Political Turmoil: West Virginia Stumbles in Initiation, Tennessee Faces Consequence, Virginia Braces for Challenges, Following Suit
Let's cut to the chase and get this show on the road! Find out the latest in the wild world of U.S. sports betting in our weekly round-up, "Get a Grip."
West Virginia's Political Betting Blunder
NEWS: FanDuel Sportsbook has scored the green light in West Virginia to offer betting markets on the upcoming Presidential election. West Virginia is the pioneer state to legalize political gambling in a regulated atmosphere. Odds will be live soon, man! #SportsBiz
- Eben Novy-Williams (@novy_williams) April 7, 2020
Tuesday night, it seemed that West Virginia - the first state to legalize sports betting in 2018 - had made history once more, as FanDuel Sportsbook announced they had received approval from the West Virginia Lottery to launch political betting markets and tie the knot with POTUS 2020 odds.
This development came just a few days before Joe Biden's last remaining Democratic presidential nomination challenger, Vermont Senator Bernie Sanders, called it quits. We caught a glimpse of the Presidential odds:
But alas, the window only stayed open for approximately 15 minutes before FanDuel pulled the markets down - thanks to a big oopsie by West Virginia Lottery Director John Myers!
Myers admitted he didn't inform Governor Jim Justice about the presidental election wagering launch:
Regardless of any leadership lapses or communication issues that led to the inappropriate rollout of political betting markets, there are also federal laws and at least one state law regulating this type of gambling in West Virginia (Elections § 3-9-22. Wagering or betting on elections; penalties).
Gambling on elections is strictly forbidden, punishable by a misdemeanor, and can result in a fine of up to fifty dollars.
As you may recall, there are some political prediction markets available, like PredictIt and the Iowa Electronic Markets (IEM). However, they remain exceptions in the U.S. because they are not-for-profit, real-money markets launched for experimental research purposes, and not affiliated with sportsbooks.
It's debatable whether the 2018 legalization law intended to permit political betting, despite the above-mentioned ban. Nonetheless, Governor Jim Justice, West Virginia's Governor, had the final say, and the Lottery promptly pulled the plug, so if you fancy betting on Joe or Donald, you'll have to explore alternative paths, such as booking a flight to the UK.
Tennessee: The Turbulent Path to Legalization
We hoped for 5%, which is a bit silly but acceptable under the circumstances, if they absolutely must. Sadly, what's been said in public discussions versus behind closed doors appears to diverge wildly.
The path from legalization to legal sports betting in Tennessee has been over a year in the making. It's surprising that legalization came together in a casino-less, non-gaming state.
The Tennessee Sports Gaming Act put the ball in the court of the Tennessee Education Lottery Corporation (TELC) to regulate matters. However, the initial draft regulations unveiled by the TELC in late November 2019 were a disaster! Public feedback laid it all bare.
Among the most ridiculous proposed regulations: a "payout cap" - or a requirement that sportsbooks must limit their payouts to at least 15% of the total bets taken. It's uncertain why anyone would think sportsbooks should be required to hold onto this much money, but the TELC seems determined to implement overbearing regulation that threatens to create a user-unfriendly marketplace in Tennessee.
It appears that common sense prevailed in the latest round of meetings, and all parties agreed on a payout cap of 95% (still unnecessary but more reasonable than 90%), or perhaps 92%. Now, it seems the cap is back to 90%, as recently discussed in TN Bets this week. Stay tuned, as the TELC board meeting scheduled for April 15 at 2 p.m., CT, may still provide highlights. If the TELC continues down this road of excessive bureaucracy, it will snatch nickels from bettors and breathe new life into illicit sportsbooks and local bookies that operate in tax-free environments.
Virginia: The Next Major Frontier
We expect Virginia to be the next state to declare legal sports betting anytime soon, with Governor Ralph Northam's signature on SB 384 imminent! Learn more about that situation here.
Other Newsworthy Tidbits of the Week
TIME MACHINE: Former Duke backup Andy Means spoke to fellow hoops alum Chris Duhon about the infamous 2004 Final Four "frustration heave" against UConn, the most memorable March Madness bad beat to date [SH]
HEAVY BLOW: COVID-19 is wrecking havoc on the gaming industry (and many others), with layoffs and furloughs becoming widespread [US Bets]
BUYER BEWARE: SBTech ordered to set aside $30 million to settle cyberattack allegations [iGB-NA]
DELAYED OUTCOMES: Bookmakers suspend betting after NBA 2K20 results leaked online [Reuters]
GET CREATIVE: How the sports betting industry adapts during the coronavirus shutdown [NOLA]
A-LIST TOURNAMENT: Matt Damon, Ben Affleck, Tom Brady, Adam Sandler, and other celebrities to participate in a charity poker tournament for Feeding America [Deadline]
INTERNAL STRIFE: Prominent sportsbooks gear up to launch sports betting in Colorado in early May, but they're prepared to shift gears if required [Centennial Bets]
RELIEF EFFORTS: AGA, congressional members seek President Trump's assistance in rectifying gaming's exclusion from $349B in forgivable loans
FOCUS ON GAMBLING ADDICTION: Profile of the new compulsive gambler: Younger and exhibiting self-destructive behaviors online [PennBets]
LOOKING AHEAD: An examination of internal strife that derailed Kentucky's legalization efforts [Courier-Journal]
Stay safe and healthy in these challenging times!
- FanDuel Sportsbook planned to offer odds on the upcoming Presidential election, making West Virginia the first state to legalize political gambling.
- However, the launch was short-lived due to an oversight by the West Virginia Lottery Director, who failed to inform the Governor about the decision.
- The bookmaker faced potential penalties for offering political betting, as such activities are forbidden by federal laws and West Virginia state law.
- In Tennessee, sports betting regulations proposed by the Tennessee Education Lottery Corporation (TELC) initially included a payout cap of at least 15%, requiring sportsbooks to hold onto a significant portion of the bets. This proposal was met with criticism and has since been revised, with a payout cap of 90% now under consideration.
