Please note that Delaware North, the owner of the three WV sportsbooks that have been suspended, has announced its decision to cut ties with Miomni, the sports betting provider. It has been 23 days since the company has had access to sports betting, and there is currently no resolution in sight. Delaware North has informed the West Virginia Lottery of their intentions. For more information, you can read the full story on Legal Sports Report. We will keep you updated on any further developments regarding this ongoing situation.
There has been some clarification regarding the sports betting situation in West Virginia.
On Tuesday, Legal Sports Report acquired a letter from Delaware North (DNGE) through a public request made under the Freedom of Information Act.
The article provides an overview of the ongoing legal battle that is preventing the operation of betting windows at two sportsbooks in West Virginia, as well as the BetLucky mobile sports betting app.
The Wheeling Island Sportsbook and Mardi Gras Casino Sportsbook are operated by DNGE. Through a collaboration with Miomni Gaming, they have introduced sports betting to these establishments, along with the option of mobile sports betting through the BetLucky app.
The company attributes the shutdowns to Miomni’s conflict with a third-party supplier, Entergaming. Ultimately, this is the reason behind the company’s blame.
DNGE explains WV sports betting shutdown
In a letter penned by E. Brian Hansberry, the President of Delaware North, dated March 19, all the pertinent issues are outlined.
Hansberry asserts in the letter that Entergaming’s intellectual property rights regarding the utilization of portions of the platform have been and are still being violated by Miomni.
Hansberry points out that DNGE was unaware of the agreement between the two companies at the time it entered into a contract with Miomni.
There is an ongoing disagreement between Entergaming and Miomni regarding the rightful usage of specific intellectual property. Miomni decided to end its partnership with Entergaming in February.
Entergaming is a Greek-based software development company that specializes in gaming, automation, security, and retail sales. With a global presence, the company serves a wide range of clients and customers worldwide.
Miomni is a company that focuses on gaming technology, and it has offices located in:
- Nevada
- New York
- UK
Play-wv.com received no response from either Entergaming or Miomni when contacted for comment.
As per the contents of the letter, DNGE was taken aback and left in a state of uncertainty due to the unexpected service cancellation. Furthermore, the company was unaware of the platform’s dependence on Entergaming intellectual property.
Hansberry writes:
As we take into account the allegations raised by Miomni and Entergaming, the ongoing service disruption experienced by the people of West Virginia, and our unwavering dedication to maintaining integrity and delivering exceptional services, we are currently assessing our available choices. We anticipate providing an update on our upcoming actions in the coming days.
Our West Virginia patrons and DNGE employees, who are West Virginia residents, have already experienced significant disruption due to this issue. Additionally, DNGE’s business and operations have been negatively impacted, resulting in lost revenue and decreased tax contributions. Furthermore, this situation has caused reputational damage to DNGE.
Shutdown results
The closure of sportsbooks in WV has had a significant effect on the rest of the market, resulting in a substantial decrease in total betting activity. To illustrate, the week ending on March 16 saw a handle of approximately $2.8 million in wagers.
The handle has dropped to its lowest point since November, which was a whole month prior to the opening of sports betting at Wheeling Island and Mardi Gras.
Del. Shawn Fluharty (D), one of the key proponents of sports betting legalization, is currently overwhelmed with disappointment due to the latest outcomes.
“I find it incredibly frustrating that despite all the years of effort I put into initiating and promoting this, taking early action, forming alliances with key stakeholders in the lottery and casino industry, and leading the way in sports betting, it is disheartening to witness West Virginia’s progress being overtaken.”
According to Fluharty, resolving the Miomni and Entergaming dispute might not happen swiftly, especially when considering the extensive history of intellectual property conflicts between companies like Apple and Samsung.
He warns that intellectual property disputes have the potential to drag on indefinitely, becoming increasingly unpleasant. If left unresolved, this could have negative consequences for West Virginia.
“If you’re Delaware North, it’s crucial that the vetting process should have been done more thoroughly. Let me get this straight, you entered into an agreement with Miomni without knowing who they were collaborating with. You were completely unaware of the dispute between Entergaming and Miomni. Were you truly oblivious or did you not adequately scrutinize the process?”
Regulatory role
Although Fluharty may have doubts about DNGE’s efforts in vetting its sports betting partners, he acknowledges the importance of regulators in this process.
He states that regulators are entrusted with the responsibility of ensuring that such incidents do not occur. Therefore, if you are in charge of the lottery, it is imperative to have a comprehensive understanding of all parties involved before approving any operations.
Despite the additional gambling responsibilities, Fluharty still believes that the West Virginia Lottery can effectively regulate all casinos and gambling.
So far, I haven’t received any indication suggesting their inability to accomplish that. I believe they will take action and thoroughly research online gaming.
Revenue losses for state
The closure of sports betting has not only impacted online gaming but also the state itself. Fluharty emphasizes that this, along with the delayed implementation of sports betting, has resulted in a substantial decrease in tax revenue for the state.
Fluharty discusses the potential revenue opportunities that were overlooked in relation to March Madness.
The generation of revenue streams for sports betting will be severely impacted by this, ultimately leading to blame being placed on the legislature. They will be accused of making empty promises and failing to deliver on their commitments. This is a common pattern, which adds to the frustration of the situation.
Fluharty concurs that Delaware North should contemplate its alternatives regarding its sports betting partner. The disagreement has the potential to prolong and result in the loss of customers and market dominance for the company.
He suggests that when a dispute arises, it seems as if the parties involved are confused and uncertain about what is happening and who should take responsibility. If Miomni failed to fulfill their obligations, it might be possible for another party to step in and invalidate the contract. This situation could potentially give rise to various complications and problems.
DraftKings could potentially benefit from the situation by seizing an opportunity in the market, especially if they receive regulatory approval in the near future.
Fluharty suggests that, considering the current situation of online betting in West Virginia, it is highly likely that they have a strong motivation to enter the market.
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