Washington state a long way from gambling regulation

Will Washington State have legal sports betting?  We’re probably years away from that happening despite the fact that other states across the nation have been proactive in drafting legislation to legalize gambling in their state.

Last year, the United States Supreme Court struck down the federal law that banned sports gambling in all but a handful of states.  The U.S. Supreme Court left it to the individual states to decide whether or not they allowed gambling.  Currently, there are 8 states that have passed laws to allow legal betting in pro and college sports.

In the 2019 legislation session, Olympia had three bills on gambling on pro and college sports.  But none of those bills came close to passage.

HB 1975, as outlined by the Tacoma News Tribune, was the most notable as it would have allowed Vegas-style gambling only at tribal casinos.  As you might expect, there was opposition by trade groups representing card rooms, sports bars and restaurants.

This doesn’t even consider the possibility of mobile sports betting.  HB 1975 would have allowed bets to occur over one’s phone only if the individual is in a tribal casino.  But first, the stakeholders must decide on a platform.

HB 1975 received the most attention because of the strong backing by the tribal casinos.  But this was offset by other potential venues for gambling including the Emerald Downs racetrack in Auburn, Washington.  Emerald Downs, which also houses a casino on its premises, voted against the measure despite the fact the track is run by the Muckleshoot Indian Tribe.

Since this is a new issue for lawmakers to grasp, there are a lot of questions and concerns.  One of the major issues is the possibility of the rise of gambling addiction.  In addition, the economic impact of regulating sports gambling is an interesting proposition for the state which is always is always looking for ways to generate revenue.  According to the American Gaming Association, there is an estimated $58 billion bet on the NFL and college football each year.  But, most of that is illegal.  If the state can realize on a fraction of the amount of money through regulated sports betting, it would certainly be a boon.  HB 1975 which would allow sports betting on tribal lands would mean that state and local governments would not receive tax revenue but only through a trickle-down affect from consumer spending.

If, or maybe when, sports betting is legalized in the state, one would have to think that the Washington State Gambling Commission would be a part of overseeing regulation.

Other states including Montana and Oregon have moved forward in legalizing sports gambling.

“Skins” lawsuit filed by owners of Tribal Casino go after Valve

A “skins gambling” lawsuit was filed in Washington State last month by a Native American Tribe that owns the Quinault Beach Resort and Casino citing that Valve’s CS:GO use of skins is illegal gambling. The Quinault Nation argues that Valve’s video game, Counter Strike: Global Offensive, did not have a license to operate, facilitate or otherwise engage in any form of gambling. The lawsuit was filed in Grays Harbor County, Washington.

Quinault Nation is a federally recognized sovereign Indian Nation consisting of Quinault and Queets tribes and descendants of five other coastal tribes. It owns and operates and Indian gaming casino licensed by Washington state and regulated by the Washington Gaming Commission.

Valve is a Bellevue-based video game and online content platform company. “Skins,” as defined by the lawsuit are primary currency used “by illegal, unregulated, and unlicensed online gambling website.” They are “add-ons” to enhance the video game experience. They can be bigger guns, different outfits and more. These “skins” must be purchased with money and are not included as part of buying the video game.

According to the lawsuit, Valve was complicit with the “skins” economy as it offered a “key” for $2.50 to access virtual items that were worth much more than the value of the token. It also “allowed gambling websites to use Valve accounts on Valve’s servers and Valve’s computers to effectuate gambling transactions.”

Below is an example that was embedded in the lawsuit.

The Quinault Nation is requesting a court order requiring Valve to stop offering crate opening online slot machine gaming until a time in which the Washington Gaming Commission can examine it to determine if it requires a license.

The lawsuit builds on previous litigation which included an attempt to bring a class-action lawsuit against Valve but those lawsuits were sent to arbitration as individual cases pursuant to a class action wavier and arbitration clause in Valve’s Subscriber Agreement.

Here, The Quinault Nation has an interest in Valve’s alleged “skins” gaming as they believe it takes away from its own legal and licensed gambling enterprise. They believe that Valve is engaging in unfair competition with the legally licensed, regulated gambling. Notably, it explains that this is due to neither Valve or internet gambling sites using Valve’s virtual items having to abide by gaming laws and regulations, and consumers and the plaintiffs being harmed as a result. It cites a consumer protection component as well since there are scammers out there that are not regulated that may sell fraudulent items on web sites.

November 2018’s Washington State Hearing and Update on Sports Betting

Washington State Legislature Looks at Skins Gambling

Nevada law establishes esports betting in state

A new Nevada law signed by the Governor late last month clarified the legality on esports betting.  The new bill allows parimutuel esports betting within the state.

The new law amends language to ensure that “other events” are included in parimutuel wagering.  The gaming laws and parimutuel laws are different in Nevada and thus the law sought to clarify the legality of betting on esports.

The move is another sign that Vegas wants to be the hub of esports.  Some Vegas hotels are converting some of its space to host esports gaming tournaments.  The lure is to bring in the younger demo with hopes of it spilling into their casinos.  The new bill grants the chance for a broader opportunity to bet on esports.

GAME Act seeks to legalize sports gambling

A new bill seeking to repeal the current ban on sports gaming was introduced into Congress on Thursday.

The bill is a likely response to the U.S. Solicitor General’s recommendation that the U.S. Supreme Court not take the sports gambling cases litigated in New Jerseys.

The Gaming Accountability and Modernization Enhancement Act or GAME Act was introduced on Thursday per an ESPN report.  The GAME Act would repeal PAPSA, the much-litigated federal legislation which prohibits sports gambling.

The GAME Act defines a bet or wager as “the risking of something of value including virtual currency or virtual items, upon the outcome of a contest of others, a sporting event or a game of skill or a game of chance, on the expectation that the person will receive something of value in the event of a certain outcome.”  This includes daily fantasy sports.

The Act, according to the drafter of the bill, is an opportunity to update the gambling laws.

Vegas expanding to cater to esports patrons

The Wall Street Journal reports that the MGM Resorts in Las Vegas is turning a former nightclub at its Luxor Hotel and Casino into a permanent venue in hosting esports contests.  The restructure should be done by next year according to the company.

The move is a nod to attract younger visitors to Vegas at a time with “subdued growth.”

Gambling on the Las Vegas Strip is down 7% since 2007.

With the average esports fan between 21 and 35 years old, the move to attract younger people to Vegas hopes to spur growth for the gambling industry.  Certainly, younger adults have more disposable income due to a lack of a mortgage or children.  Esports is a niche industry that is trending upwards.

MLS Commissioner talks Facebook deal and opens up regarding regulated gambling

As Major League Soccer opened its season earlier this month and with it came news from MLS Commissioner Don Garber that he would not be opposed to legalized gambling.

Speaking at SXSW in Austin, Texas, Geekwire was able to catch up with him.  Garber spoke at Geekwire’s Sports Tech Summit last summer.

Via Geekwire:

“We have a project going on now to really dig in deeply and understand it. I’ll be the third commissioner (along with NBA’s Adam Silver and MLB’s Rob Manfred) in and say I’m very open to understanding how we can get more engaged in this market in a way that I think if done properly, can be regulated and managed and controlled. I’ll join the chorus of saying it’s time to bring it out of the dark ages. We’re doing what we can to figure out how to manage that effectively.”

In addition to this news that the MLS will be open to hearing about the possiblility of regulated gambling of its sports, he announced a Facebook streaming deal which will expand its reach across an untapped platform.  The MLS will be the first league with an extended package on Facebook.

Embracing new ideas and technology are two characteristics new to leagues.  The opportunity to engage with as many fans as possible is key as well as monetizing them.