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Nevada Gaming Policy Committee hearing on DFS

Tuesday, March 8, 2016 : NEVADA POLICY COMMITTEE HEARING ON D.F.S ADVOCATES CLOSER OPERATOR - REGULATOR RELATIONSHIP (Update)
 
Nevada Gaming Commission confident that present laws on the books are sufficient, but DFS operators find them "onerous" and "heavy handed."
 
Nevada governor Brian Sandoval's Nevada Gaming Policy Committee hearing on DFS and other matters Monday produced a consensus that there is a need for regulators and operators to develop a closer working relationship, with further hearings planned later in the year.
 
Reports in the Las Vegas Review Journal and Vegas Inc. note that all parties appeared eager to bring (properly regulated) daily fantasy sports back to Nevada after the exodus which followed the opinion of the state Gaming Commission that the genre constitutes gambling and requires licensing and regulating (see previous InfoPowa reports).
 
However, there appeared to be some dissonance between regulators, who feel that the state's laws are sufficiently comprehensive to cover the proper regulation and licensing of DFS, and the CEOs of the two DFS market leaders (DraftKings and FanDuel) who opined that the Nevada regulations are too "onerous" and "heavy handed" for DFS companies, although when pressed were not able to say specifically which regulations troubled them.
 
Tony Alamo, who heads up the Nevada Gaming Commission was in no doubt that the current state laws and regulations are adequate to the task, observing:
 
“I think we have the infrastructure right now to regulate it with the laws we have on the books.”
 
However, other committee members pointed out that if DFS companies were to licence as sportsbooks in Nevada it could put them in an invidious position in other US states, explaining that under US federal law only Nevada and three other states are allowed to legally engage in sports betting.
 
Blake Sartini, chief executive of Golden Gaming, said the issue is something of a Catch 22. "We would love to see your industry prosper and grow, but our attorney general has already stated it’s a sportsbook, and anything in conflict with that in another state is going to pose a problem for us,” he said.
 
The DFS chief executives at the hearing, Jason Robins from DraftKings and Nigel Eccles of FanDuel suggested that the stringent Nevada regulations may stifle innovation in their dynamic industry, but were unable to be specific. However, both expressed a willingness to seek a compromise and accepted that regulation was necessary.
 
Governor Sandoval said that he hoped the committee would deliver a solution that suited all parties, perhaps in the form of a recommendation or investigation into another category of licensure that addresses the DFS business model, but he added that he expected the DFS executives to prepare “meaningful proposals” on how to move forward.
 
The committee heard testimony from a range of interested parties in order to assemble sufficient views to frame future discussions. Among those presentations was one by gaming analyst Chris Groves, who pointed out that phenomena like DFS are dynamic, innovative and fast-rising, necessitating a faster, more nimble regulatory system.
 
“A regulatory approach should appreciate that these products can rise very quickly and can become cultural phenomenons in a brief period of time,” Grove observed. “There’s something about that reality that does call for the regulatory approach to anticipate that these products might enter the picture, but also that their entrance is inevitable and will be far more rapid than craps or faro.”
 
William Hill US CEO Joe Asher did not mince his words in asserting that daily fantasy sports was gambling and simply a different form of sports betting. He also attacked the characterisation of DFS as an extension of traditional season-long fantasy sports, claiming that there are some similarities but no comparison in terms of size and scope.
 
Asher noted that companies like his are required to post bonds for the financial security of players, and adhere to strict regulatory requirements...and he opined that DFS companies should be made to do the same under similar licensing conditions.
 
Geoff Freeman, CEO of the American Gaming Association opined that traditional gambling operators will be reluctant to become involved in DFS until the legal situation offers more clarity. “They don’t fit into the traditional regulatory and statutory silos,” Freeman said. “They’re new platforms that present unique sets of questions.”
 
In closing proceedings, Governor Sandoval said three more meetings of the committee are planned this year, probably in May, August and October, when DFS along with skill games and interactive gambling will be discussed.
 
These meetings will lead to a set of recommendations for the consideration of Nevada lawmakers in the state's 2017 legislative season, he said.

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Gambling News :

South Africa Going After Illegal Gambling - In South Africa a combined national police and federal enforcement initiative has shuttered 19 illegal gambling venues across the provinces of Northern Cape and North West.

The Winning Express arbitrage sports betting scheme - A UK-based GBP 27 million arbitrage sports betting scheme, The Winning Express, has collapsed, leaving a thousand investors with concerns that their money is lost, according to a BBC report over the weekend.

Global Poker League Championship Results - #gpl The inaugural season of the Global Poker League Championship played out this week with the Montreal Nationals besting the Berlin Bears across 11 games to claim the $100,000 main prize.

Yahoo DFS Gets Uk License - #yahoo Industry observers point out that Yahoo has thus far carried out little in the way of major marketing on DFS in its US endeavors, unlike rivals DraftKings and FanDuel, and they expect it to follow a similar path in the Britain.

SPANISH GAMBLING MARKET CONTINUES TO GROW - Spain's gambling industry continued to advance in 2015 with growth in most sectors, according to the latest research report from the Codere - University of Madrid Institute for Policy and Governance collaboration released this week.

Novomatic Acquires Albanian National Lottery - #Novomatic The Austrian gaming technology group Novomatic has issued a statement confirming that it has completed the final required steps for the successful acquisition of the Albanian National Lottery.

2016 Massachusetts Gaming Commission Report - Industry journalist Steve Ruddock picked up on some interesting statistics from the latest annual report of the Massachusetts Gaming Commission released this week, flagging the current results from its on-going monitoring research of the state gambling market.

Jack Lam denies bribe allegations - Allegations by Philippines Justice Secretary Vitaliano Aguirre that casino tycoon Jack Lam used 'facilitator' Wally Sombero in an attempt to bribe him into protecting Lam interests have been hotly denied by Lam.

Fonbet Gets Russian Betting License - #Fonbet Russian-licensed operators are required to use officially sanctioned payment hubs called TSUPIS to facilitate government oversight, and this may be a concern for Fonbet at present.

New Attempts to Restore the Wire act - In the first of these initiatives, which Online Poker Report notes is supported by only eight state AGs (half those who signed a similar letter last year), the signatories seek support for RAWA at a Congressional hearing scheduled for December 9.

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