuel and DraftKings. The companies see some of the proposed regulations as untenable and unrealistic in the current sports betting climate.

In early 2020 the Virginia Legislature legalized sports betting within the state (HB 896). The bill empowered the Virginia Lottery to approve no more than twelve sports betting licenses to both brick and mortar locations like Colonial Downs and online based platforms such as DraftKings. In a review done by the Joint Legislative Audit and Review Commission on the profitability of online sports wagering, the commission estimated that tax revenue could be as high as $55 million per year.

The purposed regulations have now entered the public review phase. This period will determine how quickly legal sports betting is introduced to the state. But it will also shape the form that sports gambling takes in Virginia and several operators have expressed their concerns.

Advertising to Consumers

Under the current draft of the regulations, platform operators will be required to submit their advertising materials to the state lottery for prior approval. Marketing and promotional material will also need to be approved before platforms can deliver it to consumers. The aim is to prohibit sports betting platforms from branding content specifically tailored to minors.

The regulations would also prohibit advertising on any media that itself caters to minors. However, they do not specify which platforms specifically fall within the rule. Many sports betting platforms have countered with an offer of prior notice to the lottery rather than formal prior approval.

Penn National Gaming is not alone in seeing this formal ad review requirement as exceedingly burdensome. “By mandating an approval process for all advertising efforts, this will impact the ability to get promotions quickly posted, which is extremely important given the fast-paced nature of sports (e.g. playoff series being extended),” the company wrote in response to the proposed regulations.

The Olympics

Although not included in the legislature’s bill, the regulations include a provision which prohibits sports betting on the Olympics. The bill itself does prohibit betting on college sports games that involve Virginia schools. But the issue of gambling on the Olympics was left up to the Virginia Lottery to determine. Sports betting platforms, such as DraftKings, have expressed significant concern.

Their argument is plainly, to exclude certain sports defeats the purpose of legalizing sports betting. “In order to fully eradicate the illegal market, the legal market must be able to compete, which means including as wide an array of event and betting options for consumers.” DraftKings went on, “the International Olympic Committee is an international sports governing body that ensures integrity across the events it oversees and, as such, the board can be assured events comport with ethical standards.”

Displaying Odds and Handles

The proposed regulations are written to create a so called “Sports Bettors Bill of Rights.” One of those rights would require the various sports betting platforms to display the real time odds of winning a bet including how those odds were determined, the total amount wagered, and pay out amounts. Operators argue that sports betting odds differ greatly from the mathematical odds in other forms of gambling such as the lottery, card games, or dice based games.

Top sports betting platforms, such as DraftKings and FanDuel, gave significant pushback. Such regulations would be a first in any U.S. state to make sports gambling legal. “Sports betting apps are simply not built to provide and display this type of information,” wrote FanDuel in response to the proposed regulations. The company offered a recent example of an NBA Playoff game with twenty-four types of bets a customer could place. That gave a gambler more than 300 possible outcomes with an incalculable number of potential parlays. The processing power and screen space needed to display that information in real time could create huge logistical challenges, FanDuel wrote.

“As such, this requirement would force a re-engineering of the products, to create a demonstrably worse user experience, and all to provide information which is immaterial to the calculation of the odds and/or payout a bettor will receive.” FanDuel went on, “the actual odds that the Brooklyn Nets will beat the Toronto Raptors, and by how many points, is unknown.”

Consumer Exclusion Safeguards

The proposed regulations layout a detailed process by which consumers can voluntarily exclude themselves from sports betting if they feel they are becoming addicted and losing excessive amounts of money. The individual can ban themselves for periods of two years, five years, or for life. The self-identified addict would simply need to provide information such as address, date of birth, social security number, and description of their physical appearance. However, platforms have argued that the process is filled with flaws.

If a self-identified addict is found to have gambled on one of the various sports betting platforms, the platform is required to “seize the individual’s winnings and other things of value.” FanDuel responded, “it would be no more appropriate to require permit holders to seize the funds (not ascribable to winnings) in an individual’s account, any more than it would be for a casino operator to seize all the money in a self-excluded individual’s wallet if they were found to have entered the casino.”

