In California, Mizuhara sentencing postponed; no betting prop in '26

Welcome to iGB’s State of the Union, where we delve into the most significant stories from the North American sports betting landscape over the past week and provide insightful briefs on additional developments of interest.

Mizuhara Sentencing Delayed to February 6

The sentencing of Ippei Mizuhara, former interpreter for Shohei Ohtani, has been postponed to February 6, 2024, according to a recent announcement by the California U.S. Attorney’s Office. Mizuhara pleaded guilty last June to embezzling $17 million (£13.6 million/€16.1 million) from Ohtani, linked to illicit sports betting activities. He faces a maximum sentence of 33 years in prison due to charges of bank fraud and filing a fraudulent tax return. U.S. District Judge John Holcomb will preside over the hearing in California.

Engaged in this scandal, Mizuhara placed bets with illegal bookie Mathew Bowyer, whose sentencing is scheduled for April 4 before the same judge. Bowyer’s operations reportedly catered to over 700 clients at their peak and he pleaded guilty to three federal charges related to his unlicensed bookmaking activities that could result in an 18-year prison term. This case is part of a broader Southern California sports betting operation under investigation, where five individuals face charges. Notably, Wayne Nix was charged in 2022 and had his sentencing postponed to March 26, while former poker player Damian Leforbes pleaded guilty last October and is currently under scrutiny for managing an illegal sportsbook.

Kalshi Expands to Sports Betting

Kalshi, a prediction market platform that previously faced legal challenges from the U.S. Commodity Futures Trading Commission (CFTC), has made headlines this week by launching sports betting contracts. Following a favorable ruling that permitted them to offer election betting last fall, Kalshi has now branched into sports wagering.

On January 23, Kalshi introduced a range of sports betting options, including contracts linked to significant events such as the Super Bowl, NCAA Men’s Basketball Tournament, and the NHL Stanley Cup. Following their regulatory filing on January 22, early betting activity showed robust engagement, with over $216,000 wagered on the Philadelphia Eagles for the NFC Championship, reflecting a 71%-29% betting interest. In contrast, the AFC Championship matchup exhibited more divided bets, with a near even split between the Kansas City Chiefs and the Buffalo Bills, accumulating over $105,000 in wagers.

Legislation for In-Flight Betting

A groundbreaking bill filed in Connecticut on January 22 aims to legalize sports betting on flights that depart from or arrive at Connecticut airports. This innovative initiative, if passed, would allocate 1% of in-flight sports betting revenues to support public education across the state’s rural and urban districts.

The proposal comes on the heels of a partnership between DraftKings and Delta Airlines, which allows users to access the DraftKings app during flights. However, current regulations still prohibit in-flight wagering. U.S. Senator Richard Blumenthal, a vocal critic of this partnership, expressed deep concerns regarding the implications for problem gambling, asserting that such a move could exacerbate an ongoing public health crisis associated with gambling addiction.

Potential Fines Looming for Massachusetts Sportsbooks

The Massachusetts Gaming Commission (MGC) has recently come under scrutiny following revelations that Fanatics Sportsbook and FanDuel accepted bets on Belarusian sports events despite an existing ban. During a meeting on January 23, it was disclosed that these transactions, occurring between March 2023 and March 2024, were not self-reported by either operator but surfaced during regulatory audits. The MGC has initiated a referral to its Investigations and Enforcement Bureau, which is likely to recommend fines against the sportsbooks.

Following the onset of the Russia-Ukraine conflict in February 2022, the MGC enforced stringent restrictions on betting related to these nations. Commissioner Eileen O’Brien emphasized the clear mandate against such wagering practices, underscoring the commission’s disappointment with the lack of compliance.

Jai Alai Betting Set to Launch in Florida

On January 21, Hard Rock Bet announced the official launch of jai alai betting in Florida, marking a milestone as the first of its kind in the U.S. Customers can now place wagers on the World Jai-Alai League (WJAL) and access live streaming of events. The introduction of jai alai betting expands Hard Rock Bet’s portfolio to over 20 sports, highlighting their strategic partnership with Magic City Casino in Miami. WJAL games will take place every Monday, Tuesday, and Friday.

In Other News…

The Responsible Gaming Council has collaborated with the NFL to introduce educational tools promoting responsible gambling at eight universities across Canada.

Virginia Lawmakers have decided to postpone the igaming bill, scheduled for consideration in 2026, with the bill’s sponsor assessing the need for further study ahead of proceeding.

Hard Rock Bet announced on January 22 that its sports betting and igaming platform is now integrated with their loyalty program, Hard Rock Unity, enabling customers to earn points for both digital rewards and on-property benefits.