College gambling investigations, OK's Stitt won't stand down, more

Welcome to iGB’s State of the Union, your source for the latest and most significant developments in North American sports betting. In this edition, we’ll delve into critical investigations, regulatory challenges, and noteworthy industry shifts that are shaping the landscape of legal gambling.

Investigations Heat Up: College Basketball Faces Scrutiny Over Gambling Allegations

As Selection Sunday approaches, the world of college basketball is again under the microscope due to emerging gambling controversies. Notably, two universities have initiated investigations into their basketball programs amid troubling allegations.

On February 26, college basketball analyst Jeff Goodman revealed via Twitter that four players from the University of New Orleans (UNO) have been benched since late January and are now subjects of a gambling investigation. Simultaneously, Fresno State also benched two players on February 22 as part of an ongoing inquiry into sports betting activities.

These investigations are part of a broader narrative concerning integrity in college sports, with speculations linking them to a high-profile betting scandal involving Jontay Porter of the NBA’s Toronto Raptors. Porter was convicted last year for illegal betting practices that included manipulating game outcomes.

Reports indicate that standout players from UNO, including James White, Jah Short, Dae Dae Hunter, and Jamond Vincent, have been sidelined for “violating team rules,” although specific infractions have not been disclosed. ESPN has suggested that this investigation may connect to a wider illegal betting operation, with allegations of suspicious betting activity in recent UNO games.

At Fresno State, Mykell Robinson was removed from the roster in January, while Jalen Weaver and Zaon Collins were implicated in gambling activities, leading to their benching during the game against Air Force. Both the university and the NCAA are currently scrutinizing these matters.

Oklahoma’s Sports Betting Landscape: Governor Stitt Proposes Controversial Framework

Oklahoma Governor Kevin Stitt remains resolute in promoting his 2024 sports betting proposal, designed to provide tribes with exclusive in-person wagering rights while allowing commercial entities to engage in digital betting. This plan has sparked legal concerns, potentially conflicting with the Indian Gaming Regulatory Act (IGRA).

As the state’s tribal communities have historically maintained a contentious relationship with Governor Stitt, this proposal poses significant questions regarding their sovereignty and regulatory rights. Despite the absence of a public response from tribal leaders, they have indicated a preference to defer serious discussions regarding sports betting until after Stitt’s term ends in 2027.

The state legislature is deliberating several bills on sports betting, including SB 585, which proposes to authorize tribal retail betting while granting digital rights to the Oklahoma City Thunder. This bill would limit the number of mobile platforms available and ensure revenue sharing with tribal entities participating in gaming compacts.

Although SB 585 advanced out of committee on February 19, it awaits full senate consideration alongside other proposals that failed to progress.

Prime Sports Founder Joe Brennan Advocates for Change in Betting Regulation

On February 23, Joe Brennan announced his departure from Prime Sports, a betting site known for its adherence to traditional wagering practices. His decision stems from a strong belief that the evolving legal sports betting environment necessitates significant reform.

Brennan expressed his frustration via LinkedIn, citing the ongoing challenge posed by unregulated betting markets that siphon away funds from legitimate operators. He is embarking on a journey to consult with industry stakeholders, aiming to derive insights for transformative changes in the gambling landscape.

“I’m reaching out to engage with others’ experiences in the industry. Our sector demands more differentiation, competition, protection, innovation, and inclusivity. Ultimately, we must act as responsible custodians of the gambling ecosystem,” he stated.

Legislative Concerns: Rep. Dina Titus on Prediction Markets as a Potential Threat to State-Regulated Betting

On February 21, U.S. Representative Dina Titus from Nevada underscored her concerns regarding emerging prediction markets in a letter addressed to the Commodity Futures Trading Commission (CFTC). She warned that these platforms could pose a significant challenge to the integrity of state-regulated sports betting.

Notably, companies like Kalshi and Polymarket have begun offering contracts on sporting events, raising alarms due to their lack of similar oversight that traditional sports betting platforms must adhere to. This issue gained traction following a recent court victory for Kalshi that enables it to continue offering event contracts.

Titus cautioned that permitting these markets could effectively create a “backdoor” route for legalizing sports betting in jurisdictions that have yet to authorize such activities, complicating the regulatory landscape traditionally managed at the state level.

New York State Gaming Facility Location Board Welcomes New Member Teryl Brown

On February 24, the New York State Gaming Commission appointed Teryl Brown, Vice President and General Counsel at Pace University, to the Gaming Facility Location Board. She will play a pivotal role in evaluating bids for three new casino licenses in downstate New York.

This appointment marks the third new member added to the board in recent weeks, replacing Carlos P. Naudon. Commission Chair Brian O’Dwyer noted, “Ms. Brown’s extensive experience and public service record will be invaluable as we consider proposals that can significantly impact New York’s gaming landscape.”

Critical Legal Milestone: Colorado Tribes Face Deadline in Digital Betting Lawsuit

Colorado’s Ute tribes are approaching a vital legal deadline on March 7, which will determine the viability of their lawsuit against the state concerning digital sports betting rights. This lawsuit emerged after state regulators denied the Southern Ute tribe’s ability to relaunch a mobile wagering platform, asserting that tax obligations must be met to operate beyond Indian territories.

The outcome of this case could have widespread implications for tribal gaming across the United States, particularly as it juxtaposes the rights afforded to tribes under the IGRA against state regulatory decisions.

Legal experts predict that a ruling in favor of the Ute tribes may set a precedent much like the landmark West Flagler decision in Florida, further shaping the digital wagering framework available to tribes nationwide.

In Other News…

The Ohio Casino Control Commission reported on February 26 that it seized 184 illegal slot machines following raids at three Columbus locations, reflecting ongoing efforts to combat unregulated gambling.

WTOP recently announced that FanDuel has closed its retail sportsbook at Audi Field in Washington, D.C., after four years of operation, while the company celebrated the opening of its new office in Newport, New Jersey on February 27, solidifying its commitment to the region with over 400 local employees since 2016.