The proposed process also requires a self-identified addict to ban themselves by going to the betting apps rather than through the lottery site. In addition, an individual who would like to ban themselves for life would need to appear in person. “This is akin to requiring an individual to enter a casino in order to ban himself from a casino,” said a representative from Caesars Entertainment.

The self-exclusion process would allow an individual to cancel their current bets and receive a refund. This has operators concerned that gamblers could use the process to get out of high-risk bets. Penn National Gaming wrote, “a patron may have a future wager on a team to win the Super Bowl, as soon as they know the team will not make the playoffs, they self-exclude in order to get a refund.”

Upcoming

The public comment period for the proposed regulations ended last week and the Virginia Lottery is scheduled to convene to discuss finalizing the regulations this week. Once the regulations are in place, the Lottery will begin accepting applications for sports betting licenses.

Due in large part to the economic effects of Covid-19, the state of New York has seen a marked drop in income tax revenues. In addition, gas, sales, and just about every other business and personal tax base have slipped as well. Online sports betting may be the solution the state is looking for to increase revenue in light of the current economic climate.

Assemblyman Gary Pretlow, Democrat from Westchester County and lead sponsor in the Assembly for an online sports betting bill stated, “it’s going to happen.” And he is not alone. Supporters of an online wagering bill in New York say that this is the moment to push for legalization after years of effort. As lawmakers return to session in the hopes of balancing the 2020 budget, proponents look forward to a move towards legalization of online sports betting.

However, the issue is far from settled. Governor Andrew M. Cuomo has been firm in his belief that such a move towards legalization cannot simply be passed by the state’s lawmakers. Rather, legalization would require ratification through a multiyear constitutional amendment process; including a statewide referendum by New York residents. State lawmakers also share concerns that the proposed revenue sharing plan allows gambling institutions to make too much profit at the expense of funds that could otherwise be used towards the state budget. Others are concerned that the state already holds too many opportunities for gambling. “How many times have we heard that gambling is going to be good for state revenues? We OK’d casinos and then they ran deficits,” said a state lawmaker on the condition of anonymity.

How They Plan to Make it Happen

Revenue-raisers or tax hikes have been the subject of talks to reconvene lawmakers in an attempt to reduce the state’s roughly $13 billion budget deficit. Those talks include the possibility of raising taxes on the wealthy and some state corporations. The alternative would be to cut funding towards public schools, healthcare services, and nonprofits which provide critical state services.

The decision will turn in large part on the outcome of talks at the federal level as to how much unrestricted money will be released to states like New York. If Republicans and Democrats in Washington, along with President Trump, can find a way to provide more federal money to states, New York may not be forced to turn to other revenue enhancements such as new taxes or cut spending.

While sports betting is legal at brick and mortar locations in New York, all, except for Native American casinos, are currently closed under the state’s response to Covid-19 public health concerns. Here lies the advantage in permitting online sports gambling. Even with the limited MLB and a an altered NBA season, online sports betting has the potential to generate huge revenues on everything from cricket and soccer, to darts.
Both the state Assembly and the Senate held sessions last week but did not decide on the online sports betting issue. There are three potential outcomes that residents could expect.

First, state lawmakers could decide to vote on the issue this year under the guidelines of a constitutional amendment. If passed, the decision would need to be reaffirmed in 2021 and then voted on by the state’s residents in November of 2021. However, the deadline for such a move was early August and no plans have been made to reconvene the Legislature for this year. So, the earliest that residents would likely see a ballot question would be November of 2023.

Second, lawmakers could pass a revenue enhancement bill in the coming months which includes legalization of online sports betting. A similar move was seen last year when Senate Democrats issued a nonbinding political message approving mobile sports betting. State Senator Joseph Addabbo, a Democrat from Queens, took this as a good sign and favored the decision not to take the route of constitutional amendment. Both Sen. Addabbo and Assemblyman Pretlow see the amendment process as unnecessary and costly as opposed to a bill’s legal efficiency. They are comfortable accepting the constitutional amendment process as a strong second option should Governor Cuomo decide to veto a bill from the Legislature.

