On October 3rd, West Virginia Lottery officials submitted their conclusive regulations for sports betting, which notably excluded any suggested modifications put forth by representatives of prominent sports leagues such as Major League Baseball, the NBA, and the PGA Tour.
One of the most significant omissions was the absence of integrity fees. The concept of allocating payments to sports leagues from sports betting earnings remains widely rejected by lawmakers and regulators in the Mountain State.
The rules adoption process prompted lottery officials to examine 18 comments submitted, as reported by Jim Jenkins of WV MetroNews. Out of these comments, seven were provided by the sports leagues.
Jenkins was informed by a lottery spokesperson that the lottery will not intervene in negotiations between private business entities.
Striking out again on WV sports betting
The commission’s choice to disregard the league’s fee requests mirrored the stance previously adopted by state lawmakers. During that period, the legislature passed a sports betting bill that did not grant the leagues their desired provisions.
On the contrary, Governor Jim Justice, who is arguably the most prominent figure in West Virginia, holds a contrasting stance on the matter. He maintains strong connections with the leagues and has previously expressed support for the concept of integrity fees.
Justice’s sole objection to the practice was his reluctance for the state to collect the fees. Nevertheless, it appears that in May 2018, he attempted to coerce the state’s casino interests into reaching an agreement with the leagues.
The casinos, on their side, left the meeting empty-handed as they believed that such deals should be conducted in private.
It is possible that a private meeting between the two parties could yield positive results. John Cavacini, President of the West Virginia Racing Association, believes that the true issue was the pressure exerted by the government, as stated by Justice.
According to Cavacini, the tracks are available for negotiation on an individual and contractual basis. He expressed that they prefer negotiating from a private sector perspective rather than having the legislature dictate that businesses must purchase from specific vendors in West Virginia.
Justice is constantly walking an ethical tightrope
Regrettably, Justice finds himself in a peculiar predicament where he can scarcely make a move without encountering a conflict of interest. Besides occupying the governor’s role, he also happens to be the richest person in the state and possesses ownership of one of the five casinos.
Over the years, the resort has been a proud host of various sports team training sessions, welcoming esteemed teams like the Houston Texans and the New Orleans Pelicans. Additionally, the resort’s remarkable golf course has played host to prestigious PGA Tour events.
He made the correct decision by abstaining from signing the state’s sports betting bill. Being a casino owner in the same state, his signature would have undoubtedly raised concerns regarding potential self-interest.
Nevertheless, it seems that he couldn’t resist exerting his influence in favor of his sports league acquaintances.
The lottery needs to proceed carefully going forward
Despite not achieving his desired outcome, Justice is unlikely to remain passive about the issue. Consequently, lottery officials must be extra cautious in their management of sports betting.
The sudden departure of former director Alan Larrick and the mysterious suspension of general counsel Danielle Boyd point to heightened scrutiny. Both the sports leagues and Justice are billion-dollar enterprises with ample resources and unwavering determination to constantly search for vulnerabilities.
At present, the rules are firmly established. It is expected that they will obtain their approval from the legislature during its upcoming regular session.
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