We predicted a kangaroo court for sports betting on Capitol Hill last week and our fears were confirmed when influential Rep. James Sensenbrenner opined that “We’re going to be in for huge amounts of trouble in the future.” Nothing like stacking the deck before the
committee dealt to its witnesses. Sheldon Adelson puppet Jon Bruning whined predictably that “there needs to be some federal guardrails regulating online gambling,” although it is significant that Adelson appears to have conceded the inevitability of Internet gambling. “I think one thing all of you agree on is that for Congress to do nothing is not an option,” Sensenbrenner loftily declared after threatening states with a new, improved version of the defunct Bradley Act. (Now there’s a question to ask Brett Kavanaugh, if one got the chance.)
Our declaration last week that the American Gaming Association‘s Sara Slane was treated with respect may have been premature, judging from the condescending attitudes toward her and Nevada Gaming Control Board Chairwoman Becky Harris of Sensenbrenner and Rep. Robert Goodlatte (R). Slane tried to educate lawmakers on the intricate ecosystem of sports wagering, adding, “While the stated intent of prohibiting legal sports betting throughout most of the nation was to preserve sports integrity, [the Bradley Act] had the opposite effect by creating an enormous and largely unobserved black market.”
Reps. Dina Titus (D) and Tom McArthur (D) also tried to inject sanity, writing that “Nevada, which has had legal and regulated sports betting
since 1949, proves that sports wagering can be properly regulated at the state level to enshrine consumer protections, law enforcement and wagering integrity. A heavy-handed federal framework could repress innovation and competition, sending more people back to the illegal market.” However, some believe that it’s now a footrace between state-level legalization and federal regulation, with the states winning if a plethora of them enshrine sports betting into law.
The Sensenbrenner committee’s stacked deck was evident in its choice of witnesses, with Slane and Harris outnumbered by Bruning, the NFL‘s Jocelyn Moore and gambling opponent Les Bernal. Since the latter opposes gambling outright, why was he even on the witness list? As for Moore, the NFL should be more worried about the many beams in its eye — just ask Clay Matthews — than the mote in Big Gaming’s. As for Sensenbrenner, he painted federal oversight of sports betting as an inevitability, saying, “We have some work to do. and I’m looking forward to working with you to try to come up with something both short term and something more permanent to deal with this issue.
* Perceptions of bias on both sides of the forthcoming Wynn Resorts disciplinary hearing have forced Massachusetts Gaming Commission Chairman Stephen Crosby to resign. This is unfortunate
because Crosby knows the troubled history of Encore Boston Harbor from the ground up. Also, it probably delays resolution of the disciplinary issue — whether Wynn committed wrongdoing when it hid a paternity settlement by founder Steve Wynn — never mind that replacing Crosby is going to be a difficult act to follow. We suggest former state attorney general Martha Coakley — that is, if Gov. Charlie Baker (R) doesn’t harbor ill will toward Coakley stemming from the 2014 gubernatorial race.
* MGM Resorts International has commissioned a six-pack of short films from directors Michel Gondry and Olivier Gondry to raise awareness of Park MGM. While this confirms my suspicion that the resort lacks inherent brand equity, MGM’s creativity is to be lauded. Watch all six and tell me what you think, should you be so inclined.
* Just in time for Global Gaming Expo, Ainsworth Game Technology CEO Danny Gladstone announced his resignation. A 16% drop in profits seems to have been the inciting incident.
* Macao‘s recovery slowed to 3% last month, thanks in part to Typhoon Mangkhut and partly due to an expected visit from President Xi, which sent a number of whales scurrying for cover, causing junkets to be canceled. Golden Week begins today and Wall Street expects it to help the situation.