Third, lawmakers could simply pass on the issue altogether. Many in the state’s Assembly see other revenue building plans as more comfortable and less of a moral quandary.

In the coming weeks and months, as the revenue gap widens, lawmakers in New York will see more pressure to act and get the deficit under control.

Over the past week, Illinois Governor J.B. Pritzker signed an Executive Order to allow bettors to create online accounts for sports betting. This Executive Order suspends the need for in-person registration for any sports wagering in the state and is part of the state government’s response to COVID-19 emergency safety restrictions. While a number of states throughout the country are slowly starting to reopen businesses and relax social distancing restrictions, Illinois has no definitive plan to re-open casinos in the immediate future, leaving the future of sports betting in limbo. A number of professional sports leagues have announced their intentions to return to play under new guidelines and in a series of one of a kind competitions. Pritzker’s Executive Order presents Illinois residents with the opportunity to begin betting on sports from the comfort of their own home.

Initial Plans for Illinois Sports Betting

The introduction of legal sports betting in the state of Illinois began a year ago, when state officials passed a bill to grant and approve licenses for sportsbooks. The bill requires bettors to register at casinos, racetracks, or sports facilities in order to legally place wagers on their favorite sports. After signing up in person, bettors may place wagers on mobile applications that are operated by the brick-and-mortar locations where they registered. Since the introduction of the bill, only two casinos have been granted temporary operating permits by the Gaming Board: Rivers and Argosy Casino Alton. However, at this time, neither of these two brick-and-mortar locations have requested approval for online sports wagering. It’s worth noting that Illinois also included a “penalty box” period in their gambling law, which gives casinos 18 months of sports betting before online gaming giants like FanDuel and DraftKings can apply as a sports betting provider.

After much deliberation surrounding the rules and regulations for these perspective sports betting providers, sportsbooks were prepared to officially launch in time for this year’s March Madness tournament. This launch, however, came to a screeching halt due to the coronavirus pandemic. As the threat of the pandemic grew, safety regulations prevented any possibility of bettors registering at brick-and-mortar locations. Of course, these regulations also led to the suspension of collegiate and professional sports on a global scale.

The Return of Sports Betting

Since social distancing regulations and stay-at-home orders were put in place in mid-March, the United States has successfully started to flatten the curve and stymie the spread of coronavirus. During this period, professional sports leagues, including the NHL, NBA, and MLS, have developed and announced their intentions to return to play. All of these plans have resulted in an unprecedented period in which these major sports leagues will be playing throughout the summer, in competitions that will be the first of their kind. The start of these competitions has created the perfect storm for sportsbooks looking to get back into the action.

While the recent Executive Order is a step in the right direction, it does not change the fact that the only legal sports betting options, at the moment, are limited to the brick-and-mortar locations. Officials are hopeful that these casinos can reopen sometime in June, but in the mean time they remain closed indefinitely. Illinois Gaming Board administrator Marcus Fruchter issued an announcement stating that Pritzker’s decision opens the door for online sports betting to become available sooner rather than later. The statement went on to praise the order as an option for protecting a revenue source during a period in which the state is recovering from the financial impact of the pandemic.

The Gaming Board will hold a virtual meeting on Friday, June 11, which will be its first meeting since January 30. Bettors and officials alike hope that this could be a crucial step in launching sports betting in time for Illinoisans to place a wager on their Chicago Blackhawks, when the NHL playoffs kick off later this summer.

Facing one of the greatest lulls in sports betting since its legalization in the United States, Nevada has approved esports betting for regulated sportsbooks throughout the state. As the coronavirus pandemic spreads across the globe, sportsbooks have been forced into limited sports betting offerings, raising concerns for operators throughout the country. In an attempt to mitigate the effects of these limited offerings, Nevada has made the historic decision to allow sports betting outlets throughout the state to begin accepting wagers for Counter Strike: Global Offensive (CS:GO), a popular and competitive first-person shooter. With this decision, Nevada becomes the first state in the country to officially offer esports betting, opening the door for other states to do the same.

