Online gambling bills, NBA scandal, more in State of the Union

Welcome to iGB’s State of the Union, where we present an insightful analysis of the most significant North American sports betting developments from the past week, alongside intriguing briefs from across the gambling landscape.

On January 30, U.S. attorneys filed court documents advocating for a considerable prison sentence for Ippei Mizuhara, the former interpreter for baseball sensation Shohei Ohtani. Mizuhara is accused of illegally wagering with a bookmaker while embezzling $17 million (£13.7 million/€16.3 million) from Ohtani, and these developments raise pressing ethical concerns regarding trust and integrity in sports. His sentencing is scheduled for February 6, and prosecutors recommend a sentence of 57 months.

The lead prosecutor, Jeff Mitchell, emphasized that Mizuhara does not appear to have a gambling addiction. Evidence indicates that Mizuhara began gambling on the legal platform DraftKings in 2023, after already having pilfered millions from Ohtani, illustrating a calculated breach of trust rather than an addiction-driven lapse in judgment.

In a letter expressing remorse submitted to the court, Mizuhara’s sincerity has come under scrutiny. Mitchell highlighted a broader concern: “True remorse is evidenced by actions, not merely words of regret once caught.” This case not only showcases individual failings but exemplifies the heightened scrutiny surrounding gambling practices in professional sports.

Unraveling a Scandal: Mizuhara’s Connection to Broader Malfeasance

Continuing the saga, Mizuhara pled guilty in June 2024 to multiple charges related to illegal sports betting and theft from Ohtani. His association with illegal bookmaker Mathew Bowyer—who will face sentencing in April—reveals a disturbing trend of corruption involving former minor-league player Wayne Nix, further entangling the credibility of professional sports in the realm of illegal betting.

Documents indicate that this group has laundered proceeds through various casinos in Las Vegas and Southern California, reflecting the intricate and often nefarious connections of illegal gambling networks. While Mizuhara’s celebrity status places him at the forefront, historical context suggests he is merely one cog in a larger mechanism of unethical behavior that undermines the integrity of sports.

Wyoming’s Online Gambling Prospects Suspended

This past Thursday (January 30), tribal authorities from Wyoming expressed opposition to House Bill 162, aimed at expanding online gambling within the state. Testimonies revealed that the introduction of digital sports betting has adversely impacted tribal revenue streams. The bill, which proposes a 16% tax on operators meeting specific eligibility criteria, has been put on hold as deliberations continue next week.

Keenan Groesbeck, chairman of the Northern Arapahoe Tribe, voiced concerns that the influx of gambling options threatens their fiscal sustainability, asserting their need to preserve revenue aimed at community improvement. The Wyoming Gaming Commission would be responsible for outlining robust regulations by December 31, pending the bill’s revival.

Alabama: A Crucial Moment for Gambling Legislation

As Alabama’s legislative session approaches, the discourse surrounding gambling is intensifying. Media outlets like Alabama Political Reporter are urging citizens to engage in upcoming discussions concerning gambling expansion, while advocacy groups are mobilizing against it. The Alabama Policy Institute has launched a website countering the legalization of casino-style gambling and a statewide lottery, arguing that such measures could exacerbate governmental overreach and social issues.

The Alabama legislative session will open on February 4, presenting an opportunity for lawmakers to revisit previous proposals that sought to introduce an expansive gambling framework, including online betting. The failure of a comprehensive bill last year underscores the contentious nature of gambling policy in the state.

NBA’s Rozier Under Investigation for Betting Irregularities

In potentially the latest incident linking athletes to illicit gambling, NBA guard Terry Rozier is reportedly under investigation concerning unusual betting activity surrounding a March 2023 game against the New Orleans Pelicans. After leaving the game due to injury, Rozier’s performance was notably below average, raising red flags among regulators and league officials.

The NBA confirmed that while their internal investigation found no violation of league rules, they are now cooperating with a federal inquiry initiated by the U.S. Attorney’s Office for the Eastern District of New York. Such scrutiny illustrates the increasing vigilance by governing bodies against betting-related misconduct and the need for transparent practices within professional sports. Former NBA player Jontay Porter is facing charges related to his involvement in facilitating similar activities.

Hawaii Attempts to Enter the Digital Sports Betting Arena

On January 27, a bill proposing the legalization of digital sports betting in Hawaii was forwarded to the House Economic Development Committee. The proposed legislation allows for up to four wagering platforms, imposing a 10% tax on adjusted gross gaming revenue, a significant step for a state currently devoid of legal gambling. Lawmakers in Hawaii have been consistently evaluating options to embrace regulated sports betting, indicating a shift in their stance toward digital wagering.

If passed, this will join several competing bills filed this session aimed at regulating and taxing not only sports betting but also fantasy sports, showing welcoming momentum for gaming expansion in the Aloha State.

Mississippi’s Bold Stance Against Sweepstakes Platforms

In an innovative legislative move, Mississippi Senator Joey Fillingane introduced a bill to entirely ban unregulated sweepstakes platforms, distinguishing the state’s approach to illegal online gaming from New Jersey’s more regulatory stance. SB 2510 categorizes a spectrum of online gaming activities as unlawful gambling, carrying severe penalties for violations.

This act represents a significant pivot in Mississippi’s gambling policy, where online gambling remains illegal, yet the discussion is increasingly shifting towards regulation rather than prohibition in adjacent jurisdictions.

British Columbia to Launch New Sports Lounges

In an exciting development for sports enthusiasts, the British Columbia Lottery Corporation (BCLC) has announced plans to inaugurate two new brick-and-mortar sports betting lounges in the near future. The first venue, located at Chances Casino Kelowna, will unveil its offerings on Super Bowl Sunday (February 10), featuring state-of-the-art sports viewing amenities.

These lounges aim to enhance the experience for sports lovers and provide comprehensive betting services, including competitive live odds, underscoring the growing intersection between sports culture and gambling in the Canadian province.

Beware of Scams Targeting Online Casino Players

Chukchansi Casino in California has issued a cautionary statement regarding fraudulent social media posts purporting to offer online casino bonuses that are unrelated to the casino itself. This serves as a reminder for players to remain vigilant and only engage with reputable sources to avoid falling victim to scams, a growing concern within the digital gambling sphere.

In Other Developments…

New York Governor Kathy Hochul recently enacted legislation reinforcing advertising guidelines for digital sports betting and casino promotions to ensure responsible gambling messaging is included.

ESPN Bet and the PGA Tour are set to introduce a dedicated betting stream on February 6 during the WM Phoenix Open, allowing for more immersive wagering experiences for golf fans.

Connecticut legislators are considering a new bill that would permit betting on in-state college teams, a subject currently restricted by existing laws.

The Swinomish Indian Tribal Community has partnered with Rush Street Interactive to open a new brick-and-mortar sportsbook as part of the growing interest in regulated gaming within the state.

North Dakota lawmakers have defeated a bill aimed at establishing legal online sports betting, continuing a pattern of hesitation regarding digital gambling expansion in the region.