Shifting to Esports

While professional sports leagues across the globe have stopped indefinitely due to the coronavirus, professional gaming has come into the spotlight. Professional gamers and streamers have found solace in the fact that much of what they do can be completed from the comfort of their own home, while retaining a competitive atmosphere that sports fans crave. Even popular NBA and NFL players have begun to explore this outlet, playing and streaming competitions with some of their favorite video games.

The potential of offering lines on esports has hung in the balance in many states, as sports betting continues to evolve throughout the country. While many states have adopted legislation for sports betting since the Supreme Court’s 2018 decision to lift the ban, many other states continue to question its merit. While sports betting is still in its infancy throughout the country, many have debated whether or not esports should be thrown into the mix of potential lines for bettors.

While the legitimacy of esports may be debated, there is no denying the competitiveness. Leagues for popular games like FIFA, Overwatch, League of Legends and CS:GO have been established across the globe with official rules and regulations. Some leagues, like FIFA, have even established ties with professional sports leagues like the MLS. Additionally, streaming platforms like Twitch, Mixer, and YouTube have given professional gamers an outlet for building an audience that is comparable to professional sports contests. Now, with the absence of available traditional contests to wager on, it appears that esports is going to have a chance to prove itself as a viable sports betting option.

Opening Day

On Thursday, William Hill became the first Las Vegas sportsbook to begin offering esports betting, listing lines for contests that took place on the same day. The CS:GO matches that they offered lines on were available to live audiences on various streaming sites, including YouTube and Twitch. Much like any other sporting events, the odds were accessible via William Hill’s Nevada mobile app for players to begin placing their wagers. The matches offered by William Hill took place in the ESL Proleague and included the following matchups: 100 Thieves (-500) vs. Swole Patrol (+375) and Team Liquid (-335) vs. Made in Brazil (+275).

One Small Step of Esports

In many countries throughout Europe, esports has already been accepted as a reliable sports betting option. In the United States, New Jersey has tested esports betting, but concrete legislation has not been finalized. Nevada’s decision to pioneer esports betting by offering odds for CS:GO paves the way for other states, as well as other esports.

The decision to offer lines for esports appears to be a lifeline for a gambling industry that is not only faced with the issue of suspended sports leagues, but also the temporary closure of many brick-and-mortar sportsbooks and casinos. In the coming months, the success or failure of Nevada’s decision could determine the future of esports betting in the country.

Alberto Garzon, Spain’s consumer protection minister, recently announced plans for a serious crackdown on gambling advertising amidst concerns about addictive gambling behaviors. Throughout the country, officials have already begun to impose over 100 new restrictions, including cutting 80 percent of online gambling adds and limiting opportunities for gambling advertising sponsorships in professional sports. The decision to launch these new restrictions stems from a campaign promise made by Garzon’s Unidas Podemos party to protect youth and gambling addicts. The latest changes have raised some concerns about the possible impact on the growing gambling industry.

Details of the Ban

The reasons for the ban have been clearly stated; Garzon considers this a clear issue related to public health, much like the use of tobacco or other addictive products. The Spanish gaming lobby reported that gamblers in the nation lose an estimated 10 billion euros every year. This estimate includes sports bets, casinos, and national lottery tickets. While this figure is certainly staggering, it is important to consider its implications for the amount of potential revenue produced through wagers placed and sponsorships that have come from this budding industry.

One of the most important changes to help address Garzon’s concerns is the banning of marketing offers that advertise promotions for free bets to new customers, which Garzon believes clearly targets vulnerable groups. Along those same lines, any ads during live sports broadcasts cannot promote live betting or specific in-play wagering markets. These free bet and live betting promotions are common for online casinos and sports betting sites throughout the world, yet Garzon clearly feels that a change must be made to eliminate them.

The new restrictions will reduce television gambling advertising by as much as 80 percent. This will be done by limiting all online gambling adds to a four-hour window starting at 1 am. This window not only applies to television adds, but also radio and online platforms. Gambling companies will also be barred from using celebrity endorsements in any of their advertising, which could have a significant impact on companies like Codere, who use Real Madrid stars Luka Modric and Eden Hazard for their marketing. Additionally, soccer teams who feature gambling advertisements on their jersey will have to remove those advertisements on all youth jerseys being sold.

Potential Effects of the Ban

Like many other regions of the world, Spain has seen an increasing interest in gambling over the past decade. Online gambling in Spain nearly tripled between the years of 2014 and 2018. With this substantial growth, the nation has inevitably witnessed a rise in gambling advertising as well. These sweeping regulations now pose a significant threat to advertisers and the sports teams they sponsor, as well as the gambling industry as a whole.

Many teams have benefitted from the significant growth in the gambling industry throughout the country. Popular Spanish soccer clubs, such as Barcelona, Real Madrid and Levante, have featured gambling advertising on their jerseys for years. Under Garzon’s new restrictions, gambling and sports betting companies are barred from entering naming rights deals with professional sports teams’ stadiums, nor can they have advertising within these stadiums. Many soccer clubs throughout Spain have enjoyed sponsor deals with gambling companies, and they may feel that these new restrictions pose a threat to these lucrative opportunities.

While the current changes have a relatively minimal impact on sports betting itself, they could have serious implications for the industry over time. The changes do not completely remove sports betting advertisements from the equation, but teams could become wary of entering new sponsorship deals in fear of stricter regulations in the future. Additionally, the impact of the limited advertising opportunities could damage existing revenues, shrinking the gambling and sports betting industry as a whole. It will be interesting to see how Garzon’s regulations affect the gambling landscape as they are introduced over the next few months.

On Thursday, February 6 an appeals court in the state of New York determined that daily fantasy sports contests are in fact illegal under state gambling laws. These contests, which have been in operation since 2016, were found to be in violation of the state’s constitution, threatening sports betting giants like FanDuel and DraftKings. The latest ruling also contested an earlier provision that designated daily fantasy sports as something other than “gambling’ under state law. Now, as sports betting is becoming more and more prevalent throughout the country, industry leaders are faced with the potential threat of this ruling reaching higher level courts and eliminating one of their most lucrative markets in the nation.

Development of Sports Betting in New York

The legalization of fantasy sports in the state came in 2016, when Gov. Andrew M. Cuomo signed a law that declared these games did not constitute gambling. Cuomo signed the law on the grounds that fantasy sports provided for consumer safeguards and minimum standards. Until recently, officials had felt that fantasy sports did not constitute “gambling” because they required skill, unlike other gambling activities that are left to chance. The 2016 law also regulated and taxed daily fantasy sports providers, such as FanDuel and DraftKings.

Fantasy sports traditionally require bettors to assemble a team of professional athletes from the sport of their choice, while adhering to a set of theoretical salary caps. Once these teams are assembled, bettors can earn point with their teams over a short period time or in a fantasy sports league that lasts a portion of the professional season. The ongoing challenge to designate fantasy sports as gambling under the state law comes from the idea that these games leave much of the outcome to chance, rather than skill.

The timing of the ruling may come as a shock to bettors and industry leaders alike. In 2018, the United States Supreme Court lifted the ban on traditional sports betting throughout the nation, giving states the option of developing and implementing their own laws. Now, 13 states have legalized sports betting, and companies like FanDuel, a New York-based sports betting company, have been able to capitalize on this opportunity.

Evolution of the Lawsuit

The court ruling is actually the result of a lawsuit dating back to October of 2016, shortly after Cuomo signed the law legalizing fantasy sports. Four New York residents asserted that they had been harmed by this type of sports betting. This group of people, referred to as Stop Predatory Gambling, asserted that daily fantasy sports were a form of consumer financial fraud, and that the government was using them to exploit people who were already in debt. Jennifer White, a member of this group, shared how fantasy sports contributed to the debts her mother and father owed, resulting in significant financial harm for them and their family.

The New York Supreme Court’s Appellate Division found that the law signed by Cuomo in 2016 was unconstitutional and could not be exempted from the penal code. The reason behind their ruling stood in contrast to supporters’ initial reasons for legalizing fantasy sports; the appellate court stated that while fantasy sports do require some level of skill, they also involve a great deal of chance. For example, player injuries, bad weather, or other factors could greatly influence the outcome of each game. The amount of chance involved in each competition, the court felt, was too great to exempt fantasy sports from falling under the category of gambling.

Since the court is proposing that fantasy sports be classified as gambling under state law, the legalization of daily fantasy sports would require both a constitutional amendment and voter approval. This amendment and voter approval would be necessary if the higher courts agreed with the ruling of the appellate court.

Future Outlook of New York Sports Betting

As it stands, there is no guarantee that the case will reach the state’s highest court, the Court of Appeals. The lower level court’s ruling does not immediately affect the operation of fantasy sports, so customers will still be able to play until the case advances. Both DraftKings and FanDuel issued statements that suggested they were not fearful of any significant action in the near future, and they expect to continue business as usual until further notice.

While the immediate future of fantasy sports seems to be secure, the lawsuit definitely puts a bit of uncertainty into the state’s gambling landscape. New York is one of the largest daily fantasy sports markets in the country, and the threat of a lawsuit such as this one cannot be ignored.

On Monday, leaders of the House and Senate confirmed that they were in talks over a potential gambling expansion that would bring organized sports betting to Florida. The bipartisan effort has led to serious conversations with the governor, in hopes of yielding a different result than previously proposed sports betting deals. The latest proposal hopes to bring in revenue from the Seminole Tribe, who has stopped making payments to the state due to a breach in their original agreement. If Florida were able to complete the steps necessary to legalize sports betting, they would become the 21st state to do so.

Context of the Deal

After Florida pari-mutuels infringed upon the Seminole’s exclusive right to operate designated-player card games, the state began losing money. The Seminole Tribe, who is best known for their Hard Rock casinos throughout the state, stopped their annual $350 million payments, which has caused Florida to look elsewhere to make up for the lost revenue. While a number of new betting options have been considered, nothing has gotten enough traction to even begin putting a dent in the missing revenue. Known for their complex and sometimes confusing gambling laws, Florida is now turning their attention to the sports betting industry, which has been growing significantly throughout the country.

Legislators hope that a new sports betting deal could restore revenue payments from the Seminole tribe to the state, while also upgrading gaming options at pari-mutuels. Rep. Mike LaRosa, who pushed to negotiate a sports betting deal in 2018, stated that the goal of the latest proposal is to iron out some of the larger issues, in hopes of finding a compromise between constituents before working on the details for new policy.

Weighing the Options

Although officials have expressed interest in bringing Seminole revenue back into the picture, it is clear that their intention is to continue allowing pari-mutuels to operate designated-player card games. Gov. Ron DeSantis also clearly stated that any new legislation would not be a broad expansion of gaming throughout the state. The state’s unwillingness to ban designated-player card games and DeSantis’ stance on gaming expansion doesn’t necessarily bode well for new legislation, but officials believe they have found a way to keep all parties happy.

In order to begin receiving revenue from the tribe again, Florida must first offer them exclusive access to something competitors, like the pari-mutuels, do not have. In this case, that ‘something’ is sports betting. By giving the Seminoles exclusive rights to sports betting at their Hard Rock locations, the state could then capitalize on some of the revenue, while also sharing some of the pot with the pari-mutuels, who could still operate their games.

Although talks are still in the very early stages, a number of other proposals have been made surrounding the possibility of online sports betting. Officials are seriously considering offering online sports betting in poker rooms at dog tracks, horse tracks, and jai-alai frontons. These locations could offer sports betting through terminals run by the Seminole Tribe. Other options could include increased hours of operation for tribal casinos, with additional games. The main focus is that the Seminoles would be the central figure in sports betting, if legislation moved forward in the state.

Long Way to Go

Any significant sports legislation is still a long way off, as officials continue to engage in preliminary discussions about possible sports betting options. The primary objective of the bipartisan effort to bring sports betting to the sunshine state is to keep the conversation going, in hopes of ruling out things that will not work and identifying the things that will. The biggest challenge that officials are facing, is the Seminole’s willingness to cooperate in the new discussions, given the fact that the state has broken their agreement in the past.